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tv   Mad Money  CNBC  October 22, 2019 6:00pm-7:00pm EDT

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what's driving the smh trade sell smh on rally the next couple months. >> game war the world series slb. >> more tomorrow at with jim cr 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 teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. some days i feel like jan brady except of instead of marcia, marcia, marcia it's index funds, index funds, index funds it's so tiresome hearing they're
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the only intelligent way to invest that is simply not true. after a roller coaster of a day where the dow dipped 40, nasdaq lost 0.72% -- >> sell, sell, sell. >> i'm going to prove to you -- i've said this before, i'll repeat again, a low cost s&p 500 index fund is a great way to get exposure to the greatest wealth of our time, the stock market. the bond market has been giving a pretty good run for the money. if you don't have much capital and trying to save for retirement put that money in an index fund imagine if i came out and said, hi, i'm jim cramer buy index funds. see you tomorrow i mean i guess i could do that but if i really believed in them and i do i think there's more to it if you've got some mad money, hence the show, to play with, or invest if you're mad at me about saying play, you can better returns as long as you're
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willing to do the homework plus when you nail a stock pick you get that joyous feeling of winning the lottery and this is rigged in your favor extra incentive rather than spending your money on something fun. want examples? today was the day, just look at the action in the health care sector where we had some huge winners. tote of nowhere biogen is seeking approval for an alzheimer's drug what did it do it shot up 26% ♪ hallelujah >> what made it so shocking, like many other drug companies they've been working on alzheimer's treatment for years this is the holy grail of medicine. everybody, everybody has been searching for it no one ever finds it johnson & johnson failed eli lilly failed and looked like bejoegen failed earlier too. in march they halted a drug that
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could stop the progress of alzheimer's but how about for everybody else who's deathly afraid of getting it but earlier today at one of the most astounding turnabouts, i mean truly i would have devoted my whole morning show about this, david faber and i talked about it bioagain tells they've done a new analysis and the drug is working. long duration high dose administration is giving us all the right signs, better cognition, improved ability to ham what are known as the activities of daily life, independently traveling, personal finance so bioagain is resuming trials after meeting with the fda if the fda has encouraged hthem to proceed with the studies, it's not the company doing it but the fda saying, hey, green light this could be a game changer. if this thing works and side effects are minimal it could be right now the biggest drug in
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history. a blockbuster to end all blockbusters, exactly when i get off the desk with ceos of the pharmaceutical industry they say it can't be done you can't reverse it no wonder why it caught fire so many analysts got burned after they said things were pretty good, they're gun shy almost all of them rate the stock -- while biogen had a big move it's still down 50 points down from where it was at march. i'm betting some analysts will be forced to upgrade to a buy and when they do it will go higher maybe a lot higher i bring this up because lightning is never going to strike that index fund of yours it struck biogen you won't get crushed by losers. asterisk that. i believe the odds of picking winners outweigh the odds of ending up with a loser alongside your index fund even without the new drug biogen was worth
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owning that's why i think the move isn't over but maybe new drug data is too random for you a more gettable example. a guy we have on, a real charitable fellow is the ceo of centene. he is the most tiff executive i know in health care. also because, of course, his stock is incredibly cheap. today he reported a fine quarter. rallied. not initially. some people are more stupid. my mother would say don't say everyone is stupid that's not fair. 34 years of wisdom there i think it's got a lot more room to run centene domestic now, as i've told you before even if elizabeth warren or bernie sanders end up in the house they don't have the votes
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to pass single payer take medicare for all off the table and centene has a fabulous runway fabulous finally there's uber cramer fave bristol-myers. for ages we heard their drug keytruda was beating the stuffing out of onbdivo and take with another can improve lives this is looking brighter for them one more reason to like bristol-myers. it sells 12 times next yore's earnings are you kidding me i've been like a broken record urging you to trust ceo giovanni kaforia and buy the stock with these new results and brilliant management deal i think bristol-myers can perform better than the s&p infection fund and
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3% yield and if you're worried about a slowdown in the economy don't you think bristol-myers is what you should be buying. skeptical that the fed will keep cutting interest rates, buy bristol-myers. i love index fund, i love index funds. everybody should have some exposure to it but if you want to hit big try to pick individual stock as longside of those index funds. stocks like biogen or cen many tene i think they have big upside of course, you can always end up owning losers. the good news for bristol news, bad for merck. even if today's vicious 16% nine, still up 23% for the year. not so bad notice i did not pick any stocks with economic sensitivity or trade war issues we got news from texas instruments. weakness across the board was
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ugly and brought down the whole semi cohort after-hours. those stocks are often too hard to own although i think texas instruments overdid it these gains can be yours and i do believe they will outweigh the losses and be a nice already let's just say sidekick to index funds. anybody who lacks the time 0 put in the homework to own individual stocks but if you do have the time and willing to do the work beat the averages with a bejoegen or a centene. tom in illinois. >> caller: thanks for taking my call. >> of course >> caller: i bought shares of viacom b thinking that the merger between cbs and viacom would help bring up both shares and it hasn't been the case and i'm wondering what is your feeling on this merger and also what is your feeling on viacom
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b? is it still holding on for now. >> you can't see the show but i have a dunce cap on. the reason i do that i too like it and bought it for my charitable trust and feel like a complete idiot i should be sentenced to be in the corner and write on the blackboard i'm an idiot because i recommended it my charitable trust has been hurt. i felt it would be potent and really powerful combination. it oddly has not worked. i'm not going to sell it but let's just say i'll have to spend this whole darn period with my dunce cap on thank you for the call josh in north carolina josh >> caller: boo-yah, jim from the tar heel state how are you doing? >> i'm doing well. how about you? >> caller: i am doing great. jim, the company i wanted to ask you about today is northrup grumman. i like it. lots of innovation i think they've got the culling edge on a lot of things. my concern is a pullback in defense spending by the u.s. government what are your thoughts
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>> you're from north carolina? why do you want to pick -- why do you want to pick a running back who sees -- who is on a team with a quarterback who sees ghosts i want you to buy christian mccaffrey. who is it? it's united technologies stick with the program all right. as long as you're willing to do the homework you can feel like you're winning the lottery with the right stock picks. how about the biogen how about the centene or bristol-myers. look at today's winners. hasboro took a tumble. wasn't it nasty. i sit down with the ceo. he comes on even if it's a bad day. is beyond meat as great as it is and tasty as it is a little too much like gopro and lodge gitec have the ceo so stay with cramer >> announcer: don't miss a
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second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com. through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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i feel like i say this every quarter but what the heck just happened with the stock of hasbro it's either feast or famine for those guys i' i've liked it so much. the stock got hammered down more than 16% we got to look into it last time we got the sense they finally got over the collateral damage from the toys "r" us bankruptcy that was a terrible disruptive influence. this time they got hammered by tariffs on toys made in china and posted a 37-cent earnings miss with a substantial revenue shortfall. while hasbro's licensed brand dis very well and there i think toys affiliates with disney and marvel and "star wars," every other division was weaker than expected you get the sense that the trade war is really making life difficult for this fabulous
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company. it doesn't help that wall street is skeptical of their entertainment division and shelling out money for peppa pig and others let's check in with brian goldner who has the intestinal fortitude to speak to us every quarter during good times and bad. that's one of the reasons i like him so much. mr. goldner, welcome back to "mad money." >> hey, jim. how are you doing? >> brian, i got to tell you there is a part of your conference call where you actually describe what it's like for you and a retailer given the tariffs, i know that the analyst i got it if you explain it to our viewers, they will know that this had to do nothing with how great hasbro is, but everything with the way the toys are bought and sold in this country >> well, you know, we set an objective to get back to growth. you mentioned toys "r" us and we're getting back up 5%. we said we would turn our european business around and we're doing that
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our international business was up 4% absent effects with strong growth in latin america and asia pacific then we've talked throughout the year how tariffs could have an impact whether or not they were deployed or enacted. because of the way we go to market using an asset-like system with our retailers. in essence our retailers ship in product on a direct import basis and we ship in product domestically as tariffs are being considered and just through the third quarter we saw several times conversation, communication and elements that would say tariffs were coming, our retailer canceled those direct import orders and then we brute them in domestically, those same inventories except the inventory is sitting in asia awaiting for a direct import pickup and we have to bring it in domestically through our supply chain so in july and august we saw shipments down in september we saw shipments rise appreciably and our supply chain working
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with the third party provider, an asset-like model we weren't able to bring in all the product we intended to bring in and continue to work through this process. going forward, after fourth quarter 2019, our teams like we always do address these issues in realtime. we have a way to go forward with our retailers whether tariffs whether enacted or not will not have an impact on the business but in the short term it did and we saw it in a reduction in revenues and increase in some expenses particularly around shipping and warehousing and that's what we were describing today. >> to me it made perfect sense to someone who's been in business and watched my dad sell toys, i know the whole -- i mean this would be something -- it's like a second analyst -- you're probably the company most at the front line but i like what you said about september i like the progression can you catch up, fill the orders from september and still hit christmas strong
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>> well, look, we've said that we've come out of the gates into the fourth quarter strongly within our assets showing great growth we have a number of amazing initiatives coming "frozen 2" in theaters shortly we launched on october 4th "star wars" is launched on october 4th. we're seeing very strong growth there. our nerf business is off to a very good start as we launch nerf ultra we're seeing a number of initiatives around fur real friends and cubby. transformer, monopoly and magic the gathering also we have a number of new products coming into the holidays we said we believe we can grow in the fourth quarter and as we go forward, we will get through this issue related to tariffs. >> so, brian, how much is the -- is your company's bottom line or the consumers' bottom line going to be hurt by what president trump is doing
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>> well, look, i think the way to look at it, we're in an engaged conversation and we want to continue to ensure we can bring great products and play experiences to consumers all over the world and we're doing that we want to ensure that we're bringing those great high quality products at the best possible price but if tariffs are enacted we're going to need to pass on those costs to our retailers and to the consumer. we hope that it doesn't happen the prospect of it happening has interfered with our supply chain in the short term but longer term the teams are already working on great plans to mitigate that and then to put it behind us as we've done so many other issues related to the changing face of retail. >> now, one of the things i love about what you're doing is that we used to look at your business as a one season business one quarter frankly and the other quarters we used to say, look, we know they're not any good what can you do? with the addition of entertainment 1 and the thought about storytelling, you have
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gotten away from episodic and are going for traditional quarter to quarter strength. when will people realize that that is brian goldner's legacy >> well, part of it as well is that we're going to add a number of hasbro owned ips in storytelling from the family brand side which is preschool to the adult side for brands like magic the gathering and dungeons and dragons that enjoy incredible success and yet are only known to about half the world so as you tell stories on great platforms you raise the prospect for those brands and you take those brands out around the world. so also as you look at those brand, hasbro owned ip they make more on operating profit we can generate consumer products we generate toys and games and generate digital games and so our brands are more profitable than our partner brands. we talked about that a lot in the quarter. as our partner brands grow it's fantastic and want to support their brands and certainly have treated their brands like our brands and prioritize their
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brand force the fourth quarter as we had issues getting through the domestic supply chain and yet we don't make as much money there. as you build the business in marriage to e1 you're able to bring more hasbro ip as -- along with our partner brands to the marketplace globally and we think that's a winning solution. >> one last question, do you think it would help or hurt shareholders if you withdrew guidance until the turmoil is over >> well, we don't give guidance. in the beginning of the year we talk about our belief in the year and so we did we said we could return to profitable growth. we also talked about the prospect of tariffs and what it would create in our second quarter, with our great results we still spend a lot of time deb thomas our cfo talked about what tariffs could represent, both the deployment as well as just the avoidance of tariffs as it would pertain to our supply chain so we've tried to give people a lot of description i just think people needed to understand in realtime what it
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meant but also that it's a short-term phenomena and we will move past it we have a great team and they're ready to go. >> i'm convinced you're absolutely right and that's why once again i'm so glad you came on i talked at the top of the show about where you can make money how about buying the stocks of high quality companies that just get completely hammered for nothing that had to do with this excellent team that brian goldner runs hasbro, "mad money" is back after the break.
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the bull market knows something is overvalued when the shorts and long as grow that a stock is into high when the lockup on insider sales is cracked before it was supposed to, cracked before it's supposed to. the only one thing i need you to do, run. don't walk away from that stock.
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run. and when i say that stock, i mean beyond meat ever since the company started it was trading $2 in july. nightmare it's lost more than half its value down 106 today. what went wrong? the taste? no, it does need a little spice up now and then. old bay anding, look, beyond meat frankly, just, when we got it, it never should have been that high in the first place the stock peaked when the company reported a strong quarter but also it announced a 3.25 million share secondary including 39,000 shares owned by the ceo who is really a terrific guy, but you know what, hey, this isn't about friends, it's about money. yeah, and lock on insider sales wasn't supposed to expire until the end of the month that was premature i'm not taking any chances because brown wanted everyone to win on this sale he placed it at 160. that was more than 60 bucks
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below where the stock had been trading. discounted and briefly beyond meat popped back up to 169 soon after. you could have had a nice win if you were nimble enough to get in and get out but since then it's steadily worked its way lower. you could argue the stock collapsed once we started hearing about the multiple competitors working on their own plant based meat alternative including impossible nestle, i like the chicken fingers there and no, actually i like the tyson chicken fingers and i like the concept all four which have deeper pockets beyond meat that explanation makes it more complicated. the additional shares, the ones that came deep in the hole at 160, that broke what's known as the titus of the short squeeze and it drove beyond meat's supreme court terrorize from 45 to 239 in just a couple of months why do i say that? we've seen this story before
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beyond meat's not the first fresh faced company to come public with a rapid growth rate, a ton of hype and far too few shares if anything it reminds me of gopro. when gopro became public in 2014 we heard this was more than just a body camera company. priced at $24 and one of the hottest deals then it quickly soared to around 90 bucks, about four months later thanks to a major short squeeze. just like beyond meat. you couldn't locate any shares of gopro to sell short or you did sell and that's what caused the ramp up along with the overly excited retail buyers you can't find stock i found it but then also just like beyond meat, they allowed the lockuppen insider sales to expire early so two founders could sell to a new foundation t never recovered
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falling to $38 a few months later. sure it bounced back to around 66 a little bit, right but then in the summer 2015, six months later trading in the single dill i -- digits i remember being in hawaii when gopro hit $90 on the way up. i popped into a surfing store where i saw a video running of a goat wearing a gopro on a surfboard. a goat when i asked the clerk she said, hey, listen, why not they had just done a showing of a pig surfing with a gopro on its head to me honestly, really a goat surfing on a pro -- with a gopro. that was the closest thing to a bell going off that i ever can recall about a stock i thought it could reach saturation point there's only so many places you can wear it that i know of i recommended it as soon as i returned if the founders didn't sell
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stock then it could have gone higher but it was inevitable and it was doomed. the whole move had been propped up by a short squeeze. once there were more shares on the market from the lockup expiration people could short the stock. they could find the stock and short it and it came right back down i think we're seeing the sack same thing with beyond meat. it's really happening, people. it is happening. the moral of the story, building a fortress what matters in these situations isn't the fundamentals if the numbers matter they never would have gone that high in the first place. no, it wasn't until the new supply hit the market. then that's when they peaked that's what made the difference. and, listen, i think beyond meat can go lower you know 48 million shares get unlocked 80% of the share count. will this money losing company still be worth $6.7 billion after that lockup expiration if the $3 stock that is.
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>>pro, $3, is any guide, people will find stock. they will find stock to sell shell short the stock and mark it lower so the answer is no hey, why don't we talk to gary in florida. >> caller: boo-yah thank you for educating us all >> i try to make it interesting. go ahead. >> caller: reason i'm calling i'm in the house of pain, 40% down jmia >> oh, why gary, why. why did you want to own that stock? let's get out of that stock before it's too late we got a stock market that's going down let's buy a little bristol-myers. go for stability over craziness and ronald is in new york. ronald >> caller: hello >> ronald, how are you >> caller: i'm just fine is this jim?
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>> yeah. >> caller: thank you for taking the call, jim. you provide a great service to the retail investors so let me tell you about three months ago i took a very small position in crowdstrike. since then it's been hammered. >> why >> caller: i don't know whether to sell it, buy more or -- >> no, one of my absolute favorite analysts put a sell on it it's come down a lot but the whole sector whether palo alto, cyberark oh, my god, even health ther ga' favorite scale has been hurt we've got to wait until the stocks find a bottom you'll see it when they bounce and then i'm going to okay crowdstrike but right now free for all. crowdstrike, google it you see it run as fast as you can when the bulls and bear say something is overvalued like when it comes to beyond meat. yeah, man. this stuff is -- well, i mean,
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you got to run fast. okay, there's much more "mad money" ahead how is the trade war impacting your video game habit? i'll sit down with the ceo of logitech to find out more. there are more women ceos of fortune 500 companies than ever before the grand total sits at a whopping 33. i'm talking to the founders of one investment firm that wants to make money and change that and all your call, rapid-fire in tonight's edition of "the lightning round. so stick with cramer alexa, tell me about neptune's sorrow by olivia watson. alexa: it's a masterstroke of heartache, brutality and redemption. the mist crept into the pivot hole beside her... you're late. david! what did you think of the book? it's a...masterstroke of...
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ever since the president really ratcheted up trade tensions this year wall street has been worried about a host of industries that rely on chinese manufacturing like electronics some companies have defied the sector which brings me to logitech, maker of computer re riverals like keyboards and mice and high-end gaming equipment. bracken darrell's company peaked and got hammered before bouncing right back in the first quarter. then the trade war heated up since then it's been flatlining. last night they reported and
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results were okay. the company delivered in-line earnings on slighter weaker than expected sales with video collaboration and pr peripherals despite a challenging environment. it dipped a few cents but, look t. could have been a lot worse do not take it from me why don't we go to bracken darrell, the president and ceo of logitech international to get a better read on the quarter and the company's prospects. welcome back to "mad money." >> jim, so good to be back. >> well, bracken, i got to tell you you're upbeat but here we go you say this quarter we delivered great numbers, video -- we continue to perform in spite of the challenging macro environment. come on. your stuff tran kens that nonsense, doesn't it >> it does you know, we grew 6% overall we grew 60% in our video collaboration business 6% in our vc -- in our pc
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business so, yeah, we had a good solid quarter and despite the macro economic noise >> now, i hook at the revenue line of video collaboration. we got to start talking a lot more about this. you know what i feel a lot of times we've come and looked at your great mice and know you have low latency and looked at your fabulous speakers and bought those and the j-birds the video collaboration. you're coming in how much underneath the big guys and to me easily assembled and ready to roll >> yeah, you know, we enable, you know, zoom or microsoft or google, whatever video service you want, we come in really for the cost of a couple chairs and you can video the room and save a trip to europe or china. it's incredibly affordable >> go ahead. >> one-tenth the cost of the or 1/20 the cost of those video conference systems of yesteryear. >> don't you have to given the
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fact that cheap value quality always wins in the end, will we be speaking about logitech as a video collaboration company that also has interesting gaming and peripherals? >> well, you know, maybe, this has gone from zero seven years ago to its 10% of our total company as you said it grew 60% this quarter so it's going to be a big business for us. we think one day this will be a billion dollar business. >> well, that would be remarkable because not that long ago, if you had a number in gaming that was not blow-out versus even last year's comparison because of fortnite, i would say logitech will go down your number was distorted by how strong fortnite was last year and i said, oh, boy, is this stock going to get hit it was just the opposite, people recognizing that you've got a game plan that's far more than peripherals. >> we are really a portfolio of businesses gaming, we have businesses in gaming, we have businesses now in video collaboration and
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businesses in pc peripherals and music. earphones so we are a portfolio of peripherals for cloud services and that gives us a lot of strength even in ups and downs of different individual markets. >> we got to talk china. you put some price increases through. how difficult is it to navigate china? some of the companies like hasbro got beat up this quarter. this was the one where the retailers didn't know what to do it seems like the end markets and you've got powerful end markets are confused by the tariffs. >> yeah, you know, we've been in china for 25 years we've been manufacturing in china. we have a great market in china. you know, it's our number two sales market in the world. so we've -- as the tariffs have gone through we've done everything we could to manage our supply chain to just go after straight lower cost reductions, raise prices where we needed to in the u.s. and we've made some moves to
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factories outside china so it's been a concerted effort to set o ourselves up to mitigate them. >> are you trying as the president wants to get out of china or just kind of slow and steady, you're doing okay, no need to leave a country that's been so good to you? >> well, you know, we're attacking this in a collection of ways. we do have some exits from china but we also have some other methods to lower our costs and we've raised prices in some places. >> now, you've got a lot of consumer goods that don't have to be bought for instance, i love your speakers you can knock them in the water unlikely cell phone and it's fine i mean, these are terrific, terrific kind of fun gifts i always give your stuff as gifts. how is the consumer? they still buying? >> yeah, they're still buying. generally speaking i think, you know, we're -- the cool thing about our business is we're sort of resistant to the normal recession or things that might affect other companies because
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our price points are relatively low. they're super giftable it's that time of year so please do buy and even where we have higher prices they're relatively speaking like in video conferencing low and save you so much money you can save money as a company if you just video enable rooms and don't fly. >> last question, we are still seeing an explosion, correct in esports, gaming, young people getting involved gaming parlors the big casino companies are doing it, stadiums doing it. still early innings. >> still early innings i get a message or a call every week or two or three from colleges or high schools that are putting in gaming programs starting with young people and moving up and, you know, it's going everywhere i wouldn't be confused by the fortnite effect underneath that the secular trend is still going strong. >> stock up nicely i think it should keep going up. i want to thank you and chief innovator because there's a lot of cool stuff here "mad money" is back after the
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it is time it is time for "the lightning round. >> buy, buy, buy >> sell, sell, sell. [ buzzer ] >> and then "the lightning round" is over are you ready, skee-daddy? time for "the lightning round. let's start with max in florida. max. >> caller: how are you doing, jim? >> max, i'm having a good day. how about you? >> caller: i'm having an all right day so far but quick question for you i invested in iq last year and $42 a share. it's now at 50.50 a share. >> a chinese video entertainment company. don't you have enough problems with netflix why do we need a chinese netflix? we like disney with that tie-up with verizon we talked about on "squawk on the street. alyssa in pennsylvania alyssa >> caller: hello, jim. thank you for all you do boo-yah. >> boo-yah back.
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>> caller: i'm just asking about t.e. connectivity. i'm a longtime holder and i'm just wondering what you think. >> i think you should stay a longtime holder. out there making money engineered products. it's got a nice combination of manufacturing and software why don't people talk about it because it was a spin-off. good call. way to go. paul in texas. paul >> caller: boo-yah, jim. >> boo-yah >> caller: is my company a buy west rock company? >> all right, west rock missed a bunch of quarters in a row it does have a good yield. it was too connected to the possibility more of an amazon play yields 4.8 the good news is that when i was pulling up some executives the other day, they are all thinking about using the westrock ring instead of the plastic rings the bad news is there's still too much capacity in that
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industry i think it's dead money for a bit. a long cycle coming. not starting yet jason in arizona jason. >> caller: hi. how are you doing? >> i'm good. how about you? >> caller: not bad hey, scottsdale, not a cloud in the sky. can't complain >> okay. yes. good >> caller: i do need an opinion. mplx. >> one of the best of the best but i absolutely hate the best by the way enterprise but i hate that group why? because there is no growth and when there's no growth, people sell. they would rather have the growth -- they'd rather have the growth of a con ed or dominion or growth of a southern and there we go and that, ladies and gentlemen, is the conclusion of "the lightning round." >> announcer: "the lightning round" is sponsored by td ameritrade
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in case you didn't get the memo this is national business women's week so i want to spend some time highlighting female led organizations in generally male dominated industries especially organizations that are working to empower other women. which brings me to victress capital. this isn't just about doing the right thing, it's for profit
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that will make money there's still a lot of talent being squandered because of discrimination for victress, venture capitalis firm and investing in early stage privately held companies that early you can't talk about. a closer look with the founders and managing partner victress capital miss cashman, welcome to "mad money." >> so excited to be here huge fans of yours >> what i want to know it is national business woman's week and it's the type of thing. it bugs the heck out of me i didn't know about it until you were being booked. what that says is not enough awareness but may something instituti institutionally about where our country is you're helping to change >> that's right and this is something we care deeply about and appreciate the opportunity to share more with you and your
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viewers. we came together to form victress around a shared passion to support women-led businesses and female founders do have a hard time accessing capital because there's a massive funding gap. while women start 40% of companies in this country, they receive only 3% of venture capital funding. and while sometimes this makes sense, right, not every business deserves venture capital funding but when we encounter a founder who sees a huge market opportunity and she has a vision and a compelling business plan to execute around that vision along with some early traction, we feel that that founder has a right to access that capital alongside anyone else. and we look at at statistics and see that gender diverse teams outperform their all male counterparts both top and bottom line metrics and so with that in mind we came together to launch victress to leverage our backgrounds and help the
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founders access capital. >> i started the street.com and i did study after study about women-led or women-dominated boards or boards withmore women. the outperformance was extraordinary. how is it the empirical data shows that and yet we have 33 of the fortune 500 are women and women are still in very much minority on boards, explain that to me if you're trying to make a profit >> well, it's a great question because you're right the data across the board, if you have a gender balance team in the boardroom or at the management level you will outperform top line and bottom line you know, but it's hard and our industry and venture capital 75% of the venture capital firms out there still don't have a female partner. so that is difficult if you think of venture capital, we are making investments in early stage companies, we find those companies throughout our networks our networks are made with people that we either worked with or went to school with or
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we've, you know, invested in and so those opportunities that come up are often homo genius >> no one gets your money unless they have a woman in prominence, management. >> right, the first filter for us is that there has to be at least one female on that founding team. 19 of the 20 companies we've selfed in so far it's been a female founder or female co-founders, that's really the first lens that we look for, of course, we look at all diversity measures but gender being the first. >> in the meantime, when we look at different companies and talk about somersault you know why we do it? we pick the best people, that's why we do it. >> that's right. >> and many have sampled daily harvest and liked that and how do you have visibility for these companies, because they obviously are on the right track but it's early stage how does an early stage company, instagram, snap, twitter, what do you do?
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>> great question. we think, you know, first they have to understand there is a huge opportunity or white space for their product. so take somersault the two founders saw an opportunity to form a women's travel ware and swimwear company. there wasn't a dominant brand in that space so that founding team, one had deep expertise on the op side and one had it on the branding side and came together and form the it they use technology to really get the perfect fitting suit and then they launched to market and they did speak with influencers and had early customers, they proved their product fit and have great retention rates and they've grown that company and done a great job of leveraging the fit and the appeal for the brand and what it stands for which is empowering women and giving them clothes that make them feel great. >> i just spent a lot of time with marc benioff and wrote a book called "trail blazers". i've always felt he is a person that understood the ethos and
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challenged by two women at his company that said he was juvend paying them and department by department, vice president by vice president it was discrimination. do you see it constantly >> you know, i think we see it as a funder on the venture firm side or in private equity firms and do believe that sometimes the metric that gets the most focus and attention is do you have a female partner but what they don't do is peel back, is the carried interest, is your compensation on par with your male counterparts even see that time after time if they take off to be at home with kids, that tlts there's a real penalty they pay for that and you can never really get back on track once you give that sdmrup drives me crazy. if you're not a guy you're no good and if you are a guy, well, you're pretending, women are in a terrible spot. we got to change it. you guys are trying to change it. >> both: we are. >> i think you'll have success
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you any why, you're making a profit and that's unfortunately fortunately is the -- >> we wholeheartedly agree >> that's lori and suzanne i hope you liked it founding and managing partners of victress for national women's business week about time stick with cramer.
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woman: what does the word "partner" really mean? someone i can trust. (impact, click) who is with me for the long-term. who understands i'm dealing with lives, not only livelihoods. that in order to help people, i need more than products, i need quality support and insights. can i find someone who partners with me to achieve people's long-term success? with capital group, i can.
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talk to your advisor or consultant for investment risks and information. some big news tonight about three executive, first mark parker, one of the greats retiring from nike second, john donahoe, wow, you know we liked him forever moving up to take the reins at nike and bill mcdermott is coming in to run service now. i want to congratulate all three and mark parker, job well done i always like to say there's a bull market somewhere. i promise to find it for you i'm jim cramer i'll 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." ♪ who believes every home cook will want her product. ♪ hi. my name is marian cruz.

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