tv Mad Money CNBC November 4, 2019 6:00pm-7:00pm EST
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what i think are kmod ity. >> twitter, it might be time for a trade. >> if you go to brazil, in the energy world, slb has room to 39. >> what are you lkg abt?tainou >> i have no idea. that does it for us, we'll see you tomorrow "mad money" 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 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 you but to educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. you know how the averages hit new all-time highs, dow, nasdaq
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climbing i'll tell you how it's done. market reached unheard of levels by triumphing over the concerns that caused money managers to stay on the sidelines to buy lower prices often hear we climb a wall of worry to get to exhausted levels but today we just didn't scale a wall but beached and busted through mine fields, force fields and cauldrons of boiling oil. this is a quite bull market. tonight i want to go over obstacles we've overcome amazing list, outside of president on twitter seems to be celebrating is down. challenges conquered that's a graphic obstacle number one, impeachment. i told you wouldn't matter to stock market based on bill
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clinton. buying opportunity, not selling. but sitting president incredibly pro business and house democrats are trying to take him down and stock market is ignoring whole process, maybe should impeach all presidents works out for the averages obstacle number two, recession fears. job growth is still robust versus the historical norm but over the summer long-term buying yields dropped below short-term and all commentators said it's irrefutable sign we're heading into recession i told you it's nonsense fed screwed up problem would go away as fed cut rates. still tons of investors freaking out by endless charter heard it all day, read it all
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night. inverted curve equals recession. can't take this stuff seriously. panic sellers capitulated. and watch the curve uninvert before your eyes spell check hates uninvert you have to do un-invert factoid. third obstacle worries about inflation as opposed to actual inflation. just so-called experts -- how many times, so-called experts, i want to bring their necks. can't believe the labor market can be strong without causing rampant inflation, i took that class, class was wrong inflationary forces keeping prices in check.
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deflationary monsters or big box retailers, strong arm suppliers to cloud-based software companies that save with labor -- fire a lot of people on that stuff, well, downsize obstacle number four, tariffs. trade wars are devastating to economic growth, starting trade war is supposed to start a recession but reality is different. trade war with china not done a lot of damage, hate or like, hasn't absorbed huge tariffs and most of the fears not true. and american companies are fleeing china to other countries. still import huge amount from china, and some businessesreall. hear one late, get the scheme of things but less pain than predicted companies supposed to be hit hardest, big industrials, they
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have stocks been helping lead the whole charge higher. those stocks are flying. fifth obstacle, risk of owning individual stocks because of company specific woes. boy did we have them today embarrassing today if you ask me two high quality companies crushed on very bad news, mcdonald's and under armour. mcdonald's in same town as chicago bears, also embarrassing, just lost ceo for consensual affair. wall street loves him. stock's up under his tenure. new chief has taken over he's a bit of an unknown i don't know this new guy. know that historically mcdonald's has strong bench and not holding easterbrook's
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questionable activity. but stock has been rocked. short sales domestically, wendy's breakfast is coming out. here $2.21 i think you buy it. risk baked in. under armour is harder, although the baltimore ravens won big against the pats -- they're from baltimore. justice department and s.e.c. are investigating its accounting practices. on one hand, under armour has a plan to turn it around and doing better in balance sheet and inventories. other hand, powerful deep pocket competitors, nikes and adidas, fickle consumer. i believe there are no revenue recognition issues, those are what lead to severe
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consequences i'm far more worried about the turnaround than the integrity of kevin planck and his enterprise. really bad i don't think the government would allow them to report or issue a forecast but can't recommend buying yet don't want to be a hero. says accounting irregularities and issues with sales have to play out a little more meanwhile more accounting issues from twilia, once red hot cloud stock. twice hit by problems and trickling out. that's the worst way now i look naked as a jaybird. what is a jaybird? wife said i was naked as a jaybird, what does that mean is that a blue jay bird? something to wonder. we have to find out what is
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going on, boeing situation, caused by negligence that led to the 737 max crash, starting to talk about it every single show. yet somehow boeing stock is up 9% for the year. watched general electric flail for ages, i think both will recover. host of other companies on the wall of worry. companies, issues, trent, brexit, that's chaos how can wall street not be afraid of elizabeth warren, frontrunner in the primary wants to raise clients' taxes. this evening, we have uber going down again what is that unicorn issue. bottom line. these obstacles are exactly what makes a bull market thrive cause investors to go negative
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and as averages rally, same people come back in at higher levels, send s uh-hing us highe. people who trade apple right? right now this rally, it's got fuel in spades okay start with jared in tennessee. jared. >> caller: hey, mr. cramer, how are you? >> good, how are you >> caller: fabulous. brand new to trading and watch you every day and look to your guidance, thank you, first of all. >> quite welcome glad you're aboard there's money being made is that against the law to say that >> caller: i'm ready to make money, new to it, excited. >> i like this call. go ahead >> caller: awesome new to trading but had a hunch,
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qsr, popeye's chicken, looked back at it in august, looked like jump, playing options wondering if smart to bet on going up $5? >> i think should be investing, not necessarily trading options. quick service, burger king, that's -- popeye, got chicken thing, doesn't mean will beat the numbers. impossible burger is going nationwide and understand each other, that's got gmos, i'll sanction some options trading but don't forget to invest too whole life ahead of you. like your attitude phil in new jersey >> caller: big boo-yah from the philadelphia eagles. >> we made the bears look like
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guys used to run mcdonald's. >> if only the eagles could. i bought estee lauder. i don't know what is causing it to plummet should i keep out of it? >> what's happening is the proctor and gambles, all the recession stuff, $4.80 because people are not going to recession. i always said we're not going to recession, nobody listened but maybe my wife and even she didn't care what i had to say. now on trarks not going to be a recession. alex in florida. >> caller: how is it going >> not bad how about you? >> caller: doing well. >> good conversation so far. what's up? >> caller: wanted to get sense of how you feel about pacific gas and electric right now
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with betting on insurance claims, overall what will hab happen >> wise man said greatest thing about stocks is that they stop at zero. do i need to say more? leon in pennsylvania >> caller: good evening, professor cramer, boo-yah. >> thanks for giving me tenure >> caller: question about te tele buy, sell or hold >> we have a surfeit of net gas in this country and right now low. so far, so good. but long-term. obstacles right here are typical of what drives the bull higher all the skepticism we've overcome all of these. is china behind the strange
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strength my take. and has wayfair lost its mojo? breaking it down and company behind the brands of mashable and pc mag, hit a high and i think will go higher and you may never have heard of it sitting down with under-the-radar j 2 global i suggest you stay with cramer >> announcer: don't miss a second of "mad money," follow @jimcramer on twitter have a question? tweet cramer, hashtag #madtweets send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something? head to madmoney.cnbc.com.
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until today. in return for president trump perhaps staying the december tariff hikes amongst other things, our companies might gain access to the chinese financial markets and get access to agricultural orders. is that why the big banks are doing well 5g really soaring? makes sense. if you argue that j.p. morgan ought to be going down with every rate cut because supposed to be bad for the banks. hurt the net interest margins. maybe the stock of j.p. morgan is on fire because some say best chinese contacts or citigroup, in asia. expanding here mastercard, visa and american express up more? best poised to benefit from china, local joint venture with leon leon.
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this is precisely what white house wants to stamp out but better than nothing. i think all buys goldman sachs and apple corp said don't want it to be anything other than domestic hard to build a credit card system from scratch and goldman ready to take on china better than nothing. paypal bought gopay, chinese company to gain access to the chinese market maybe ought to look at that again. semiconductor space, boosted tech too rallied off a wells fargo update big three in 5g plays. wondering if the move was bolstered by the fact our government is talking about
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relaxing restrictions on one of the biggest clients, huawei, only publicly traded company that algorithms recognize as winner in china trade, deere is going up steadily. either get a deal and sell more machines here, or no deal and sell in latin america. because china needs to buy somewhere. all the leaks from the chinese side the u.s. media treats china as more credible than our own government even if you hate trump, hardly credible to treat them like that making concessions sticking point for this phase of negotiations will be if something else that china demands beyond delay in the tariffs. makes me a tad suspicious about the happy talk what will the chinese do to show
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they immediate business? promised big buy of agricultural products last time, nothing happened said would crack down on the illegal fentanyl shipments, nothing happened better see more action soon or be more circumspect. if no signs of good faith, wouldn't say huawei black list but i don't think serious about making deal. looking at actions so far, i don't think they really are. cheri in louisiana >> caller: i have a question for you. got some money, sold some stock in my portfolio that i'm over too much in it and i was wondering if now would be a good time to invest more in my sysco
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>> i think cisco, last quarter was just okay, stock came down, stock starting to move up now but wait on that after what i saw from networks, kind of spending we're trying to see from data centers. although i think cisco is better company than ariftta networks. trade talks, be more circumspect. stay with cramer
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what i think happened last week, wayfair, big online furniture retailer reported what we've seen from them for years but paired with weaker than expected earnings. no one minded that wayfair was long way from profitability, only cared about the profitability. this was momentum stock. this time something changed. ran out of patience. stock lost nearly 20% of its value after reporting and now
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down 50% from highs in march i think the story is finally unraveling because growth has gone out of style on the wall street fashion show. no one willing to benefit of the doubt if going to lose money sea change since wayfair came public in 2015, been about one thing and one thing only, growth at all cost revenue costs have exploded higher but so have operating expenses nearly $6.8 billion in sales last year but earnings per share shrink to negative $5.63 over the same period. 50% plus compound revenue growth but operating expenses grown faster sales growth accelerated year over year, under 40% in 2017
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with a big marketing push that caused operating expense to increase 52% in other words, paid through the nose for the revenue growth and borrowing money. added $1.5 billion in debt over 2017 and 2018. not terrible for $8 billion company but new wrinkle to the story. put it all together, hideous earnings numbers for years and look even worse when factor in stock-based compensation, creating new shares to pay employees. last eight quarters wayfair has better than expected sales and with one exception delivered weaker than expected earnings. one expectation, earnings stronger than anticipated, stock exploded higher. investors thought figured out
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profitable growth, so all-time high of $173 then restoration hardware reported disappointing things. ceo gary freeman voiced frustration that wayfair boasted high and i said ignore stock burning money impressing wall street and rh has rallied and wayfair is down. was confident both stocks would get their due, he was right. thank you gary why did the market turn on wayfair? encountered headwinds. trade war with china, lot of merchandise from china snippet from latest conference call, more than 90% of suppliers
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subject to china tariffs have raised wholesale prices, higher retail prices, as the site prices fluctuate our customer consideration cycle is disrupted and effectively lengthened end quote, ouch. had officers lead. ceo and coo retiring most claimed it was buying opportunity, they were wrong stock's continued to come down and wayfair's growth slowing accelerated last year but decelerated again. just 35% in the third quarter. hard to be a growth start when growth is slowing. year to date income statement, running out of options for
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boosting growth. increased platform and ad spending sales up 38%, operating expenses up 52% spending more and more to buy less and less growth wow, bad combo most importantly by the time wayfair reported same quarter we're used to, wall street's add ut toward growth stocks had changed dramatically into value stocks with proven earnings, taken down deserving and undeserving alike. grubhub devastated had it coming. cloud stocks hit too parade of unprofitable ipos, investors out of patience for this model terrible for the stock wayfair is down 50% but not clear what they can do to turn
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things around. need to do wholesale re-evaluation of their strategy, i'm not sure they can pull that off. wayfair imploded last week because this market is sick and tired of companies with rapid revenue growth losing money, and impacted by tariffs, eviscerated. momentum stock without momentum. stay the heck away from it wayfair stock is going to be toxic. greg in texas. >> caller: yes, sir. i'm in the house of pain, big-time after pinterest beatdown last week what's your guidance >> here's the issue. they told you they were going to do x lot of people feel it's going to
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be x plus two. no, it's x pinterest is real company, going to do well but not grow as fast as you like and spend time in the penalty box. they're smart guys and figuring it out i would not abandon pinterest down here. andrew in ohio >> caller: i dig your show, thanks for all your awesome advice >> of course >> caller: i picked up shopify in $3.20s in july. seen it go up and down, do i expect it to continue to go down >> we have a club, fraction alerts, and i'm thinking we sold it much higher if you can get below 300, buy buy buy. don't worry about shopify, very smart company. hypergrowth is out of style in the wall street fashion show
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j2 global is online media and cloud service. ign, mashable, spice works among others also gets half sales from cloud services online fax, virtual phone, cloud-based data backups digital powerhouse because of smart acquisitions strong quarter last week, stock up more than 40% for the year. can this relatively unknown name keep climbing? closer look at -- sorry, with vivek shah, ceo of j2 global welcome to "mad money," how are y you? >> great >> difficult to call you mr. shah, known you way too
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long first time on the air. give everybody the vision of what you've done >> portfolio of internet brands as you said. media grands, ign, mashable, humble bundle, everyday health software, viper, ip vanish, about 40 brands in total so we -- i think there's common themes about these brands. number one, they all share highly recurring revenue obvious about subscription businesses, 60% of what our company does, other 40% is advertising. 80% to 85% of the revenues - >> you taught me ad is tough business why is yours better than other guy? >> balance is great. subscription is running game, ad
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business as passing game, you have a combination, hopefully a winning team in our advertising business, lot of advertising businesses are selling impressions, display ads, cost per thousand, priced advertising. we're focused on performance marketing, leads and clicks and acquisitions delivering customers rather than impressions, market embraces that generally marketers have a cost per acquired customer, cac deliver those all day long, no end to spending with us. >> keep finding property that others don't even understand their own property or take advantage of the market's now close to uniforms. spice works is very exciting.
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>> enterprise i.t. space, publishing and software business, we have a bunch of brands in that space natural coming together, economies of scale and natural synergies. they were on vc track. vc track can be and often is different than the track we're on we'll take lower and slower revenue growth for profitability. for us, driving profitable growth, earnings, generating free cash flow, that's what our business is about, how we run our properties to take spice works, put it into our system, that discipline and approach to the business will create tremendous value. >> about a year ago you told me, jim, that year of wild growth and profitable, it could end
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it just did. how did you know >> markets tend to get back to it generate cash flow from inception, $3 billion of free cash flow we've redeployed in acquisitions spent $3 billion in acquiring assets run businesses for cash, use that to acquire new businesses we optimize for cash and we continue to repeat i think our time has come. i think we're different than a lot of businesses. i think anyone can spend $1 to make $.75. >> talking about uber model. >> some models out there >> we're old friends and you've taught me so much. i know your family is big fan of
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the show shout-out to andrew who i know is watching. >> thanks. >> you've created a company i can't believe people don't know it it is just a powerhouse. >> we're doing well, we're executing. i think that's critical. >> excellent, vivek, honor to have you on the show vivek shah, ceo of j2 global and one of the greatest businessmen i've met "mad money" is back after the break. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good! high protein. low sugar. mmmm, birthday cake! pure protein bars. try lemon cake.
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that's the drive under the hood of every mini. because every mini is... for the drive. ♪ >> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round! and then the lightning round is over are you ready? lightning round, start with edward in new york edward >> caller: boo-yah, jim. longtime watcher, first-time caller i have a question for you. >> sure. >> caller: about lending tree. >> i like lending tree in this environment, he's
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crushing it. supporters from way back buy time harmon in texas. >> caller: boo-yah, jim. avida medical, up over 600% for past year. what is your take next year? >> what's the one? i don't know that one. i have to come back on that. that's a foreign company go to david in florida david. >> caller: how you doing jim >> well, how >> caller: calling about scorpio tankers. >> that's crazy town that is a trade. rates keep going higher and higher but you're in there for trade. please don't overstay your welcome. brandon in new york. brandon. >> caller: boo-yah cramer. i'm a young investor and big fan of "mad money. >> thank you that's what we want. >> caller: stock is octa
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down about 25% from the highs this year and we have earnings tomorrow what should we be looking for and -- >> market doesn't like this stock. i don't know how much will go out but adobe did report after the bell raised guidance in analyst meeting. because you're younger, own for the long haul. todd mckinnon has best cybersecurity business there are. cliff in new york, cliff >> caller: can you tell me if anthony's energy is buy, sell or hold >> which one >> caller: sorry, sun power. solar panels >> so low, not going to tell you to sell it discouraging frankly but it's okay james in california. james. >> caller: thanks for taking my call always appreciate your astute insights. >> thank you
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>> caller: retired and independent, long dividends. take on oneok. >> one of the best energy plays. 5% yield, fabulous ceo, known him 25 years that's a buy belinda. >> caller: twa transportation company >> that's the opposite of oneok. that's a company i don't trust and would not own and i don't think is a good situation for anyone retired or otherwise. dave in illinois >> caller: dr. cramer. >> how you been, man >> caller: good, congratulate you and our eagles for dominating struggling windy city chicago bears and pulling off divisive win >> it was an achievement of sorts.
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i had benched montgomery in fantasy league, may not need him, needed saquon to get nothing more than 18 >> caller: "mad money" crown prince, hubspot. >> i like hubspot but these are gone out of style for now. if we sit on hubspot, i think will be fine, two fer, hubspot and okta ilyawn that >> caller: opinion on zscalar. >> not the blow out quarter i was looking for. heather gaines favorite but didn't blow the numbers away that does it for the lightning round. >> announcer: the lightning round is sponsored by td ameritrade
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makes owning your own car less and less attractive, seen the rise of electric scooter networks commuters, tourists and thrill seekers can use to travel around big cities at reasonable price except cities where they're banned, traffic in new york is bad enough i guess gotten so big, uber and lyft are trying to get piece of it. start-ups like o jo electric ojo in toronto developed to own scooters with a seat, by the way see that right not just stander and builtout ride sharing service in austin, dallas and memphis, want to create sustainable ecosystem and consolidate the market still in early stages. 1,250 scooters but plan to double by january. is this the future
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future look with max smith, ceo of ojo electric, broader read on the scooter and industry welcome to "mad money. >> thank you >> max, is this the future >> we think so we took a different approach it's a different scooter, seated we're excited about the product we built think it's explosive >> $7 trillion mobility market how much can this take of it >> billions are spent, it's a really big market. not only moving people sustainably around the city but designed to deliver food, parcels and packages mobility space in delivery of products, services and food is explosive market >> partnering with cities and also with the grubhubs of the world? door dashes? that kind of thing
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>> we have a pilot under way right now, exciting. reporting in excess of 30% more efficient deliveries using the scooter. more efficient than any other form, car or bike. average delivery person is doing 35 miles a day, some 50 to 60 miles a day. more trips, more tips, greater retention in delivery people actually have fun riding the product. >> grubhub last week were saying there's not lot of margin, harder to make money, why don't they use ojo >> if they're listening perhaps -- be no but great market and competitive as well. delivery on more efficient basis, saving costs. you are own a couple of restaurants, how do you get food there quickly, on time, still warm that's the opportunity
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>> hoboken didn't want them but everyone in our office saying how do you not want something that doesn't pollute, is efficient, that people know is a very good bargain? >> we ran a short pilot in hoboken, loved the relationship with city council and mayors, great support for the product. day after we ended service there, president of city council got a call from good friend of hers, ojo changed my life. she has ms new mobility that she didn't have meant a lot to me, mother has ms speaks to the scooter design and accessibility. hoboken is great, we'll be become >> talk about the world of sharing. could go to parking lot that was jammed but now it's empty.
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revolution is here right >> access to mobility products elegance of the model, open app, find it, ride it leave it. >> no insurance, gasoline. >> really easy and people are really adopting it that's great unintended consequences with that, street litter and blocking right-of-way that's where we developed this product, not only the scooter, but software, telemattics and how to park. we do virtual parking, you have to park at docking station or place we designate if you don't do that, you can but you'll have a fine >> fair enough it is beautiful, currently made in china is that going to be the same got to be big tariff on this. >> there is a tariff, tough, big impact on cash flow and business we have planned and have
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facility in vietnam. looking at when to do that and that is something -- >> you're part of the economy that has to move out to save money but probably have great relationship and bet the chinese make a great product. >> it is a great product, great partnership, doing business a long time. but if tariffs don't go away, probably make a change. >> wow max smith, ceo of ojo electric company. stick with cramer. thank you max. only one thing's more exciting than than getting a lexus... giving one.
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talk to your advisor or consultant but in my mind i'm still 25. that's why i take osteo bi-flex, to keep me moving the way i was made to. it nourishes and strengthens my joints for the long term. osteo bi-flex - now in triple strength plus magnesium. hubspot, okta, high growth stocks that people are rotating out of and going into value. don't take it to heart it's just a rotation, it will come back again soon always a bull market somewhere, i promise i can find it just for you right here on "mad money," i'm jim cramer, i will see you tomorrow
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t, rohan oza, the branding guru behind some of the world's most successful consumer products, joins the tank. the key to this game is buzz building and distribution -- two areas that i can bring to bear better than anybody else here. healthy food is a human right. you're coming across as so scattered. -and what are your total sales? -$1,000. we're at a crossroads here. there's a real demand for this. -i'm gonna make you an offer. -whoo! robert has to give you that deal because he doesn't have the distribution network to help you. rohan, you just pissed me off. who's ready to make a smokin' deal? you'd be really annoying to work with. -i'm not annoying. -i find you a little annoying. but i'm still here!
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