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tv   Mad Money  CNBC  April 2, 2019 6:00pm-7:00pm EDT

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be setting up for a short squeeze. >> guy >> nobody likes to take their medicine, mel, but sometimes it makes you feel better. twitter took their medicine a month or so ago and look where the stock is >> sfoon full of sugar. >> see the meantime, "mad money" with jim cramer starts right now. 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 isn't just to entertain but to educate and put it in context. >> call me at 1-800-743-cnbc. or tweet me @jimcramer let's talk about euphoria. and by that mean the fabulous lack of euphoria, yes, the lack of euphoria in this bull market. let's talk about lyft.
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after a placid day the nasdaq actually advanced 1.25%, i think the decided lack of enthese yachl for the stock deal that is lyft is one of the best things, best things that's happened to this market in ages and no one is saying this but listen up, first of all, i know i got it wrong. i've had to play whac-a-mole with the haters because last time i said it was a good trade. shortly after it fell through its price even as the rest of the market performed well and lyfts with decidedly a dud initially i was too focused on myself or as my wife constantly says you always think it's all about you. hey, she's not wrong it's kind of a wife's theme, plural but once i got over the fact that underwriter jpmorgan allowed lyft's tock to slice through the $72 offering price,
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like a dewalt buzz saw through a stick of land o lakes, i realize, this may be a huge positive for the market. but i figured out that the collapse of lyft is a powerful sign there is no irrational exuberance to be found it is constrained and investors behaving rationally, not what expected a week ago, it's what i was most worried about i think this might be fantastic. now, while i like lyft as a play on the turbocharged on the ride-sharing business i know it's losing a ton of money as a commentator my job is to help you game the gamers, which means figure out what the big accounts will do because they're the ones who move stock prices with their buying and selling. with lyft, i thought the underwriters did a good job meaning money managers allocated to withheld their shares rather than flipping it it looks like i got it wrong on me. now, there was some irrational ex-use rans at the start and
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heard it could begin trading on 80 then i heard 84, 85 then i heard it's 90 or 100 and that was way too high could have been a facebook-like disaster then the underwriters released some of the portfolio managers who promised to hold ton to the stock because they didn't want to lose control of the process. it drove lift back to 87 which i said was a good opening because it was a lot better than the crazy spike onto 100 but the damage was already done. lyft was in weak hand, smaller holders who purchased the stock using market orders which is exactly the opposite of what i always tell you to do. next thick they go on the offensive and after a stand as -- as brief as it was at 80 bucks lyft had a total breakdown. the bids they got owe split rated. underwriters and here talking about jpmorgan seemed to make a half-heart add tempt but that didn't work either now lyft is a $69 stock which means anyone who got in on the deal has lost money and the underwriters didn't even try to
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stabilize at all letting it find its own natural level. they were luck y the stock dropped to 66 bucks, 2 points from where it traded but closed at the 69 level still well bow lee the $72 pricing. what's so great about it after a lot lost money, i'll tell you, going into the lyft ipo you know what my biggest fear was that it would go off without a hitch and encourage caspar, slack, pinterest, uber to rush to the market because these companies want to take it while the take something good and that's why i warn you a flood of new deals could swamp the stock market with too much supply particularly because much would be from index funds. now, that's much more of a concern after the disaster that was lyft now, can you imagine discussions between the brokers and these private company, motion of which are losing money just as fast as lyft i bet they're saying, unless you want lyft on your hands and look like idiots we're going to get things under control and won't allow the big first day pops but
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shake the market at a level where we think we can control it the companies don't want to be too greedy maybe people will want to ride with uber now who bought lyft? it's a bad idea to have what happened to all right. you may have liked lyft and then you lost money in the deal and now you're switching to uber the exact opposite of what lyft wanted so what happens now how about the preservation of the bull market. bulls tend to die from exuberance, not weakness and a shortage of an lit ig rigger not a sober reflection on the botched lyft deal. the exact opposite of 1999 that was the most heated ipo market and led to this incredible top in the nasdaq one step further, when i see the anger and blame me because i'm an easy target, not the syndicate head of jpmorgan or the investment bankers, faceless syndicate people, who knows what they look like, i know this is going to be a total curb your enthusiasm moment. we haven't fallen exact to
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euphoria but i'm getting this much hate mail only i actually like that. bring it on, right that's what you're not supposed to say that's what bush said. i say, hit me again. it's not just the lyft fiasco that makes me feel more positive, you've got this whole thing going with the love canal -- i'm sorry, with walgreens. it smells more like -- a it just reported a ridiculous quarter and showed it is totally oblivious to every major retail trend out there. also every health care trend out there. from their insistence to continuing to sell tobacco, hey, man, maybe they ought to get some of those juuls like the wintergreen or like peeps, or that's an easter reference or, you know, the huge declines in prescriptions and front of the store sales was pitiful, it was horrible it was really -- maybe the worst conference call and they should have preannounced a number
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they talked about digitization they're so far behind. i understand how the government wants reimbursement cut back i understand walgreens was caught against different comparisons because of the flu season and understand why they couldn't make enough on generic drugs but the front is getting crushed people customers aren't coming in the door, why? amazon yep, unlike costco or home depot walgreens has no idea how to deal with the death star of retail cvs acquired aetna although we know it hasn't worked out and was down another 2 bucks walgreens, the chain what thantsthant -- wanted theranos labs, yeah, all 8200 stores according to elizabeth holmes, ooh, i guess understand best wishes are in order. they've distinguished themselves as the lyft of drugstore chains. now, like bed, bath & beyond, i
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have no idea how to save it but buying back 3.8 billion system is not the answer especially when your cfo admits your cash flow was rock yy. i don't think theranos in-store clinics in all store, it might have been ill advised. sure, there's bizarre good news from an unenthusiastic place mark zuckerberg nailed his 95 -- talking about how his company is no longer a hired gun. if that's how it could rally more than 5 bucks, now facebook is loved they're saints but here's the bottom line. we had a rational lack of exuberance for lyft that seemed like it would be red hot to me and thought it would work or as those incredible stock sages
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outcasts, yes, outcasts so eloquently put it, what's cooler than being cool? ice cold lyft was ice cold and that's great news for the rest of the market because a flood of hot ipos is the last thing the bulls need hey, i want to start with joanna in maryland. joanna >> caller: hi ya, jim. how are you doing? >> excellent how about you? >> caller: awesome i have myson robert here who has a great question for you >> caller: boo-yah, jim. >> boo-yah >> caller: i just finished a class in school where i learned about the stock market i wanted to try trading stocks on my own so asked for a brokerage account from my grandparents my grandfather said to start watching your show to learn what stocks might be a good investment i know you really like apple and so far i have bought several shares of apple stock. but now i want to know if you think that ford is a good investment >> oh, you know, well, first of all, this kid has horse sense, thank you, grandfather
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the problem with ford. they have expedition is making a ton of money the lincoln navigator is making a ton. the f-150 is making a ton of money blue at the same time they have all this other business so i'll have to say we'll pass right now and thank you, joanna for calling. is that outkast from 2003? it seems like it in the end we had a rational lack of exuberance for lyft. lend me some sugar, partner. it was just ice cold and that's great news for the rest of the market on "mad" i'm hopping behind the wheel for a test drive of tesla. you won't believe this you better stick around. then after the 20% drop on friday, it might look like it's in need of a restoration itself in the furniture space and why it has nothing to do with what's happening here at home
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theranos stick around >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an mail at madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com. brian sullivan "worldwide exchange" 5:00 a.m. eastern. >> ibm ceo ginni rometty, "squawk aid little." 11:00 a.m. eastern the latest innovation from xfinity
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like never before store. the xfinity store is here. and it's simple, easy, awesome. all right, when everybody else is at their most emotional crazed moments, that's when you need to be at your most empirical. surgical when wall street is afraid to take a deep breath and try to approach things from a more logical quantitative perspective and when a trade is trading wildly based on fear, okay, and hope, the best thing you can do is to remove your feelings from the equation how do you make that happen? i got one way. you fall back on the charts. technical analysis is far from perfect but it gives you a prism based on the observations and that's always going to be worth a lot. it's part of the mix
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and that's why tonight we're going off the charts with help of bob maroon know, colleague at realmoney.com and, of course, being the publish of rig rightviewtrading.com he called the bottom in december when everybody else was panicking. one of the reasons why i want him back here. pay close attention when he says that -- oh, man, i hesitate to say. he says that tesla, tesla, electric carmaker with a seemingly unhinged ceo and volatile stock could be ready to rebound. are you listening elon at 3:00 in the morning when you said i couldn't take the heat i'm agreeing on one thing, i'm putting on a chart thaft likes your stock moreno likes your stock. it revolutionized the auto industry but plagued by endless worries. founder and ceo elon musk begging to be held in contempt of court
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last year he agreed with a settlement where tesla was supposed to vet all his tweets about the business yet the s.e.c. claims there is a preapproval process and it was a sham the judge on thursday held musk accountable and there is a chance tesla could lose its ceo. that will be in a courthouse i'm predicting circus maximus. say what you will about elon musk, he may have the self-control of, say, a toddler but he's got a fabulous sense of showmanship and a lot of people own the stock because they believe in his leadership. on top of that later this week the company is going to announce productions numbers for its new modding 3 and phil lebeau is all over it. given it tends to be volatile, if the production figures are strong, the stock can soar especially if elon is not losing his job. the figures are disappointing and he loses his job, i would call that disappointing. even with tesla down more than 90 points from its recent peak
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last december, i don't have a lot of insight into the story based on the fundamentalsso what can bob moreno's charts tell us. let's start by take the long view with tesla's monthly chart. what you see here is pretty straightforward. the stock has spent years trading very well to find channels even if they can be pretty wide and basically he points out april it broke out of the resistance at 40 bucks at the top of its range then entered a whole new chapel here after an explosive move higher it entered a multiyear consolidation period bouncing between 280 at its high and then -- sorry, 280 at its high and 180 at its low she, that's just incredible. look at that tight range and then whenever tesla pulled back to its floor support it turned out to be a buying opportunity, any time that was a buying opportunity now, after the stock bottomed in december of 2016, once again bouncing off the low end of the range tesla broke out to new
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highs. it was a lot of you shout it was a short squeeze but it worked. he pointed out we have more consolidation and it's been stuck 240, 380, 240, 380 why does this matter because moreno believes it has consolidated long enough and at its lows it tested the bottom of the trading range and also briefly touched its uptrend line pretty positive. this is looking a lot like the big wipeout before the stock's gigantic rally from its low in 2016 all the way up to here. moreno said it's formed a large hammer-like candle that means it doesn't have a little thing coming out of it. hammer, goes like that, okay that's when a stock plummets during a single period but then rebounds to close much closer to where it opened. this is a classic sign of a bullish reversal and major reason he believes tesla may have bottomed.
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a pattern last week with dow i don't though if you saw it bounced back and today it kept going. how about we zoom in on the weekly chart this one gives you a much closer view of the channel. tesla has been stuck for the past two years in this darned channel. resistance is up at 380. the floor support is down around 240 to 250, okay now, moreno points out that in the final week of march we got what is known as a bullish engulfing candle pattern, always trying to give you new patterns. that's where you get a week where the stock's opening and closing prices totally encompasses the entire range from the previous week kind of interesting, right that's an engulfing pattern. in this case the candle opened near the lows for the weekend closed at the high again, that is a totally bullish signal even though it's really small, it is a bullish signal, people meanwhile, check out the slowest oscillator, ssto, important momentum gauge that helps us
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figure out when a stock has gotten overbought or oversold h it comes to tesla the oscillator is just crossing out of oversold territory right now meaning it came down maybe too far too fast, due for a bounce but you have to look at the flow a tool that measures the little of buying and selling pressure recently crossed into selling territory an will need to turn positive if tesla is going to have a sustainable rally from its lows in this whole panoply of everything, the only thing that is not in sync is that right ther there, the chaiken money flow. its short-term daily chart this is very struckive because i looked at this and was very negative he tells me, wait a second on the daily you can see the long-term trading range but he knows its recent decline used a downward sloping chapel which the stock seems to be trapped in and i thought that was negative t took tesla back down to its
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long-term floor of support however last week the stock made a terrific comeback. that's what he's focused on. according to him this resembles action this, is called a morning star pattern now, get this. this is a pattern, three-day formation, a large down day followed by a day where it trades in a tight range followed by a big rally often this represents a reversal in sentiment right here. after the sellers got washed out the buyers started to feel emboldened we saw the same pattern when tesla bounced off lows in september an october of last year okay pretty amazing, huh? those are the morning star patterns that's why he thinks we could be due for another substantial bounce unemotional. he's not thinking about the court suit or the southern district or the models with cut numbers. on top of that the daily chart slows, the ssto, has started to show real positive momentum. here, that's great
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recently making bullish crossover, the black going over the rid, okay. and it's moving above the center line which is really important too. that suggests tesla may be getting its groove back. so what does the stock need to do before it can roar higher other than have elon musk not do crazed tweeting. the ceiling of resistance created. it's around $290 right here up about 5 bucks from where the stock is currently tragd if tesla can cross that threshold, the stock will fill in the big gap interest january and climb to the 340s. boy, do you ever want to get that, nearly 20% from where it's trading and could go all the way up to 380 before it runs into the long-term thesis the bottom line of what is a contrarian view. we know tesla has been volatile and -- tesla also the founder is volatile and with good reason but the charts as interpreted by
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bob say it's time to buy this stock. he thinks tesla is limited downside and substantial upside at these levels. my view is high risk situation it's too risky for me but moreno has a great track record he needs to be taken seriously much more "mad money" ahead. furniture wars i'll tell you if rh and wayfair can make a better buy and the miracle material known as plastic has made modern life possible but as more focus on the environment how do they plan to address the problem my take. and we've been there it is a 2:00 a.m. and you're desperate for a chalupa supreme. i'm talking one tech company that can make your dreams a reality so stay with us cramer no matter where you are in life or what your dreams entail,
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a cfp professional is trained, knowledgeable, and committed to financial planning in your best interest. find your certified financial planner™ professional at letsmakeaplan.org.
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what are you supposed to do when a well run company blindsides you by slashes its earnings forecast and its stock just craters what the heck just happened to rh the high-end furniture chain, last friday it was hit with a brutal guide down for 2019 on both the top and the bottom line that's the last thing you want to hear which is why the stock went into freefall with rh losing nearly 22% of its value on friday. went from 132 to 103 man, it was, indeed, that bad. regular viewers know i'm a huge fan of rh and it's ceo and not just by the way the stock, i like to shop there too i even like to eat dinner up there. garrett friedman has done a remarkable job and i love the stores and the catalog and e-commerce, not as much as the others because i like to browse but, man, oh, manage, the stock
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deserved to sell off after that ugly forecast. what do you do now with rh it's trading at 101 down more than 60 bucks from its highs last year. why don't we drill down? let's be analytic. you need to understand it's no stranger to the artist formerly known as restoration hardware. it used to be a high-flying growth stock but the business matured and the growth started slowing. as a result the stock plunged from the triple digits down to the 20s at its low in early 2017 from those lives it executed a phenomenal comeback. really was it was dazzling. stock surged back to nearly 165 at its all-time high last june it modernized their catalog business and they -- these already felt more like art galleries than retail outlets anyway they're gorgeous even better when it was down and out the company bought back and enormous quantity of its own shares and by the way, friedman did some insider buying of --
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just day magnitude in the mid-20s that made you say, hey, i got to buy it. with we spoke to him from his most fabulous store in manhattan the stock was selling off because they had just reported an imperfect quarter, gigantic earnings beat on top of a modest revenue miss remember, people like sales growth in retailers. at the time he told a terrific story about the company's long-term growth prospects so what went wrong? when it reported they delivered a 15-cent earnings beat off 28 abasis with weaker than expected sales. up just 0.3% year over year. you know that's barely growth. and in ice lacylation those would have been solid numbers but management slashed their full year forecast indicating that the future will be weaker than they previously expected. somewhat reminiscent of the walgreens slash today where we thought they would earn high single digits and then told us
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it would be flat when rh gave its guidance in december they called for 8% to 12% revenue grete. last week they cut it to 3% to 5% range brutal this december they talked about earning $9.30 to $10.70 per share this year. last week they guided down to $8.41 to $9.09 yeah, for the midpoint it already cut guidance by 12.5%. agonizing. that's that's a big change versus what he told us i got to play a side. >> most reconceptualize or evolve the front end of their business because it's hard to kind of run a business and then kind of change the engines, right, you know, it's like you're plying the plane we're reconceptualizing the engines and the back end and then we'll pivot back to more accelerated growth next year on what we believe will be the most profitable and efficient
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platform in our industry by far. >> ouch. may have been a little overoptimistic meanwhile management's projections for the next quarter were pretty lackluster and told us they were going to stop breaking out their same-store sales numbers. that's reminiscent of when apple decided to stop breaking out the number of iphones they sell. gary said they don't use it as a metric dough can't care whether you buy it from the store or the catalog so it's not encouraging especially for a guy like me who has been brought up to believe that same-store sales are the be all and end all of retail. i totally understand if grijalva thinks i'm limited but i've been around for a long time and they mean a lot to me an i can't change my stripes. the conference call they pointed to the continued weakness in their core business in the wake of the market's volatility as well as negative trends and high-end housing market. when you buy fancy furnishings
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you take to tend a hit when the stock market stalls. we heard that from ethan allen years ago. that's what happened over the course of the fourth quarter some thought it was bus they had less profitable businesses motion of the analysts pounced and had to cut numbers on those who liked numbers. deutsche bank downgraded it from buy to hold and said this was one that tends to get hammered during a slow economy. they recommended putting rh in the penalty box for a few quarters until the company can establish that they're on firmer footing. that's usually the response when the company does such a huge forecast slash but if you really want to get your head around this story, i think you ought to be a little more outside the box something to say on the conference call that i found l illuminating he seemed exasperated at their collective failure on how the
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business model and he starts talking about wayfair. wayfair, my kids buy -- well, one of my kid buys stuff from. the rapidly growing online furniture retailer with a stock on fire in recent months friedman said he'd love to have their valuation but never want their margin because it's a lot less profitable than rh. they spent three years rebuilding their margin. we're going to probably wind up with operating margins long term that are double what they would have been if we had pursued just chasing sales, end quote basically friedman doesn't want to be in the business of chasing unprofitable growth just to impress the stock market and the analyst, critics who he thinks are shortsighted he's trying to turn a profit but that means they get treated like a value stock while wayfair is a growth stock and growth stocks get much higher valuations like i talked
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about when i talked about lyft really i don't think this is a fair comparison. wayfair has been growing at a 40% plus clip even as it's burning money and for now wall street treats it like a baby version of amazon. gave us 2.7% revenue growth and only nvidias 3% to 5% growth rh has been focused on making itself the leaner, meaner operator which why they went from $1.27 to $8.40 last year. i thought it was incredible but no one sometimes to want to give them credit for the magnificent profitability that's why it sells over ten times next year's earnings estimates ordinarily i hesitate to recommend them but if you believe the worst is over and housing is about to rebound with more interest rates in the spring weather and the fed is your friend and not your enemy then i think they will end up looking way too cautious worried about a slowdown, rh is
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not the stock for you. now that they've lowered the boom on us i like the risk roy we ward. this is not walgreens. if you believe our economy bottomed, this company is a terrific operator and doesn't get the credit it deserves because management focuses on growing earnings rather than growing seas at any cost like wayfair. i say start measurining gary evy day. mason in louisiana mason. >> hey, jim, first time caller, long-time -- >> first time, long time >> caller: i have a question about dick's sporting goods. a couple of key concerns i would like to know if you think there is an inverse correlation between the video game industry and the sporting goods industry particularly sporting equipment sales, simply put, as the video game industry grow, less time playing actual sports.
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>> well, geez, okay. sorry, go ahead. >> caller: sorry second is the concern over the growth in northern american sales from nike and adidas, i think most of this concern is the outstanding quarter by lululemon taking larger slices out of the same pie that dick's eats from. lululemon's earnings report dropping reebok to focus on its own privately owned label. >> dick's did not have a great quarter. i think that lulu had an amazing quarter and nike had a misunderstood quarter that gives you the best opportunity to buy right now. and i don't think that the pie is shrinking on athleisure i think it is growing. we love athleisure they are on "mad money" marl." i get it they slashed their earnings forecast and sounds like a scary thing but you know what, i like the risk roy reward here
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hey, when it comes to plastic how could that affect dow's profits? then as smartphones and self-driving cars become more popular accurate information is more important than ever like the facts. my company that hopes to bank on the yesterday. my exclusive with yext then "the lightning round. so stay with cramer.
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does it make sense to ask a ceo about how his products impact the environment as someone who is trying to help you make money in the stock market is there ever a reason to deviate? this morning on "squawk on the street" we interviewed the superb ceo of the newdow inc., the spin-off you dow dupont which began trading on the new york stock exchange. i made it clear this morning that i think dow is a terrific investment especially if you believe the global economy will rebound with the united states and china which is something i believe. i like their prospects in innovation and cash flow which allows them to play a 5% plus dividend that's the yield and highest in the dow jones industrial
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average. this business that got spun off as dow inc. has always been the finest plastics company around and now that it's combined the best parts of the old dow chemical and dupont, i'll be -- it'll be even better look, it's no wonder the stock rallied 5% on its first day. but after we discussed dow's numbers i turned the conversation toward the future of plastics. what happens if every state outlaws plastic bags like the ban that new york approved last week what if dow makes plastic that is recyclable but it's uneconomic and people throw the bottles in the trash what can dow do about the great pacific garbage patch? how can dow justify, well, making this if it's going to pollute the oceans these are not the questions i would have asked years ago they were extraneous and had nothing to do with earnings per share and didn't belong in the conversation but that's no longer the case. the environment is a mess. and that is real implications
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for this business. for example, it's crazy to think the paper won't make a comeback and take market share from plastic because paper is biodegradable. you don't need to care about the environment for this to take a toll on your portfolio there are governments and regulators who do care which means these issues will directly impact dow's earnings in the not too distant future do we believe that california that led the way won't soon start going after soda companies demanding aluminum and glass containers doesn't it seem like a no-brainer more important they matter to how future portfolio managers will value those earnings, right? it affects the price to earnings multiple the p/e that will pay for in the outyears because it makes all sorts of businesses more fragile. when i speak to young people i'm so impressed by how they care point environment and how adamant they are about not using plastic. i mean, these are good solid young people who teach us.
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they'll go to incredible lengths to avoid buying plastic water bottles. they want so badly to stop the abuse of our ocean, some will go as par as saying plastic is the new coal so if you're the plastics business i bet it will shrink has they become the next generation's portfolio managers which is why it's imperative to ask these questions now. i think you run yourself irrelevant if you don't address issues jim fitterling and his company will did their best but i if i don't ask these questions i now believe it amounts to nothing more than giving a free pass and as mark canes told me no free passes "mad money" is back after the break.
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>> announcer: "lightning round" is sponsored by td ameritrade. it is time, it's time for "the lightning round." buy, buy, buy. >> sell, sell, sell. >> and then "the lightning round" is over are you ready, skee-daddy? "the lightning round," let's go to michael in florida.
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michael. >> caller: greetings to the consulting guru of the stock market. >> wow >> caller: my question today is the company, quarterly earnings statement on thursday after the stock market close, it will be -- will it be a good buy for me or do i need to pass it buy, dlth >> dlth. i said, my fantastic unbelievable guy, keith, is someone who gave me a jacket and i wear it constantly but i do not know how they do but i will say that skull and crossbones on the shoulder, people think it's a -- people like how i look in t let's go to manas in california. manas. >> caller: boo-yah, jim, from san francisco. >> we'll be out there soon. >> caller: on apple'
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announcement of getting into the credit card business, what do you think is in store for mastercard >> a.j. pulled it off. he is so good, mastercard is so good buy it james in missouri. james. >> caller: jim, with oil skyrocketing why can't they catch a -- >> they think it might be buying someone. chip johnson is good i can't believe it's down where it is. it's all about takeover. dora in florida. dora >> caller: hey, i have the stock in pharmaceuticals -- >> i look at that company all the time and think it's going to get taken over it is losing a lot of money. i want you to be careful josh in washington, josh >> caller: jim, big boo-yah from washington appreciate the show. first-time caller. >> all right >> caller: hey, how about
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companies in different sectors, kind of a beginner prospector. heard a guy on cnbc talk about nucor which led me to united states steel company looks like a pretty fun company to be invested in. >> but you got to look at the balance sheet, sir you look at that balance sheet with nucor, it is a thing of beauty and it's got a good yield. it's gbeen a great growth and nucor is quality and that, ladies and gentlemen, is the conclusion of "the lightning round. [ buzzer ] >> announcer: "the lightning round" is sponsored by td ameritrade eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool?
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eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade
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some of the biggest winners of 2019 are simply stocks that sold off way too hard. they should have never been down so much. consider correcyext yext ensures all the information about your company on the web is accurate and up to date. you know how hard that is to do? but they can do it and help their clients sync up with hundreds of different services like google maps and siri. it plummeted from 27 and change in august down to 12 bucks in change in late december. part of that brutal sell-off in all things cloud, since then it's been up -- it's on fire up nearly 50% year to date fuelled in part by an excellent quarter so can this thing keep
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climbing let's check in with howard lerman, the founder and ceo of yext welcome back to "mad money." good to see you, howard. have a seat. thanks for coming on so we do dkm, we do digital knowledge management and i want you to tell me about a client that we would all know that needed your digital knowledge management. >> you know, today's tuesday and what better to eat on tuesday than tacos. >> it's taco tuesday. >> taco tuesday so taco bell with their 7,000 stores is a partner with yext but we don't just partner with food companies. look, we added 350 new enterprise logos last year 128 in q4 alone. that's nearly one logo per day you can have morgan stanley monday, taco bell tuesday. >> why does taco bell need you they are a great company we've been recommending them for years and think they do a fantastic job and also like yum yum china. they have their own people why can't they find out the facts in we live this an era of
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too much information and much of it is wrong. and in this era of too much information, yext delivers a new paradigm in search that enables consumers to get brand verified answers on all the major search platforms like siri and google and alexa, even the chinese search engine -- >> so the overseas tourists from china come and go to luxury brands or need to eat, they can find information, they can find facts in mandarin. they don't use google when they come to the united states. >> well, interesting one of your -- if but to the website you talk about travelers are a key group of people who are always in search mode and are always getting the wrong tear. >> travelers, so many different industries, financial services -- >> let's talk about morgan stanley. wealth advisers have over 14,000 wealth advisers. they all use the yext platform to manage all the facts about every one of their advisers, they can log in and say whether
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they're the cfp, what language they speak and put night yext and it's updated everywhere. >> what i loved in your conference call, you talk about you searched old navy for plus sizes and you get directed to a huffington post article that says that old navy doesn't have plus sizes but they do how does this keep happening and how can you help stop it >> we stand for the truth. the ultimate authority on old navy, the ultimate authority on taco bell, the ultimate authority on morgan stanley or new york-presbyteri new york-presbyterian health is the business itself. when you look up a doctor and you're looking up a doctor that treats certain conditions and accepts certain insurances, you need to make sure thaw get the right answer the ultimate authority on the doctor is from the hospital and the doctor itself. that's what correct stands for we put customers, the brand itself with brand verified answers in all these different services every customer journey starts with a question and when you use yext your customers can get a
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brand verified answer. >> now, do you hire the yext brain? >> correct brain is an extension of correct that lets customers create any type of entity they want with custom owns in their platform so they can publish event, menu, products if you're in the financial 70ss industry, a credit card. these are all new types of entities that companies can put into yext to deliver answers to their customer at that exact moment of intent search has changed it used to be about websites an type in a key word and get ten blue links today when you search you get an answer and the companies that put answers out there from them are the ones that are going to win in this massive paradigm shift. >> you have in your website a remarkable article that talks about how the quick serve restaurant industry has suddenly become the battleground for search, why is that? >> well, look, i mean it's something everybody does multiple times a day. >> where's wendy's and what does wendy's have it's got to be there and
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accurate >> does it have gluten-free men ewe items. how many calories are in a whopper. >> burger king has a new giant hamburger -- >> the impossible whopper. >> yes, i doesn't believe it s it true? >> apparently it's true although it is impossible >> okay, so if i want to -- let's say if i want to know something about taco bell and where taco bell is and what's new on the menu, whether they have the bulimic, whatever -- that's not called but lehman lick, bavarian illuminati, can i say do you still have that and it goes straight to them. >> yes these are the questions people ask. the number one people ask when they visit new york-presbyterian, they want to find a doctor that accepts their insurance to treat their condition near them and if new york-presbyterian can't answer that they'll ask the question to a different provider. >> absolutely. wow, well, i got to tell you
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very exciting. i though what you do you provide facts and truth which are very much in short supply on the web if i might add and i think you do a great job that's howard lerman, the founder and ceo of yext. stick with cramer. what if other kinds of plants captured it too? if these industrial plants had technology that captured carbon like trees we could help lower emissions. carbon capture is important technology - and experts agree. that's why we're working on ways to improve it. so plants... can be a little more... like plants. ♪
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should people give up on cvs after the excellent review last week it couldn't go lower my charitable trust owns it. listen, i'll take some pain. cvs has aetna. that's what walgreens lacks. they got boots i like aetna more than boots okay it's pretty simple one is befrt than the other so don't conflate them. they are different kinds of companies. but both are having trouble against amazon and there's nothing you can do unless you get the omni channel right i always say that's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you tomorrow.
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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." ♪ my name is nick romero. i'm 30 years old, and i live in venice beach, california. ♪ venice is such a creative place, and my store is completely based off creativity. ♪ my store is called the ave, and there's no place like it in the world. what we do is, we allow for people to come in and custom create any article of clothing--

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