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tv   Mad Money  CNBC  November 15, 2012 6:00pm-7:00pm EST

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tomorrow? >> back "options action." "mad money" starts right now. >> i'm jim cramer, welcome to my world. >> you need to get in the game! they are going to go out of business and he's nuts, they are 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." other people want to make friends, i just want the days of losing to end. my job is not just to entertain, but to educate. call 1-800-743-cnbc. you know what is infuriating. it's all about to work. our economy was at last about to take off after a slow recovery from the great recession. >> you wouldn't know that from the average.
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yet, the economy, the economy was about to bust out and washington snuffed it. we had it in hand, we had to turn housing with home builders, and we had to turn to booming order from boeing. and banks were getting their balance, and oil and gas industry started booming and opportunities for new petrochemicals hiring tens of thousands of people strongest in years. people, it was all come together. and now washington's crushing it. best of all, people are starting to get hired again. all those industries are just mentioned were growing, all of them looked like a real good year to expand. business people are in retreat,
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and their leaders, many of whom speak to me, are done hiring. and they want to fire, cutback, so she saw the chaos from capital coming and did the right thing for shareholders, when the right thing not that long ago was to hire, not fire. washington with its sickening inability to compromise wrecked it, wrecked it all and took what was developing into a beautiful bull market, by real profits, real hiring and turned it on its head, maybe turned it into a bear market. makes me nauseous just thinking about it. if they gave us something, really anything, even a bad outcome at this point, we would be better off. instead they throw spitballs at each other. the damage to the stock market has been swift, devastating and beleaguering. after recent declines, our dow jones industrial average is up less than half of what the average in europe is up to. and we're not doing as well as
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france, for heavens sake. france. only one-sixth of the german market's gain. every stock guilty until proven innocent. so the selling is relentless. at this point, we're coming to accept that stocks will go down regularly and the thing we have to ask is not when the selling is done, when it's overdone and we can bounce on good news. we need to know are we sold out yet? that's the term. are we sold out? another term that means the same thing. the swiftness, which all of this is happening, hedge funds that remember how their loss -- they lost their year last year like that. boy, i believe make it so that the selling actually runs its course, if not overretuuns its course before we run over the cliff. how do we know when the wholesale dump has gotten irrational. how do we know it's best to wait for a bounce, wait until it rallies and maybe it's even
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tomorrow worth buying something because the market is so oversold. how do we know that? how do we know it, monitor the damage washington is creating to see if we can figure out to cut our losses or begin to think about making a profit. remember those days? let me give you -- i got three ways to measure this, people. three ways will put it in a workable context at home. first, the washington on tv indicator this is simple, easily monitored and the most important of all indicators, when the presidentor any of the leadership from republicans or any important minions utters anything about the fiscal cliff on tv. right now we know after yesterday's dismal stride and presidential conference. we're not on track any time soon. no move to rise above. we don't feel threatened by the chaos they spawned. in fact, they are elm boldened. no one shamed to changing a
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hardline position to keep us from compromising. they don't know that it is leadership, not weakness, if you budge from the hardline. that means every time someone in a position of power comes on our air, you can expect the market to go down. don't trust any initial bursts of optimism before or after a sound bite unless both parties at once standing at a podium saying we have a deal. use yesterday as a template. when you see or hear a presidential event, brace yourself, okay? want you to be ready for the market to crater. same as if the speaker of the house grabs the mike. sell stocks short. buy put options, the equivalent of a hard hat. that's where we are now. with the washington on tv indicator, we'll know when it's safe, when the market stops getting pulverized. that's my indicator anything time washington has intruded on the stock market. we stopped going down on political sniping and compromise, we're at the bottom.
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cramer's bottom alert. second, purest of pure fiscal cliffs out there in a stock called lockheed martin. a good defense company despite the recent management upheaval. if our leaders don't rise above politics, we'll see two of the industries crushed. this should be front and center, upper left on your screen, i put it up five times, not just once for emphasis. might as well be the thermometer for the market. the third indicator, third indicator, if the selling is running its course, the cisco/home depot/pet smart indicator. they correctly captured discretionary retail housing and tech nog spending. if they cannot hold their gait, then no stocks can right now. other than higher yielding stocks like coca-cola, verizon, at&t.
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throws three indicators that i just gave you tells that the bad news is baked in, or if it isn't, they will speculate that stock market itself with the daily nose dives has washington worried. they will get us through this, and we'll get through this, even as we have to admit that odds have improved greatly because the sniping has begun. we as a country were so close, almost there. the jobs spigot about to be turned on. numerous domestic industries were turning to the positive, first time in years. and taking on all the attributes of the bulls of yore. all of that is out the window, because in six weeks, the financial world as we know it will be torn asunder, and this has nothing to with how well companies do or how cheap stocks
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are, and all about the pride of our elected leaders. what can i say? we deserve better. jack in ohio. jack. >> caller: hey, jimmy. with all the settlements going on, right? a long-term buy and hold. and the yield is going up. what do you think about bp? >> no. i'm going to send you a stock that has fallen precipitously and they'll change the tax law, i don't think they will. i'll send to you linco. they have been able to take advantage of the for sales of bp and this stock now yields 8%. lnco is the way to go. gary in indiana. >> caller: booyah too ya, "mad money" buddy. >> booyah to you. >> caller: last time i was on, i
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called about what i thought was the next starbuck. you didn't like it, and i grew not to like it either. i'm wondering since i sold short, is it too late to get back in to starbucks? >> it's too late. i thought this was brilliant. my reservation to tivana, i said let's go get to get some tea. teavana, doesn't serve tea. howard schultz is putting tea in. i think you should buy starbucks, charitable trust is doing it right now. making history every day. we may encounter the first congressally mandated bear market if washington doesn't veto it. washington has to rise above. the congressally mandated bear market, we're all feeling the pain and we all deserve better. "mad money" will be right back.
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coming up, sale or sell? no shortage of opinion on jcpenney. investors bet big on the turn around story, sold by former apple exec ron johnson. so far, the stock hasn't fit the mold. will the holidays fit the boost, or time to try on some new digs in the sell block. later, you're invited. the party is not over. cramer has found more stocks that have reason to celebrate, after delivering upside earnings surprises. this biotech name got a dull response to report in october. but wall street skipped out on its invite, there may be room for you to profit. plus, paper from plastic? buy, swipe, or tap. consumers are putting more payments than ever on credit. looking to cash in on all those cards? cramer is sitting down with the ceo of bank card processor, heartland payment systems to see
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if they can help you rack up rewards. all coming up on "mad money." don't miss a second of "mad money" got al jimcramer on twitter. have a question? tweet cramer, #madtweets. sends 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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never, ever buy a stock just because it's come down so much you feel like it has nowhere left to go but up. stock picking is like going shopping. some people will buy terrible merchandise because it's marked downy normously and looks cheap. looks can be deceivingly. take jcpenney. this is a classic case of how much damage a bad ceo can do to a once viable brand. about a year ago, jcpenney hired ron johnson, the guy who is supposed to have created the looking field, the apple store
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to be it's new chief executive. he took over to great fan fare and laid out a whole bunch of new strategies, hope to turn around penny's stagnant business. stocks soared at the time. instead of turning him around, johnson dumped a bunch of stock and turned it into a wreck. the third hideous quarter in a row and it's trading 16 and change. i told you to start selling jc opinio penny in may when it was trading ten cents higher than it is now. why not come to the story now, besides the fact that it dropped ten from now? why pick on ron johnson, rather than say walmart which reported disappointing numbers this morning? i'm not doing this to be a bully. i'm reiterating that jcpenney belongs in the sell block, when stocks come down this far, you
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get tempted. down 61% from highs. how much lower can it go? after all, it's jcpenney for heaven's sake. a household name. bill accidentman runs pershing square capital and defended yc penny and johnson. he's a smart guy. maybe not so crazy to buy penny's down here, right? wrong. penny is a value track. it's a stock that appears cheap, but it will only get cheaper. we've seen no signs trends are improving. they are still deteriorating. and to make matters worse, jcpenney could send the stock higher. and the company has a badly weakened balance sheet. something we can tell by monitoring the company's bonds, whacked down almost daily. all of the ingredients of a terrible investment. i wouldn't be attracted to jp penny, even in single digits.
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not unless fundamentals improve dramatically it would almost be funny if it wasn't causing people to lose gigantic sums of money. nobody expected them to transform overnight. but we're 3/4 into the turn around and these guys don't have a clue. the original idea was to get rid of coupons, and then get rid of flashy sales, try to attract customers with every day low price, the same strategy that walmart loses -- uses, not loses. it didn't work, customers fled in droves. in october, they launched $10 off coupons and then they have now pricing, it was 100, it is now 50. jcpenney is trying to correct its mistakes. it's too bad that they don't have clarity about strategy or vision. in january, johnson laid out a vision for jcpenney that is dead wrong it seems like they have no idea what direction they should be going. sale, no sale, sister, mother,
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what the heck is going on? they reported last week, and the results were unbelievably harder. sales decreased, marking the fifth consecutive quarterly decline. total sales down 26.2%. the gross margin, what they make on every dollar of sales declined by 480 basis points. i have never, ever in my career, seen a retailer pull out of a down 26% comp tailspin. never, ever. pennies attempted to remodel to a new format. some brands were all over the place. i don't think that moves the needle, other than down. they say it's working, they say it over and over, and it costs a fortune for a company that doesn't have a fortune to pull it off. as was described very eloquently in "the new york times." they might be able to remodel a bunch more. if the results were bad, the
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commentary with the results was worse. let me read you a snippet from the conference call. another quarter of unbelievable learning at jcpenney. nine months into the transformation, and eight weeks to go, and each quarter we learn a lot. we adapt, try to move forward. unbelievable. learning. what a euphemism. i haven't seen this much learning since chandler's reeducation program. maybe they have so much to learn about the department store business, the board should fire them and bring in somebody who doesn't need to take a remedial class in retailing. standard & poor's do you understand dwr-- downgraded fro plus to b minus. if pennies hadn't made some calls this year, they wouldn't have a penny to its name. the bulls point to the value of
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jcpenney real estate to own the stock and they own property underneath 426 stores, however, we when look at the retail chains that may covet that, costco, best buy, walmart, we don't see any one of them wanting to buy these large spaces. macy's nordstroms, saks aren't in expansive mode or have stores already in the locations. they may be a fraction of what the bulls say. you can't fill these places with boutique specialty stores. best buy won't take them off your hands. my father sold boxes and bags for retailers for 60 years. my father worked at gym balancebalance gimbals, and my mother worked for litz. i learned in there my folks that there is no right to exist in retail. and just because you're a
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storied name, that doesn't mean anything. because litz and gimbals was storied, as was woolworth, the famous letter z in the dow jones industrial a, gone. to give you anecdotal color, i visited the manhattan mall jcpenney today. i got a nifty pair of khakis, they are making so much out of brand names like izod and liz claiborne. they are so what brands, so what you have them? many are available at any outlet mall. nobody cares. have you been to jcpenney? i would never take my kids there, ever. they would laugh me out of the house faster than john travolta. i had no idea what was on sale, what wasn't on sale, what was on regular price. had no idea why i was in the store. but i did buy this nifty hat. because after all, i am a
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shopaholic. a bunch of dress shirts to the register, the prices seem really reasonable. they could be a steal, makeup on my shirts, throw them away all the time. i saw they were half polyester and only a small limited selection of actual cotton dress shirts in the whole store. sorry, no reason for being. here is the bottom line. jcpenney has been crushed. it doesn't make it a bargain other than this $22 hat was a real bargain. some things go down because they deserve to, which is why at $16 and change, penny's remains a sell, sell, sell. stay with cramer. coming up, you're invited. the party is not over. cramer has found more stocks that have reason to celebrate. after delivering upside earnings surprises. this biotech name got a dull response to its report in october. but after wall street skipped out on its invite, there may be room for you to profit.
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and later, paper plastic, buy, swipe, or tap. consumers putting more payments than ever on credit. looking to cash in on all those cards, cramer is sitting down with the ceo of bank card processor heartland payment systems to see if they can help you rack up rewards. all coming up on "mad money." from investing for the first time... to investing with knowledge. the potential of td ameritrade unlocked.
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nyse euronext. unlocking the world's potential. to a world of super-connected intelligence. the potential of freescale unlocked. nyse euronext. unlocking the world's potential. when we got married. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.
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just because we need to get more cautious in the face of the looming fiscal cliff, that doesn't mean there aren't stocks that are worth picking on the way down. picking. we are never so arrogant to think we can call them bottom. we want to leave room to buy more as the fiscal cliff discussion drags on. some companies with zero economic activity are being ignored or sold. people are so sick of the declines. come on, six out of the seven last days makes sense. it does give you a lot of opportunities, as long as you are careful. you keep your head up, you are not so down and depressed you pass on great opportunities. yesterday, i started throwing some surprise parties, trying to liven up, you know, kind of leaven things. parties for companies that
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reported upside surprises in the last earnings season. not just any surprises. only the best of the best. the folks at spoke investment group put out a list of those that beat wall street earnings estimates and gave better than expected guidance. that's the classic earnings season triple play. i won't give you a list. i looked through the list, picked the best ones. i am searching for the companies that i like that can thrive in this environment with the fiscal cliff and a recession a possibility. look, u.it it's a possibility. today i was throwing a surprise party for amgen. you know what, miscafiscal clif fiscal cliff, we're still having an amgen party here. inappropriate balloon movement
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there. they make all kinds of drugs for serious illnesses. it has 70 products in development that are starting phase three clinical trials in the early part of next year. phase three means it's getting through fruition. amgen could double earnings per share over the next eight years. that is much better than a sharp stick in the retina. amgen reported on october 23rd after the close and the company delivered spectacular results and was a true triple play. came in $1.67, and revenues 5.9% year over year. when the street was looking for 4.25 billion. and four-year guidance, substantially higher than the analysts expecting. those were fabulous numbers. no surprise that the stock shot up from $87.32, to nearly 90 in after hours trading. however, the next day amgen started to come down, and since
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then, courtesy of the fiscal cliff, only going further downhill. it's down 6.3% from highs after doing everything we wanted the company to do and more. some weakness because people are worried from competition. and i think it's only a small part of it. these things are we can see coming. i think it's clobbered, just like during the debt ceiling debacle. this point in the debt ceiling, you have to start carefully, picking, noting selling, at the noneconomically sensitive stocks, that would do just fine. this is around when they started to stabilize last time. and amgen definitely fits the bill. it won't stop going down the rest of the market and if you own amgen, you will get hurt less than the typical stock this is a no pain/no gain moment. amgen fits that treatise.
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they did report a terrific quarter. amgen has an incredibly robust pipeline, and invest in these drugs, known as amg 145. a treatment for rare genetic disorder that causes people to have massive amounts of ldl cholesterol and can shorten a patient's life span for decades. we talked about drugs that can treat this disease before. big deal. this drug could be a 2$2.5 billion opportunity for them. amgen's six pipeline drugs could be worth $7 billion in peak sales. many are exceeding expectations. one for autoimmune disorders, x giva for osteoporosis. and nulasta for chemo therapy related infections. i wasn't out here recommending it ahead of the quarter?
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it's below, so let's do it, not only is the business going well, but it's incredibly shareholder friendly. a gigantic buyback. in less than two years, repurchased 20% of shares outstanding, an average price of less than $60 per share. savvy investors. up 39% from those levels. they pay a dividend. small one. yield just 1.7%, put the plan to grow the pay out aggressively. they could boost their dividend to get to a 3% yield by 2014 for a fast growing drug company, and even at the high probability, we still like companies that raise their payouts. if the tax bill worries you, you can own amgen in a tax favored account like an ira. amgen is cheap, 10.5% long-term growth rate. i'm not saying it's done going down, but as we wait for the fiscal cliff to be resolved,
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amgen among the first stocks to stabilize and rebound with a vein ya vengeance. i have never seen it this cheap in my lifetime. what a great 401 k/ira stock. amgen is a stellar company that's being overlooked. nothing to do with the fiscal cliff whatsoever. more to do with clifford the big red dog. this has a robust pipeline and shareholder friendly attitude. pick amgen carefully on the way down, starting in today's session and i'm happy to throw a party with its upside surprise. dave in tanks. dave. >> caller: jim, given the worldwide epidemic of obesity and along with it, diabetes, i'm shocked i never hear anyone on your show discuss the stock nolanortis. i am wondering if you think there's a good opportunity to
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add? >> you are right. it was at 90, i talked about it. but it was part of a diabetes overview that i gave, and i have watched it go up and up and up. and the last couple of days, choppy, but i think novanortis, they still have the best anti diabetes medicine. susan in new jersey. >> caller: jim, thanks for taking my call. a couple of days ago, i bought omega health care investors for $22 a share. and i did that because their last earnings report looked good, but i'm wondering you think of the company in terms of its stability, yield and growth, particularly under the new health care law. >> under every one of these, i have to do individual work. that's how i stumbled on hcn which is my preferred one. i don't want to say that health care read is better than your read. i have to add to this to the list and this is the third of this week that i have to do
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homework on. so much better for you to say i can't opine on it, 8%. and then tell you it's 5% and watch the dividend be cut or something. fiscal cliff fears are overshadowing major stellar results. that's what this moment is about. the upside surprise of amgen, it was a huge surprise party for investors, and yet now well below where it was. i say pick some up. i say you buy some amgen tomorrow. coming up, ride the lightning. take a nonstop thrill ride as cramer goes stock after stock, calls taken rapid fire on "the lightni lightning round." buy, swipe, or tap, consumers put more payments than ever on credit. looking to cash in on the cards? cramer sits down with bank card processor heartland systems to
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see if they can help you rack up rewards. all coming up on "mad money." i don't spend money on gasoline. i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas
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it is time. it is time for the lightning round. what we'll take the calls, you tell me the stock, i tell you to buy, buy, buy, sell, sell, sell. and when time is up, then we're over. let's start with chang in california. >> caller: hey, bag booyah to you. >> thank you for calling, sir. >> caller: i have a question about ic pharmaceutical. crazy fast few days. you look at from now. >> down a lot. the type of thing -- look, you are buying a spec with icis. you take a look, dynavac technologies. we like the hepatitis vaccine. the government didn't like that. i think this is a curious overreaction. but it's a spec. you have to be careful.
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let's go to dan in texas. >> caller: pch energy. >> down 16. mostly natural gas in ohio. if you watched the show, we told you it's mostly natural gas in ohio. i have been buying southwest, swn. why have i been buying southwestern energy? it's the pure nat gas play i want. i think it's going higher in 2013. bill in south dakota. bill. >> caller: jim, my stock is american capital agency corp, agnc. there one is going to go down. why? maybe companies real estate investment trusts are worried about the taxation considerations, and we also have to worry about what the yield curve looks like and what they will do with fannie and freddie, so many -- so so many cost runs here, i think you should stay the course, but understand it's just another stock right now and
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it could lower. no longer charmed like it's wen. john in new jersey. john. >> caller: professor cramer. >> thank you for the tenure. yes. >> caller: wind stream, win. >> no, they did not execute. came on the show, told you this he would execute, didn't execute. ctl, century link is better. i do prefer verizon and at&t. let's go to artie in new jersey. >> caller: hey, jim. how you doing? booyah. >> i'm trying. everybody so beleaguered at this point. >> caller: doing okay over here too. like to take amp. >> i think kinder morgan works. big rumor that the massillion done partnerships will lose tax favored treatment they have. i don't agree. i think kinder morgan should be bought, and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is
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we know it's a tough market. that doesn't mean we should stop working for opportunities. that means finding the stocks that reported stellar results and now ignoring the market. i'm not saying you shouldn't be worried. that would be wrong, glib. you shouldn't let that worry blind you to the fact that some stocks are worth kicking tires on. the idea that when selling dies down, you might be able to pick something up for a song. i want you to consider heartland payment systems, hpy. they provide primarily small businesses with the technology needed to make transactions work. taking a tiny cut of each one. this one survived the great recession and a devastating breach of their network by hackers in 2001 to come roaring back. the kind of triple play we've been talking about the last couple of days. they delivered better than expected revenues, and raised
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its guidance for the full year. business is clearly going very well. question, can they keep it up if we go over the fiscal cliff? will it get glclobbered like so many others. let's find out more about the quarter and where his company is headed in light of the looming cliff. welcome to "plaid monmad money." >> thank you, jim. >> first time on the show and a lot of people hear payments processing. they don't know where you are in the food chain. let's start by an explanation of what we contact -- when we're in contact with your company. >> 250,000 merchants across the country use us for processing. and so we're in contact with them on a daily basis, every hour virtually. >> so i buy something. i swipe my card, where is heartland? >> heartland is the company that answers the phone. machine that makes a phone call and we process, authorize that transaction and then we pay the
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merchant the next day for their money, taking out our small fee. >> now, being the fifth largestest, how do you not get crushed by the four guys ahead of you? >> well, in 1997, when we urged with heartland bank to form the company, we were number 62, so we've moved from 62 to number 5 in 15 years and granted, the big guys ahead of us are really big. >> yeah, first data. >> but we are growing, a nice innovative company with our own data centers, developers. the most vertically integrated company in the whole industry right now. >> the rap on you, you were the best and then you had the terrible breach. walk us through what happened. we're all afraid of breaches. many of us have been hacked. how was your company able to recover so quickly. it was remarkable recovery. >> thank you. it was a tough time. we learned in january 2009, some
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bad guys from eastern europe had penetrated our payments system, and we learned later that there were 300 other companies that they had breached, and so what we did is -- and i think that was unique in the industry, that we were up front about it. >> you had a tylenol moment there. no one else wanted to admit that they had this happen. >> i talked to a former ceo of johnson & johnson. >> you went to mr. burke? >> the predecessor of mr. burke. he said be up front, don't try to hide anything. we talked to our card brands, employees, so on and we developed this endescripticrypt which garbles the transaction at the time the card is swiped, all the way to the end. it encrypts it. if the bad guys get in and
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steal, they are stealing garbage, they don't have anything useful. we introduced that to the marketplace. >> and that's why we were able to come back. >> that's why we were able to come back in the marketplace. and we went to our competitors, and said let's work together, share information about the bad guys and that's the payment processors sharing council. a very robust organization, we're very proud of that. >> terrific. a great question asked of you in your conference call, how about square, how about paypal, groupon. aren't those guys coming on? you are a very candid guy. your response to these new payment programs? >> we love it, jim. there are 9 million sort of core merchants in the country. now with the new innovations, now there will be 25 million is what folks are saying. the market is expanding in a huge way.
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and these micromerchants need to be serviced in a different way. scare has come out, done some innovative things, but the things are, they aren't great technology changes. they changed the model with flat-rate pricing. pretty expensive for most merchants, but easy and simple to understand, and there is this ability for the merchant to go on their phone and set up their system. >> why don't you show me what you've got. >> this is called mobile. buy with our mobile device. allows a merchant to take a transaction at a trade show, outside at a tiki bar, a restaurant where they don't have a hard phone line, and line busting, if there is a long line, go take payments of people waiting in line. this is very similar to what square is doing. >> home depot does that. have you this for your provider. >> all of the merchants in jersey -- we're based in princeton, new jersey, we were able to get the mobile device, and they could use their cell
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phones and take payments. >> that's terrific. >> that's your invention? >> it's our invention, competitive with square. >> i think you are doing a lot of good things. fiscal cliff made it so we're blinded. >> well, the fiscal cliff has two sort of impacts with us. a lot of owners are really thinking hard about selling out before the fiscal cliff, so there's a lot of m&a activity this year and a lot more coming that will be done by december 31st because of that cliff. and then, you know, if it puts us into a slowdown, always better to have a robust economy. we have been through slowdowns and tough times. we'll do it again. >> you have a nifty little company versus the other guys, but a robust strong company versus what i'm seeing around town. thank you to robert carr, chair and ceo of heartland payment systems. and to all executives who have something bad happen, take his approach. it gets you right back in the game. stay with cramer. [ female announcer ] e-trade was founded on the simple belief
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for a brief moment, we almost climbed into the black today. if you missed our six out of seven down days now. let's pretend we aren't beleaguered, angry and frustrated beyond belief. for the sake of argument only, let me be constructive and why you shouldn't sell everything tomorrow. we're very oversold and people are extremely negative.
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all accept where we're going down. people get this negative tend to get a bounce, even if it takes you to a better place. second, many stocks will be impacted when we go over the fiscal cliff. when, no longer if. unless politics rise above, we're going over it. with basis here that sells soft goods will do well and they need to be bought in weakness, because commodity prices are coming down. everything in the end gets discounted. we can adjust to anything and negatives won't mean much, but a new positive will send us soaring, the new taxes and spending cuts will not be the end of the world for the big secular growth stories and the entire for a bargain. fifth, plenty of companies have the power to raise dividends to where tax returns are far superior for bonds. am i being pollyanna. to be solely destructive misses an important move in the market. we don't know where the move might begin from. we also know that every single
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time in every single down turn no, matter how big or small we have stocks that bottom. and depending on the circumstances, industrials bottom first, the shock that bought them down is one time only. soft goods begin the bounce, approximate cause of the decline is done turn technology. and fixed income alternatives, were givens people. no case could you wait until the big bad event occur. things bottom before that. no case did you not initially suffer losses if you stayed the course. and in every case, when blew out everything did you poorly, when you look long term, if you bought the ten most actively traded major capitalizations the day before the 1987 crash, where we lost 508 points, it was dumbest day in history to buy stocks, you were up nicely in some days. being constructive is being
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rigorous. trying to time the cliff is something that's practically hopeless. you see the leaders together in a room at a camp david style highway, they aren't feeling pressure to do a deal. so many of the constituents don't pay income tax. so many don't make enough money. the pain may not be visible for the majority at this moment. it could change if politicians come together out of good which is unlikely, or out of panic, because the stock market has fallen so dramatically and it's the latter that makes being constructive so very difficult in these uncertain times. stay with cramer. [ male announcer ] at scottrade, we believe the more you know, the better you trade. so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations,
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where our dedicated support teams help you know more so your money can do more. [ rodger ] at scottrade, seven dollar trades are just the start. our teams have the information you want when you need it. it's another reason more investors are saying... [ ] i'm with scottrade.
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well, having a ton of locations doesn't hurt. and my daughter loves the santa. oh, ah sir. that is a customer. let's not tell mom. [ male announcer ] break from the holiday stress. fedex office. okay, look. this is all about rising above. i mean, someone stopped me today and said, jim, why does my apple keep going down? i could have given him the fact that it has had two bad quarters, maybe the iphone 5 didn't do as well. that wasn't actually true, because the quarter did well. i looked at him and said, cheap this is why apple is going down. you can say the same for 499 other stocks in the s & p 500. this is why

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