for "sidewalk on the street." you won't want to miss it because we have paul ryan on. have a great night. "mad money" with jim cramer starts right now. i'm jim cramer. welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i just want more days like today. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. this business of stocks isn't politics. it's not like a presidential campaign where each candidate tries to explain why you might be better or worse off than you
were four years ago. no. today's rally where the dow rocketed 245 points, the s&p rose 2.04%, and the nasdaq vaulted 2.17% is about something different. it's about asking whether companies are better off than they were four years ago, not you. because those are the old stock prices we are now challenging with this amazing run. the stock prices of companies now versus then. are they better off? the difference between policy and profits confuses more of you than just about anything else i know. we all know people who are hurting. there is not a lot of hiring going on. five years ago we had 5% unemployment. now it's 8%. that's an election issue. i'm sure a lot of people aren't better off because of the tough job market. that's not what's at stake when
it comes to our stocks. we are not investing in whether you find it easy or hard to get a job. we are not investing in your ability or inability to get along. we are not investing in homes, many which are nowhere near the prices they were four years ago. we aren't investing in the hideous national debt. most important, we are not investing in the government of the president or the potential government of the challenger. nope. we are investing in the present and future fortunes of individual companies. if you ask me, as far as companies are concerned, both the present and the future are a lot brighter than they were four years ago. that's why we are having a fabulous rally back to the old highs. why are the issues of politics so divorced from the issue of profits? why the heck do i think things are better off at so many companies even as they might be worse off for you?
first, what's good for business might be bad in politics, as mitt romney has brutally learned about his time with bain capital. so many companies are doing well in part because they are getting more out of each worker and not hiring. if you're looking for a job or you are a democrat running for re-election, you want to give people hope and you want companies to do the right thing by potential employees like hiring. if you're a shareholder in a company you want to create and sell more high quality product for less money. that's what uh you want the company to do -- create and sell better product, less money. you want the highest gross margins which means you want cheap labor, fewer expensive new hires, especially with the new health care costs, and robust sales augmented via technology. think better software, stronger customer relations, rather than more costly salespeople and the assistants and the health care that takes. stockholders want the opposite
of what an incumbent president wants and what an unemployed person needs. suffice it to say a huge number of the companies i follow have fewer employees and bigger sales. that's producing far more bountiful profits that than you expect which is the correct explanation for the broad near record-breaking advance. in politics we really don't care about how other countries are doing. they don't vote. when it comes to profits, we care tremendously. that's why when the european central bank agreed to buy the bonds of countries having a hard time hawking them people came off the sidelines to invest in our stocks with stakes in europe, even if the politicians have no skin in the game. if europe can avoid financial catastrophe then the outlook for many companies that do business over there improves dramatically. of course if we have a lehman-like event in europe the politicians can take pride it
happened over there, not here. but if you are an international consumer packaged goods company, a global financial company or worldwide tech company you care about europe as much as the u.s. the european central bank's unified position among germany and weaker countries, your sales might rise, earnings might gain. especially because a weak euro is hurting your profits when they translate to strong dollars. the on sut might occur in the euro rally has staying power. i'm not minimizing the nonfarm payroll employment tomorrow. it will play a role in how stocks trade. in fact, it might be playing a role. we had three precursors today. weekly jobless claims figures pointing to a decent number tomorrow. there is an intersection between plux and business right there that can matter to both politicians and traders. but investors? if you wanted some of the biggest gauns the last four years you would invest in retailers and retail suppliers
which have been terrific as you will hear from calvin klein and pvh tonight. if you looked at that time friday numbers at the beginning of the month they missed the big wins. some of the market is count counterintuiti counterintuitive. as the ceo of pvh said today he often didn't have enough product in the stores to meet demand because he was fearful of getting stuck with inventory given the gloomy state of the consumer. now he's letting data determine the merchandise level and the company is more lucrative than ever. an analog for many successful retailers. judging by the rallies to new highs we believe the performance doesn't correlate as much with the labor department numbers as we thought. the increased retail strength might have to do with delayed spending. people held off a as long as they could or believed it might be worth sprucing up the home as it is, at last, becoming more valuable. that is how stanley, black &
decker today or williams-sonoma and pier 1 could again hit new highs. plus the bad news is good news component exists in the stock business but not in politics. hey, in politics, bad news is -- bad news. it hurts you in the polls, in your re-election chances. but in business unelected central bankers might have to create. it's something creative to turn bad news into good news down the line. we are seeing the bad news to good playing out everywhere whether it's fedex -- remember that? almost back to where it was before we found out how horrible things were. or cummins, caterpillar. they need the chinese economy to do better. here's the bottom line. the bottom line is you should not be voting on stocks based on whether you are personally better off. you should be investing in stocks because the businesses behind them might be better off. and using that prism, stocks not
only have a right to have gotten this high, they actually have the ability to go higher over time. let's go to donald in virginia, please. donald. >> caller: don. how's it going? years of military service. i bought showers of air. i want to know if you think it will hit the mark and exceed it before the year is up. just want your sentiments on it. >> uh i like that company very, very much. it's big today. had a 10% move. this company does global aviation, aerospace service. the numbers we are seeing out of boeing, to me, are so exciting it's owned by my action alert charitable trust. i think it will carry everything including air. stick with it. ron in illinois. ron. >> caller: hey, cramer. in 2010 i bought a reit arct. in 2011 it went public at 10.50. uh i wanted to hold to 15.
i understand it might be sold at 12.2 is. did i make a mistake or should i sell some of mu loseremy losers put it in arct? >> we had them nn oh in july. we liked it so much. the deal looks great for both. i will tell you to hold on for a while. don't buy it. the big move just occurred. stock was 10 in july. 12 now. nick in ohio. nick. >> caller: boo-yah from the bobcats at ohio university. >> oh, congratulations, man. big, big, big. go ahead. >> caller: i was just calling with a question about sandisk. i was fortunate must have to own them prior to the better than expected earnings. i wondered with the new inexpensive ready task technology will the rally continue? >> i was blown away by this.
after the ocz reported the bad number i thought for sure they would take them down. a lot of people are short it. looks like a mistake. oh i don't like it here. why? i have so many other stocks i like more. it is cheap. flash is going to be good. everyone is so excited about flash because of the new devices. if you want to stick with it, i'm not going to fight you. out's tough to realize, but business and politics are worlds apart. investing companies because they are doing better. even if you're not. "mad money" will be back. >> announcer: coming up, strut your stuff. shares of clothing maker pvh hit a high again today. as its tommy and calvin brands please the street. cramer is dressing up for an exclusive with the ceo from tommy hilfiger's store just ahead. later, the gridiron is back in
action. the boys of summer are headed into an all important october. it's primetime for sports to shine. one name is stinking up the locker room. is it lurking in your portfolio? stick around to find out when cramer sentences it to the sell block. all coming up on "mad money." ♪ >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to email@example.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. we're sitting on a bunch of shale gas.
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fashion week in new york city kicks off tonight. what a night for it. the market was smoking. giving that retail stocks have been on fire we want to take a closer look at one of the hottest, best performing apparel plays around. i'm talking about pvh. also bramds you know as calvin klein and tommy hilfiger. the stock hit a 52-week high despite the glomy economic news
out there. the company has style. retail is a business many management matters more than usual. you need a ceo with an eye for fashion. how good is this guy? let's talk empirical results. his last quarter was terrific including stellar numbers in europe of all places. double digit tommy hilfiger. the stock has given you 140% gains since uh i got behind it in january 2008. it's up 22% since may 23. 222 t that's better than a sharp stick in the eye. we went to midtown manhattan because tommy is the growth driver here and abroad to talk with the bankable ceo about how his company is doing and where it is headed. check it out. manny, thanks for inviting us to one of the most exciting stores we have been to. new york times had a story about the new wrinkle.
men like to shop in men's stores. it is fashion week. give me a sense of why this store works for you. >> we are sitting in the tommy hilfiger global retail store that's really the flagship store for the brand around the world. almost 25,000 square feet. we communicate with the american consumer and also we are on 5th avenue. a tremendous amount of international tourism goes through here. the store is nonstop all the time. we show the best of what tommy hilfiger stands for as a brand. >> you start with international. everyone is so used to hearing how terrible it is in europe. how terrible. this is one of the reasons why the stock is at a 52-week high. just talk about europe as if it is booming. >> the brand is strong in europe. especially in northern europe where there is core strength there. we posted 10% revenues growth
this year. 15% comp store growth in europe. yeah. we are outperforming. we are gaining significant market share in a very tough market. we are feeling it like everyone else. the consumer is under more pressure. the uncertainty being built in europe clearly is an obstacle that we are overcoming. it's also creating great marketshare opportunities as we continue to garner market share in a tough market. >> one thing i love about manny is you have up to date information. back to school, a lot of guys are worried. in the conference calls you don't sound worried. >> we are off to a strong start in october. the month of august in north america. there are comps for calvin klein and tommy. comps in europe continued in the low teens. our heritage business continues to comp positively in the 1 to 2% range. a strong start to the season. very strong start with the key retail partners, macy's, jc
penney and kohl's. >> i have been chiding you that heritage, maybe it was time to get rid of it. looks like heritage is a driver toward earnings. >> i think we had a tough couple of quarters in heritage. that started the turnaround in the second quarter. i can tell you the momentum being built up. we're going to see positive results in the third going into the fourth quarter. >> which parts? >> our dress shirt business, built around van heusen in particular and arrow, the two larges brands in the united states. then our sportswear izod, a major roll-out with jc penney with the brand there. continued strong growth in our department store base, particularly macy's. that brand continues to perform and regain positioning. >> jc penney is a battleground. people worried that perhaps they are not doing well on your conference call you made it clear stores within stores are fantastic for your future. >> you know, we think it is a
great way to show case our brands. we have seen early results and i'm talking about very early. ten days worth of sales so far as new shops have gone in. we have seen good sales performance in those stores. ron johnson from jc penney has talked about the transformation he's taking the company through. clearly he's been up front about the rocky issues he's had to keel wi deal with. they have a clear path. we are being as supportive as we can with them, not only with izod but with van heusen. we are a big part of the dress furnishings business to move the consumer forward. >> do they turn square footage over to you? >> outit's a partnership. we build shops together, lay out the design together. out's right on brand message for us. when you see the shops uh they scream izod within the jc penney format. we talk about the appropriate size.
they allow us to merchandise those stores with basic controls built in. india inventory levels and where we are with them. it's a positive as one of the better partners to build that brand as we go forward. >> at the same time, you're big in e macy's. to contrast them with jc penney, macy's is on fire. jc penney, there is a lot of criticism. the numbers are down. >> absolutely. uh m macy's put together great results. terry lundgren and the team have continued to hit the ball out of the park. we have been beneficiary of that with our tommy hilfiger and calvin klein. they are two of the largest brands within their complex. we are benefitting by their great execution. i would like the to think we're a real significant part of their success as well. >> going forward, there were two items in the conference call that were confusing to me. you're worried about foreign
exchange head winds. the dollar has been getting weaker here. the second is that i have been waiting for the raw costs to go down. you are talking about maybe a 5 to 7% break in raw costs. couldn't it be more? cotton is up huge. >> raw material costs are down more than that. the 5 to 6% is overall finished goods including labor. >> cotton isn't everything. >> raw materials aren't everything. labor is a bigger component. clearly the benefit we will see in this year's thursday and fourth quarter is significant. we are looking for a gross margin improvement of somewhere in the 200 plus basis point range, third, fourth quarter of the year. i would expect that to continue into the first half of next year as we are looking at the course component out seems like course down 4 to 6%. >> inventory is lean. >> very lean. not only on our balance sheet
but in the channel. clearly an excellent job of keeping the inventories lean. as we go into back to school it gives me confidence about retail in general as we go forward. >> there is a component of just pure numbers driving the stock. i want people at home to understand it's not just the merchandise doing well. it's the cost and you don't have to discount because inventories are light. >> people talked about it would be a tough year, transitioning to a foreign currency, a number of issues. despite that we have been able to outperform and we are looking at 16 to 18% earnings per share growth. >> that's how you get a multiple to expand and people can buy it at home and not think it's run out of room. you have taken a lot of money. you're making a big profit.
you're talking about paying down a billion dollars. it may be time for another acquisition. the hilfiger acquisition was incredible. we talk about jeans and underwear. you talked about how in the conference call you want to own brands. is it time to make warneco more than just a licenser? >> you have broken news on my show many times. >> clearly it's been a great strategic partner for us. we are happy the way they operate the business. we work together well. their underwear business continues to be very much on fire. we are in a nondenim cycle. they are struggling through issues, particularly in europe with the calvin klein jeans business there. so i think put that business to the side. the rest of the calvin klein portfolio is growing 12 to 15%. when you blend it together the
calvin business in the third quarter royalties were up over 7%. still healthy growth. i think warneco put the measures in place to put it back on track. >> you're not just a fashion guy or -- >> a pretty face. >> you're both. >> here's what i'm thinking, people don't understand at all when you say jeans cycle. they don't understand that it is a color sportswear cycle. can you explain fashion for a second? >> i don't know if i can go that in depth. we are in a traditional color cycle at this moment in time which plays to the strength of the tommy hilfiger brand. if you see around the store there is color everywhere. >> right. >> it's been extraordinarily strong period for the hilfiger brand. we like our diversified model when traditionals strong, tommy will benefit. when modern contemporary is
strong the calvin klein brand benefits. despite this fashion cycle and the calvin brand continues to put up high single digit increases in sales. >> good. >> i think both power brands for us continued to deliver strong results. >> we'll be back with the chairman and ceo of pvh corp. >> later, penalty kick? the gridiron is back in action. the boys of summer are headed into an all important october. it's primetime for sports to shine. one name is stinking up the locker room. is it lurking in your portfolio? when cramer sentences it to the sell block. bob...
oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good.
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welcome back to the tommy hilfiger global flagship store in manhattan. as fashion week kicks off i'm with the chairman and ceo of pvh corp. this is a flagship store. you identify 35 large markets in europe of which you say you have 31 flagship stores, expensive stores. how do you get your money back from a flagship store? >> i think you look at the stores as brand builders. we consider the investments here
to be part of the marketing budgets. >> you can advertise. >> this is much better than a bill board that goes up for a month and comes down. especially when we try to be in the highest traffic areas with the best demographics. berlin, rome, paris, london, tokyo. we want to be in key markets because we think it really says something to the consumer about how the brand is positioned. the comment is to make sure we are making investments as the brand has grown in 31 of the 35 markets. i expect the other four in the next three or four years. i expect it in southern europe. >> you talk about this is a high brand and therefore higher price point. consumer confidence is supposed to be not so great. jobs not supposed to be great. no one expects anything big.
why are people spending and where do they get it? >> i think each market you have to look at in north america, the i way i would explain it is clearly calvin and tommy are premium brands. we are marketing and selling to a demographic that's clearly upper income. where we are positioned as a brand from a consumer point of view, we are in a sweet spot now. that consumer is spending money. we haven't seen a slowdown at all. we clearly have the overall environment impacts us. i'm sure post election, when we get into the debt crisis -- >> you mentioned fiscal cliff in the conference call. that bothered me. i'm hoping wesca scapkate throu. am i too optimistic.
it's not a problem that's insurmountable for the country to address. i feel it just takes political will to address it in an appropriate compromising way that's become a bad word in washington -- compromise. i think we need statesmen to step up, do what's right and the economy will grow in a terrific way going forward. >> tell people what percentage of when i go to a macy's how big you are in shirts and can you get bigger or will you run into what i regard as being a monopoly situation for dress shirts? >> i don't believe it is a monopoly. on most department store floors we'll represent in the dress shirt neckwear area 50 to 75%. >> first mention was 45, 50%. >> yes. >> you have taken it up.
with what brands? >> this tommy brand has more than doubled in volume just in dress shirts. calvin klein continues to grow significant uh will you. we have the three largest dress shirt brands in the united states. van heusen, arrow and geoffrey bean. we have other designer brands that we license. that's three coupled with calvin and tommy, we have nine of the top ten selling brands in dress shirts and neckwear in the united states. >> that's incredible. just a huge concentration. >> it's a cash machine for us. >> asia is still small. >> for this brand asia continues to be a huge growth area. as a percentage of sales asia represents 10% of the volume on calvin klein. it represents over 25% of their volume. so we have great partners in asia.
some owned and operated businesses directly in asia. joint ventures and the growth rates are significantly higher than the brand overall. but out's on a smaller base. we are clearly seeing that for tommy. south america, driven by brazil, and asia, driven by china and india are clearly two growth areas for the brands. i think as we look out at 2014 and 2015 there will be huge benefits for us. >> what does fashion night out mean for pvh? >> it's the kickoff to fashion week. we'll have three shows. the tommy men's show friday, women's on sunday and calvin in the middle of next week also having their major fashion show. it's part of what makes new york city so great. we are inviting the consumer to come and enjoy fashion night on 5th avenue with tommy hilfiger or madison avenue with calvin
klein. >> thank you for making one of the best performing stocks we have ever recommended on "mad money." thank you for what you have deliver delivered. >> good to see you. >> thank you. that's the chairman and ceo of pvh corp. >> announcer: coming up, penalty kick? the gridiron is back in action. and the boys of summer are headed into an all important october. it's prime time for sports to shine. but one name is stinking up the locker room. is it lurking in your portfolio? stick around to find out when cramer sentences it to the sell block. [ male announcer ] what if you had thermal night-vision goggles, like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage.
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>> announcer: lightning round is sponsored by td ameritrade. [ bell ringing ] [ clock ticking ] >> it is time. it is time for the lightning round on cramer's "mad money." you say the name of the stock. i tell you whether to buy or sell. when i play this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? i want to talk to kent in ohio. kent. >> caller: big ohio boo-yah.
cliffs natural. it's down. >> probably too low to sell. i have been saying real money.com is to let it bounce and then -- [ sell, sell, sell ] gary in illinois. gary. >> caller: a big boo-hoo-yah from nearly bankrupt illinois. >> oh, the g.o.s are fine. >> caller: i turned 73 today. i'm an income investor. i own arcc, airies capital. love the dividend. i'm concerned about a large secondary they had a couple of weeks ago. >> a lot of companies have to do it. they raise secondary, capital, better return. you're fine. tom in new york. tom. >> caller: hi, jim. boo-yah. my ticker symbol is golg. golar. >> oh, yes. look, i i get it. there is tremendous demand for
lng for fleets i like better. i like the one from -- uh like the shinear energy and partnership. it's got more upside. kimberly in new york. kimberly. >> caller: e hi, mr. cramer. tremendous help as a college student and young person new to investing, your show. how do you feel about royalty based business models. >> why bother? you're a young person. i believe gold will go higher even from this level. own the gld. i understand it. i'd like to know what i own. dana in indiana. dana. >> caller: jim cramer, b-b-boo-yah. >> nice. >> caller: this is dana from beautiful downtown south bend, indiana. thanks for your hard work. thanks for the books and the show. appreciate the work. my stock is energy transfer
partners, etp. >> the difference between notre dame and this. energy transfer partners, one of the worst stocks i own. i like to talk about the good ones. this is the bad one. the company has failed me. why are we in it for the trust? when the sunco deal closes it can't be this bad. every day i look at it. when the market was flying it was down. i say -- don't buy. josh joshua in louisiana. >> caller: allstate. >> out's a winner. i like what they did at aig. aig is a better buy. that's the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. f!
as an american express cardmember you can expect some help. but what you might not expect, is you can get all this with a prepaid card. spends like cash. feels like membership. i would absolutely love to own a football team! i think pretty much anybody would. but i'm not sure i want to be a shareholder in a football team. that's what i need to warn you about tonight. now, there aren't any big american sports franchises that are publically traded unless you
call green bay publically traded. last month, manchester united -- man u., the most popular football team in england or soccer as we call it did an initial public offering in the united states. i have to give the deal a red card. i wish i could come out and tell you manchester united is a buy. that would make me feel terrific. we don't go for soccer in america. i coached for years and was team captain. this can get people upset about stocks. the gold medalist of the women's soccer team said i want to own stocks in it. manchester united is to soccer in england to what the yankees are to baseball here in america. this is the team that made david beckham famous. it is a powerful global brand. 659 million people around the
world. almost as many on facebook though very few are in this country and the bulls say it is not a soccer team. it's a mini media empire making money from tickets and broadcasting. you know the games can't be recorded. people want to watch them live for merchandising and sponsorship deals. sounds compelling. man u. seems like a real cool stock which is all the more reason to put manchester united in the -- [ sell, sell, sell ] -- sell block. uh can't awe allow you to be -- i can't allow you to be lured by something cool when the business model isn't good. you can be a fan of manchester united. go ahead. you do not want to be a shareholder. why not? first of all, you could tell something wasn't right, from day one when it went public. the stock didn't even pop. deal priced at 14 a share.
went out at 14 a share. that's odd. the average ipo has had a 14% pop. this tells you man u. was either priced too high or the big institutional investors didn't see much reason to get excited about this. which was it? probably a bit of both. stocks come down. 8% decline. man u. is still priced for perfection. this thing trades for 38 times earnings. that's a high multiple. even if you buy the argument that this is a global mega brand. this stock should sell for a fraction of the price to earnings multiple. over the last five years manchester united increased the growth rate. and the company's adjusted earnings before taxes have grown at 11% compound annual clip. i'm sorry. those numbers are still nowhere near high enough to justify paying 38 times earnings. our rule, over two times, you're stretching it. two times the growth rate. this is considered a stretch.
of course man u.'s future is looking brighter than the past thanks to rapid growth from the broadcasting segment. those positives are baked into the share price. however, there are also a lot of negatives and they are not baked in. problem is the team has a bad year, they have a few key injuries and get knocked out before the finals they aren't going to play as many games. that adds a huge element of
volatility to the business model. better as a private company. last year manchester united got knocked out of the european champions league early causing revenues to decrease and adjusted earnings before amortization to fall by 17.5% for the year. i would rather own a share in the nfl after a listening to eric grudman last night. too much rides on the team performance. if you are going to own the stock you don't just need to handicap the business. you have to do homework on the team and the teams they are facing as well as the company. that's a lot of work if you aren't a huge soccer fan. even if you love soccer to the point you are offended i don't call it football you shouldn't own manchester united for business reasons. there are no restrictions on player wages in european football which means man u. could face serious labor costs down the line. the balance sheet -- oh! stinker. loaded down with debt.
the company has a dual class share structure. means regular shareholderses like you. all the power remains with the glazer family which controls 96.9% of the voting power. they own the class b super voting class. i hate the dual class structures. that makes it so management is not accountable to regular shareholders. plus they might sell more when the lock out period expires. it doesn't control votes. it doesn't control the company. go ahead and play soccer. be a fan of manchester united. wear their jersey but please, i am begging you, i don't want you to own a share of manchester united. tom in new jersey, tom. >> hi, cramer. another red cadillac boo-yah to you over here. >> hey, man. good twitter, youtube movie of me singing "brown eyed girl" at
red cadillac. i closed that joint. >> caller: underarmor is trading high. great return. i was waiting for it to come back down. they make an announcement about women's sportswear. if it's going to come back to buy it or keep going. >> here's my feeling when you have a situation like an all-time high. i wait for a pullback. people can't resist sometimes. you want a hundred shares of underarmor ultimately. buy 25 and let it come in. you have a stake in it which is what i want you to do. i agree the fundamentals are excellent. keith in tennessee, please. >> caller: boo-yah from tennessee, halfway between jack daniels and george dikel. >> that's where i want to be. >> caller: thanks for helping me make money. >> you're welcome. >> caller: i love the chapters on options in getting back to
even. >> deep in the money calls are a good way to do replacement of stocks here. what's up? >> caller: just retired early at 52. i'm looking at investments for my investment and 401(k) payout. i hear pepsi and the nfl are working on something. with pepsico owning lay's, gatorade, doritos and the nfl season opening even with the p.e.g. ratio is it tile to buy? >> don't buy pep because of the tie in with the nfl though we talked about out yesterday on squawk bost bochblgts i want you on pepsi. the numbers will go higher. that's good reason to buy some right here and let the rest come in. kick it to the curb. man u., it is cool as all get out. so go buy a great-looking jersey. just don't buy the stock. "mad money" is back after the break. my volt is the best vehicle i've ever driven.
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there's room for more kindles and ipads but there may not be as much room for personal computers. i'm hearing a lot about how apple's ipad could be hurt by the kindle because it is crammed with so much exciting technology as well as a low price. plus mr. amazon introduced it today in steve jobs fashion and i'm a huge backer. sounds like it's heating up. this tablet business is anything but zero sum. it's still in its infancy. there could be tens of millions sold. maybe even hundreds of millions.
amazon doesn't disclose the numbers. we have no idea how many kindles it's sold or is about to sell given the back order issue which is a real high quality problem. some say they have been selling a million a week. the number seems high to me. some estimates put the possible amount of 20 million kindles sold. we know apple sold more than 60 million ipads and that's a low ball number. it's a fluid nature of the product. lack of current data owing to where we are in the quarter. if amazon sold a million kindles a week and am 70 million ipads, maybe 120 tmillion tablets have been sold between the two. that's a small number versus demand especially when you consider p.c.s like mcdonald's with hamburgers have billions upon billions sold. in the personal computer space dozens are duking it out. think about how hewlett-packard and dell deposit for years
during the days of the personal computer. they were remarkable performers long after. not only does the tablet open up a new market for devices like cell phones it can cannibalize netbook, ultrabook which gives you the ability to sell a million worldwide. if apple can leet get the lion's share of the market which is doabdominal that's not even in the numbers. i think people don't get that the market can support multiple players. they think in order to enough the market cap the company has to have another ipod on its hands which as game-set-match situation for the device. all apple has to do is follow it. even with a more expensive price. there's always been and they handle it well. to me, the ipad and kind kindle are both winners as are apple and amazon. in a big market there is room for both of them. stick with cramer. with the spark cash card from capital one,
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