tv Mad Money NBC October 31, 2015 3:00am-3:59am CDT
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american express once again gave a hideous number earlier this month. estee lauder doesn't strike me as a company is that will screw up again. we also have ism american manufacturing going into recession? let's see what the numbers tell us. after the cause monday we hear from fit bit. fit bit is often lumped in with go pro. but go pro as we learned earlier under spent on its future while fit bit invests mightily with
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i like this stock, decent buy for long-term investors. lately this market has taken a liking to old-fashioned food companies like kellogg. you might want to buy some kellogg. cbs corp i'm warning you not to bet against him bet with him. we hear from tesla, everyone's kids seem to love tesla. tesla is a cult i can't bet with
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tesla's fabulous at promotion. expect proshow even the numbers aren't that good i have no dog hunting in either direction. al allergan has become a take over narrative. i like it either way. in some ways i hope it comes down so my travel trust can buy more because it will get a $40 billion cash check in stock in the first quarter because it is selling its generic drug business to teva to give more options to the shareholders when it comes to making money. each time takes a good company and makes it better it would be amazing if pfizer bought allergan.
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however, just under $30 might be close not yet. this industry needs to have whole foods the company to put them all together. thursday it's all about disney. disney's worked back to nearly 114. my take is you buy disney where it gets hammered. it makes a good case for itself. it bought back a gigantic amount of stock in the interim. i would never take other side of a trade two quarters in row he's the ceo. we also heard from celgene.
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to me this might be the quarter where we hear something about rocepto it was recently required by celgene, a very inexpensive stock on 2017 numbers which is how you value bioteches in what is known as the out years. friday it will be all day fed talk. this is what i do, i put head phones and listen to joc jams. the curious statement from the feds could be in a simple phrase. if employment weakens if you are bull you route for weaken employment number. me i just want to buy good to stocks at my prices and hold
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be ready to pull the trigger. the bottom line. sell. you know what, most of the earnings have been good so far this month, in months now done, and were rewarded with higher stock prices no matter what the industry. i think that will again the case and there's plenty good companies to choose from. how about dora in louisiana. dora? >> caller: back in september you talked about hewlett-packard and i've heard the stock price might go up to the $30 or $40 range do you agree and do you feel good about the split. >> i do feel good about the split.
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remember stacy smith the cfo intel said he thought the p c was doing okay. if you want the a pc you got the enter prize portion of hewlett-packard and if you think there will be consolidation of groups than you want to buy the hp portion. i think there could be a trade ahead. gene in north carolina. gene? >> caller: jim, thank you for 20 years of your knowledge and entertainment. i have a significant portion of my market in epd. >> i don't know if you were on the conference call the other day when they reported, i've been saying this is the one to own, that was a really good quarter because enterprise products partners is the new blue chip in that segment and
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this lower oil environment. let's go to victor in california. victor? >> caller: hello jim. boo-yah. why is solarcity getting hammered. >> second time. you can go down once and market will be forgiven but twice no, the market is going to say boo, and that's what they did with solarcity for the record i ain't going to play solarcity. from good stock rewards with higher prices. that could continue next week. only 55 more days until christmas. i will reveal which retails could be high. and i'm focussing on the merger snyder lance with diamond food and i have exclusive request ceo after earnings.
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wherever i go people want to know if it is safe to buy stock of walmart. figure has to have big yield sooner or later. does the it have to turn. i think the yield could get bigger not from the way you like, that's because i think walmart's stock could go lower. 3.4% yield doesn't enough protection even when dividends are safe and covered the way walmart is. why? for many reasons. last year they had free shipping if you spent over $50.
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given their lower income demographic. unheralded turn around based on change in the stores, boy do they look good, coupled with international offers. you would be surprised how much private labels versus nationally branded stuff. target like costco, cheaper brand names. walmart's order on line pick up in the store strategy, costco has more room to encroach on walmart's turf. i think they are taking walmart shoppers. plus costco is a cost advantage
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membership. unlike walmart's they do have sam's club. in addition to the ever-changing delivering products to your amazon nemesis, however there's one thing walmart has in its favor it is odd it gave you a gigantic multi year guide down allowing them to do something bold, boulder than anyone. but can they be bold enough? will they be? not with the current offerings and plans? what do they need to do? they have to try something very gutsy. you can slice your phone bill by
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you could offer free internet provide they had spend $100 on walmart.com or $50 in the store on selected items. you could offer something at a well below cost, yes the blue light special, except make it so it is only available with a walmart charge card. or you go to starbucks and tell ceo to give the coffee away to anyone with the walmart credit card. that's why i didn't want him to commit to the $20 million buy back. it would be better use than to try to prop up the unpropable. bottom line, it's going to be a target, amazon christmas, the worse kind of christmas for
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i will tell you this, if you don't think my ideas could get people in stores i have wasted a lifetime of retail through my father's it eyes no one new it better than that man, first working in the box stores and selling boxes and bows for 50 years, he knew, right now walmart doesn't know, unless they watched this segment. news ahead, we talk eaton, and i'm sitting with the ceo of add coto find out what the heck is going on. huh, fifteen minutes could save you fifteen percent or more on car insurance. yeah, everybody knows that. well, did you know that playing cards with kenny rogers gets old pretty fast?
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know when to fold 'em. know when to walk away. know when to run. you never count your money, when you're sitting at the ta... what? you get it? i get the gist, yeah. geico. fifteen minutes could save you fifteen percent or more on car insurance. (coughing) coughing disrupts everyone's life. that's why there's delsym. delsym's advanced time release formula helps silence coughs for a full 12 hours. all night... or all day. we're all familiar with this, axe daily fragrances. but what you wouldn't have seen is this, axe dry spray antiperspirant. why are you touching your armpit? i was just checking to see if it's dry. don't, that's weird. the first ever dry spray antiperspirant from axe. heart health's important... so you may take an omega-3 supplement ...but it's the ingredients inside that really matter for heart health. bayer pro ultra omega-3 has two times the
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i recommended the stock over the summer. thanks to the take over now you have a 29% return in less than five months. because we believe in accountability and i always take the blame whenever i get it wrong i think it is okay to take a victory lap here in diamond. it is a dramatic story. watch. >> sooner or later the market will start giving diamond foods the credit it deserves. if it doesn't i could easily see the company be grabbed up by a larnger kpetit larger competitor for i'll aisle aisle space in the food section. >> now should you ring the bell and walk or is it the company worth owning. i thought it was a brilliant acquisition. why am i such a fan?
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in 2010 by a merger snyder, love those pretzels and lance, today they make chips and crackers and uber cramer fave nip cheese and bread sticks and all sorts of cheese sticks and pork rinds, this is far from healthy as it gets but we know unhealthy snacks are so popular, after all there's a reason there's an obesity epidemic in this country. the fact is people love to eat junk food. i eat three of these after my workout. you should have carbs after a workout.
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out and out disappointment. sales were just up 1.8% year over year. however i think acquiring diamond is what snyder's lance needs to reignite its grown, far outweighs the sub optimal performer, given they fell from 36 to 32 it's since bounced back to 35.54 as of today thanks in part to couple of upgrades yesterday who see a bullish deal. what makes combination so compelling, first of all they are incredibly competitive grabbing a lot more aisle space after this transition. after the deal closes management can decide whether to shut down under performers and reduce competition in snack space.
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diamond foods is much further along selling health foods, so buying diamond gives them more exposure for the less than bad for you part of the snack market. they anticipate new synergies. second they are complimentary on a financial basis. diamond had not so hot recent quarter but schneider -- >> third and perhaps most important both companies are small companies. that's why combining in order to
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sense. the key is scale. the larger you are the more control over shelf space and pricing power. it's all about this combination. meanwhile the operational advantage could be enormous, the combined company with manufacturing facilities across the united states and uk. they have turned cape cod chips into a national brand i love those chips and with diamond facilities will have distribution channels to grow into national or even international power houses in fact had he have viewed diamond's uk business as a beach head it creates opportunity to cut cost by eliminating back office jobs, using greater scale to get lower cost neez are hall things -- these are all things why people merge.
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realized by next year all by 2017. i think they are low balling. i am a big fan of diamond's food ceo brian bristol who took over and master minded one of the greatest turnovers of all time. last but not least, i got to tell you snyder lance could snap up new dominant company in snacks base. pepsico could do it, bolster the frito-lay business. although that business is so strong. coca-cola could run that through their distribution.
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52-week hyperenal, we know that mono lease would like to sell the company if that's off the table it makes sense to go into acquisition mode and snyder is target once this is put together. i was a big fan of diamond food where we found out it was being bought out by snyder's lance and after the deal closes the combined company will be a power house. it's absolutely worth owning. now where the heck are my nip cheese. larry in massachusetts. larry? >> caller: jim congrats on your precise focused questions on your debate. and uber congrats to your wife on her birthday this weekend. >> geez, how did you get all that. i forgot was her birthday. i got scrambling to do.
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year. do we buy more on bases when we are over 20% like i am with white where. >> did you see guy with couple calls it got the stocks going. i like the chart. we feel it is holding at 40 level. i believe november 5th might be put under natural organic. we got to wait two more days. let's see how it does and then we'll make a decision. >> all right good talking to you. what do we have going on maybe my stage manager kyle knows. diamond foods was hot and it will become a major power house. much more ahead. we talk eaton's results, not that great today. we'll see if they can get it
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down stocks able to rally off take industrials. general electric, boeing even gm, but some numbers bouncing consider what happened with eaton, big manufacturer of control products, hydraulics, truck transition -- transmissions and arrow space components. eaton cut its full year guide for second quarter in a re. why weakens. stock rallied. sometimes by 3%. high yield at 4%. in was some positives not only is eaton expanding construction
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in capitol they are ready to deploy to buy back stock and maybe do acquisitions, with trading nearly 12 times next year's earnings estimates that's enough for a nice rally. let's hear from mr. cutler to find more about the product welcome back to "mad money." >> thanks jim, good to be with you. >> i seen positives. the cash flow is holding up pretty well, actually better than expected and obviously you have a nice cash balance you can do a lot of things with. how would you think you could make it so stronger market costs have more money in them and maybe some of the weaker markets cut back. >> sure jim you're right we had $973 million and next year up 10% to 15% from this year. doing very well in terms of what we told investors of having
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stronger cash flow company. we were very clear with investors at end of the second quarter that we expect to split future cash flow by half fenway n & a and buying back shares. at the kusht price we're focussing a little bit more on buying back shares. the quarter we came in at $95 half way between our guidance $90 and we've seen organic growth desell rate. we think get out ahead of it, cut companies. in spite of weaker top line. >> which of these have the best two or three year prospects, for instance i think aero space you
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if there was a way to do an acquisition to turn the mix it would be great are there just not a lot of sales in that sector. >> we continue to be bullish in aero space and electrical which we think grow next year, if we can see the right opportunities, price correctly, we wouldn't hesitate to add to that. at the same time we're also aware we have investors interested in seeing us buy back shares so there's a rough balance of 50/50. but during weak periods we will be opportunistic in buying back shares. >> question out there is not when the feds should raise but when. when i hear about your end markets i question whether you would think it is the right time
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to raise interest rates. >> yeah we do believe that, look, we've been almost eight years at abnormally low interest rates, at some point we need more realistic activities in that record so most of our peers would agree the first step whatever it turns out to be is really priced in the market at this point and time we get to a more normal monetary policy and then start to deal with responsible fiscal policy. >> some of your markets, i know have gotten a little bit better. when i look at europe they are doing a lot to make things better there. with injure tax regime does it with your tax regime does it matter where it is good. in other words a euro in europe actually works more to your advantage if you were in the united states correct? >> clearly our tax rate is
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earn money so if our business is stronger in countries that have lower taxes and most of europe is that way it results in a better flow to our investors. we had $650 million buy back shares. $450 million this year. it's a real benefit to our shareholders and means we have kasht for grow cash for growing in markets we like to build on. >> excellent. great to see you and stock had a great move, thanks so much for coming on chairman ceo of eaton. see you, sir. >> thanks jim. >> these are beaten down stocks and if you think they will come
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house in less than five years. >> yes thank you very much. >> caller: beautiful. been doing what you say, 25 shares as the stock keeps going down, do i keep buying, sell or hold. >> which stock many. >> caller: horizon pharma. >> it is not a valean but you dot to wait for the smoke to clear and stock goes down because it is a weird guilt by association. let's go to tony. >> caller: hello how you doing? >> i'm doing well. trick or treat tony. >> caller: okay that's great. jim, tell me about rr donel. >> i want people in it. sells ten or eleven times earnings. so glad you mentioned it because it's a buy. tom in florida. tom?
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>> caller: hi jim, happy friday to you. >> thank heavens. >> caller: i got in on u.s. steel, i wonder what you thought. >> i think the chinese decided it is not going to happen. they are in the cross hairs of the decline in oil and gas because they make oil country tube and they are in the cross hair of the carolina ease for dumping steel like crazy. so can you not own the letter x. let's go to luke in pennsylvania. luke? >> caller: hey cramer what do you think of rice. >> minor energy company where oba few are working. let's go to glen. >> caller: boo-yah jameis. quintiles why is the stock diving. >> i know the stock had been up. i don't think there's something fundamentally wrong with it. it's not a high quality company you buy when buy when it
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let's go to tyler. >> caller: hey jump big buck eye boo-yah. >> what's happening. >> caller: ayi. >> it is what the heck. it's good to go with 52-week high today. that's the conclusion of the lightning round. >> announcer: the lightning round is sponsored by tdameritrade. did you know today was national tax day. we're celebrating on "mad money." why not. i got a play you can bet on. it's not just cute cats on twitter. >> do you follow cute cats on twitter. >> i do.
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cats rule the internet. >> yes they do. every time someone slams me a troll i send them a picture of a cute cat. >> meow. brand stores like tiffany, pandora all together only 5% of the industry. but if you look at card yay it is expensive. every kiss begins with kay. >> i didn't touch it. >> people want high-speed internet. but if your broad band connection goes down in the house. it's a panic day. my life would not be able to continue on without it. there's the wife, there's interloop net. there's the wrief. there's the wife. she never seen the show. doesn't even know about this. it's really amazing. been here three years. when she catches on to this i will have to change my whole at the attitude.
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lean times however couple days ago world's third largest maker of equipment reported wednesday morning and the company delivered a robust 27 cents earnings beat off a 50 cents basis and stronger sale and earnings guidance over full year. think finally getting traction here. the back drop is still ugly. clear that wheat grain reduced demand. they are focused on controlling cost and taking control of their own destiny. let's take closer look with the incredibly seer likened part of the industry chairman of agco welcome back to "mad money."
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so kind again. >> well, look, you saw it all coming you are still stuck with a i hand. you are an ag company. you did come on the show when everyone was bullish about that group and said you saw leaner times now everyone is getting bearish do you see possibly better time. >> the storm is still blowing. all hands on deck. so we tried to outperform our peers which is not easy. we have great competitors. but i'm not so sure how 2016 will look like. the prices are still depressed, are low, farmers are in pretty good shape because they deleveraged their businesses during the past year but i'm a little scared that 2016 won't look much better. >> can you maintain that incredibly high free cash flow
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that i was kind of shocked to see you put up. >> yeah that's the eye idea. we want to have low inventories and that's one of the main tools here. that's what basically could bump our, raise our cash flow so much. >> okay. we got to talk about brazil. you've always been honest. you talked about russia before russia was bad. brazil, you have to be there. you're an agriculture company. what would happen if you put up five plants there. take advantage of the real. i'm just struggling with how you can't leave brazil but brazil is a black hole. >> yeah we have a weak government with one of the worse presidents ever. they start to discontinue funding for farm hes which of course is very bad and which is a poor policy. brazil farming is extremely important but still we are i think in the meantime we bottomed out and hopefully we
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demand next year. >> i mean, is it possible that that government, this is what a lot of people i know real short the bonds, that that government falls and a better government comes in. >> yeah there are people talking about indictment. i'm not sure that will happen. also there are a lot of things which didn't work so well. corruption did factor in. a lot of investments going on also regarding active government, actually people from the government, so that's not over yet. then next year we have the olympic games and that normally makes markets a little bit more difficult people are not focused on business but on other things. >> let's go china. opening a new factory in china. i'm feeling better about the chinese economy. it's the consumer economy that i feel better how about aguero agriculture economy. >> we come in with a better
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design with better quality and we will ask for slightly lower price than the chinese competitors so that's the challenge to get farmers to buy something better but also for a slightly higher price. >> i got to ask you, would it matter if more farmers go organic or they just use your equipment no matter what. >> this is what is happening mainly in the western world and it's a trend. it started in europe. in my home country of germany people did get a little bit excited about it. now it's coming over to america. it's growing. people eat less meat. that is another trend good for animal farmers. overall i think we will see more of this in the future. >> i was going to say into.
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i think plant-based foods, plant-based drinks, the younger generation unlike our generation they don't eat meat and don't like milk they like cashews and things that we think snacks and make milk out of them. >> i love to have a nice steak. but it is true. there's a new trend. and the good thing is people are prepared to pay more for those products which is basically good for the farming income. >> that's important. we will leave it on positive notes because you deliver positive numbers. chairman and ceo of agco always great to see you, sir. >> thank you. >> here's a man who doesn't just sit there, he augments.
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be an international spy or crook looking to hide fraud worth millions don't miss it at 10:00 pacific. don't forget it's daylight savings time this weekend, you got to fall back. i told my trainer this morning at 4:00 we should stop and listen to the starbucks conference call because it is a clinic how to run a company. they delivered an amazing quarter. if you want to know what a good call looks like, i know it's hand hour and half but you should go and listen to starbucks. there's always a bullish market i promise to find it just for you. i'm jim cramer and i'll see you monday! audrina patrridge: tonight, on "1st look," we're going down-- hold on, let me just look down-- like, way down-- [wolf howling] audrina patrridge: --from the depths of hell-- scary, dude--
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how is it performing down here compared to up there? we're searching far and wide for hidden treasures you've got to be in the know to find. very exclusive-- if you're invited, you're invited. this is an underground gem for sure. it all starts right now on "1st look." oh, look at that. oh, my gosh. [theme music] audrina patridge: tonight, our underground journey begins in louisville, kentucky. and between the food, the fashion, the booze, and the ponies, this city has got you covered. but not all the action's above ground, because one of the best ways to spend your day here in kentucky is beneath the bedrock.
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as something totally unique. there's no place like this. this is something new that you've never done before. it's awesome. you're, like, in a cave. tom, this place is incredible. but what is it? this is part of an underground former limestone pit mine. and what kind of attractions do you guys have here? well, we have the world's only underground zip line. we have an underground aerial challenge course, the world's only underground mountain bike park. how big is this space? it's the 100 acres. 100 acres. mmhm. underneath the city. tom tyler: that's correct. audrina patridge: that's a giant area. tom tyler: four million square feet. audrina patridge: it's like a city beneath the city. that's correct. audrina patridge: and there's only one place where i want to get my day going. so this is one of the bmx courses. tom tyler: this s the main body of the bike course. audrina patridge: wow. the jump section's over on the left. these jumps look pretty big. tom tyler: oh, yeah. audrina patridge: so this is more
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