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

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my ears. i'm getting a hair cut i have feelings too. hgh, too cheap, guy that stock >> does it for us. see us back here tomorrow at 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 people make friends, i'm trying to make you money. my job isn't just to educate, teach, context call me or tweet me. you know how i am on the show. i say there's always a bull market somewhere and i promise to find it just for you. there's a reason i say that. it's because of days like today.
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even with the dow down 500 points what happened? people found things to buy not in spite of president trump's tariff tweet that caused the panic tweet but because of it this morning they were all freaked out with this. wall street hates the tariffs. the last thing money managers wanted to hear was trump was going to raise it. chinese market got obliterated down more than 5%, the equivalent of the nasdaq down 7% then a funny thing happened. after initially getting hammered down 1% our averages bounced back with the dow closing 66 points s&p losing 4.5% and the nasdaq climbing 5.0 i thought it was going to close in the black that's how voracious the buying was. how is it even possible? how was that possible? well, because of my bull market thesis that's why it's possible money flows out of one sector
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and goes forward to the other. sure, some of it stays on the sidelines because the market is uncertain but most ofit tries to find a new home immediately today investors bailed on u.s. companies with tons of china exposure but then they quickly put the cash forward in different groups where did it go? a lot thwarted to domestic companies that investors have faith in what does faith look like in this context how about a man mouth insider buy. david whitman, the ceo of united health group put $4.64 million worth of stock, you heard that, that's not an idol buy in the open market. talk about another purchase by bill mcnabb, another director for 1.5 million. that's conviction. last week you couldn't have found a bigger dog than united health i mean, it was painful everyone's focused on how much money they lose if bernie sanders or elizabeth warren takes the white house and manages to pass a progressive
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version of medicare for all. they would lose a fortune. that seems like a pretty unlikely outcome given that the democratic leadership in congress mostly opposes the idea of single payer. today is finding out about domestic companies that are doing well with conviction no china what else? money flooded into consumer products company, all look good. hey, same thing goes for disney and mcdonald's and then there was strength in tech, alphabet not in china, the parent of google, had a terrific day, perhaps the first of many if this stock was eviscerated last week. i think investors are reassessing their negativity i wasn't thrilled with that either but at the end of the day alphabet is not losing share to amazon and while they've lost a step in the cloud it's finally doning on people that this is a company with a $113 billion in cash you heard me which means they can buy whoever
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they want to beef up their other bets while at the same time p y playing catch up with the cloud. i think it's spent enough time in purgatory my recommendation is if alphabet is smart. you know what they should buy? you should buy square. they should own square to own the cash register of small and medium-sized businesses. that will be the enterprise that they can dominate. the possibilities are almost endless once they start putting that money away. that makes me bullish. now today's action was more about just the winners you know what it was it was also about the losers that weren't down enough to satisfy the bears. they were not seated i've got to tell you something, i thought that a particular stock was going to be down so badly that it would just be let's say a really nasty day look at apple. this is a company that's supposed to be hostage to china. stock was down 1.5%. sure, i know it's down more after hours because the white house said something warren buffet's the largest shareholder of apple
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the love fest of the berkshire hathaway meeting tim cook came to play. most of it was an emphasis of apple on a consumer company. i want you to listen to what tim cook had to say to cnbc's own becky quick. >> we're in the tech industry, but we work at that intersection of technology and the liberal arts and the humanities. so we make products for people and so the consumer is at the center of what we do so i love the fact that he looks at us like that because we want consumers to look at us like that we believe that technology should be in the background, not the foreground technology should empower people to do things and help them do things they couldn't do otherwise. >> liberal arts. does tim cook get it or what that was stunning. for ages apple gives you a sense of what people want from that
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technology from the watch to the air pods to the services. looking at the future of the company. people love this stuff which is why they have ridiculously good service numbers. i am thrilled that tim is embracing the consumer product story because that will only allow research firms to change their coverage, switching apple from the technology universe to the consumer product universe. and as i've told you many times, once the consumer analysts start comparing apple to the likes of colgate, the stock is going to look insanely cheap. hey, heads of research, come on, i've dealt with all of you will you please listen to me you know i know. what's the lifetime value of someone who uses colgate toothpaste hey, how about the lifetime value of an apple owner. in the era where all toothpaste
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is the same and the whacky millennials have no allegiance or loyalty, that's the brain of a millennial i would prefer the lifetime value of someone who is hooked on -- who's hooked on apple than who's hooked on colgate or crest or gillette or any of those things that mean nothing to the millennials whatsoever and that's why apple barely got dinged today's rebound paints a very bullish portrait normally when the market gets hammered people wait around before putting their money back to work. n not today the chinese are reneging on agreements they repeated today's action because we knew that from the president's tweets the bottom line, when the averages that hit this morning on new chinese worries people pulled out the shopping list and started buying high quality domestic stocks. that's a bullish sign. let's hope it isn't all sopped up by uber
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john in michigan john >> caller: hey, jim. love the show. >> thank you. >> caller: got a trump stock that's trading below value at 7 times earnings u.s. steel >> well, u.s. steel trades that way because its balance sheet is bad. we are believers in new core they're not as cheap balance sheet is everything in the steel business go ask the people at bethlehem steel, ak steel, wheeling. wow, go ask the people at sharon go ask the people at link. go ask the people at -- well, you get the picture, right joe is in lock land. how about john in illinois >> caller: hey, jim. boo-yah. thanks for taking my call. >> of course, john thank you for calling the show >> caller: thank you jim, i'm calling about a stock you recommended in the past. the company is treks, symbol trx. >> yes >> caller: you know they make a wood replacement stock i've owned it since 2012
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i'm up over 600% in my original investments. last year they're trailing and things are up 41%, they're exceeding 5 year growth from last year. good return on equity. clear market leader but they stumbled recently. first quarter was kind of weak it had some manufacturing problems bringing a new problem out of line. i'm wondering, it was at a high of 90. >> right. >> down to 65 right now. is it a buyer, a seller? >> a lot of the housing stocks have gotten hurt that wasn't a perfect quarter. treks is an amazing product. there is another company that is gaining on them that i know but i think that trex is one that you want to own. i think the stuff is great my buddy michael hailie who works with me on my deck, i swore i would never have anything but wood. you know what? i'm a trex guy i can't believe it it looks it. it's like beyond meat. days like today can be scary it was scary at the open
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no doubt about it. but they can give you some great buying opportunities they should remind you a pull back can give you great prices we'll have one tomorrow. if you are brave enough to act, we'll have one tonight on "mad" tonight, ford is more valuable than tesla since the first time since april of 2017 although it finished off a kumpenys can this lead the new era in autos or are you suspicious like me i don't know then meghan and harry aren't the only ones celebrating a royal. i'm telling you whichcompany i being crowned a new cloud king forget about hasbro, forget about mattel, i'm telling you why the hottest toy company might be funco so stay with cramer don't miss a second of "mad money. follow on twitter. have a question? tweet cramer, #madtweets send jim an email to
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madmoney @cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. call at 1-800-743-cnbc -driverless cars... -all ground personnel...
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you might think an automaker would get slammed for rising trade tensions with china. ford only shed 4 cents today and that's part of a larger trend. if you're spending a better part of a decade in the house of pain we've seen a mir raaculous come back in ford stock at a time when the industry is in rough shape you have to want this kind of move sustainable. i think we're witnessing the beginning of a multi-year turn here and now i'm going to tell you why. >> buy, buy, buy. >> you need to understand why ford spent so long in the
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wilderness here's a stock that peaked at $17 right in 2014. and proceeded to just get obliterated, look at this, i mean, this has been -- how hurtful is that. if you're in there, you crush your ego you probably never want to buy a ford again even after the run to 10 bucks, ford is down 25% in the last four years so what went wrong how about anything and everything on the operations side, they rose the electric car, autonomous driver. they shifted away and towards popular crossovers and suvs and the international business was just a mess. as a result, ford gave a value trap for years it's been one of the cheapest stocks in the market on a price per earnings basis nobody cared about them. they have been in decline. everyone assumed the numbers would keep getting worse
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remember how we think about stocks it's very instructive here the numbers go down and this actually does track the numbers. people say, come on, jim, how do you figure out what a stock is going to do? you know, this is earnings per share each year bad. makes sense, right by 2017 ford's board of directors, they realize they needed a change of direction so what did they do? they fired ceo mark fields first of all and appoint a guy named jim hackett. hackett's claim to fame, they dismissed it, thought about it they transformed it and that office furniture into a business that reimagines office layouts and changes the way company furnish their work spaces. ford wanted them to do the exact same thing for the auto business it took a long time. while hackett was working they got crushed and it was a cyclical decline nasty. as the rise of ride sharing means that people don't feel the need to buy cars the way they once did things got worse before they got
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better by last summer people were losing patience especially after ford cancels the september investor day management refused to give us much detail about the plans. suddenly analysts started fretting that ford's future earnings would evaporate the company would end up in a liquidity crunch and it might have to slash its bountiful dividends which yields 5.8%. that's fantastic the stock started rebounding to the beginning of the year along with everything else that is until mid january when ford preannounced the earnings short fall and the stock tumbled 6% in a single day i mean, oh, god this is a jobes story, not a ford story. when ford reported its full fourth quarter results a week later wall street really liked what they had to say i think hackett did an excellent job of projecting confidence that the company could turn things around in 2019. on top of that cfo bob shanks
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retired and said that they could fully fund the capital plans something needed to be said given the fact that there were a lot of analysts saying, you know what, this dividend, it's going to be cut and it's going to destroy everything even better, two days after the quarter reuters reported an internal message that jim hackett had told them to bury 2018 in a deep grave and challenged them to help double the company's operating profit that reinforced what we heard on the call a fired up management team that's ready to take drastic action in order to turn things around by any means necessary. that's malcolm x that's not the term but i like it come early april ford has solid sales thanks to the pickup truck business as well as record suv numbers. they're opening factories. then a week and a half ago the company said ford shot the lights out
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they were earning 44 cents a share. you know how much we care about sales. that shows the future. 40.3 billion looking for 30.1 billion from wall street. even though they were down year over year. the earnings for interest and taxes increased by 12% year over year ford delivered what they had promised i felt that the family wanted to be all things to all people. i don't know what's happening but that's not hackett's style how did they do it ford is taking an aggressive action to get out of unprofitable businesses that just weren't working rather than chasing revenues, they're focused on the areas that are actually making money can you imagine? for years the international business was an albatross around the company's neck there was always something going wrong. when i used to speak to the company, well, look, it was argentina, venezuela, it was this, jim, did you look into -- brazil -- no in the last few months hackett has withdrawn from the bad markets. it was a market share donor to other markets.
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in january he had ford discontinued its lease vehicles and it's doubling down on the most profitable ones can you imagine? that includes a lot of cost cuts and factory closures it's tough to do in europe but they're doing it in february we learned ford would stop making heavy duty trucks in latin america. they got out of passenger vehicles in russia we know china has been bad for ford brutal we still don't have a clear picture of what they're going to do in the people's republic but hackett told us they're laying off 10% of the work force in the chinese work venture in terms of profitability, china is going to turn ford is trying to stop the bleeding and become more focused and more profitable even if they sell far fewer cars. i'm telling you, i think it's working. that's not all hackett is doing. he's ramping up the investments in autonomous driving,
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technology, including with plant electric versions of the f series pickup and a mustang inspired crossover vehicle they have partnership to make new batteries using riveon's platform they're bringing in a former amazon guy, tim stone. he's going to replace bob shanks you puts it altogether you get a pretty clear picture six months ago everyone was worried about ford's future. you had analysts fretting about it and hitting their dividend with a 50% cut ford has put those worries to bed. jim hackett is creating a leaner, meaner, more focused company. ford no longer wants to make cars everywhere no matter what the cost it doesn't want a one-car fits all world by strategy. instead ford is only making the vehicles where it can turn a real profit or else there's nothing worth making that's why i think this stock is just ridiculously cheap at seven times earnings with a bountiful
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7.5% yield ford's come back is the real deal, people, real deal. i think it's getting started this is one auto related stock i am willing to endorse right now because ford has figured out the auto business stinks and then doing everything they can to pare back their exposure to the worse parts of it while embracing what works like the fabulous wonderful f-150 and all its spawn. the best truck in the world. stick with cramer. [knocking]
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the past couple of weeks i've been telling you that this market was starting to feel frothy which you know worries me that meant we were due for a pull back. we sure had one at the beginning of the day maybe we're not done that was something this morning. i don't know what caused it. i was worried about the current ipos than escalation of the
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trade war with china, but i've been telling you to take some profits for reason we've built up a lot of cash for action alerts plus because i don't like froth i've been there, done that now that we're getting hit i want you to be real. investors are concerned about the uber deal. what do we do during the selloff? we make shopping lists so we know what to buy when it gets to lower levels so we're not shockeds and dazed and confused. that's why tonight i want to make sure that one stock in particular makes it on to your shopping list. i'm talking about twilio twlo that's the cloud based communications software that lets app developers connect with the users. every time you get a text message from, say, airbnb, that's powered by twilio this stock has such terrific records that i want to do more than recommend them. tonight, we're going to have a coronation fitting because some baby was born over there with a special relationship i'll read it in "people" magazine i'll follow "people" on twitter.
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they pay me to look at them. so see for over a year now i've been pounding the table, that's table pounding, on the cloud kings. seven of the highest quality plays in the rapidly growing cloud business adobe, red hat, salesforce, service now, splunk, get this. these have given you a 37% gain since i crowned them in march of last year. how much did the s&p go up 5.4% 37 versus 5. i mean, come on. this is where the action is. but ever since we learned that red hat, red hat had been bought by ibm, i mean, it was unbelievable it's just -- you know, it's disappearing yup, red hat -- well, we've got to have a replacement for red hat. with today's news that the justice department has blessed the red hat deal with ibm
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there's clearly going to be a vacancy here and that's where twilio is coming in. it's taking red hat's place as the seventh cloud king why twilio here's a stock that's run from 23 and change to under 90. i'm sure you think we're late, we're not. it keeps climbing, rising to 130 even as it recently pulled back from its highs you might think this stock has run up too far too fast but i think it's incredible growth story where you rarely get any kind of significant dip. when you do, look at this. each time you have to pounce you have to make your move you had to -- you couldn't -- you couldn't just -- it was time the crux of the story. the cloud is transforming nearly every aspect of business including the way companies communicate with their customers. we now live in a mobile world where the best way to connect with people is via text message but all sorts of businesses lag behind here. think about how many companies still try to reach you mainly
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through snail mail come on, give me a break i get very little mail now thank heavens. maybe that means nobody cares. it's all right twilia's technology makes it easy for businesses to connect with you via text. and i think we're witnessing a prolonged multi-year investment cycle where all sorts of inner prizes invest in this technology even better, twilio rolled out twilio flex. something like 80 to 90% of call centers use old-fashioned on premises call centers. they want to embrace the cloud but they need a more flexible cloud software which is what twilio flex is all about it lets companies automate these. they partnered with what's app giving their customers a reliable and secure way to send messages to what's app 1.5 billion users worldwide. what else? a few months ago twilio closed
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on send grid which will let them do the same thing with email now they're in the whole package. they let businesses connect with customers with text messages, attorney calls, video, email why recommend this thing right now? because the company reported a great quarter last week and its stock sold off because it already run going up the earnings they jumped from 137 to 142 on very strong numbers by the end of the session when the stock closed down 6%, 128. and it's still down more than 5 bucks from where it was trading for the quarter and the quarter was amazing. anyway, twilio earned 5
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smoking hot stock. they're radically different valuations twilio is only up 81%. that's a number companies would kill for on this level it makes sense for zoom to be more expensive. you know, man, zoom at 125% more expensive than twilio. traded 24 times more sales twilio's 15 times. i've told you before i think people are paying too much people are willing to pay 34 times sales for zoom which is a second rate company versus twilio, that makes that valuation look less absurd i'd rather own twilio than the shiny new objects including beyond meat. that's no cloud king beyond meat. saying a lot does it make the stock go up
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still? that's why we started positioning twilio you can follow along by joining the action plus.com club waiting for the first down day, we got it. the only way to buy it with red hat being bought by ibm we're crowning twilio as the newest cloud king. over the long haul i'm betting the stock has more room to run i hope twilio sells off this week they dump all things in tech in order to raise money for uber's ipo. now that would be a gift ready? you guys weren't ready for beyond meat when the sauce was stuck on the wall. odd job! tom in florida tom. >> caller: hey, jim. a big boo-yah from jacksonville beach. >> jacksonville? oh, my god. >> i love the jags i love the jags. >> caller: great team. they're going to come back they're going to be a good team. >> i like the roster big improvements you have the greatest
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quarterback in the world other than the one we have let's go >> reporter: started building my portfolio based on your recommendations on january 3rd with apple towards the end of february you had the ceo of cyber art. >> didn't you love him >> caller: i loved him. >> i love him. >> caller: he was fantastic. >> yes >> caller: well, as soon as the show closed, boom, right on the -- i went right to my accounts and i bought cyber art. >> you must be up 30, 40 points? >> caller: yeah, i am. i had a great -- i had a great return with them and i'm still hanging on to them but my big question is i know you like this area of the market especially in technology for cyber security, but do we buy more do we -- >> you don't want to buy more. you don't want to buy out your bases. i teach that at the club you have a great position. you're a wen ner if you want to, i would take make a quarter of it off and go buy a cashmere sweater with it and congratulations. that's what my mom would do when
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she gambled. my mom liked the slots and the ponies let's go to dave in illinois no, we can't we're going to save dave whom i know dave is long time long time. what do you call it? many time long time? what is the term time time. all right. i think our newest cloud king twilio has more room to run over the long term. i'm keeping my finger crossed for an uber-related pull back and it's time to say good-bye to red hat. the pop toys aren't the only thing popping. with the stock going i'm getting the full toy story. president trump knows more than you about how tariffs work. let me tell you why. rapid fire's edition of the lightning round. stick with cramer. each morning,
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. every day the stock market makes mistakes and sometimes those mistakes are so obvious that you need to take action consider the case of funco, a company that makes all sorts of licensed collectibles, sports, musicians, pop culture chachkis. when they reported fantastic
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numbers the stock got hammered i told you to buy this one when it was trading at $17.79 since then it's given me a phenomenal 20% gain. funko had a magnificent 8 cent earnings beat. higher than expected sales on 22% year over year it was a clean beat. funko has another 4% up here i have to tell you the darn thing sells for 15 times earnings i think that makes no sense given the slate of megablockbuster movies i think the numbers will be absent let's check in with brian mariatti he's the c of funko. welcome to "mad money. good to see you, brian have a seat. >> nanks for having me on. >> brian, you are at the epicenter. you say the company is at the epicent epicenter. you are at the epicenter of pop culture. for instance, the flyers, my
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philadelphia team, boom, right >> the first ever gree pop. >> right there >> and then -- i mean, look all that my kids and my wife talk about are "game of thrones" and you're there. >> oh, yeah. every week every week we watch the show we put products out the next week for sale. >> how is that possible? >> a bunch of people that absolutely love pop culture, tuned in to pop culture, artist, marketing people, designers and our wonderful partnership with hbo. we watch the episode, we have stuff out within two to three days we start pre-selling it. >> how much is from china? >> we are right now morphing now towards 70% outside of china. >> can you move as fast outside china? is the product same quality. >> better quality. >> less expense. >> less expense, better cost of goods, more stability. >> wow walk us through some things because this is very exciting. >> well, look, we're in the middle of arguably going to be the largest movie in the history
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of cinema. avengers end game. we released 20 plus products after the movie aired marvell was coy enough not to tell us everything that was going to happen in the movie. our designers are rushing 6 or 7 new products and five or six embargoed products. >> let's go into your factory. would there be people working 24/7 is there someone working at 3 a.m. tonight >> there is. there is. >> really? >> yes now with the internet and spoilers, we're on lockdown making sure we don't ruin any movies that's another responsibility we have to have with our partners. >> how quickly can you do athletes worldwide >> we can get them done as soon as under 70 days. give me an example of an athlete i would want. >> we're doing tiger woods we're working with augusta and doing him in his green jacket so that's going to be a big one very relevant with him and his win. first major in 11 years. india. we do the three largest cricket
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players in india. >> cricket, they're just crazed about it. >> yeah. >> how many will you produce how many will you sell what do you think? >> i think we'll do the top three players. my guess is we'll be half a million units on those three players. >> that's astounding how can you meet that demand >> it's a lot of factories working a lot of time. >> we had stock. to me these are collectibles i was thinking let's say i bought this and i put it away. >> yeah. >> how about, you know, on stock x two years from now these are like fine wines. >> they are, yeah. josh is a really -- >> josh is cool. >> brilliant ceo his idea of the secondary market for sneakers is amazing. those collectors have the same mentality as our collector base. they love sneakers, they love urban wear very much like people love pop culture. >> do you think my idea of they go up in value over time >> oh, i think they do. >> all right now social media's a measurement. you do that and look at social
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media. valuable >> oh, absolutely. absolutely we are constantly -- our antennas are up. we're just under 800 employees, 85, 90% of our employees are absolutely pop culture addicts. >> avengers is just this incredible tailwind. can't you keep putting out avengers stuff >> you're always thinking about the next thing what's wonder until about our content providers, there is a roadmap. we know what we're working on in 2020, 2021 that includes video game companies, that's talking to bands, whatever is the next great tv show. that roadmap is there. it's our job to make sure we have it. >> is anybody out there competing with you >> no. our business model is very unique hasbro, very licensed based. funko has a very large license base fast fashion approach. >> that's the way to do it. >> one of the things that i saw when i looked at the situation was i said, okay, 30% of now this is my world, 30% of your
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stock is sold short as if you're a commodity. the thing that i see by the speed, by the characters you pick, you're anything but a commodity and that's just a misrepresentation -- false representation of what you do. >> they don't understand that. they don't understand the business model it's our job to educate them >> that's why you're on the show if i was watching the show and i was short the stock i would say, maybe i'm out of my mind they don't like the licensing business they heard icon nicks. not all licensing businesses are created equal. people don't understand you've locked it up. >> 1100 unique licenses and we're not hit driven if i put all of my eggs in one basket, we're hit driven and our stock would sink we're not hit driven we have all of these wonderful type of properties across movies, video games, sports, music, tv to leverage against. we're not hit driven. >> do you have netflix >> absolutely.
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we're the global partner for all of our line for netflix. >> any big show that comes to netflix i should expect a funko something or other >> not only that, stranger things in spain and also club dequervos out of mexico. we leverage those along with the domestic hits. >> in the end for little kids you own all of the child. >> absolutely. absolutely still 65% of our revenue is aimed at 35-year-olds, men and women equally. >> well, i find your company so exciting i want to thank you for being so cooperative with us and bringing so much stuff because this is the real story you have built a fabulous company. i salute you. >> brian mariatti is the ceo of funko. this is an amazing story people are short it because i think they don't know what it is and what they do "mad money" is back after the break.
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weveryone, looknk isn'tat your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market. it is time for lightning
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round. and then the lightning round are you ready. the lightning round. george in new jersey george >> caller: jim, my stock is an american company with recurring revenue. lennox industries. >> i have liked it since this show began it's an unbelievable market. they are really good at the hvac, sprinklers, nice call by you. i need to go to frank in florida. frank. >> caller: hey, jimmy. you're my guru i was thinking about taking a position in neighbors industries. >> your guru is saying -- your guru is saying -- don't buy, don't buy. >> kevin in minnesota. >> kevin >> caller: jim, thanks for taking my call. >> of course. >> caller: i need some help here looking at chrw. ch robinson. >> oh, man you're going to be in the house of pain itself the stock is all the way up --
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you know what, i think you should buy fedex i like fedex here. you can buy some if it goes lower. fed ex is going to turn around maybe wait three days. see what happens let's go to robin in washington. robin. >> caller: hey, jim. good evening to you. >> good evening. >> caller: i'm calling you from wild and whacky washington, d.c. >> oh, boy is it ever i was there recently it was wild and whacky. >> caller: yes, it is. i was wondering what your thoughts are about investing in the x -- >> i think the time to have owned that has now passed and i'm going to have to say don't buy because it had the big move. i don't anticipate another big move richard in texas richard! >> caller: hey, cramer howdy from texas. >> join me on the call thursday. i have some special stuff. >> caller: looking forward to it >> thank you 11:30. >> caller: looking for interactive. >> i think it's spent enough
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time in the wilderness got a lot of irons in the fire do not give up on take two reports pretty soon. david in colorado. david! >> caller: hey, big colorado boo-yah, jim. >> mile high boo-yah what's up? >> caller: my stock is e ew pharma. >> good news after the close about epilepsy well, that's the synthetic cannabis, so to speak, canabanoid it's a remarkable company. fabulous got a fabulous book out "unravel mind" about epilepsy let's go to ali in california. >> caller: boo-yah i want to thank you for the greatest advice ever because of that i was prepared today. thank you for that. >> wow thank you, man you are welcome as my ma would say. what's up?
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>> caller: only four weeks in the market and i want to thank you. now my question is all this time, i'm looking to defensive how do you like general dynamics >> it should translate like that people say in the end, hey, the democrats own the house so you can't buy defense and i have to stick by that because that's the exact case and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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want to know why the chinese related panic didn't stick the president comes out of nowhere this weekend he tells us he wants to raise the existing tariffs and he's going to raise the tariffs from 10 to 25%. immediately everybody freaks out. he sabotaged the trade talks we're losing the trade war, the sky is falling except none of that is true i know wall street's desperate for any kind of trade deal most money managers go to the end. so we can go back to business as usual. not going to happen. the widespread consensus is we can't beat china at their own game so we shouldn't even try, but, man, that consensus shouldn't be more wrong. the panic subsides and they erased most of their losses. in reality we're winning the trade war. we're winning. we're winning regardless of what
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you think of trump the truth is that china's a paper tire suddenly it's obvious if you just look at the darn numbers. there's a reason our nasdaq was down .5% today while the chinese equivalent of the nasdaq was down 7.5 our s&p was down .45 the chinese equivalent was down 5.6. at the end of the day the people's republic needs our congress more than we need their congress they need our money but do we really need their cheap stuff? the landfill stuff there are dozens of other countries that would love this business you heard what funko said about where they're moving their stuff. you think the white house doesn't know that? you think the president isn't watching the averages like a hawk they're his nielsen ratings. his tweet about raising tariffs was a test gave us a head-to-head trial the results of the trial was clear. the averages don't lie now you may think trump is totally clueless about international trade but he recognizes something that a lot
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of experts forget. trade negotiations are a zero sum game for one side to win, the other side has to lose he wants us to win there's no reason we can't the united states has inbe sanely strong growth and people are looking for two. this may be the best economy we've had since 1969 because there's hardly inflation unlike 1969 the federal reserve has a lot of leeway before it will feel compelled to raise interest rates. if the new tariffs cause a slowdown trump knows jay powell will give us a boost with a rate cut. chinese economy, on the other hands, says it's vulnerable. that's why he's pushing for the impossible he doesn't want china to buy more soy beans he wants them to stop joint ventures as the price of entry into the market. if china lets america do business there, i bet trump will gladly take that deal. they can't steal our internet. they can't steal our stuff if there's no joint venture but the communist party has been gaming the system for so long maybe
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they're unwilling to make concessions. you know what, that's fine, too. the longer the trade war goes on the more obvious it gets china is losing more than we are the pundants and mainstream seem to worship at the altar of chinese power will never believe what i just said and they never think that the president has an upper hand he can tell the chinese if you bend a little, i won't raise the take china will hate it but at least the communist party can say they kept the tariffs from going higher that's why i'm confident we'll get a good outcome and that's why the stock market rebounded so dramatically and it will do the same tomorrow because of the white house's comments guys, we have the cards and today's show, today's action, it shows we've got a winning hand stick with cramer. an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.
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in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. tomorrow down and then up. it's a pattern like to say there's always a bull market somewhere. i promise i'll find it for you right here on "mad money." i'm jim cramer and i will see you tomorrow
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>> narrator: in this episode of "american greed"... john and dan sullivan are more than loving brothers. they are partners in business and crime. >> they were good thieves -- big liars and good thieves. >> narrator: under cover of a home-repair business, the sullivans prey on victims based on race and age. >> they had catchphrases to describe who they were targeting. they said, "the blacker, the better. the older, the better." to say how they viewed their targets was odious doesn't even begin to capture how morally bankrupt the sullivans were. >> narrator: for 10 years, they construct a trail of ruin by stealing homes and abandoning projects, until they get nailed. >> i told him that, "i don't know how long it's gonna take,

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