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tv   Mad Money  NBC  September 16, 2016 3:00am-4:01am MST

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have an awesome thirsty thursday. nice talking to you. 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. friends. i'm just trying to make you some money. myob is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. of all the calls i've ever made on this show, few have ever been more right and yet more derided than my view that you should
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yet today with the stock breaking out to new yearly highs, it's time to talk about why we stayed the course. this is important and not just because apple, the largest company in the world, can actually help power the entire market upward as it did today, with the dow gaining 178 points, s&p declining, and the nasdaq falling 1.47%. we have to analyze my apple call because all the years i've been in this business -- and, man, i've been in it a long time -- i've rarely ever gotten so many it than i did for my don't trade it, own it mantra when apple shares got hammered after the march quarter. i was widely seen as being sentimental at best and at worst down right stupid and arrogant and ignorant. after all, hadn't the facts changed? wasn't the growth gone? despite the widespread hate for apple and its stock, including it's so-called bullish analyst who's are mostly negative anyway, i thought otherwise.
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nothing really had changed aside from the fact that it had gotten much cheaper than it should have been ahead of the brand-new iphone launch. with over a billion iphones out there, could eventually move the needle. i didn't think anyone other than the most nimble traders would be able to get back, get out of apple and then get back in again. that wasn't worth it. not worth the risk even though that march quarter was the first down quarter in 13 years and therefore the stock had indeed lost its growth luster. i didn't want to try and back away from the darn thing even though carl icahn had bailed after three years with the big-name investors saying that a slowdown in china convinced it was time to go. many analysts were saying apple's best days were behind them. today we learn that the new iphone 7 widely hailed really before its launch as a total
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with many of the models of that phone sold out worldwide, to call these sales better than expected is a dramatic understatement. especially when you consider all the bullish things that sprint, at&t and t-mobile are saying, the latter crowing these are the most pre-ordered devices in t-mobile history. that's huge. it looks like once again you had to own apple, not trade it given its remarkable run over the last couple of weeks. now, i wonder how the 295 ill advised, large funds that bailed on apple according to bloomberg feel about missing this quarter's 21% gain, the ones who traded it and didn't own it. but now i want to rewind the tape to show you the importance of conviction when you own the stock of a company you generally believe in. i've liked apple stock for over a decade, recommending it ever since i bought my youngest daughter a second ipod, not because she lost her first but
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we've been an apple family forever. it's a classic case of loving the product so much, you had to buy shares in the company. since then it's increased about 20 fold. i figured i had some street cred with my own it, don't trade it mantra. no. when apple stock got crushed after that quarter, now my conviction too was sorely tested. i was bombarded with messages from fund managers i trusted, from individuals, from people in the street who insisted that i had simply lost all perspective, drunk the kool-aid, and was acting as a shill for a once glorious now spent company. i argued that this darn company had the best balance sheet in the worth, more than 200 billion in cash, stocks that sold at nine times earnings. i set it at the service stream that all of us seem to be paying into, just accepting the costs, like icloud and apple music. on the conference call, cook told us the revenues -- this stream boasts higher gross margins. apple doesn't really have to did
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it comes through the program so to speak. their retort? cramer, apple's a value trap. get out ahead of the dud new phone. this is not the apple of yore. and of course you're a dope for sticking with it. then when the stock hit $93 on may 2nd, down about $20 from its high for the year, ceo tim cook came on this show. i put the concerns that everyone was bugging me with right to him. why, i asked him, why should anyone own the stock of apple? he said -- >> the most important thing is that customers love our products, and they're using and the satisfaction's never been higher. the loyalty rates have never been higher and that's the most important thing for the long term of apple.
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need on our current phone? cook took me to task. >> i couldn't disagree more. >> okay. >> here's what i see. we're in some incredible markets. the smartphone market, eventually everyone in the world will have a smartphone. penetration today is in the 40s. long way to go. emerging markets like india, the lt penetration is zero. we've got great innovation in the pipeline from new iphones that will incent you and other people that have iphones today to upgrade to new iphones. >> i will need something else? >> you will need something else. >> i can't think of anything else that i need. >> but we're going to give you things that you can't live without that you just don't know that you need today. >> okay. that's what i want. >> that has always been the objective of apple is to do things that really enrich people's lives, that you look back on and you wonder, how did i live without this?
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it was for him? >> i am -- i could not be more optimistic about china. i think the long-term thesis is intact. there has never been anything like it in the history of the world, and i'm still as optimistic as i've ever been. >> what else could they do a ton of business? how about in india? >> this is another huge one. >> okay. >> india will be the most populace country in the world in 2022. their population at 25 years of age or younger. it's a very young country. people really want smartphones there. >> look, i could play the whole darn interview, but the sum total of it was that this interview was all i needed to strengthen my resolve. strengthen my resolve that you should own apple, not trade it. soon after the stock dropped a couple bucks. during that period i was
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appearance was a desperate gambit by tim cook to push up his own stock. my conviction had been bolstered not by a desperate gambit, by an honest series of answers from an executive i very much admire. then the stock stopped going down. that alleged desperate gambit, it was the bottom. since then the stock has rallied 22 points. 22 points. we now know that apple had indeed thought of something else to make us want w faster speed, more storage, things that make my iphone 5 i held up in that interview look like something from the flintstones. cell phone dinosaur. i bought mine. i'm just waiting for it just like you. samsung has phones that catch on fire while you're charging them, fast phone versus fire phone. samsung, very suboptimal situation. look, i'm not saying that apple
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charts last week when the stock looked like it was going to roll over to the low hundreds. nice call there. in fact, feel free to sell apple tomorrow. go ahead. take the huge 22-point gain. tim cook came right here on this show to calmly remind you of something you perhaps didn't need reminding. apple makes the best products in the world, although admittedly when your competitors are incidental arsonists, it's easy to compare. as long as the financials are as long as they are, as long as the stock remains -- most important, as long as the products are the best on earth and we can't live without them, my philosophy on apple remains the same. don't trade it. own it. carol in south carolina. carol. >> caller: hi, jim. how are you? >> i'm good. how about you? >> caller: i'm great. i'd like to get your take on twitter. seems like they've got a lot going on, and this is a very controversial stock right now. is this going to be like
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at 17? >> well, the problem there is that facebook ended up having great growth. if twitter has great growth, if they're able to reaccelerate nfl works, do something, then that stock will look back and do it, but i don't see it's in the cards. i think if the stock goes down three or four bucks, it gets bought by someone else and that's your best hope. dennis in michigan. >> caller: i thought your perspective on the upcoming split up of rr donnelley. >> i would own the stock, get a 6% yield until it happens. todd in illinois. i'm looking at at&t. it seems a little pricey today. i think today it's at 40, 45. i just wondered if you had a price point when you might by at&t and if you think it might be a good buy still. >> i think at&t is a much better run than it used to be. i would buy it. pull the trigger. nick in new jersey. nick.
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>> caller: yes. >> you're up. >> caller: hey, jim, how are you? >> i'm good. how about you, nick? >> caller: good, good. jim, i'm long on a groupon, and it had a very good second quarter. however, in last one month, it dropped 20%. i'm not sure. should i hold on, or should i -- >> yes. i've been saying that groupon has bottomed. definitely hold on to it. i think there's another point there. it's a nice run. guys, i've said it a hundred times. i'll say it a hundred more if i have to. at least now you know why i'm repeating it. don't trade the stock of apple. own it. on "mad money," unlike gambling, investing doesn't have to be a roll of the dice. is it time to file a missing persons report for the u.s. consumer? i'm investigating what's behind
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there's a more powerful punch coming to the stadium this weekend. i'm talking to the team's owner to see what he has planned. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. whatcha' doin? just checking my free credit score at credit karma. what the??? you're welcome. i just helped you dodge a bullet. but i was just checking my... shhh... don't you know that checking your credit score lowers it! just be cool.
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if you believe a given industry has bottomed but then you wa a you're going to miss out on some monster gains. just look at what happened with macau, the chinese gambling haven. after years of growth, it suddenly went into freefall back in march of 2014. why? well, the government. the chinese government decided to crack down on corruption, and it brought an abrupt halt to all the soft bribery that had been going on, like junkets to macau, something that had been
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operate there. in the old days if you were an official in the chinese communist party, getting flown down to macau by rich people who want favors was pretty much a perc of the job. they don't call it a party for nothing. but once the corruption clamp down started along with the anti-vice campaign against things like expensive liquor, the casino stocks with macau exposure got annihilated. from their peaks in 2014 to the lows at the the beginning of the year, las vegas sands lost a staggering 60% of its value. notice how mgm performed better. however, earlier this year, the declines in macau started slowing and they slowed drastically, to the point where their numbers were merely flat in february. since then these macau casino stocks have been roaring back. wynn has more than doubled from its lows earlier this year.
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some enormous gains. macau has not only bottomed, it might be making a real turn for the better. in august, macau's gross gaming revenue increased by 1.1%. this is the first time there's been any growth in macau gaming since may of 2014. in over two years, month after month after month, all it did was go down. at least until now. casino stocks like wynn resorts, las vegas sands, the two with the most exposure. look, i like these companies, especially wynn. but at this point, i think we've really got to ask ourselves if the stocks already reflect a turn in the macau gambling market or if they've possibly got more room to run. personally i think the easy money has already been made because the stock market is basically a prediction machine that forecasts what's going to happen roughly six months in the
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that's why i started telling you to buy wynn resorts at the end of february. even i wasn't early enough. it was at 82 then. now it's at 108. if you listened, you're up nearly 32%. still, if the numbers keep getting better, then wynn, las vegas sands, their stocks are going to continue to rally. let's be clear. the ideal time to buy these stocks was earlier this year, before the macau gaming numbers actually turned positive. we know that because steve wynn himself, the phenomenal ceo of wynn resorts, was making some incredibly aggressive insider buys in december and january. in fact, if you're looking for a singular moment that called the bottom of macau, it wasn't the recent pickup in the august numbers. it was on january 19th when steve wynn disclosed he had bought more than a million shares of his own stock for an average price of $63.61 in a series of purchases in the open market, made from december 4th through december 8th.
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now, if you still weren't clear on the idea that his stock had gotten way too cheap, wynn came back and made another series of large-scale insider buys, which he disclosed on january 2nd. he picked up more than a half million additional shares at prices between $53 and $59, in multiple transactions. he told you to buy along with him. that was the green light to start buying the macau gambling stocks even as most investors were fleeing these stocks en masse. he bought at the bottom. he knew it cout you got to listen to his conference calls. macau's gaming revenue declined by more than 34% in 2015, so it's easy to understand why people were terrified to buy wynn or las vegas sands since both companies were coming off a -- but as 2016 started, we began to get some encouraging numbers. in january, total macau casino revenues were down 21.4%. that's when steve wynn bought. by the time the february numbers
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something had changed dramatically because in february, macau casino revenues were down just 0.1%. that's basically flat year-over-year. some backsliding in march, down 16%. next few months, down the high single digits. then down just 4.5 in july, which finally brings us to august, where these numbers increased by 1.1% year-over-year. for anyone who had any doubts, this is the proof they needed. honestly, think about it. you would have been much better off buying when there was no proof, except for the most piece of evidence, steve wynn's insider buying. or just a tiny bit of proof in those improved february numbers. why don't we start with lvs? after experiencing a 20% revenue decline last year thanks to the slow down caused by chinese's anti-corruption campaign, las vegas sands saw its revenues decline by just 9.8% in the first quarter and 9.3% in the
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we basically saw the same trends with wynn. only the swings are more extreme because wynn has more exposure to the vip gambling market, which is basically the target of the chinese anti-corruption campaign. after a 25% revenue decline last year, wynn's revenue fell by just 8.8% in the first quarter. then in the second quarter, it 'twas up 1.7%. earnings, got killed last year. they made half of what they did in 2014. in the first hof rebound with its earnings per share up 55% year-over-year. one more very important thing. both las vegas sands and wynn resorts have opened new casinos in macau just as the macau gambling market started coming back to life. this past tuesday, lvs opened the parisian macau. it's a 3,000 room hotel and
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opened the 1,700 room wynn palace on the cotai strip. that's macau's new tourist hub. at this point, it's unclear how much these new casinos are going to cannibalize their existing ones, but these openings were very well timed. wynn is more focused on appealing to high rollers. i mention this because the 87-year-old billionaire who owns galaxy entertainment says this is too early to call this a recovery. las vegas sands is the best way to trade macau. on the other hand, though, wynn is currently generating better numbers. i prefer to take my cue from them. wynn is cheaper. las vegas sands is 24 times. to be sure, i don't want to leave out mgm resorts. we like this company very much. while mgm has less macau exposure, the stock would be well worth buying here. after losing money for years,
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as the company is reorganizing, selling off assets in vegas. look again if you want to invest in macau, lvs or wynn. let me give you the bottom line. i did this piece tonight because you often ask me if it's too late to buy wynn, and i am telling you i think the low-hanging fruit has already been picked here. but if like me you believe that macau is ready to bounce back, then both stocks will have some room to run. but i would wait to buy them on a pull-back because stocks are new casinos opening. vegas sands may be the safer place because of the mass market. but if you like games with long odds and higher payoffs, then steve wynn's wynn casino absolutely is the way to go since they'll make a fortune if rich vip gamblers start coming back to macau. sales at u.s. retailers fell for the first time in five months. how does it bode for an interest rate hike and your portfolio? then the dallas cowboys took the top spot in forbes annual list of world's most valuable
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consecutive year. tonight i'm talking to cowboys owner jerry jones, and i'm an eagles fan. amazon is a consumer's dream. thousands of options, easy searches, but is the story the same for sellers on amazon? i'm talking with one company trying to take the stress out of selling on the online behemoth.
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what the heck happened to the consumer in august in this country? off the rails. we got a staggering figure today from the commerce point, a 0.3% decline in sales from the previous month and the first retail sales drop in five months. people, this is just a plain bad
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well below what anyone was looking for, and it begs for analysis, especially given cheap gasoline, close to the lowest jobless claims this morning. let me take a stab at it. it's gotten a heck of a lot easier and cheaper to stay at home. you can really save money eating in because of the incredible low cost of food, which has come down due to lower commodity prices and intense supermarket competition. it is so low that outfits like cracker barrel old country stores, a nationwide chain, cited it as a reason for a dramatic cut in its outlook that it gave you on yesterday's somewhat disastrous conference call. you also order away from amazon. the numbers aren't captured in this company, growing by leaps and bounds really does distort any index that you have. spending patterns have changed. millennials are spending on experience. we hear that all the times from the companies we talk to. they go out, they take pictures
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sure, they are going someplace, but i believe many of the places they go to simply aren't being picked up by these aggregate features, nor more than i believe that the gigantic apple spend will be picked up by the september numbers. millennials also like to stay home and play video games. and binge watching television series that are usually superior to movies these days. there seems to be still one more wave of web inspired frugality. 100 million shoppers go through walmart each week, and that place is drawing them from more expensive stores. there's also this sharing economy, and that may not be reflected. staying at airbnb won't be recorded like a hotel spend. it's a more difficult retail environment to track, i believe. oh, and so many have to save more money because of rising cost of health care insurance and deductibles that are higher. finally, housing demand is still booming and that's not captured either. we heard that from the ceo of toll brothers just last night on
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>> jim, we announced three weeks ago, three weeks into our new quarter, that our deposits, which is an indicator of what's coming because it's when somebody puts a check down on a lot, were up 23% for these three weeks. we are now three weeks further in and up 25%. >> that's great news. >> we're rolling. >> it was great news, but people don't like the housing stocks. anyway, now, if you were spending money buying a house, you may not have enough left over to do anything but try to furnish it or fix it up. hence the retailers that are doing really well, home depot first and then lowes. it could be any or all of these. here's my bottom line. when you talk to business people as i do, i have to tell you, you know what they are? they're baffled by this decline themselves. some of them are going so far as to talk about a national malaise inspired by the presidential race. i haven't heard that since the jimmy carter days. the candidates' daily blasting of the state of things is a little counter to the desire to
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no matter what, demand is not as strong as stocks need to stay up in the air if the fed hikes rates. then again, looking at this retail sales number, you have to ask why would they bother to raise rates? adrienne in texas. adrienne. >> caller: hi, jim. you are my husband's guru, may he rest in peace. hey, jim, more and more brick and mortar stores are accepting paypal. in this slouchy market, paypal is finally moving up. what gives, and remember t >> oh, absolutely. and, you know, your late husband, i still -- you know, i love it when i hear that this show meant a lot to people. i have to tell you that paypal has been an okay stock for our charitable trust. we were telling people when it got to the last quarter, you got to sell it before the quarter has reported, we believe. we still own some. we tried to sell the rest. it's such a competitive market out there and it's at $40. it's had a very big move, so i'm not going to bless it for new capital right here unless it goes back to 34, 35 range. bobby in new york.
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>> caller: all right, jim. big fan. long-time viewer. my stock is michael kors. >> i got to tell you, bobby, the handbag business is not a good business. it's just not a good -- i'm not going to encourage that. it's just a -- there's so much other better places to buy including pvh, manny chirico shirts, ties, tommy hilfiger, calvin klein. that's better. where in the world did the u.s. consumer go? the reason for its decline are plentiful, but one fact remains. it's not a pretty picture of demand when you have the federal reserve with an itchy trigger finger. there's much more "mad money" ahead. dallas cowboys owner jerry jones paid a meager $150 million for his team. it now brings in 700 million in revenues and is worth a ton of money. then amazon is at the center of retail but it's more than just one store. it's made up of 3 million marketplace sellers.
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in helping prevent another stroke. be sure to talk to your doctor before you begin an aspirin regimen. deep in the heart of texas, jerry jones built an empire. on any given sunday, it's america's game. is the business of america's team still strong? >> now that the nfl season has
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football is not just the most popular sport in america, it's also a business. that business can be incredibly lucrative. tonight i am thrilled to have a chance to speak with jerry jones, the owner, president, and general manager of the dallas cowboys, literally the most valuable franchise in football or any sport for that matter. the team is valued at north of $4.2 billion. cowboys aren't at home this weekend but a big matchup at at&t stadium. for only the third time ever, it will host a boxing match, a fight between canelo alvarez and liam smith. big box expected. mr. jones, welcome to "mad money." >> great to be on. this is an exciting time. we're sitting here. they're building the ring, adding additional seats. we've got fighters on the card all over us here. champions in the past, champions now. it's an exciting time. >> let's talk about the incredible value of the dallas
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from you why a town, which is not the biggest town in america -- the new york giants are worth less than your team. chicago bears worth less than your team. how is it possible that your team continues to go up in value? >> well, first of all, those values -- you know, i would trade those values for some more first downs or some more touchdowns. i may never -- would never see that value. but certainly we do know that market is huge. you've got a great, great legacy of football in this state, in this area. and great-grandmothers remember stories of their sons or their fathers telling them about two a day. so that legacy here, this is football country, number one. >> okay. >> number two, this is a tremendously economic booming area. i bought the cowboys because i
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didn't buy them for money. i fortunately got a little money together. i gave it all up to get to be a part of football. and so i didn't look at it financially, but had i, had i looked at the potential growth, had i known that at that time we were going to go into 15 or 20 years of one of the greatest economic expansions this country's ever known, i might have felt a little better. had we been having this and i had been sitting here holding a glass of water, i would have been shaking so bad, i couldn't have held the water. >> jerry, you mentioned an interesting thing, which you said to be affiliated with the nfl, be affiliated with the team. there's a company, twitter, and i know you follow all sorts of business. it's not really doing that well. do you think being affiliated with the nfl for tonight's game is going to matter to twitter?
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world of affinity or interest regarding the nfl, i've underestimated it. i didn't see just how much interest or how much affinity is there. i had a great tv executive named dan burke tell me in 1989 -- he said, i could hire everybody in hollywood and couldn't come up with all the soap operas that go on during the season and off the field, as you can in the nfl. it's a soap opera every day. that creates a lot of interest. that creates a -- if you will, it becomes relevant. and i think that's what it's about. now, i love the game, and i love the x's and o's, but it's about culture. it's more than x's and o's. >> look, i'm an old sports writer. you know i'm an eagles season ticket holder, but most
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all of our guys play fantasy. we need help from you. when we lose on sunday, we are just at the depths of despair. how do you get over a loss? how do you recover from a loss? >> well, here in dallas, that muffled sound you hear in new york is me screaming in that pillow. and by the way, i'm up on dallas' tallest building, maybe thinking about it. so i don't get over it. >> all right. >> it makes me sick. >> we sat here in our draft, and zeke went very high. do you think about -- is it like that in real world? like when you draft zeke, is it like us getting zeke in the fantasy world? >> well, i'd say this. you may know as much about zeke as i do in your fantasy world as when we draft him. and i say that tongue in cheek. but the facts are when you're
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soul, looking in the heart, looking in what makes them a potential champion, now, that's hard to do. that's like walking in a graduate school, walking in a business school, and picking out your millionaires of the future. you can't figure out what's inside. that has to come. >> you at times have been at odds with the nfl. your attitude is one of, i think an every man, frankly. you're wearing a suit but i don't regard you as a suit in the nfl. you've got your own views. how have you been able to maintain that without feeling like, i got to calm down. i got to be one of the owners and know more than that? >> well, first of all, i got in the nfl because i love the sport. i love football. and because people like bill ford were the gold standard for me. just to hang with those guys. i really -- i've said this
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the nfl. the nfl has lifted me to a level that i would have never gone on my own. and so it kind of gave you incentive to be more than you could be. and the nfl has really been that. and every step of the way, i just really can't believe that it's been 27 years of the kind of life of being involved in competition, sport. i thought i was leaving the business world. i really d. where the real heroics are, where the jobs are created or where people really go for it. i never dreamed i would be so alive and well in the nfl as well. >> let me just ask you one last question. tell us about the big fight saturday night and what it means. is that your next big thing? >> well, first of all, canelo
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our mexican hispanic fan base. it's huge for us. every time we touch boxing with our stadium, we create an affinity in our fans that follow vaqueros to dallas. on the other hand, i'm a big boxing fan, and i really believe that one of the great places to have a match, one of the great places to fight is not just in a smaller setting, but how about f people, with a collegiate atmosphere and have that going on? we can do it in this stadium because we drop a screen down that is 180 feet long, 70 feet tall, and when they're fighting, you can be sitting in the top of this stadium and see their baby blue eyes when they're getting it on. >> i love it. >> that's the way to watch a fight. >> all right. jerry, look, i want you to have good luck in the fight. i will wish you good luck
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guy. i want to thank you so much for coming on "mad money." >> well, if that will cause them to be sweet to us, i'll take it. >> that's dallas cowboys owner, president, and manager jerry jones. i am an eagles fan. i can't help it. i like the guy. "mad money" is back after the break. try mucinex 12-hour. only mucinex has a unique bi-layer tablet. the white layer releases immediately. faster than store brands. while the blue extended release layer lasts a full 12 hours. relieve chest congestion with mucinex, and enjoy living well. there's a bazillion ways to top your kids' rice krispies. what's yours? ?a dash of fruit in their favorite color.? ?a bunch of pineapple 'cause hey it's summer!? ?bananas and berries 'cause the letter b rocks.? ?a little bit of yogurt?? ?sure! why not??
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>> it is time! it's time for the lightning round! when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it is time for the lightning round. david in nevada. david.
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>> thank you. >> hey, i'm interested in kinder morgan, kmi. >> it's coming back. i prefer enterprise and magellan midstream partners but i have to admit kmi can come back. oil, i think, can range 40, 50, 40, 50, and when it goes down to the 40 level, you get kmi at 20. i'm okay with it now. how about tim in florida. tim. >> caller: hey, jim. hello from the space coast. internet, bofi. >> you know what? this thing is just a giant short squeeze, and i don't want to play it. i mean if you want a bank stock, we like citigroup for my action alerts charitable trust. that's the one i find is the cheapest. david in ohio. david. >> caller: jim, how are you? got a question here for you. >> sure. >> caller: i bought fireeye at 43. it's down to 14. lost about 35k. should i hold or sell? >> no, no.
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fireeye has got new management. we want to see if they can turn it around. there was so much hot money in that thing. don't expect anything until you see two good quarters in a row. jay in texas. jay. >> caller: thanks for taking my call. my question is on sarepta therapeutics. >> all right. sarepta is a tough situation because there were articles yesterday about a guy from the fda who blocked and left. but then there were pieces of research today from the guy saying people in the fda are still against it. i think this thing all the way up at 30 is a little bit too dicey, too binary. how about ron in nevada. ron. >> caller: how are you doing, jim? >> i'm doing well, ron. how are you? >> caller: i'm good. i've got a stock, ren. >> oh, my god, resolute energy. this thing has gone from $100 million to like $260 million in zero to 60. but i think you missed a lot of rent frankly. i think you've missed too much rent as a matter of fact. how about carl in alaska? carl.
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booyah from the great state of alaska. >> done, yes. absolutely. >> caller: jim, i'd like to know what's your feelings on semiconductors on? >> yeah, they're making a merger. i think it's good. i do want to just mention -- i've been mentioning nxpi is my favorite. my charitable trust owns it. and how about the skywork solutions, a company that david altres built. let's remember that. let's go to jack in virginia. jack. they're both scheduled for a split next quarter, alcoa with a one for three. do i buy, hold or sell? >> i would own both of them. i think the parts are worth more than the whole for both xerox and alcoa. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td
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he decided to save money by switching his motorcycle insurance to geico. there's no shame in saving money. ride on, ride proud. geico motorcycle, great rates for great rides. oh, dishwasher, why don't you dry my dishes? oh, he doesn't know any better. you just need to add finish? jet-dry? in the rinse aid compartment. it's there for a reason. it dries much better than detergent alone. sorry dishwasher. finish? jet-dry?. for drier, shinier dishes. we're going to prove just how wet and sticky
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dry spray is different. degree dry spray. degree. it won't let you down. it's the phillips' lady! anyone ever have occasional constipation, diarrhea, gas or bloating? [ simultaneously ] she does. help defend against those digestive issues. take phillips' colon health probiotic caps daily with three types of good bacteria. 400 likes? wow! phillips. be good to your gut. we spent a lot of time talking about how amazon is one of the best thing that's ever happened to you, to me. they got thousands of different sellers, price matches, easy searches, one click checkout
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we've liked the stock forever. what's it like if you're trying to sell something on amazon yourself? that's a very different story. selling on amazon is a complicated mess that's rife with commission which means you need to constantly manage pricing in order to have a shot or need someone to help you navigate the waters. that's where marketing comes in. potoo is a privately held company. in other words, we're not going to be able to buy the stock, but it exists to make life easier for third-party vendors. potoo's proprietary software helps cut out the noise. the art of selling things on amazon's online marketplace. it may not occur to you how to do it. these guys know. they'll help optimize your branding, which of your products you should sell, how you should list them. not only that but aggressively going after unauthorized sellers who might be undercutting you by selling sham merchandise. they actually order something that looks suspicious and get them removed.
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was founded in 2014. in exchange they get a cut of sales or a fee from larger clients. do not take it from me. let's get a closer look from the co-founder and ceo of potoo, fred dimyan. mr. dimyan, welcome to "mad money." when i first heard of your company, i said, okay, potoo, what is that? but it has to do with amazon, doesn't it? >> correct. potoo that's a bird that's indigenous to the amazon, and it's a camouflage bird that is integral to the ecosystem but hides out in the background, and that's what we do for our clients. >> people don't know whether you've been hired or not, but that's not the point, right? >> correct. we want to make our brands shine. >> give me an example. i want to mention just so we can queue it up so to speak. people think you put a brand up and people click on it and buy it. but it's not that easy, right? even big companies need help. >> correct. if you think of the things that people love about amazon from a consumer perspective, 360
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amazon. so a large selection. they also have convenience of prime shipping, which people love. and the reviews. and then pricing. so while those things are great for the consumer, as a manufacturer, trying to have your item stand out with 360 million options is harder. having the items be controlled from a reseller perspective is also harder. there's about 3 million marketplace resellers on the amazon marketplace. so managing them is a beas how do you know what's best? how do you know what algorithm it might trigger, how do you know what people want? >> part of it is experience. we spend hundreds of hours every day on the amazon platform, so we understand the reseller activity. we understand what's going activity, what's bad activity, what helps a brand and what detracts from a brand. >> i want to talk about this counterfeit issue because i had an interview with joe tsai with alibaba. he said it's a big issue for baba.
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customer? >> alibaba has a very big counterfeit issue. amazon, it's smaller, but has about two times the counterfeit issue that brick and mortar has. we track resellers and see what is back activity. is the seller good? is the seller bad? is the item counterfeit? in the case where it's got a shelf life, is it expired? we know how to track that activity. when we track it, we go on the seller level and sometimes purchase items to make sure report them to amazon. amazon is extremely supportive about getting resellers off, but they don't lead the efforts because they don't understand the product as much as -- >> i mean "star wars," a lot of people try to knock off "star wars." you've got a "star wars" darth vader there. i mean you'd order -- someone who had it dramatically under the price, you'd order the item?
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feel to be reasonable to make a profit, we may order that item to see depending on the profile of that seller. >> what's the -- do you negotiate whether it's subscription or whether take a piece because this take a piece model, i love the take a piece model. are you feeling -- is that often the best way for people to go or trying to wing it? who wants to let you have a piece for sale? >> so when companies want to generate more sales on amazon, which is what we love to do, we want to take a piece of those sales. but some companies have a don't necessarily want to make more sales, but maybe they want to control the market and control the presence and control the brand. in that case, we have a subscription model where we charge them a flat monthly fee. >> i didn't know there was anyone who did what you did. and a lot of people need it because there are so many problems that are sold. that's fred dimyan, the co-founder and ceo of potoo. very exciting company. remember, still private. stick with cramer. ng up skin
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i like to say there's always a bull market somewhere. i promise to try and find it just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow. the birther issue rears its ugly head back into the campaign. >> when will he stop this ugliness, this bigotry? >> back on the campaign trail and hitting the donald with everything she's got. by a man brandishing an 11-inch cleaver, 18 shots are fired, all during rush hour. police in ohio are investigating the fatal police shooting of a 13-year-old carrying a bb gun. the second lowest mark and as the government steps in on the dangers of the galaxy note 7. the new apple iphone 7 is flying off the shelf for early buyers. >> jimmy fallon really did go

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