tv Mad Money NBC February 26, 2016 3:00am-4:00am CST
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"mad money" starts now. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, my job is not just to entertain, but teach and coach call me at 1-800-743-cnbc or tweet me @jimcramer. this market is filled with seller's remorse. chock-full of stocks that got clobbered when they reported earnings, and then roared higher, as people seem to forget the bad news, or think maybe it wasn't as bad as i thought. today the dow gained 212, nasdaq advanced also. how they can think so much
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change oar even better. some from before earnings, and some from after positive interviews, so i know what i'm talking about. recently we had five ceos come on "mad money." they all fit the bill, the narrative is exactly what i'm talking about. first up was tom faulk, ceo of kimberly-clark. his company showed tremendous growth, no matter, the company said it projected the headline number 2016 earnings of 595 to 615, but the wall street looking for 6.40. i don't know -- i read the notes. i heard the press release, listened to the conference call and read the analyst comments. it seems like kimberly-clark had a lot of good things to say, there was some one-time missions
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way, not to look at the stock when i do this work, because i'm convinced the holders of so many stocks are renters, really. that to take your cue from the immediate action is just plain stupid, so i noticed the fact they had fallen from 127 to 122 off the quarter until the interview began. right at the top of the interview, i asked him point-blank, did the decline make any sense to him at all? it for a close today. the sellers -- they were just plain wrong.
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here's a similar situation. sill love the quarter. because it showed some incredible margin improvement because energy costs were way down. demand was good. organic line of goods was kingford, let's just say terrific. the news flash was bleach numbers off the charts. so what happens? the stock immediately get obliterated, falling from 131 to 124. when i saw ben odire soon after, i asked what the heck is happening here? what's the deal? how could your stock have gotten so clobbered? he didn't know. he had beaten everything he was asked to do. i puzzled over a line item. he quickly explained that the company is about to large a campaign for britta. and i promptly called the decline in clorox ridiculous. it was. memo to the idiots who sold it. the stock has gone for 124 to 131 i'm confident it can take
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saunders, incredibly the ceo of aller again. he sat right here. and after the company thought that was by far the best quarter of any pharmaceutical company. of the transaction a the sale it toffeea might be offtrack? nope, it's going to close soon. >> i thought might it be something political? so you threw up my hands and proclaimed my own bafflement, too. earp with right, aller again didn't deserve to go down at all. then salesforce.com. three weeks ago we visited with the ceo in san francisco. the stock had fallen from $67 to
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he couldn't answer directly how the numbers were looking, given he was in what's known as the quiet period, where you can't reveal anything exact will the quarter, he did go out to say it was a fabulous time for salesforce and while -- remember that, that was the linkedin percent, the tab lo software, he said business was is it boomling, and how ceos had been praising it all over the place. it's a marquee client. the result, the stock immediately fell another 8%. the whole thing was insane. insult to injury, earlier a brokerage firm said he would be cautious on the conference call
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under pressure. and of course the strong dollar. then last night salesforce reported the best tech quarter for 2016. a 27% revenue growth. that's astounding. including a 38% rise in operating cash flow, to 460 cl million. take that doubters that the company makes for money. two nine-figure contracts, again, unheard of. the gross margins were off the chart. while what did have to come up? how about the analyst estimates for the rest of 2016? they were taking up gigantically after the quarter, because salesforce is doing so well. it was absurd that they didn't see it coming.
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story. we talked with ceo mark mclack lynn when we were out there. it was in free fall just three weeks ago. he assured us it was sound, it kept getting hammered anyway. it's soaring all the way back to where the selling started. i'm saying that was more sellers' remorse. now, there were a ton of these walmart allegedly blew up, under t further review, the reason for the decline seemed too pat. explanation is pretty darned thorough. it's up almost four points. same thing with lockheed martin. then this went still lower. what did they sell? why? who knows? now up 14 straight points. wh my bottom line is all these are examples of fear and panic trumping -- but fortunately now the panic is receding. your first judgment may not be a judgment at all.
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your decision-making, and keeping you from making some mad money. let's go to hollis in florida. hollis? >> caller: hi ya, jim, how are i'm looking at qualcomm again. the theo maybe it's time to get in. i see they're having problems with the china's and koreans about their licensing. >> but they've been solving some of those. i got a little too bullish on qualcomm, then watched the stock go down, but i think you're okay here. it's not my favorite. i like skyworks solutions dan in virginia. >> caller: boo-yah, professor cramer. long time listener, first time caller. >> okay. >> caller: i bought the avis
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ago. ou >> whoa. >> caller: very positive article w in the "barron's" the stock is down 62% for the year, and approximately 50% since i bought it. i would like you to tell us, what is your overall opinion on a car rental business as an n investment? >> okay the car rental -- let meve tell you, sir, i talked about it on my mad dash with david faber te yesterday. it took my breath away. i simply son think things are as bad as the stock, but it raised eyebrows. let me do more work on avis. we're both trying to get around how the stock could be down so much, given the fact the numbers itself weren't that bad. we have work to do, sir, and i will do it for you. brooke in oklahoma. brook. >> caller: hey, mr. cramer, how are you doing? >> i'm doing well, how about you? >> caller: great.
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quick question. my question has to do with realty income and price ceilings. it's been performing really well even on down days, and it's trading well above its target price, and it's paying a 4% dividend on top of that. in your opinion, do you think it's broken through its price ceiling? if so, would you buy?in >> okay, i've been going over this story with matt, my expert on real estate investment trust oma and fantastic friend and accountant. we were saying this is just a handful of ones that have done well, because it's in the commercial leasing business, and i think it has further to go higher, but be careful.th that group is under a lot of pressure. all right. this is what seller' remorse looks like. it teaches you not to let fear lo and panic trump rationality. domino's delivers pizza to use your dorell in about 30 minutes. today alone.
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help make you some dough? i have the ceo fresh off earnings. i'm getting my shopping list ready to see if super value, recent decline? steal or not? and i'm going to reveal it to you just ahead. i suggest you still with cramer! don't miss a second of "mad money." follow assist jimcramer on twitter. #madtweets. send jim an e-mail, or give us a call at 1-800-743-cnbc. miss manage? head to madmoney.cnbc.com .
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i want a large pie, and i said the cheese -- oh, i'm sorry, i was ordering a domino's from my watch. all i can say is wow, domino's has done it again. i've recommended them consistently for the last six year. time after time the company with the 11,700 almost entirely franchised locations and amazing online technology, hence my little watch joke, has delivered terrific numbers. today was no different. a real blowout posting a five cents earnings beat, along with much higher expected revenues. best of all comp store sales, 120%, same clip. congratulations, best in 2016 of everything i follow. no worder the stock roared more than 13% today.
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let's check in with patrick doyle, the ceo of domino's pizza, find out more. mr. doyle, congratulations on the best retail restaurant quarter of 2016 i've seen so far. >> thank you, jim. appreciate it. >> yeah, it was. i'm going for quote from you and i want you to expand. you said our success didn't happen overnight and certainly not due to the push of one button. i'm going to give you the floor to explain what did happen to explain this quarter? >> i think it's a couple things. first, it's the culmination of a lot of things we've been working on. we've got the food right. we've got the service right. the technology is driving things. advertising is terrific. the teams is doing a great job, but most importantly, our store manager, franchisees are handling it very well. it's a lot of different things that have been going right?
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it's just this momentum that's been building for a long time? >> this is something that easterbrook and mcdonald's also had a great quarter, has been trying to instruct upon me, the actual mood, morale and karma matters to your in your opinion bers, it does, doesn't it? >> it does. our franchisees came up through our system in the u.s., and they're excited about t they're sealing the momentum, they're executing well. i couldn't be happier with them. they've making more money than they have ever made. they're reinvesting, getting the stores reimaged. momentum is powerful. if everybody is singing from the success. i'm seeing them success. a lot of them are my friends,
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going this well is -- is pretty terrific. >> i hope everybody heard what patty said, people up through the ranks, which is the greatness of america which doesn't get talked enough about. i made a little joke, which i was ordering my no-cheese -- we order the no-cheese at home with my watch. but the truth is when there's a device that can reach you, you will put it out, and now more than 50% and the company makes money when you do these transactions on technology, right? >> yeah, that's right. we charge a very small fee to the franchisees, to the stores whenever this is a technology, a digital order. the most recent additions would
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your apple watch, and we also have something now for the amazon echo. so you can voice order off of the new amazon device in your home. we just want to be everywhere, and we're doing that. it continues to drive business for us. >> you know, one of the things i thought was pretty amazing, we're talking about value. i know you always said, listen, it's not like we're taking share, but you hadn't taken on any price increases. people like value, patty. you have not raised prices, and it matters, doesn't it? >> it does. our national offer has been the same for six, seven years, two medium two-topping pizzas for $5.99, and frankly it allows us to advertise more than just price point. if you're moving your price around every couple months, it means you have to use a lot of
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of drive that new price point with consumers. they know what they're going to get when they come to domino's. we think it's been effective for >> you know more about them than ever. profile and of course the new loyalty program, which i know put numbers, too, but the pizza profile is really helping you? >> it absolutely is. we've now got this one place where we've got the information around the customer, so if they want to order from a watch or order from their app, or order from mobile web. every time they have accessed us, we're tracking that. so for the loyalty program, basically all they had to do was check one box, that they want to be enrolled in the program. that meant it was easy to sign people up. it is too early to know exactly how much it's going to drive the business, but the early returns are good, the consumer feedback is good.
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>> i don't want to sleight international which also was strong. india, biggest growth champion for 2015. why is that? >> you know what? we've got fabulous partners there. we just opened the 1,000th store in india. this is our first market outside the u.s. with 1,000 stores. we're the largest restaurant company there today. it's been a great success story for us. as we see the economy come back in india, and it's actually one of the faster-growing economies now around the world. >> right. >> i think energy prices being lower are particularly a big help in india. i think prime minister modi has done a great job. i think we'll continue to see some acceleration. so excited about the future in india. obviously with the overall population and market position we've got, it's going to be an exciting story. >> and i know the no-cheese
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there, as we like to joke. you talked about the stomach, which percentage are burger and chicken. pizza is steady. we had a terrific manager from popeye's louisiana, she admitted there were some burger wars taking share. jax in the box was a severe disappointment, but pizza itself, there is some sort of secular angle to pizza that is doing better, pat, what is it? >> pizza and kind of the shareable nature of pisa and valuable nature of pisa i think does well. but i think what you're seeing in the industry is seeing a few players who are really separating, and sheryl has been one of them at popeye's. she driven great results. you see other folks doing it. the difference between concepts really nailing it and those that aren't has been broader. pizza has always been a favorite for people, the category continues to grow a bit, and hopefully we're going to take a
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folks. >> difficult, buybacks, all the things we love to see. that's patty doyle. congratulations, sir, on a really fabulous quarter. >> thanks, jim. this is what you want. this is what you want out of a stock, what you want out of a pizza, too. my family is big orderers. stick with cramer. coming up, paper or plastic? this grocery store giant was once on the express lane to profits, but recently super-valu's stock has been selling off. will the shares turn around? cramer reveals his shopping list, next.beautiful, unless you have allergies. then your eyes may see it differently.
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olay. ageless. all week we've been talking about what makes a market darling, and how once beloved stocks in a blink of an eye can go out of style and become a punching bag. some of these beaten-down stocks can be -- but some needs to be -- so far lionsgate entertainment, gap and williams sonoma. and now i've got a new one for you. it's time to talk about the rise and the fall of super-valu. svu. many locations that you probably
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really it's the fall, the rise and then the fall again of supervalu. falling down to a dollar and change in the fall of 2012, at which point many people were worried about the company's viability as a going concern. over the next few years super valu became one hottest surging through 2013, 2014 and the first few months of 2015 to peak at $12 last april, up 614% from the 2012 lows. well this was looking like an incredible comeback to the moment when it hit a wall in the second half of last year. the stock ultimately finishing down 30%. for 2015, and it's come down nearly another 30% since the beginning of the new year to $4 and change. the house of pain. once again it feels like svu stands for, c'mon, say it with
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made this story fall apart? is there any way it can get the mojo back? let's start with how it could roar higher. the rebound was all about a troubled company that got its act together. back before the agree recession, super valu made a foolish acquisition of albertson's. that was right at the pea of the leveraged buyout boom, something that turned out to be disastrous. that's all supervalu stock could decline down to its 2012 bottom. the turn here started in july of 2012 when supervalu brought in a fellow by the name of wayne sales, who was tasked with getting the company back on track. it finally cut bait on al better son's, and if you remember they tried to take the assets public, but the deal got pulled, because nobody wanted to -- i was going
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garbage. down to 3 billion, just so you know, that albertson's would have been good, but i think one wayne had gotten the company out of hot water, we saw in turn he was replaced by samb duncan, former head of officemax as the next ceo, with a clean slate, supervalu restructured into three segments -- a wholesale foot, the discount chain, and reg lay retail operations under the cub foods, hornback's, shop and save. the progress was slow at first, by february 2014, it was clear the gross margins, what they may on every dollar of sales, were improving dramatically. the same-store sales went from negative to positive, and by the end of their 2015 fiscal year, they were actually making a decent product. by the time we get to january of 2015, the new super-valu was -- 2% sales growth, solid margins, 20% earns growth.
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a best of breed, but a business that had gone from the brink of death to being in good health -- >> house of pleasure. >> d. over just a few years. so what went wrong for heaven's sake? [ buzzer ] >> house is it got from 12 and 4 to change in ten months it started last april when they reported a solid quarter, the company delivered a slight revenue miss. at this point the stock was up more than 600%, so shareholders were eager to ring the register,
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could be some profit-taking, and the stock did indeed get obliterated, fell 16% to two sessions. it's been downhill ever since. suddenly the largest shareholders who were headed for the exits. symphony investors, then jana partners owned more than 11% of the company, and they sold their entire position over the first two quarters of 2015. all of the selling put tremendous pressure on the stock. the sell-off briefly abated when it propertied a clean top and bottom beat and they were spinning off the sav-a-lot business. the next couple months were terrible, with all stocks.
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it was trading down around 7 bucks around october. first ceo sam duncan, who had led the comeback now said he would retire effective february 2016, and he is loved. then to make matters worse, it reported a big miss on both the top and bottom lines. negative same-store sales growth after all of this great turn. the stock plunged 14% in the next week to 6.20, investors once again sprinted to the exits. all that super-valu basically traded sideways. on january 7th, we learned that they planned to spin off the save-a-lot, and while it seemed
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investors saw it as a negative. remember there was zero ipos, exactly, in january. the deathblow same? super valu would what weaker than expected sales. hideous same-story sales. regular -- the retail business down 2.6%. save-a-lot down 3.4%. sam dunking in his swan song as ceo painted a grim picture saying we continue to operate in a challenging environment, end quote. stock at the down to $4.10, which brings us to where we are right now. the stock rebounded back to 4.86, but today was obviously a great day for the market. we now know that mark gross will be taking over. he has a long history in the grocery space. the stock is incredibly cheap. however, there's absolutely no
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grow going forward, and it seems to be challenged versus the other players, which brings me to my bottom line. super-valu roared to mid 2015, because it was a terrific turnaround story, a left for dead company that practically rose from the grave. it gradually worked its was not to the honor roll, but to a b-minus. we like them, but here's the thing about that concerned of turn. you have to keep getting better, and that kind of improvement for this particular student was very difficult. super-valu had already picked the low-hanging fruit. now from the back from the dead turnaround narrative seems to be over, there is no compelling reason to own the stock, except it's cheap, but cheap is not necessarily enough.
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breed, kroger. okay. kroger ain't cheap, certainly not as cheap as super-valu, but that's for a reason. kroger is a heck of a good company. lawrence wants to show us. >> caller: boo-yah, jim cramer. >> what's shakin'? >> caller: first of all, let me congratulate you on the great job you are doing. >> thank you. we're out here every day doing terrific stuff. i appreciate it. >> caller: a couple questions, johnson & johnson. >> alex gorski, this stock is breaking out. thank you for sending me the chart. j & j is the best performing large capitalization pharmaceutical, and i want you to stake long in it. thank you for the kind words. we've been working pretty darn hard to try to deliver a good show. it's the staff which you might have seen in a good facebook video. after we sat around and had alternates popeyes i had a
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now that narrative, long over. no real reason for the catalyst to go higher. i prefer kroger. much more money, had we seen the good, the bad and ugly. but i'll reveal the common thread. how do your stocks stack up? i'll make sure your portfolio makes the grade on "am i diversified?" and this night's edition of "the lightning round," so stick with cramer. degree gave women a motion-activated wristband to understand how much they move,... and created degree with motionsense. the world's first antiperspirant activated by movement, it has unique microcapsules that break with friction to release bursts of freshness all day. keeping you fresher with every move. motionsense.
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these days we want value wherever we can find it. that's the unifying theme. it's resonating so loud it's like a din, and i include din, the symbol for dine equity, the owner of i-hop, fits the paradigm. eight years out of the woeful downturn, you would think people would want to spend more, but like the great depression, the great recession has left scars on us, scars that haven't gotten away. if we're being totally honest, it always bugged me that my father was such a spendthrift with money, not that we had much. when we went out to dinner as a family, maybe once or twice a year, typically on mother's day, where we go to some allegedly nice place, so pop would make it so mom didn't have to fix dinner, but of course we had to drink water, wasted money, after all, that's how they get you, he always told my sister and me
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wanted to be a saver, not a spender. i think we're in this situation now. let's take home spending -- just spending on furnishings. today restoration hardware got killed down more than 25%. that's already on top of the stock being sliced in half. restoration hardware makes expensive stuff. the ceo said in his release last night that january's tough stock market, all hurt the company's performance. suddenly with their weak in currencies, and they're not that wealthy, and houston catered to wealthy oil peel. oil also hurt canadians operations. we also talked about the downfall, or at least the stock, down 6%, today this very day, but then listen to the tjx conference call and you hear about the outstanding sales for homegoods i love my homegoods in neptune, new jersey.
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seasonal items, and sometimes i come out with three times what i thought i would get. earlier today in true candor on "squawk on the street", i said my wife was cheap, and that's why we went there. i meant to say frugal, and i regret the error, because her boss watched and tooled her what i said anyway. let's stick with tjx. the bargains are directly related to the inability to sell branded goods, t.j. maxx gets all of that. it's terrific value, no wonder t.j. maxx is doing well. not one but two companies in the business, popeye's and jack-in-the-box, both cited the value offerings from the burger
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but also from wendy's as reasons for the shortfalls. so is the aforementioned dining equity, i-hop, they're really inexpensive. one of the many reasons pat doyle, the ceo of domino's was holding the line on pisa prices for more than five years. the bottom line -- these are all the -- whoever offers the best value wins. i know it seems ingrained down to the stores we shop at and where we eat. there's a new generation of crepers who aren't spending as often as they use to, and they eschew the frills, they want the value, or they aren't going out dustin in texas, dustin? >> caller: boo-yah, jim.
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>> caller: i'm talk on s.h.a.x., bought in about 31, they have huge expansion going on, very great same-store sales growth. what's your pin on the stock? >> okay. this is a stock that got very overvalued. a lot of people did what i talk with netflix and tesla and talk about with these stocks like amazon. it got to be way too rich. it is still too rich, but i understand now if you grow into the size, i can't relate it on any fundamental value. i would rather eat there, but i would rather own shares of mcdonald's than shake shack. whoever has the most value wins. they retailers have had to either give it to investors, or
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>> caller: mr. cramer, thank you for all your work and watching our back. >> thank you. i do my best. >> caller: f.u.y.? >> i think cedar fair is fabulous, i like the yield. about a 5.7 year old? i don't mean this as many diminution of how i like 6, but it cedar fair may by cheaper. >> caller: what do you think about weyerhaeuser? >> at 5% yield, home depot said that lumber is strong, no way i'm going to turn my back on wi. eddie in utah, eddie? >> caller: boo-yah from salt lake city. >> good to have you. what's going on? >> cramer, my question is about valero. going to be -- >> sell sell sell. >> we don't want to be there anymore. eric in connecticut? >> caller: boo-yah, jim. >> way too risky. huh-uh. i'm worried about the risk of
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no. let's go to tim in connecticut. tim? >> caller: jim, thanks for having me on -- cfo -- >> oh, i missed that. what is it? >> caller: solar city? >> i ain't going to play solar city. i'm not sure i like the business model. i have been a gigantic backer of first solar, and i reiterate that i like first solar and management. they are always welcome on jim cramer's "mad money." pat in texas? >> caller: i love you, jim. >> thank you, pat. >> caller: i have a.h.s. >> susan salk, the stock is coming back. i would be a buyer. charlie in virginia? >> caller: yesterday a guy asked you about duke, and you recommended american electric power, kind of touting dominion.
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exact same -- along with a.p., and congress ed. they're all good. can't own them all. pick one, but it is good. ladies and gentlemen, that's the conclusion of "the lightning round." the "the lightning round" is sponsored by -- i think we should've taken a left at the river. tarzan know where tarzan go! tarzan does not know where tarzan go. hey, excuse me, do you know where the waterfall is? waterfall? no, me tarzan, king of jungle. why don't you want to just ask somebody? if you're a couple, you fight over directions. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. oh ohhhhh it's what you do.
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cramerica, it's time for us to play a long overdue game of "am i diversified?" all week i've been highlighting similar stories, williams sonoma, gap stores, lionsgate. what i don't want to see you do is invest your money into one favorite stock to see it fall dramatically. you want to protect yourself across industries, even geographies. so call me or tweet me @jimcramer, tell me your top five holdings, i'll tell you if you're diversified or you need to spread the love in different sectors. this tweet says novo north is, buy you nvidia and viacom industries. the one i'm worried about, because you're going to say, wait a second, that's two not close, is the -- two chinese companies, bidu and netti's. i can't have that. i don't want any chinese
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if isle give you saleforce.com. semiis conductor, and that's good, but i want those changes and done now. we're not going to own chinese stocks. that's it, end of story. that's how i feel about fossil fuels. don in california? >> caller: good morning, jim. >> don, how are you? >> caller: my five stocks are nike, footlocker, twitter, microsoft and t mobile. >> hmm. all right. i'm off to the racing with this particular group. footlocker and nike, i come out here and say whatever one does, the other reports. we'll be a seller of footlocker and buy bristol meyers. twitter isn't doll that well,
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microsoft is in tech, too. honeywell, t-mobile, that's john ledger, he wear that is magenta thing, and nike we do like. but those changes have to be done immediately. if the market were open, i would say make them now. kim in my home state. >> caller: hey, jim cramer, from your favorite state. i'm in pittsburgh, pennsylvania. >> wrong part. you're from the winning part, not the losing part. >> caller: you've been that right, jimbo. we miss you here. we love you here in p.a. >> they love my in the marcellus shale. >> caller: would what we do
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>> wow. will you tell the wife? she's mad at making some comment about how she's frugal this morning. what's up? >> caller: we've got five stocks here for you. honeywell, home depot, waste management, ford, and coca-cola. we want to know in we're diversified. >> that's what you're going to find out, keystone state-er. home depot, to frank blake, what a number. ford 6%, call it 6.5% with the special dividend. honeywell, i like what he's doing. coca-cola, 3% yield, and a return in the domestic. wow, we have let's call it beverage. waste, retail, we've got auto and we have manufacturing. we have perfection, as can only
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state. "mad money" is back after the break. my son and i used to watch the red carpet shows on tv now, i'm walking them. life is unpredictable one thing i need to be predictable is to be flake free. because i have used head and shoulders for 20 years. used regularly, it removes up to 100% of flakes keeping you protected every week, every month, every year you ready ma? always life is unpredictable, so embrace it! head and shoulders. live flake free for life seems like we've hit a road block. that reminds me... anyone have occasional constipation, diarrhea... ...gas, bloating? yes! one phillips' colon health probiotic cap each day
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odd numbers after the bell, yes, absolutely palo alto was terrific, but universal display kind of shocked me. i am disappointed that monster benches did not deliver a better number. they have switched over distribution systems to coca-cola germany. i thought that would spur sales. i've got to dig deeper on both. over all-the market strong today. i'll just put it out there -- oil was good. i always like to say there's a bull market somewhere. i promise to find it for you. i'm jim cramer. i will see you tomorrow. it's friday, february 26th. coming up on "early today," the
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texas sized slug fest. >> you'll have competition. you'll have so many different plains. >> now he's repeating himself. >> i watched him repeat himself five times four weeks ago. >> i saw you repeat yourself five times four seconds ago. he says everything we're going to win, win, win. >> you're all talk and no action. first of all this guy's a choke artist and this guy's a liar. >> and those were just the slower moments. developing overnight, new details on the kansas shooting. and aaron andrews leaves the courtroom as the jury is showing the naked video taken by her convicted stocker. plus the latest log vegas oscar.
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