tv Mad Money CNBC January 31, 2024 6:00pm-7:00pm EST
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fan of the show. my final trade, google call spreads. >> michael >> take advantage and buy bank referred >> guy >> home goods up on the sale of those mirrors. medtronic. >> thank you for watching "fast money." welcome to make money. by trying to save you a little money. my job is not just entertain fix lane had days like today can come across a portfolio. so call me. company after company was going bankrupt last layouts, things were failing all over the plac
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, i could not get a job, and feds should be cutting rates. you will business formation and unemployment rates that's what that decision stand today. price is down lost 17 points, and it has to plummet to what you. including the that. time to read and accept that in your 2024 stocks deeper down. i like around the cycle. you can do so in two ways. you can get in on the games for 2 daily fantasy read but it will $50,000. for players and you cannot win
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and stuff. which is the best and what links pay for or overpay for. mike white take a flyer, the point is that you make any money unless you have a portfolio. i de-slick today you have 11th street out worst that only x. they don't interest me you don't invest in companies. as a matter of fact@they are thinking justin bourke there possessed what that has to say that doesn't have stressed if they cut rates to quickly and we get hot inflation numbers, a good thing he took the notion of a march rate cut off the table. that was always a sucker's bet. as i told you repeatedly we need six treatments of good numbers had to make me comfortable inflation truly
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come down and we don't have that many numbers yet. here's what matters for you. you may not know it, but you're most likely not doing that big betting on the game. your more like daily fantasy role players and straightforward bets on a given contest. most of the people, they are and they live in a different universe. they make these monstrous best not only on whether, but they try to guess what month it is. their a game is not your game. money managers make these bets because if they don't drive short-term outperformance, they pull their money out. i think today's that action makes it so we can go back and start deciding what stocks we can pick up after the rubble. i see two markets that came into the season one way too hot. you have to pick players that are not run too much.
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anything that can range much can slip down. case in point. alphabet. if you want to check these companies, we do analysis in the investing club. and this was a fantastic quarter. a return to growth for the google cloud. i say it doesn't matter. analysts have been whispering tremendous things about quarter to come. i have no idea how they got those projections and raised expectations. stupidity, showmanship. either way, we now need to get rid of the daily fantasy what i call screamers and look for lower levels to do some buying. microsoft has fantastic cloud numbers. they said it must be bad. great artificial intelligence. incredible copilot. and juggernaut of combined power that makes me think, well, we have a stock like microsoft, nobody will make any money.
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you just weren't getting good odds. you got to look for a better entry point. she showed off cards that are competitive. but nvidia makes the software inside and you cannot argue that their chips and stop are a better by. still, is it artificial intelligent parts will be a $1.5 billion higher and sales and these kinds could be worth roughly $400 billion by 2027. keep that number in mind and a credulous group of analysts seems stunned that she use that number. it's considered to be inaccurate. me, she just took over amd and the stock was trading at five bucks. she told me to get off the
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intel bus. intel was 35. seven times higher. a greyhound. i watched the stock levitate and 8 dollars swore off intel and got aboard the little engine that could. i would be a buyer right now. what actually worked for most, let's take starbucks. they started breaking down the middle of november when the israeli war against hamas became full-blown and starbucks got hit by pro-palestinian protesters. a good number of occasional customers stayed away even though they are publicly traded, non-jewish owned company with no ties to israel. at the same time china teetering went off the rails and we're hoping for 17%. that is bad news. the good news is this document way down and people like me
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telling investing club members it would miss. when starbucks missed because protests in china, the stock had nowhere to go but up. that is what state until they decide to declare victory in the end zone to be considered a fumble and a touchback and he hurt his hand on the hot seat. starbucks maybe his deal in daily fantasy and reality a couple of bucks. i think so. i'm not trying to minimize the feds action or be glib or make fun of what we do by using a draftkings analogy. i'm trying to use any metaphor i can to keep informed and interested and not clueless and baffled by so many people who don't give a darn how you do. the hot sauce got too expensive but the sleepers a winning. the bottom line, the game is self-correcting. the sleepers wake up and get too expensive. it is a process, and if you
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approach it clinically, they cannot come at a price they can and will diminish as the companies cannot keep up with wall street's overhyped expectations. feel free to blame the analysts. everything hot based on absolutely nothing. they, not the companies, caused the reality in your portfolio. john in virginia, john.>> first of all, many thanks to you and jeff and your wonderful staff for your invaluable insights and the confidence that you give retail investors like me.>> thank you.>> i don't know -- we were cranking it out last night and getting up at 3:00 a.m. thank heavens for celsius and my internist. how can i help.>> okay. you may remember that it's a product of a 2019 merger between bb and t and suntrust.
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based in charlotte they operate in the growing mid-atlantic and southeast and offer a whole plate of retail and commercial banking products and insurance products, among other things. it is really strong, apparently. has a common equity to your tier 1 capital and it seems well positioned to take advantage -- >> john, i like it. it's a conservative bank and well-run. it's the type of thing that if we were playing daily fantasy, i would put it in the flex position and would do very well. let's go to the next call. >> cell 5 -- >> this is crazy. so five was a terrific quarter. i don't know why these analysts hated so much. it was unbelievable what they did. i think was an insult to those that own sofi.
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long story short, it got too expensive to put nothing that them in your line of. the sleepers are winning. they will get too expensive and then we will cycle back to the ones that are hot. i will see if that is where otis is headed. and then all board the rails. i can see what you can expect with rail rallies. and then our investors looking at the situation or should they steer clear? will ask the questions and see what we think. stay with cramer
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sure is a lot safer than becoming a stuntman for money. get a free line of unlimited intro for a year when you buy one unlimited line. plus, get the new samsung galaxy s24 on us. we please just put the fed to the side for minute. today, how about otis worldwide. the number one maker of elevators and escalators. this morning they had a solid quarter. i thought it was good, but it did finish lower like a lot of other stocks because we heard palisade i can get a cut. it's a mistake to sell stocks like this after that because of misses with the company actually does. let's check in with judy marks. get a better reading. welcome back to mad money.
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>> great to be with you. >> it's like clockwork. i was not surprised how good your quarter was because you seem to have a handle on the globe and you have two levers. you have new and maintenance, and is good as new can be, maintenance is exceptional. business is better than the build business.>> thanks. i love to talk about our service business. at the end of the day we are field service company. we had a really strong fourth quarter led by service. organic sales we are up 3.8%. almost 7% in service. 90 basis points in margin of expansion. just proving our service engine is working. when we spun we had under 2 million service units across the globe. we ended at 2.3 million units with growth in all four of our regions.
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and led to strong year of 5.6% top line. and it let us generate significant, predictable cash to shareholders a little over 8,000,000,005. >> and continue to buy back stock, which i love. along the same lines the people that say so much business in china. one thing people don't realize. i think china maybe equally careful about safety as we are in the u.s >> they definitely are. we are in the life safety business, and there's nothing more important than the safety of the 2.3 billion people a day that user product, our own colleagues who install and service it. and that is our commitment and that's what we see through. in china specifically, if you go back a few years, service was about 15% of our business. is now 25% of our business. we grew 20% this year, our
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service portfolio in china. and like the rest of the world they need to modernize and refurbish elevators with technology refresh. that grew double digits for us in china and grew significantly for us 16% on modernization orders. 15% back walk as we start 24 and modernization and we have a 2% backlog in new equipment. we have a good line of sight for 24, which is why felt comfortable.>> the guidance, i mentioned clockwork. it didn't seem to matter. i don't know how much you deal with some of these strapped developers over there, but i don't see a lot of bad debt here in your books. >> listen, our team, whether it is the china team or corporate finance team, we really take great pride in our balance sheet, and we are very careful
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about the asset exposure, and there's not a lot of bad debt. we only take business that is good business, and with developers who may be challenged , we ensure that they pay us in full before they ship the equipment. on the service side, they need service regardless. that is our annual maintenance contract. repairs still happen, and the service business has proved strong. repair was up double digit so my thanks to the team and are colleagues globally. we are 7000 colleagues strong and 32,000 working in the field.>> i did not know was that many.>> one of the things we keep hearing, talking about the train dollars in real estate exposure. maybe i'm an optimist, but i don't see that much that is defaulting. more important, i see buildings going up now.
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buildings that were started at the time when covid was done. if you were to come to new york with me, you would not believe it's building after building. there have to be some pockets of this country that are right now coming on very strongly for new equipment. >> new equipment, although, it was down this year. as a matter of fact, it was down in 23 in north america. the lowest since the gf see. what our team did is they performed. orders were up 6% in north america. the north american market, 80% of it is to to six stories. it not it is not necessarily manhattan. medical office buildings, hospitals, schools, small multifamily apartments and condos. it is where the heart of america lives, and that is our opportunity not just on new equipment, but those units stay forever and in a 20 year cycle,
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we then modernize them and start the cycle any subscription all over again.>> what about ira and chips >> it is hard to peg ira. we do have an industrial business because as long as you have 2+ stories, you have an elevator. i've seen an uptick in infrastructure. there are are -- none of the statements are really that strong, but infrastructure is doing the best of all and we have seen work at airports, metro, and some rail that we are seeing. that will grow. we have strong infrastructure offerings and our team comes to major projects not just in the u.s. but in canada. >> congratulations. one of those very few companies that go up in good and bad times. that is the chair of otis. another good quarter. thank you for coming on the
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the railroad stocks have been whirring. anywhere from 17 to 23% in the past few months. we had a freight recession as consumers switched from actual stock to spending the money on services. lately i'm seeing signs that the freight recession was ending. and the rails caught fire. so can they keep chugging along? if you feel -- maybe it makes sense to stick with this group. containers go from ships to trains to trucks. at the same time we know that these have forced companies to take goods to the west coast rather than going to the suez canal and the mediterranean and the atlantic to get to the east coast. thinking about canadian pacific and union pacific. of course the flipside is fewer ships go to the port on the east coast, which hurts csx.
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what the railroads say when all the numbers are in. we've heard from union pacific, and so far i'm calling three for 4. csx is better than expected. the earnings were down 8%. we saw some stabilization volumes, which were up 1% year over-year led by automotive. as well as chemicals up 5%. fertilizers up or percent and equipment and coal up 3%. for the rails growth comes first. then pricing power and revenue growth. even better management for your outlook was pretty darn encouraging. csx does not give you specific guidance but they did say, and i quote, they expect total volume and total revenue growth in the low to mid single-digit rates.
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that is incremental progress after revenue dropped 1% last year. csx has been taking market share thanks to stronger service levels and they take away from trucks, but from trains. this is 300 million more than what they were looking for but the good news is that's why the stock rallied 3% over the last two days after the quarter this new ceo, he's from ford and he has a great industrial background and he's making the train run on time. union pacific, reported last thursday better numbers than csx. revenue came in higher than expected, even if it was flat and their operating more efficiently. that is the metric a lot of the analysts follow. it's called operating ratio.
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the volume were similar to what we saw from csx, but total revenue is up 3% strong from fertilizer of 50%, which surprised me and energy, especially specialized markets up 9%. industrial chemical plastic up seven. these are amazing numbers for the fed who has been tightening and tightening. other reasons, for union pacific this is the first quarter of positive buying since the fourth quarter. mostly qualitative guidance was guarded. the outlook was overall mixed. they had positive things to say about fertilizer and chemicals. but they noted there was a slower start to 2024 because of the severe winter storms earlier this month. the company said, the economic environment particularly the
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first half doesn't make me want to jump up and down and buy it, however, the ceo is april operator. i wonder if there's some other areas might turn out to be better than expected. ships are being rerouted to ports on the west coast thanks to these pirates in yemen. i think it might turn out very strong and the red sea problem. union pacific stock jumped 2%. let's -- this is my favorite. canadian pacific kansas city thanks to the canadian pacific merger. these numbers are distorted by the deal but company saw 4% growth and double-digit earnings very positive and between the
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postmerger synergy opportunities, they can put up strong numbers. it was enough to push the stock up 1%. i really like the stock. i've studied enough about this thing to know that they are crushing it. how about a disappointment. last thursday night norfolk southern reported a stinker of a quarter. stock -- ever since one of the trains derailed in east palestine, ohio. it just has not been the best operator. they had much more room to play catch-up. norfolk southern had revenues down 5% year-over-year. even when you strip out the crash in east palestine, they were down 17%.
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when the stock was downgraded, norfolk southern simply cannot figure out how to help themselves. the trend turn looks to be continuing. the best thing i can say the stock went down 1.5% on friday, which is much better than it deserved. was stock barely gets bad news, it's positive the negatives are -- or this might be a very good stock for an activist to come in. if i were in that activist business, i would take a hard look at this and i would not sell the stock to them. bottom line, with any disruption in ocean shipping, we have a situation better for the railroads. i do like these and you have my blessing to stick with union pacific or csx and forget about norfolk southern for the moment, unless you want to speculate on an oncoming train
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of activists on their way. let's go to nick in maryland >> a big fan of your show. >> i like what he has to say >> i have stock that made incredible runs short-term. undervalued by analysts. incredible dividend yield. i think the shipping industry showing more stability. the lead by or hold? >> it is their time. the stock is down. they don't have -- it is their time. how about we go to gregory >> how are you doing >> it depends on what part of the state you're from. >> union city, new jersey.
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>> yes >> i have a question. i took position in rtx and i'm wondering with the geopolitical situation is. is it a hold or should i look to add? are there non-systemic political risks? >> no. i spoke with greg hayes. they put that problem behind them. i wish the stock -- let's not buy anymore above 90. it moved up too fast. i say congratulations to you for buying it when you did. rtx is a winner. i have a bunch of them here. union pacific, canadian pacific, and don't forget norfolk southern. it should go down more. right now the stock is starting to slow. this is a legendary company.
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and a judge in delaware struck down elon musk's pay package. he will surprise you. not as much as he is surprising. stay -- stay with cramer awkward question. is there going to be anything... leftover? oh, absolutely. [inner monologue] my kids don't know what they want. you know who knows what she wants? me! with empower, we get all of our financial questions answered. so you don't have to worry. empower what's next. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real. icy hot.
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getting serious left. until this morning. and okay quarter. the forecast was in line with expectations, which is what happened. it needlessly tumbled $28 because it started going up into the quarter. i'm not worried about the forecast. and that is something i always encourage ceos to be. no sense overpromising. let's take a closer look with the president of thermo fisher >> thank you for having me >> i have to tell you, when i go through what happened with this quarter, what i'm struck by is one thing. it's point you made your the end of the call. have to be incredibly bearish to get to less than 4% for the long-term in our segment. are you right now at the cusp where we are trending along the
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bottom and i have to say it can go up from here.>> i think that is a good characterization. when i think about the end markets that we serve and academic markets, it feels that 2023 was a reset your working through the pandemic and 2024 is the beginning of the recovery. want to start out with a moderate set of expectations for the market. we assume that the first year, the first half of the year is a bit more of a challenge and it strengthens at the unfolds. we are excited and expect to exit almost at the ormal market growth that we've enjoyed for many years.>> i was listening to the ceo and she's terrific. and more than 100 itos and you and i both know that the morality we will be in the biotech world.
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>> when you think about our business, about 60% of our business serves the pharmaceutical and biotech industry. and the emerging has been pressured in the last year or so because of lack of capital and the enthusiasm has had with customers in january is a lot of funding that becomes available and that is encouraging because that translates into demand in our business and roughly 6 to nine months time. >> meanwhile, you're not sitting still. we had to deal with the covid hangover. the finished capacity from covid vaccine support to -- i'm convinced it will be the largest class of drugs in history. what are you doing to measure the crazy things people are doing with it. >> when you think about the
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obesity medicines and the uptick in demand has been very substantial. as a trusted partner to the biotech industry, we are supporting customers in doing that final process of putting the medicines in sterile form for injection in humans and because of the demand and the large capacity we expanded because of covid we've been able to effectively transition that covid vaccine related capacity to support other medicines as well. we are excited for that transition and it bodes well for long-term growth.>> we saw numbers out of novo nordisk that they have -- we cannot run we can do anything other than walk, and it's working for them. are you surprised that this medicine has so many
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applications, all of which should be good news for thermo fisher.>> there has been clinical trial work going on, and looking at more indications on where medicines can be helpful. when there is strong demand, it creates a reinvestment cycle in r&d and it attracts vc funding for new companies that are going after the dream of bringing out new medicines that will make a difference to society. >> one thing people may not know about you, but you are the chair of the u.s. china business counsel for the last couple of years. i will posit something. i was talking to going this morning and a bunch of businesses in commercial real estate. the two countries are really not doing that great together. but business people may be doing better together.
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is there any hope that china can pick up in 2024 for thermo fisher?>> so when i think about the interactions i've had with the u.s. administration and the chinese government, clearly the economic relationship is the area where is the best opportunity for progress. the way i would think about what we planned for is relatively modest gdp growth. challenged conditions that likely improve late in the year but the government can pivot depending on what the societal challenges are and very positive on the long-term in china. we help to ensure a safe food supply. we help them bring out medicines for the population, and we have a big business in the country and we are well- positioned to serve that market and capitalize on the opportunities as the end markets strengthens. >> finally, when i look at what is going on in our country with
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large pharma, we are seeing a tremendous number of acquisitions, buying smaller. if those smaller ones were running out of money and large pharma has money, does it mean a higher thermo fisher to the work for the biotech companies that have been starved for equipment?>> when i think about the role we play there, the first thing we do is we help with the integration for clients. someone is acquiring a small company, we help them with the planning so we can bring our expertise, and obviously, there excited about something in the pipeline and we play a large role in supporting that. the reason we've been able to do that in the trusted partner status we have is because the colleagues we have around the world. we have an amazing team and focus on the success of our clients. >> i have a couple of friends who work for your company and they are missionaries.
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i will start with gabe and michigan >> how is it going? i appreciate all the advice. if there was a time i needed coaching it's now. i've been with this company and the fundamentals are strong, but analysts are revising the outlook and -- >> it is too low. i'm switching and i'm saying enough. $40. let's go to shawn in california.>> what's up? i'm doing pretty good. they expect double digit growth. any thoughts?>> i think because
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it's not well presented. i don't know what is going on. i do know it's a very good company. i am a draftkings guy. i think that >> is heading much higher. let's go to will in kentucky.>> this is well. thanks for taking my call. i know we are under build in terms of residences in the u.s. and this company will go into buildings of all sizes >> he's coming to me with a stock. it's not sexy and not that interesting. it is a business and a good one and he has what i call or sense. let's go to bob in new york. >> this morning you mentioned the ceo who is trying to scare
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people. and i agree with you. this same ceo is becoming a whiner and he doesn't appear on mad money with you. what is your take on barry? >> i have a predilection for not having people coming on and saying that -- i think there's other ways to do it. this is hard for me. i'm telling people who come on the air if you use certain terms that scare people, you may not -- you are doing a disservice to yourself and to your viewers. they are not nearly as dire as mr. sterling said, or his stock would be at zero. and that is what i have to say. jason in new york. jason. how are you doing?>>
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good first-time caller. the past year we think about woodward >> i liked woodward when it first started. it is a plane out manufacturing. the market is ugly. and that is the conclusion of the lightning round. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders.
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all so you can trade brilliantly. (ella) fashion moves fast. setting trends is our business. we need to scale with customer demand... in real time. (jen) so we partner with verizon. their solution for us? a private 5g network. (ella) we now get more control of production, efficiencies, and greater agility. (marquis) with a custom private 5g network. our customers get what they want, when they want it. (jen) now we're even smarter
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and ready for what's next. (vo) achieve enterprise intelligence. it's your vision, it's your verizon. here's why you should switch fo to duckduckgo on all your devie duckduckgo comes with a built-n engine like google, but it's pi and doesn't spy on your searchs and duckduckgo lets you browse like chrome, but it blocks cooi and creepy ads that follow youa from google and other companie. and there's no catch. it's fre. we make money from ads, but they don't follow you aroud join the millions of people taking back their privacy
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say i see nothing wrong with him making any amount of money. even what kathleen mccormick describes as the largest potential compensation opportunity ever observed by multiple owners -- 250 times larger -- 33 times larger -- i see nothing wrong as long as shareholders -- he is what you call -- there is no one like him. he pretty much told you what it would take for him to stay a ceo versus going off to the space business full time are going into the technology business. if i've been a shareholder, my worry would've been what would happen if you woke up one day
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and decided that is it, it's time to do something else. if it kept him engaged, i would be thrilled. were talking about one of the most successful ceos in history. i found this pay package almost -- some of the goals seem like a stretch. they were already on track to hit the milestones and that's the crucial point. tesla is protected by the states corporate laws. there's a reason nearly every big business goes under the delaware umbrella, but you have to play by the rules, if you don't they will get you on a technicality. you need to disclose all sorts of things about your company's inner workings that you may not otherwise want to. there has to be a give in the end and he doesn't plan to lead
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anyway, then what was the point of giving them so much equity. the ruling, which was hysterical, was about how you can control over the board. most were friends who made a ton of money and from a guy and his brother who i would describe as nonadversarial. 's divorce lawyer, they can do a lot of things. i know that. everybody's admission was meant to reward him for making so much money. that was it. and for that promise, we keep doing so. public companies owned by the shareholders. they get to vote on these matters that is what protects -- i think it's a formality, but there are real reasons for the rules. i bet he could've gotten the same amount of money if you played by the rules.
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he finds it contemptible. i believe the whole process is a charade. if that were true, he be sitting on a $56 billion goldman rather than -- in the end he was foolish enough to incorporate his company maybe if tesla issued a pay package based on the fact that he's everybody's pal and owes us, and wrote the whole agreement himself, it may have passed muster. that is my issue. it is a total triumph of form over substance. and that is good enough for me. but not for delaware. he did pick the wrong state. he should incorporate in a state where he makes a ton of money, you make a ton of money to, even if the contract is a total sham. who are the greedy ones?
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i would argue it's the plaintiff's and not the board. what a bunch of crybabies. see you tomorrow right now on last call -- qualcomm warnings are out. we are joined exclusively by the ceo. bank crisis. another warning for other banks? preparing to wreak havoc? chinese hackers targeting critical u.s.
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