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tv   Mad Money  CNBC  September 22, 2012 4:00am-5:00am EDT

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i'm jim cramer and welcome to my world. you need to get in the game. firms are going to go out of business, and he is nuts! they're nuts! they know nothing. i always like to say there is 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'm just trying to save you a little money. my job is not just to teach you, but i'm trying to coach and educate. so call me at 1-800-743-cnbc. here is the thing. you have to understand on another day where the average is slowly ground to a mixed close, dow losing 17 points. awe, there goes that streak!
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s&p ending slightly low, down 0.01%. nasdaq advancing 0.13%. not bad. what it says is we're in a good market. the fed is throwing gasoline on the fire. europe is getting its act together slowly but surely, i think. and as long as you don't fall into the trap of buying companies that are what we call long-term secular decline, meaning if the economy gets better, they won't do well, i think you'll do just fine. i think we're done with the days when the averages get hammered and then stay hammered. i think we're now in a world where they can't rebound fast enough on some days. that's the new environment. at least until the end of the year. as hedge fund managers desperately try to catch up to the averages by picking up stocks aggressively on pretty much every dip, that's been this pattern. so with that in mind, what is the game plan for next week? what do you do for an encore if your stock is already up 86% in one year already? that's lennar's burden. lennar reports right when the market opens on monday.
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here is a once dominant regional home builder that went national at a very rough time, but still managed to survive the crisis. how? shrewd, hard-nosed management and has since perhaps been the most aggressive player in the country. do you know lennar called the bottom in housing? i got to ask, will they tell us that things will get even better next year, tail winds? i know you think the stock has had a huge move. but consider that seven years ago lennar traded at 68. now it's at 37. keep that in mind the next time you think the big home building move is over, especially when you consider today we got the first good quarter from a major competitor, kb homes, first one. after the close, we hear from paychex. first, it's making money for shareholders. it's rallying 15% year to date. the research is very lukewarm, and has an outside yield of
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almost 4%. second, it gives us a phenomenal read on employment. given how paychex works with so many small businesses, there are very few companies that have the pulse of the job creators, a great article today about job creators. the company has been muted the whole way about the job growth it sees. with only two nonfarm payroll numbers, we might suspect anything good happening in the hiring world. memo to candidate romney, you should be on this call too. anyway, we talked about the scarcity of solid tech names last night, but also pointed out that the cloud plays, the ones that harness that bold form of technology which you plug in to every day when you order from amazon or itunes, on monday we're going to hear from one of the best cloud plays, red hat. and i bet orders have accelerated for this company because when you bring in red hat, you cut your information technology bills, just like if you bring in s.a.p., ibm, which are doing well. i expect a pretty good number from red hat, if not a great one.
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odd job. carnival cruise reports tuesday morning. not that long carnival cruise had a horrendous accident off the coast of italy. at the time i didn't want to seem callous you have to take advantage of the decline the crash engendered to buy the stock because the chairman and ceo would find a way to come back from the tragedy. sure enough the stock has been on a nice upward move ever since, and i doubt the accident will barely come up now on the call. cruises are bargain and so are their stocks. after the jose we hair from jabil. when i saw jabil was reporting next week, it's like i had a premonition. this is a company a contract manufacturer for all kinds of tech and by the way health care products that hasn't done much of late. that's frankly highly unusual as it's one of the best multi-year performers in the whole market. at the old hedge fund i on the owned, i would be thinking okay, it's time this stock made its
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move. maybe this is that quarter that reports the good number like it always does, and then it goes up. jabil has almost always participated in the usual fall tech rally that i said this year may not work. but i bet it gives you a better than expected quarter. everybody's got charting software. take a look at how the stock does every fall. thursday morning we get results from discover financial. you can listen all you want to how cheap discover financial is. it is inexpensive for certain, especially versus visa and mastercard. but keep in mind the real story here might be the company's team-up with ebay's paypal unit. that's why my charitable trust owns paypal. there are so many new rival credit card systems you hear about, always being pushed by venture capital, always get great press. i'm very jealous. but the one storming the barricades is ebay. i continue to believe that paypal is worth all of ebay's stock price and the rest to gigantic online merchant and fulfillment center comes for free, stock sold at 50. the next time you get burned on one of the big industrial names, get scalded by a tech or bio shortfall, ponder this.
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i almost said christian ponder. but i didn't take him this week. i wonder what would have happened if you had listened to one of the multiple times i told you to own mccormick, mkc, the spice company, which also comes on thursday. parsley, sage, rosemary and profit. the big rap against mccormick has always been it's been too expensive. guess what? you get what you pay for. up more than 25%. it is expensive now, it's expensive then. so what! mccormick is the spice company like hershey is the chocolate company. can you name me another spice company? there are more spice girls than spice companies. nike -- where is my red hat? nike reports after closing, just announces a gigantic buyback a week before the quarter.
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unless management thinks there is going to be a huge shortfall and buy back cheaply, i would take this as a sign of confidence. it's been terrific ever since. get this. research in motion reports too. and as always, there will be speculation that it's going to put itself up for sale. then that speculation will be dashed by the company and people go about continuing to lose money in the blackberry maker. how many of these millions of people online buying apple iphone 5s are blackberry customers? enough to think that this waterloo, canada, based company has indeed met its waterloo. friday walgreens. after years of dependable growth, walgreens has become much more of a roller coaster, not unlike that kraken after a wild ride. and then spending $6.7 billion for a tie-up with boots, a european pharmacy retailer. stock got hammered on the news of the merger, but since been climbing back 28, 29, 30, 31, 32. will the gains roll back? i don't think so. but i don't see walgreens
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gaining much altitude. if you bought it when the deal was announced, you should ring the register. i would take some profits because i think when they report, they will still have to reveal some nasty comparisons thanks to the tiff they have with express scripts. the most important number of the week, the crude oil inventories. when the fed decided to go nuts with the easing not so long ago, all the ben bernanke doubters of which there are multiple ones, but not here said look out, here comes inflation. they should have said look out, here comes deflation. shortly after oil got hammered for the simple reason that supply exceeded demand. all i can say it's about time some cold hard facts about inventories actually trumped theoretical hedge fund gibberish about what was supposed to happen. long-term i think oil is going higher, and i like many of the independent oils, as well as schlumberger. but right now the trend is for oil to go lower. bottom line, the next big
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earnings reports are lennar, paychex, red hat, carnival cruise, discover financial, jabil, mccormick, nike and the perennial loser that is research in motion. the numbers i think could send crude lower, maybe low enough to buy schlumberger on the cheap. let's go to chris in florida. chris? >> caller: boo-yah, jim. >> boo-yah, skee-daddy. >> caller: i want to give a shout out to my fiancee jill. we're getting married in three weeks. >> well, best of luck with that -- i mean that's great, that's great! >> caller: we've been holders of michael kors since may. is michael kors is buy, sell or hold? >> this remarkable stock, it's up four. i don't recommend stocks up four. the stock tends to go down on mondays. it's doing remarkably well. it's got the best comp stores in the world. i'm a buyer, not a seller. but remember, it trades weirdly so wait for a dip.
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let's go to andrew in florida. andrew? >> caller: hey, professor cramer, ba-ba-boo-yah! >> thank you, sunshine. what is going on? >> caller: a quick question about leapfrog, ls. a 52-week high of 1228. they introduced their first wifi tablet for children, but leapfrog just announced that leappad 2 selected as one of the top picks on the toys r us fabulous christmas list. i have a large holding. what do i do, buy, sell or hold? >> it's just a hold. i'm worried about the whole toy complex. we've got a lot of negative writing this week about hasbro and mattel. it just seemed like the back to school toy play isn't working. i would be a little more concerned if i were you. i need to go to harold right now in illinois. harold? hey, harold! >> caller: hello, boo-yah, jim. two points.
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i saw your article on howdy frontier. bought some, thought it's a good idea. i also saw a moody possible downgrade of u.s. bancorp, rode it down since '07 and back again. i still think it's a good one. what do you think? >> i saw that story about that moody's downgrade. and i said one more came to my mind immediately, fatuous. that's a fatuous downgrade. i think that usb is every bit as good as hollyfrontier, and that sure did work out. the refining trade remains one of the best in show. where are we? we are in a good market. so next week let's focus on earnings. let's hope it all gets kicked off with a bang when red hat reports. "mad money" will be right back. >> coming up, home sweet home. pier 1 has soared over 20,000 percent since the market's bottom. as it ramps up its ecommerce biz and housing continues to rebound, can its stock continue
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to new heights? cramer's exclusive with the company's ceo is just ahead. and later, spec that protects? hackers are causing jitters as the cyberthreat looms. tonight, cramer's trying to lock down profits with a brand-new spec that could surge by protecting your portfolio and keeping your files secure. all coming up on "mad money." >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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just because a stock has already had an enormous run doesn't mean you missed the whole move. when we're talking about a company with an honest to goodness turnaround story, then that stock can rally longer and harder than you can ever imagine. take cramer fav pier 1 imports, pir. this is one of the most miraculous comeback stories i've ever seen in all my years in business.
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its lowest ebb in 2009 during the great recession, pier 1 was trading at just 11 cents. now it's trading at more than $19. that's a 17,500% gain. the stock has more than doubled since i got behind it in april of 2010, even though many people thought i had already missed the move. it's up 48% since the last time we spoke with alex smith, pier 1's death row and master mind behind the gain. if you rode the stock all the way up, i understand you might want to do some registering. but here is the thing. the turn isn't over. pier 1 is still remodeling its stores. it's rolling out a fabulous ecommerce strategy. and despite a tremendous run, the stock just isn't that expensive, selling for 16 times earnings with an 18% growth rate. let's check in with alex smith of pier 1 imports to find out how the term is going and find out where they're headed next. mr. smith, welcome back to "mad money." >> jim, it's great to be here again. thanks for inviting me. >> all right, alex, i love going to your stores. i thought it was terrific. you talked about the treasure
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hunt aspects, something we only saw with cosco. so i go to this store and i see already the halloween merchandise. is there a period where there is no holiday and nothing new to find at pier 1, or are you just constantly rotating through the seasons? >> constantly, jim. yes, we've got halloween and harvest in at the moment, as you can see. you can see the beautiful halloween here behind me. and then in two weeks' time, we'll be delivering holiday merchandise to the stores. so that will be running all the way through until christmas. and then a little gap and straight into easter. so we're always delivering new great seasonal products. >> how are you able to keep hitting it? the reason i say that is because a lot of companies tell me, a lot of retailers don't want to do this. they think if they don't have the right seasonal merchandise, they are stuck because you cannot move halloween stuff on november 5th. >> no, i mean that's absolutely right. so we have to plan it very carefully and track the sale-throughs very carefully.
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but more than that, we plan -- we plan our buys based on previous successes. and we have really good merchants who know what they're doing. so all in all we think it's -- there is more upside than there is risk for us. >> all right. got the new website. i'm all over it. i thought it was real interesting. you have a lot of great ways to find out some new ideas. what does a website do for a company that is just basically a brick and mortar outfit until this happened? >> well, i think really what it's done is it's given us a second new growth vehicle. i mean we still have a lot of great upside in our wonderful 1100 pier 1 import stores, but now we have something new. we've got the web business. we're going to develop that as diligently and as carefully as we have done our store business. we think it's great. we have two great businesses we can now work on. >> now, you also did an affinity card.
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i want to question this. here is why. when i go to a store and i don't have the affinity card, they always try to get me to do an affinity card. who has the affinity card and what does it do for you? >> we just -- you may have just seen in some of our releases, jim, we have recently changed our provider. and we have a pier 1 rewards card was relaunched in the summer of this year. it's doing really well. our revenues on the card as a percentage of sales have climbed. the number of new card holders that we have managed to open has increased significantly. and what it does for us and what it does for our customers is we obviously know them much better. we know what they're buying. we can speak to them directly. we offer them rewards and certain incentives. really, the customer wins and we win. it's a great program. you should have one if you haven't got it already.
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>> i guess i should. i love going. you know i go to your stores and i buy all the seasonal stuff. i decorate my house, thanks, for halloween and thanksgiving, using you. now, one of the things that surprised me, i was talking with my executive producer about it, in the conference call someone asked you a question regarding your background with home goods, some of the strength you must be having relates to the improvement in housing. you point-blank said that's not true. >> well, what we've said all along, we don't need a buoyant housing market for our business to do well. remember, we have a relatively -- we have small market share, between 1% and 2% of the market depending on the category. and so we -- if we do our jobs properly, we can drive all the incremental sales that we need to just by taking fractions of market share from lots of our competitors. having said that, having said that, of course a buoyant housing market is going to help us.
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a tailwind is always better then a headwind. but the point i was trying to make is we don't actually need it to be successful. >> okay. i'm glad you clarified that. i felt either you weren't seeing it or it didn't matter. last thing. huge new store in manhattan. what does it mean for pier 1 to have a giant three-story store in manhattan? >> oh, wow, it's a beautiful store. we're extremely happy with it. what it means for us, running stores of the higher volumes in major metropolitan areas is not something we have done a lot. but as we gain the ability to run these stores profitably, it really opens up other opportunities for us to open in major metropolitan centers around the country. so we're really excited about
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it. i mean it really is a beautiful store. >> big change for pier 1. i regard pier 1 frankly as a shopping mall, shopping mall place, a shopping center place. there is a major upgrade. alex smith, you keep delivering. once again a great quarter. i think the stock is just consolidating here waiting for the next move up into the 20s. thank you so much for coming on the show. >> my pleasure. thanks for having me. >> you see the background? you see the stuff. that's alex smith, president and ceo of pier 1 imports, pir. you probably bump into me. i love shopping at mine on route 10 in new jersey. stay with cramer. coming up, spec that protects? hackers are causing jitters as the cyberthreat looms. tonight, cramer is trying to lock down profits with a brand-new threat that could surge by protecting your portfolio and keeping your files secure.
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for the most part, the good ones have already run up way too much. and the bad ones, the companies that are levered to the pc or that compete with apple, they seem like death traps. we should call apple the death star for what it does to every other company. however, i'm not ready to write off the whole fourth quarter tech trade just yet. there have to be some technology companies with cheap stocks where the future actually looks brighter than the past. so we searched and we searched and then we search some more. when we finished searching, we came up with one. i saved it for speculation friday. the stock is radware, rdwr. we know that cyberstocks are sizzling. witness how palo alto networks, or how about sourcefire, another online security play that has been roaring all year. unlike its peers, radware is a real bargain.
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the stock got crushed after a quarter that many investors saw as disappointing at the end of july. even though it has rebounded some since then, it's still more than five points off its high. it sells for just 16.8 times earnings. 16.5% long-term growth rate. so it's not expected by any stretch of the imagination. frankly, i consider it cheap. one, it hasn't run too much. two, i think radware's future is looking a heck of a lot brighter than its past. radware is not the wrong kind of tech that is levered to the endangered species known as the pc. its right kind of deck because it's all about data center and cybersecurity, two of the probably last remaining growth areas of tech, really. radware has two different businesses. the first is application delivery controllers. adc. why can't they just say application delivery controllers? this accounts for 75%, 3/4 of the company sales. what the heck is an application delivery controller?
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these are pieces of hardware that act as gateways for the center for traffic. you have these data centers, huge server farms where companies store all their information and software and applications. and at the same time, you have tons and tons of users outside the data center who want to connect and use that content. a big bottleneck. delivering it from the center to the users all over the world. that's where radware's business comes in. they optimize and accelerate traffic between users, people like you and people like me, and these big pools of service within the data center. do you want a more concrete example? boy did i ever stumble on this one. last night we heard from domino's pizza. you know from me because i'm an intense user they have a cracker jack online ordering system. guess whose equipment domino's uses to handle the traffic from that system? radware.
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cisco has decided to get out of this application delivery game because they've been losing share. they only want to be number one or two, okay. i think that is terrific news for radware. cisco had 13% of the market. them getting out of the game, that leaves only four major vendors, including radware. and you better believe they'll be able to pick up some of the business cisco has given up. plus, radware is small enough that i could see, yes, potential takeover. never recommend a takeover name. the fundamentals are bad. in this case they're not. it's dominated by f-5, cloud stocks. they're never going to sign up some of the big wall street clients like goldman sachs who want to pay top dollar for the fastest equipment manageable. but they have carved out a niche for itself with companies like domino's, lower-priced equipment that has fewer bells and whistles. it's still good. you just don't need that maximum security thing. they're secure, but you know what i mean. goldman needs a different level than domino's. then there is radware
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cybersecurity business, what they call attack mitigation systems which accounts for other 25% of the company's sales. here radware's protected data center against malware, against web service attacks, web defacement, you name it. part of radware's strategy is they have a number of big partnerships with more established players. on the security side up with checkpoint, new products. they're the king of that business. and radware is partnering with juniper and with ibm, focused on product for enterprise oriented data centers. however, radware won't just partner up with anybody. the company actually passed on another licensing opportunity with juniper to extend into the enterprise side because management didn't think the terms of the deal were that favorable. the street was disappointed that radware didn't jump at the opportunity. radware has disappointed the street a number of times. but i think they were just staying disciplined, and they were just saying no. remember, radware is speculative. i tend not to like companies under a billion on the show.
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this $760 million. that said, if you're careful, i really do like i what i see here. a terrific balance sheet, margins on the rise, rolling out a bunch of new products in partnership with these larger players. new product cycles always drive tech. and you're getting a fabulous deal on the stock because it got crushed the last time it reported. was it a real disappointment? radware's actual results were in line and the company's guidance for the next quarter was cautious, coming in mildly below the analyst's expectation. the company gets 32% of its sales from europe in a seasonably weak quarter, it wasn't that bad. it took a pounding but is now back up above where it was before it reported the so-called disappointment. that's all you need to know. here is the bottom line. it's supposed to be the most wonderful time of the year for tech, but there are very few item names that are actually worth buying. radware is one of the exceptions. courtesy of a like-minded brokerage house, i'm urging you to do some homework on the stock and wait for a pullback before you pull the trigger.
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mark in arizona. mark? >> caller: hey, jim. boo-yah from arizona, and congrats on that 6-0 start to your eagles, if you count preseason. >> well, you know, i'll see you -- i'll see you throughout on sunday. big game. what is going on? >> caller: yeah, i have a question about pandora radio. they recently reported a great quarter. they had listener hours increased 80% from a year ago, active users grew 48%, and the guides forward the stock goes up 20% on the news. then apple releases a statement that they might get involved with internet radio, and pandora's stock goes down 20% as fast as it went up. do investors have it wrong? should they be more focused on pandora and their quarter, which is a sure thing, or the speculative statement that comes out from apple, which does seem like it has some unanswered questions. >> there is a pincer move. you've got spotify. you've got that iheart radio,
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they think they're so clever radio, don't they? and apple. if you read steve jobs bio, periodically jobs would say, sony, let's destroy them in this business, or microsoft, let's destroy them. apple has the ability to destroy. that's why we call it the death star, okay. although we really just started calling it the death star now. therefore, i don't want to own pandora. let's go to liam in my home state of new jersey. liam? liam? you know what? maybe we go to liam, or do we go to bill? let's switch from liam to bill. bill in california? >> caller: liam is my name. but it's okay. >> liam, bill, i confuse those. it's like william and bill. >> caller: acorda therapeutics. it has one good drug in the pipelines. one drug, one hit kind of thing? >> people think that celgene is
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one drug, one hit. it's not. i don't like one drug after the brutal questcor action that happened this week. why don't we go with something that has a little more of a pipeline. you want one drug, allergan, one drug celgene. they actually have a lot of drugs and people just don't realize. this september, tech passed us over. it turned out to not be the season. but there are some opportunities -- cybersecurity, datafarm, radware. stay with cramer. coming up, send cramer an e-mail to madmoney@cnbc.com, or tweet him at #madtweets and he might just answer you on the air on an all new edition of "mad mail." ddd#1
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it is time, it is time for the "lightning round." cramer's -- >> buy, buy, buy! >> sell, sell, sell! >> staff play this sound and then the "lightning round" is over. are you ready, skee-daddy? it's time for "lightning round."
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cramer's "mad money," i want to start with greg in arizona, greg? >> caller: a sunny september southern arizona boo-yah to you, jim. >> yeah, cardinals are going to lose but might do okay boo-yah back at you. >> hey, last week you had the chairman of franco nevada on the show. in researching this company, one analyst has rated the risk -- specifically flagging mergers and acquisitions, recognition of revenue and expenses as well as asset valuations. should i be concerned about owning this stock? >> we were too. we looked over that. but in the end, it's a very simple model. they give money to the gold companies. the gold companies give rebate money back to them as they find stuff. i got to tell you something, i think franco nevada is a winner. i think it's a winner. i liked that interview. let's go to brad in massachusetts, brad? >> caller: boo-yah, jim. >> boo-yah. >> caller: from the southwest -- southeast coast of massachusetts. >> oh, okay. >> caller: it's a beautiful part, and don't tell anybody about it because it's a great place to live.
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>> i love it. i used to go there. what's up? >> caller: i've been looking into sarepta therapeutics? >> that's good. it's the multiple sclerosis drug. it's a spec. i think it's a very good spec. i would own it. let's go to bill in california. bill? >> caller: boo-yah, jim cramer. >> how are you? >> caller: my speculative stock is stlk. >> i would have normally given you that i liked it. but there was a bull bear about it this week about how to value it, so i'm going to punt and do my own valuation. the article made me feel a little more negative than i would. i'm not just going to tell you it's fine. let's go to dane in north carolina. dane? >> caller: i read regardless of november results, natural gas has a place in our future. what do you think of bwp for the long run? >> i like bwp.
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i'm glad you brought it up. it's one of my absolute favorites. >> buy, buy, buy! >> why it is down? let's go to andrew. >> caller: i called to get your opinion on under armour. >> everyone is bearish again. i think that's a mistake. mr. plank from your state is doing well. chart is bad and that's causing people trepidation. i need to go to austin in florida. austin? >> caller: hey, jim, how is it going? >> how are you, austin? >> sne, sony. >> i don't like sony. a lot of people are excited because sony makes the battery for the new apple 5. let me tell you, that is not enough to move the needle in one real bad stock. >> sell, sell, sell! >> and that, ladies and gentlemen, is the conclusion of the "lightning round." [ buzzer ] >> the "lightning round" is td ameritrade. i have enough shame not to
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wear a speedo out here, although my staff certainly has told me that i had the body to pull it off. according to pvh, this is the only segment of the calvin klein business underperforming. it's down -- why do i take this abuse? i mean i have my own darn show. why do allow them to make pictures of me? isn't it enough that i wear this? >> hi, jim. >> hey, barbara, how are you? >> good. how are you? >> real good. >> gee. >> wow, jeez. that is intimate. no, let's not. let's not do that. five below. ♪ dollar dollar bill, yo >> this is worth owning.
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i believe that the long-term gains here could be tremendous! ♪ >> this is called a mark. i often stand right here in front of everything. it drives everybody crazy. >> kyle, get jim on his mark. >> this is driving the staff crazy. so now i'm going to play by the tv rules that everyone is telling me i must or i'm going to be put right into the journalism jail. give me the pineapple and the bananas, please. ♪ day-o, day-o >> why am i telling you that dole is worth buying? this could be something like the land that clooney fought the family members over in "the descendants." hey, look at me, look at me, i changed! i got my act together. i'm actually worth buying. this is just the tip of the iceberg. iceberg lettuce, get it?
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>> wow. ♪ daylight come and me want go home ♪ >> take that down, take that down. all right, leave it up.
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before i answer your e-mails and tweets, we've got some homework to get to. we've gotten a large number of calls against dunkin brands, dnkn, known by everyone for its dunkin brands, along with its smaller baskin robbins division. the stock has sold off big from the highs in june. investors worrying about decelerating stores, and frankly, the valuation for this growth darling did get a bit too steep amidst a macro environment where mcdonald's is cutting the price for coffee left and right. however, why do i like it? its domestic focused name, regional national growth. one of the same reasons i like ulta, controversial that last one. there are less cost risks. think about dominoes. they didn't have any of the costs for the most part. plus, unit level economics are improving. at just 18 times forward earnings with a 17% long-term growth rate, this is a buy,
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okay? second, a belated follow-up. back all the way august 16th, john in florida asked about velti corp., symbol velt for you home gamers, a stock that has had a nice run-up since the middle of the summer. it's benefitting from the significant growth in ads spent in mobile. come on, that's a very strong secular growth story, right? we emphasize that over and over again. after a very strong quarter in august and a big mobile marketing deal earlier this month, the company is well-positioned and should have room to grow. you can nibble here given a bit of a pullback today, but remember, the risk remains in the space. it's a speculative name. i got to tell you, thank you for bringing it to my attention. i should have done a whole piece about it. here someone we have to do a little bit of follow-up because we talked about it before it split up. on wednesday john in pennsylvania asked about hillshire brands, symbol hsh. this is the old meat segment of sara lee, a company we highlighted as one of our breakup plays in april.
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it hasn't performed very well since its debut, but ultimately this is a reinvestment year for hillshire as the company focuses on innovation to lead improvements in 2014 and 2015. go look at conagra's quarter yesterday. it's not going to be rewarded for targets until it starts putting up strong numbers. remember the drought? i would look for pockets of weakness as i think you will be rewarded longer term with dividend growth as well. it's not a name you're going to make fast money on the next quarter or two. you hold on. there is no reason to jump into this stock right now. let's start with a tweet. let's take our first tweet from from @kendog39. okay. he says hold or sell cto, which is centurylink. we profiled those, and vz,
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verizon. their pe is high, but the dividend is nice. thanks, jim, for all you do. this is really important. these companies have gigantic cash flow, but big depreciation costs. what are you talking about? you have to look at the cash flow and the dividend. they both have good dividends. ctl has made a remarkable comeback. we stuck our neck out and said it was a good one and then it did poorly. verizon right here, six and a half, one dozen of another. people said you wuss. come on, six and a half or dozen of another. this tweet is from wudignity@wudignity. he says, "jim, arm holdings or qualcomm?" arm holdings is very overvalued. i think qualcomm is mr. 4g. i think qualcomm is the one to buy. but let me throw a total monkey
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wrench in here to wudignity@wigdignity. here is another tweet. this one is from hoppernation, who says, "speaking of tom brady, what do your kids and you think about deckers?" every girl i ever asked cannot live without her uggs. my kids say they've had enough. ugg ain't working anymore. the tom brady isn't working anymore. deck, the stock, isn't working anymore. it's cheap, but we don't have a catalyst. and it looks like uggs is not doing well right now. got to tell you, mr. ryan edwards@hoppernation, i am saying stay away from deck. if you want apparel, go buy some nikes. stay with cramer.
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it happened again last night. this time it's really got me steamed. two high quality tech companies, oracle and tibco software reported, and on the strength or the weakness, so to speak, of the headline numbers, both stocks were immediately -- >> sell, sell, sell! >> -- by the hair-trigger traders, who clearly have no idea what they're talking about or what they're trading on. these quick draw mcgraw sold reportedly because they seemed shockingly disappointing. [ crying ] oracle showed little revenue growth. tibco came in shy of earnings.
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the ask questions later crowd went to work and sold oracle down to about 31. tibco got ripped, going from 30 to $27 in a heartbeat. it's the kind of decline that raises questions about the future of a company that i have repeatedly highlighted as a fast-growing software company that processes one million transactions in a second from casinos to retailers to smartphone companies. initially, i was floored by the declines. to me it seemed ridiculous to simply blow out of oracle without listening to the conference call, especially since oracle is an extremely complicated company not given to synopsis. it seemed nuts to panic before the call. oracle has done a lot of good things. i was shocked because i felt this kind of moronic behavior had been tamped after revelation of revelation, many on the show after losses after hours in this kind of trading. something had to be wrong. this time, maybe this time someone had to know something.
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i had to believe that. i figure or the reaction wouldn't be so vociferous, so visceral, so definitive. during last night's taping i turned to nicole urken, my research analyst and said "you said we'd be safe in tibco," which is when the naive rachel lapp played by kelly mcgillis angrily queries harrison ford about the killing of her boyfriend in the bathroom of the 33rd street, saying -- any researcher i have ever pestered with such a line, she is supposed to respond with ford's answer, which is "well, i was wrong." but she wouldn't. she wouldn't give me the "you said we would be safe in philadelphia/i was wrong line." you know why? because she was so confident the sellers themselves were wrong and didn't know enough to take such furious reactions against tibco. sure enough, once the conference calls began, we heard the truth. nicole was right. the traders were wrong. oracle is doing fantastically. and while revenue wasn't as strong as much of the bulls would like to see.
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one can only marvel what oracle could do in a stronger environment. larry ellison with con extraction spending worldwide, wow, this thing could be a horse if things get better. how about tibco? a nice uptick in business with an amazing growth peg between 30 and 40%. the revenues again were hit by currency. projections shy. but only because of the translation factor of currencies overlaying on top of five fewer selling days. so it was no surprise this morning when oracle rebounded two points from the after-hours low almost immediately and tibco jumped 10% from the similar launching pad. many people call on the show and want to get into after-hours trading. i say get into research. get into homework, and then beat up on these clowns. they, not you, are the easy pickings. stay with cramer. does the market have you stumped? no fear, cramer is here. just e-mail him, madmoney@cnbc.com.
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heard a lot of grousing today that the earnings are going to be bad, that there is not enough momentum. did you see this market again today? they're having hard time knocking it down. you know why? because it's a good market. i know that sounds like circular

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