tv Mad Money NBC October 18, 2016 3:00am-4:00am CDT
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tomorrow. all right, everybody. have a great day! 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. other people want to make i'm just trying to make you some money. my job is not ju to entertain but to educate and teach you. so call me at 1-800-743-cnbc or tweet me @jimcramer. dow losing 52 points. s&p dipping 0.3%. nasdaq declining 0.27%. was if politics? was it the fed with so many voices calling for rate hikes? was it the consumer or the earnings for some companies or the fact that oil seems to be
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what is ailing this market. this week i looked up the fabled july 15, 1979 crisis of confidence speech to see what jimmy carter said during a period where america was suffering from a collective malaise. and i quote, for the first time in our history -- in the history of our country, a majority of our people believe that the next five years will be worse than the past five years, carter told the nation. again, quote, it is a crisis that strikes at the very heart national will, end quote. of course at the time we were suffering from gas lines caused by an opec embargo, and from wild inflation caused in part by a weaker dollar that eroded our savings. now the price of oil is on tenter hooks after being cut in half and it's the dollar's strength that's hurting earnings. there's some kind of aversion to owning stocks which i think is part of a genuine belief that the future will be worse than the past for many americans. carter talked about a poisoned political environment but the
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partisan rancor of today. that may have been a genuine era of good feeling in retrospect, but people rebelled against carter's ma lace speech and ended up voting a man who talked more positive, ronald reagan, and it ushered the great bull market. the bull market has been running ever since interrupted by the crash of '87 and the horrendous great recession selloff. i'm not making any kind of statement about the election in november, but i do think the rancorous nature of the debate is -- a tweet by a non-candidate, do you really want to own the drug stocks? consider the value of vrx which seems like it had fallen off the radar screen is once again trading back down at 21, not too far from its 52-week low. who wants to be sitting on stocks with exposure to international trade? we had a very smart guy on friday, a fellow by the name of john cassimus, the former ceo of
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us figure out what ails the group. his answer is quite telling. i'm going to quote again. honestly for me, the election. i think is it's having a big impact. i think people are really scared right now. they don't know what's going on, end quote, but that political situation only scratches the surface of what's awry here. almost every day we get national you numbers that are weak or showing no growth. there have been multiple divisions down of the u.s. gross domestic product. yet the drum beat of people calling for rate hikes continues apace. cycles. while i'm never crazy about fighting the fed, historically they only raise interest rates when the economy is getting hotter, not weaker, so it's throwing us all off. that's why the endless prepping for this hike seemingly inevitable, december rate hike actually seems almost fanciful. what universe is these people living in?
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can only be described as fear itself. there was a remarkable conference call last week from delta airlines. in addition to management, there was a direct mention of terrorism really hurting international travel. it's kind of just put out there as, like, terrorism. between the strong dollar and the terrorism, the airlines can't carry their own weight. let's face it. there's something else at work in many sectors. too many companies. zoe's kitchen's founder u quote, there's a lot of competition. not all of these restaurants can survive because they're simply aren't enough people going out to eat. have you noticed the action at mcdonald's lately? it's been shelled beyond all recognition in just a too months' time. not very encouraging. maybe not enough people going out to eat. if this competition problem were confined solely to the restaurant space, that would be one thing. but the logic of too many
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take retail. here we've got dollar stores going against discounters, going against club stores, direct to consumer companies, including amazon. we know that we have way too many doors, way too many retailers in those malls, but they don't seem to shake out. they hang on. the number of chains has barely decreased. in the old days, we would have scene outfits like sears and kmart go under a long time ago. not now. we've got a motivated owner who refuses to quit. do you really need target the stores that tend to sell the same stuff, stuff you get at amazon? i don't think so. there are even too many tech companies. we've had a scattering of mergers. for the most part, though, there are so many companies fighting against each other for business in these industries, you got to be worried about earnings all the time. here we are, earnings season. sometimes i feel like that's
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banks, and i'm going to have more on this later. but in the old days, every time they seemed to run out of room to grow, they'd just buy some other bank. cut expenses. but now the banks are so big they aren't allowed to make any more acquisitions. they've lost that spur, and in its place are myriad regulations that cut into the bottom line. hey, not democrat or republican. just telling it like it is. in the end, though, when you consider how many reasons there are why the market should get hammered, you have to wonder why the heck aren't we down more? i think we're doing a decent job of hanging in because there are let's just say stocks themselves, the class, are the best game in town given that interest rates are so low. plus lightning can strike as it did tonight with an amazing quarter from netflix, which grew at a much faster pace than the company thought it would, adding 3.2 million members internationally versus a 2 million member forecast. content moved the needle at netflix.
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way wall street thought and didn't have the big grow margins and the stock is being helded after hours. rather than viewing stocks as a bountiful option against bonds, for many, the stock market has become the lesser of two evils versus bonds. the risk seems too high versus the risk of so many stocks i follow. there seems to be only one cure for them, which is lower prices. when we arrive at a lower level for many stocks, we can be more enthused. for now, though, it feels like there's a good enough reason to it. that changes when either the fundamentals improve, like with the netflix, or the price gets too cheap to ignore. so here's the bottom line. i think we have to wait for more certainty, more clarity, and less risk before we start buying into this weakness because to me, it means that all of those positives are made more definitive really only by lower prices. bob in my home state of new jersey, bob. >> caller: thank you for taking my call, jim. >> of course. >> caller: two questions.
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should i buy, hold or sell? also is this a foreshadowing of the fate of american malls? it appears to me as many people tire walking as shopping? >> i got to tell you jcpenney, i do like jcpenney. i've liked it because i think marvin ellison is doing quite well. there was a note last week saying he didn't think they were going to make the quarter, and that's in part because macy's isn't going to make the quarter. it's a very tough time for these big box retailers. just incredible how they go in and out of favor. joyce in new york. joyce. >> caller: hi, jim. thank you for taking my call. since you have mentioned that financial institutions should benefit from an interest rate hike, i'm wondering if this will include paypal. >> not really. paypal doesn't have that exposure. paypal does report this week. it's a case we want to see
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i've seen the internal memo. it is family reasons. visa might be interesting. my charitable trust owns it. if it can break down, 78, 79. john in new york. john. >> caller: hi, jimmy. beautiful day. >> beautiful day, but the eagles lost yesterday, so it's partly cloudy for me. >> caller: oh, geez. so anyhoo, i'm looking at rh for me a lot of good ones throughout the years. you guys are doing a great job. >> i am so glad you mentioned long term. the stock spiked up. it's now back under 30. i don't think the quarter is going to be anything to write home about, but i do think the longer term direction is definitely clear, and i think you're going to be able to get that at a very good price. i say buy some here and see if it goes back to where insiders bought it, which would be 25, 26.
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long-term bargain. gary friedman did not put that money to work idly. from the fed to the election to the price of oil, it seems like the only thing we can be certain of in this market is we don't know what's going to happen next. until we get a little more clarity, hold off from being aggressive. on "mad money," i'm giving my take on the company that's recently been anointed the new best ipo of 2016. i'll reveal it just ahead. i know you want to know about it because you've asked about it repeatedly. then are investors hitting the stocks. i'll tell you if it's time to power up your portfolio. then it's the largest girl-led business in the world, and it could be coming right to your doorstep. that's right. i'm talking to the ceo of the girl scouts. you're not going to want to miss
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the enterprise software play came public with a bang, a little less than three weeks ago. right out of the gate they became the best performing ipo of 2016. the stock came public at $16 and spiked up to $37 at the close, giving a monster 131% gain in a single session. people say how can you make money in stocks? then the next trading day there was so much enthusiasm for this thing, it rocked into the 44. but things turned very quickly. in the last two weeks, nutanix has been hammered on no real news. investors fell in love with this company virtually overnight, and now it seems like they've fallen out of favor just as quickly. how do we our heads around the initial enthusiasm and then the subsequent profit taking. there are a lot of reasons investors went crazy. for starters the company has an
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cloud-based platform that converges all of businesses server management, storage, and virtualization needs into a single package. they call it hyperconverged system, and it lets their clients run their servers more efficiently and more cheaply. according to a study commissioned by nutanix, customers can employ their technology in 80% last time. so without getting too deep into the information technology weeds here, they do have an impressive the company has got some impressive customers across different end markets. toyota, kellogg, nordstrom. best buy, nintendo, and, yes, the u.s. department of defense among others. it's real. beyond the fact that nutanix has a compelling concept, the numbers are down right incredible, another key ingredient in the smoking hot ipo. investors willing to pay hand
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posted 88% revenue growth. that was actually an acceleration from their 77% growth in the previous quarter. 80% growth in the one before that. their billings were even better. get this. they grew by 118% in the latest quarter. that is a major pickup from even the 94% increase in the previous quarter. i don't know of anybody doing 80%, 70%. granted nutanix is still an early stage tech play, but they but the main reason nutanix is such an explosive ipo? listen. this is a really important focus. this is what i call a sliver deal. that's my own term. it's called a sliver deal. lately we've seen a bunch of initial public offerings where companies became public by selling a tiny sliver of the amount of stock there is. that tends to cause an enormous spike right out of the gate buzz there's not enough supply to sate the buyers. it's a proven method for making
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it's the way to create a hot deal. in the case of nutanix, the company sold 14.87 million class a shares as part of this ipo. that's now the float. the shares it can trade freely on the open market. as we've seen with these past sliver deals, their actual float is tiny compared to its total share count, which is what matters ultimately. the company has another 122.4 million shares of class b stock. after that, nutanix can do a secondary offering, that allows investors to start selling their class b stocks. no wonder the stock soared. they didn't give investors enough supply to meet the demand. so institutions that got stock on the deal were then willing to pay up for it in the aftermarket, okay? because they had no essential low initial cost basis because of that stock they got from the
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than the stock price is currently trading it that it's worth it to go pay up, but that period is now over. i have told you many times i do not like sliver deals. i hate 'em because they're setting you up for failure ultimately. once the lockup expires, nutanix is going to do a secondary, and the size of that float will explode. when that happens, the supply of stock will suddenly outstrip the demand for it, and the share price will likely get clobbered. how do i know? we've seen this story play out wall street seems to be getting wise to this whole sliver del scenario, which is one of the reasons i think it tumbled down in the past two weeks despite there being no real news about the company itself. the shareholders ultimately see the writing on the wall. they want to take some profits. now, there's a reason people suddenly soured on these sliver deals. in recent weeks, two of the best performing ipos of 2016, twilio and acacia communications have
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grinder, precisely because they both announced huge secondary offerings so that their pre-ipo investors could do some selling. twilio and acacia were both sliver deals. twilio came public in june. a week and a half ago, twilio announced a $400 million secondary offering. since then, well, you've seen it. the stock has been completely eviscerated. it's down more than 25%. the company is terrific. we had them on. the same thing has happened with acacia. this was another classic sliver deal. less than two weeks ago, acacia was trading at 113, its rally fueled in part by the company's very small float and a lot of short sellers panicking.
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the same size as the ipo, and the stock tanked, falling down to 92 bucks. that's 8 bucks below where they ultimately priced that secondary. against the backdrop of acacia and twilio getting beaten to a pulp, you can understand why nutanix has too because sooner or later nutanix is going to hit you with a secondary. every few years we'll have a wave of these ipos that keep the float small. investors will get burned enough at of course they want the hot deal when it first happens. then people forget. investment bankers go back to their old tricks. i need you to remember because companies like acacia, twilio and nutanix aren't the most egregious examples. zynga and groupon, two of the worst ipos ever. these companies i mentioned are nowhere near as bad as those two, but after their secondary offerings a few months later, both stocks were obliterated and
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groupon and zynga are not to be compared with twilio and acacia. it's not just low quality companies that do sliver deals. shake shack, very well run, terrific concept. when they came public in january 2015, they only sold 5 million shares, another 30.5 million shares restricted sitting on the sidelines. investors started worrying about what would happen when these restricted shares started sure enough, shake shack did a secondary in august of 2015. it was at 60 bucks. the stock is now trading at 32. i'm not saying these stocks can never recover. however it's clear you're in a world of hurt if you overstay your welcome in one of these sliver stories. here's the bottom line. nutanix came public with a bang, but thanks to recent selloffs and sliver deals, investors are starting to think about ringing the register on this one. despite the fact that nutanix
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experience says the stock won't find its footing ultimately until we get some of those big blocks of stock to flatten up the float. don't be dismayed by the weakness, though. there's just -- well, let's just say that's how repulsive sliver deals ultimately work. much more "mad money" ahead. once in the realm of teenage boys and male college students, video games have become entertainment for the masses, including me. with mobile gaming revenue expected to grow over 20% in to start playing the space. then did you know every female secretary of state in united states history is a former girl scout? i'll talk to the ceo to find out how it's developed such a following. and, surprise, the banks are doing better. i'll explain what the market's missing. so stick with cramer. i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine. i talked to my doctor and found a missing piece
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people are really worried about the company, when they think it might be slowing, which you know i think is the case, i like to circle the wagons around the kind of powerful long-term themes, not tomorrow, that will keep working regardless of what happens to the big picture, the economic data or the federal reserve. right now few themes are hotter, more sizzling, than video games. if you're looking for a strong sector, look no further than gaming. retailers that it's getting harder to entice consumers into their stores. these days people want to stay home where they can watch tv, fiddle around with social media, watch netflix, or play, yes, video games. some people believe that gaming is only for kids or middle aged men who still live with their parents, but the numbers say otherwise. according to the entertainment software association, 63% of u.s. households are home to at least one person who plays video
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35 years old. we got a whole generation of people who grew up with nintendo. those people now have jobs and disposable income, which is how consumers spent 23.5s about on gaming hardware, software and accessories last year, now that play station 4 and the xbox 1 have been on the market for a few years, developers have started releasing high quality content, and that's without going into the rising popularity of virtual reality and augmented reality. the truth is if you want to invest in video game space, it's a high-quality problem. you know why? there are so many different terrific ways to play it. you buy the technology companies that make hardware components, how about the retailers? why don't we start with the technology plays becomes when it comes to the component makers, there's one stock that's hard to ignore. i'm talking about nvidia, a
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record that we have loved in cramerica forever. it's the second best performer in the s&p 500. they make the best graphics processors for computers, the kind of thing you need for souped up gaming pc, but their chips also help power some of the hottest tech trends in the business. all the stuff we learned about in san francisco. the stock has been rockets higher because nvidia has got what wall street crave accelerating revenue growth. an incredible increase from 13.4% in the previous quarter. just 6.5% in the one before that. meanwhile, nvidia's gross margins, what it makes after the cost of goods sold has been steadily rising for years, expanding by 280 basis points in the latest quarter. when you can buy an accelerated revenue growth with fatter gross
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hence the magnificent rally in nvidia. there is one small problem. the stock has now run so much it's fairly expensive. it trains at 36 times the company's next year's earnings. however, nvidia is a secular growth stock, which means you need to look at the out years and get a real sense of the valuation. you got to authentic a little more than just the near term. so my view? betting against nvidia is a fool's game. i prefer to buy it in a weakness. the last couple weeks, the stock has come down about 6% from its highs. if it comes down a little bit more, i would pounce. i would never get in the way of anyone buying it right here, though. if nvidia doesn't appeal, there's another semiconductor stock with a huge gaming exposure that so many of you are interested in. i'm talking about advanced micro devices, amd. in addition to making microprocessors for pc's, amd
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including the ones found in the ps4 and the xbox 1. amd has rallied even more than nvidia lately, up 132% year-to-date. after years of underperformance, the company is finally showing signs of life. however the earnings aren't there yet. amd is not expected to break even until next year, but they have done this refinancing. my view, i prefer nvidia. but i totally understand the appeal here. i think there's enough room for both of them. next up, oh, boy, the game developers, and i love these stocks. i'm talking about activision blizzard, electronic arts, take-two interactive. which one? just like with nvidia, these makers have been outperforming the broader market for ages. you know we've been behind this group all the way. which of the developers should you be eyeing?
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activision blizzard is the company behind call of duty. the next big release is call of duty infinite warfare. at electronic arts the big money makers, ea sports, fifa, and ea sports nhl and their next big release is battlefield one. this is a world war i shooter. it's coming out later this month. then there's longtime cramer fave take-two interactive, which we have urged you as the way to play this incredible trend. the maker of grand theft auto, max payne, nba 2k, and they just released mafia 3 last month, which is a very cool but very dark game, mafia 3. now, the financials of these game developers can be kind of lumpy because the numbers are very much tied to the success or failure of individual games, kind of like big movie studios. activision blizzard saw its
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three years straight, but sales up for 2016 thanks to call of duty. electronic arts grew at a 23% clip in 2015. the latest quarter, they returned to growth, up 5.7%. these are episodic. take-two is the lumpiest of them all. their sales nearly doubled in 2014. then they were down in 2015. then in 2016, they put up 30% their latest quarter, sales increased by 13%, which brings me back to the question how do you play the game developer space? it kind of depends on you. if you want to play it safe, electronic arts. they've got the smoothest results since they release new madden and fifa and nhl games annually. it trades at just 20 times earnings.
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but it also has more risk thanks to the company's acquisition of king digital. activision is not that pricey either. trades at 20 times earnings. if the new call of duty is a hit, you can expect that stock to roar higher still. very well run company. but for those of you looking for a higher risk/higher reward scenario, i say go with take-two interactive. take-two is the most expensive of the game makers. trades at 36 times earnings. it's got tremendous growth prospects. plus the analysts are expecting the next grand theft auto to come out in early 2018. this company will not reveal a title until it is totally done, so don't bank on any specific quarter. still take-two is not a one-trick pony anymore. my one concern, totally coincidental with its analysis, stock popped more than 5% today because of rumors.
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this in a weakness, not strength. i think today's two-point gain may not hold for long. i urge you to avoid the video game retailers. here we're talking about game stop. it disappointed badly when it reported its most recent numbers. the stock sells for just six times earnings. without the clarity on what the future looks like, it's possible it could be a value trap. for now it's in the penalty box. just so you know, it's forever rumored as a takeover target. we don't recommend stocks as takeovers if we don't like the fundamentals on "mad money." the video game space is on fire. you've got a ton of ways to play it. electronic arts, take-two interactive for games. the key takeaway though, this is not a niche business. it's a mass entertainment business, and it's growing, not shrinking despite what older people, particularly on wall street, might think. gerry in florida. gerry. >> caller: hey, jim. how are you? >> i am good, gerry. how about you? >> caller: thanks for taking my call. i feel great. look, i've got a stock here, gopro.
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happy with it in the past. >> no. >> caller: but it's a good company that has a good product, maybe a little pricey. they have no debt, and i've been buying it over the past six or seven months as it's been sliding down to where it is right now. i notice it went up about 3% today. >> right. >> caller: and most analysts are from strong sell to strong buy with an average somewhere in the hold category. >> right. >> caller: so, jim, what do you think? game, and there was guys walking by with the '16 gopros. so interesting, isn't that a great situation? and i said, you know what, it depends too much on these iterations, whether they have a big hit for the holiday season. and i got to tell you, jerry, that's too high risk for me. i like a continuum, and gopro has not demonstrated a continuum. is it a risky stock? yes. can it be a good spec? perhaps if they blow it out with this next iteration, but that
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you want to get in on the booming video game makers? game on. nvidia and amd have lots of lives ahead of them. decide how much risk you want and go to the next level with electronic arts or take-two interactive. we've got so much more "mad money". do you know that the girl scouts of the usa have a cookie empire? i'm talking to the ceo, who is so fabulous about building the booming business. then what the heck do the banks have to do to get thst i'll tell you why it has less to do with them and more to do with washington. and all your calls rapid fire in tonight's edition of the lightning round. so stick with cramer. i love thf the morning ritual around here. people rely on that first cup and i wouldn't want to mess with that. but when (my) back pain got bad, i couldn't sleep. i had trouble getting there on time. then i found aleve pm. aleve pm is the only one to combine a sleep aid
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when i was out in san francisco earlier this month, i got to see how technology is changing every facet of society, not even just business. so let me give you a great example of why i'm such a big believer in progress. girl scout cookies. it used to be you could only get thin mints when the girl scouts were in your area doing a cookie drive. these days, the organization which has been helping young girls empower themselves for more than a century, allows you to buy their cookies online. they've got a whole web platform. a couple weeks ago i got a chance to speak with interim ceo sylvia acevedo. take a look.
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representatives of a great organization but also a business. >> absolutely. the girl scouts, we have a big business in our cookie business. it's an $800 million business, and it stays locally in the communities where the girls sell the cookies. >> so i think that people question now who joins girl scouts? how about this alumni because this alumni network is pretty powerful. >> we have an amazing alumni network. half of the u.s. representatives in congress were girl scouts. of were girl scouts. all three secretaries of states that were female, they're girl scouts. and one of the presidential candidates is also a girl scout. >> you know, i think we can get which one. if you can talk about the whole nature of teaching young girls about business because i know that mark benioff, you were the first organization that he funded, and i know that he's pro business and pro women
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you know, girl scouts is the largest nonprofit on the sales force. we're kind of the leading edge, which fits into our leadership model absolutely. i think mark also saw the synergy. he saw our outcomes, the outcomes in leadership, but also in the stem pipeline. virtually every female in space was a girl scout. we really funded and created that leadership and technology pipeline, and we're continuing to do that to this day. you're a rocket scientist. >> i was a rocket scientist. >> it real life. >> in real life. i worked on the voyager mission at jpl in pasadena, california. so we had the voyager fly by jupiter and its moons. >> so you're a good person to digitize the girl scouts. talk to me about e-commerce. talk to me about where you're going in terms of getting young
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world and cookies. >> we have this $800 million cookie businesses and we're moving part of it online. so that whole digital. but it's not just an order. it's a business plan. a girl gets to create how do i create my plan? how do i market it? how many units do i need to sell to meet my objectives? how do i reach out to my customers? how do i make sure they're thanked? that's an entire process that we not only as selling cookies, but the way. you know, so many of the women entrepreneurs in america today, they were girl scouts as well. >> now, we all try to stay relevant in an era of sustainability and an era of natural and organic. i buy girl scout cookies. both my girls were girl scout representatives. but frankly they're really tasty and they're a treat, but they're not necessarily good for me. so i know that can't help sales
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so interested in quinoa and rice cakes. >> you know what, you're right. cookies are fantastic. they're also a treat, but they're an enduring treat. people tell us, don't you dare change. but, yes, we are going to healthier ones. we have gluten free cookies as well, so we are looking at other types of products to sell along the healthier lines. people do want their thin mints. >> talk to me a little bit about e-commerce which i know you just started. i know it's small, but is the very good at, say, programming, at coding, because people have to learn how to code, and they can't all go to stanford comp sci. >> that is something so great about girl scouts. we are in every zip code. part of our program is very technology focused. we have girls learning how to code. they're creating mechanical arms. >> mechanical arms? >> yes, to help people with prosthetics.
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they were making robots. they were creating lava volcanos. you know, girl scouts from the daisies to the seniors and ambassadors, it's part of our culture to do technology, to learn how to code, to create fashionable wearables, creating robots. >> frankly, i'm astonished. why don't i associate these things more with girl scouts? why do i just think about cookies? >> i know. that's why we're o t we have to do a better job of telling our story. >> i think you'll be the one to do it. i've got your jet propulsion lab. >> my girl scout ceo patch. >> i love it. that's sylvia acevedo. she's the ceo of girl scouts. this is a 1.9 million-employee business except for not employees.
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>> it is time! it's time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." we'll start with charlotte in >> caller: hi, mr. cramer. how are you? >> i am good, charlotte. >> my husband is henry. we are seniors in our 80s. first time caller, but a longtime listener. >> thank you. >> caller: before i address anything, i wanted to tell you how much we love you. listen to you all the time and admire your wisdom, your expertise, and your integrity, and we have learned a lot and made money. >> thank you, charlotte. you just made my day. it's been a long day.
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we follow you everywhere. we watch you in the morning. >> i did good. >> caller: everywhere you appear. >> thank you. we better do some stocks, charlotte. >> caller: we want to buy some stock for our children, the grandchildren for college. we were thinking about procter & gamble. >> i like procter. i think it comes down to 84, 85, but i think it's a good choice. those kind words, i wish my mom let's go to rich in pennsylvania. rich. >> caller: hey, jim. booyah to you from allentown, p.a. thanks for taking my call and all the great advice you've given me through the years. you've helped me retire early. i have a question for you. synchrony bank. >> that thing has come down too much. that's kind of attractive to me. but you know what's more attractive? if visa sells off a couple bucks.
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some personal things to attend to at home in new york, and that stock is coming down and that may be a better opportunity. let's go to riadh in new jersey. riadh. >> caller: thank you for taking my call. >> of course. jim, pbr, but three weeks ago, so far i'm down 20%. >> it's made a big comeback because the real has gotten really strong. i don't want to overstay my welcome. half. ginger in nebraska, ginger. >> caller: booyah, jim. i have to tell you that my husband and i are the greatest fans of you and your great staff. first i have to say go huskers. then i want to ask you some questions about bristol myers squibb. >> candidly i was disappointed. i thought opdivo had more
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belonged to actionalertsplus.com. i do not expect anything good near-term from bristol-myers. that was just a disappointing study. let's go to jim in illinois, please. jim. >> caller: jimmy. >> yo-yo. >> caller: i'm interested in knowing about cit group. >> we just had all these great -- why don't you focus on citi? my charitable trust owns citi. that was the best quarter so far. i would be in citi. jpmorgan was a great quarter. don't get me wrong, but they've done nothing but great quarters. let's go to cory in massachusetts. cory. >> caller: thanks for having me on, man. this whole political environment is crazy. i want to just tell you i think both candidates suck. but that's just my opinion. but, hey, you know i know biotech has been very speculative. i know the whole political environment, what do you think of takeover rumors. >> he has done a fantastic job, and i like gradius. i can't recommend -- everybody keeps say it's going to get a bid. i think it's going to have good test results and therefore it is okay to go.
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bob in massachusetts. bob. >> caller: hey, jim. greetings from boston. >> nice. what's up? >> caller: the stock i'm looking at is chesapeake energy. and what i tried to do is look where -- >> chesapeake has got good natural gas exposure, but my problem is this. i don't like the balance sheet. because of that, there's so many others that are better. i think you should stick with schlumberger. i think schlumberger is the way to play the whole business. is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. pampers. unlike ordinary diapers with two layers, pampers have three absorbent layers to stay up to three times drier,
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and play. pampers. "why are you checking your credit score?" "you don't want to live with mom and dad forever, do you?" "i'm making smoothies!" "credit karma. don't worry, it's free." "credit karma. give yourself some credit." what are these? what is it? duck lips. quack quack. plastic surgery duck! uh huh! you are a backwards duck. instead of quack, he says- no, kcauq. kcauq. kcauqqq. kcauuuu. ? ? pringles! you know your heart loves megared omega-3s... but did you know your eyes, your brain,
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ucing megared advanced 4in1... just one softgel delivers mega support. what do these banks have to do in order to get their stocks higher? i got to tell you when i look at these quarterly reports, the numbers practically make me drool. for example, bank of america reported today, $1.8 billion in consumer banking alone while expenses declined. investment banking fees increased 13%. sales and trading jumped 14%. banks saw a decline in charge-offs, and its tangible
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closed the company and -- it was everything you could ask for from a bank, better even than i thought when i caught up with ceo brian moynihan in san francisco. the result, after a initial surge higher, ultimately closed up. in short, bank of america's stock did next to nothing on this monster quarter. this lack of action is astounding when you consider that with the country's largest deposit base, bank of america is the biggest winner if the fed does raise interest rates at their december meeting like everyone is expecting. remember when you open a checking account at bank of america, they don't pay you anything and they can invest that money virtually risk free for a terrific return. literally two quarters, we were shaken by the amount of exposure these companies had to the oil patch, with crude in the mid-20s. now that crude is trading just around 50 bucks, it looks like all that bad news is behind them, and the worries have shrunk pretty dramatically.
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performance last week from citigroup and jpmorgan. but the market was similarly unimpressed by their numbers. the gains are so meager, it's hard to make any case that they're overvalued even as jpmorgan's stock did catch a down grade. morgan's stock is up less than 2% year-to-date. got a rock of gibraltar balance sheet. how can that be considered overvalued? what's really going on here? i think some of it is just ennui. there haven't been a lot of stocks going up on better earnings. some of it is a belief that every time you get excited about these bank stocks, they break your heart. i also think that it's an election year and the banks remain incredibly unpopular in washington. the reality is there's probably going to be more regulation, not less, in the heels of the scandal at wells fargo. i believe the shenanigans there overshadow what the banks can earn and make them public enemy number one after disappearing from the radar screen of political hate for a little bit.
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performance to the rhetoric that makes it so your view is tainted simply for talking to banks. as i said last week, the group's cheap, but that hasn't been enough. fortunately my charitable trust owns citi, but unfortunately it owns wells which i couldn't sell. suffice to say, though, i wouldn't sell either bank stock down here. if we get that december rate hike, this whole group gets some terrific gains. but right now, no good deed goes unpunished, and the financial its life. stick with cramer. ? ? ? ? ? ? ? ?
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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! . they were kind of a boy talk and he was a lead on, egged on from the host bad stuff. >> melania trump speaks out on her husband's behavior, but we're just getting started. >> they even want to try to rig the election at the polling booths. people that have died ten years ago are still voting. illegal immigrants are voting. >> the donald attacking the system as the fbi and state system weigh in on a hillary clinton quid pro quo.
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