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tv   Mad Money  CNBC  May 9, 2016 6:00pm-7:01pm EDT

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>> i'm melissa lee. thank you for watching. including the new zealand america's cup. more "fast money" tomorrow. "mad money" my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to cramerica other. people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you. how can some stocks. some stocks be so hated on a friday and then so loved on a
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monday? how do whole sectors suddenly go out of favor over a weekend? how can it come out of nowhere? the answer is new data come out. when reassessed it changes the opinions of those who matter meaning the big trigger pull here's run billions and billions of dollars and are always trying to beat the s&p 500, the fact that they rarely beat the s&p 500 is important. they never stop trying and that explains what you saw. the dow declining 35 points. nasdaq gaining. what new data am i talking about? specifically the employment data here and the chinese trade figures over there. it passes for order in today's stockton where it creates a new interpretation of what's happening in the global economy that very minute.
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when i wrote let's. get rich quickly. it was the macro information could move stocks regardless of the individual companies. the answer? only one piece of information mattered that much. the labor department's monthly labor figures that came out on friday when the numbers were what printed, that's what we call it. the big buyers and sellers couldn't figure them out. could we have job growth that was not as strong as it had been? but there was very little impact from one sector to another. was it conceive panel traders, and believe me, it is all traders box stick with the industrial companies no matter what happened? the industrials didn't perform poorly on friday. some dislocation in the once loved generic. clearly from kellogg that showed genuine slowing in the business.
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people didn't want those stocks. so no real conclusive judgment. i think it was made on friday and everything went up. then this weekend, china's trade numbers came out and they were just plain disappointing. imports were down there 18 straight months. ouch. these numbers shocked people with 25% of chinese exports, there is been hopes that it would be more robust. as far as the imports, talk about a different month to month import story. for almost eight weeks china seemed to be importing all the iron and comer the world can produce. it's been a couple weeks in a row but nobody thought it could go this fast to. make it worse, the chinese
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stockton which had not been behaving plummeted nearly 3%. the shanghai indecks got obliterated by selling and suddenly the margaret feels -- broken? of course, the usual suspects played a big role in deciding the daily direction of the averages. oil had been up big overnight until it got slammed by the chinese trade numbers and a change in the direction of the wind in the oil rich part of canada where firefighters are battling this horrifying wildfire. the result? a $2 swing from top to bottom. of the price of oil. of crude. traders realized canada will be back on very, very soon. take copper and iron, all they did was confirm oil. it is widely viewed as a barometer of health. how about this dollar? stronger for the second week in a row even as things good for
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exporters. when you look at the greenback of minute over minute. things are worse. now you've got all the big picture things. if economies are slow, that means the hedge fund managers sell the industrials. if the domestic economy is slowing, that means the big boys guy drugs and the growth stocks that can absorb the body blows. plus fewer jobs means the long term case for biotech stocks comes to the fore. how does it play out? take copper, gold and oil stock that was up more than 70% year to date coming into this morning. all three have been on fire leading up to friday. even though 43 port sold its interesting in a gigantic copper
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mine for an astounding amount, roughly 10% of its value today. holy cow. the absurdity here, if this hadn't occurred before friday's numbers, i think the stock would have jumped. meanwhile, caterpillar jumped. the mining and machinery company saw the stock drop an astounding 18%. how about the flip side? domestic stocks? what can i say? this is where the market's how sooncy really shinls. the most hate stock of lapt has been the drug companies. the ones that look like valeant. who will be on this show with us later. that stock is not going down. down another 6%. how about the look-alikes? forget whether the analogy makes
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any sense. getting very close, very close to paying $40 billion for all e began's drug business. remember they did break out the pfizer thing. nasty. the amazing thing about those who really love domestic growth. these traders will pay anything for it. even if it is tainted. consider the amazing comebacks in chipotle, hormonel foods, kroger, when chipotle had the first ever loss, i urged you to buy the stock. after today's gain the stock is now nicely where it was whether it was at that hideous number.
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some disappointing numbers last week. nobody likes biojen's decision. but today those stocks were low. hormel is back. so is the costly of feed. no foreign exposure whatsoever. still, the sales were in a bit of a slow down. but hell hath no fury like an industrial stock scorned. be this is strictly upon further review. i can call what happened today resumption of a long dorm an bull market. here's the issue. the retail is being swept up. i get what happened. they're all doing really well. we're going to get earnings all
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week. or will it be what happened with the stores? it was already down 11% for the year but fell by almost 10% after the market closed. why? horrendous sales. that's the poor commodity price. here's the bottom line. a market that changes on a dime can change on another dime and this is likely to do so on the first whiff of weaker date from those with newfound love. don't get too carried away. the market gods crushed those who did 72 hours ago. will in virginia. will. >> caller: good afternoon, jim. my question for today on maritime oil. i've been watching this stock. it it has taken a great pull back. do you recommend i hold on or get out and sell? >> i'm going for high quality. my choice is occidental. i like chevron and exxon.
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oil wants to find its footing here apt 40, 41 and then i think it bounces. bob in illinois. bob. >> with the upcoming buyout, the schedule for june, should i sit on my position? >> we like the kaching of those situations. >> first time long time. coming ought from new jersey. gold is a traditional substitute. do you see gold as a good buy? >> i don't trade gold. my feeling on this show from the very beginning, when we started, is that you should have a some assets in gold as insurance against craziness. more data more problems. any new info come out calls for
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recessment. a market that can change on a dime can change again on a dime. all new averages. is the big picture bull market a thing of the past? i'm going off the charts to try to make sense of the recent action. even though internet retailers are getting all the action, i'm telling you, find out which may be worth owning? and one of the most controversial. the ceo of valeant is joining me.
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make sense of this recent action? has the big picture bull market run out of steam? or are we experiencing a pause that could refresh? we've just made our way through hard earnings season. we've been bombarded by results and guidance. then we got a weaker than expected report from the labor department. the federal reserve is a lot less likely to raise interest months next month. that's a positive. except for banks. so in a moment like this when the fundamentals can be overwhelming, you have to final your cue. we're going to carolyn, a brilliant technician who has made a lot of money. she is my colleague. in order to find out what she thinks. she argued thing were looking up. it was a very big deal. and we might have a lot of
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upside going forward. sure enough, she mailed it. since then, the s&p 500 chimed from 1932 to 2050. now, how did brodin do? take a look at this daily chart of the s&p 500. for those of hue don't remember the methodology is based on a series of ratios discovered by a medieval math genius. it shows up everywhere in the natural world. in pine cones and flowers and snail shells. and for whatever reason they seem to show up in the stock market. basically it looks at the size and duration and runs them through the ratio of the fibonacci ratio. 50%, 61.8%, or 100%. she's looking to spot levels in periods of time where a given stock or index might be easy to
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change its trajectory. the great thing is that you can use it on the y access and the x access. y is price. x is time. you run them through the filter of any of these. in terms of the market wide bottom back on february 11. they noticed a number of these coming do all around the same moment. from february 9 to february 12. when we checked in with her a couple weeks later, he that made her believe it might be a genuine bottom. not just a tradeable battle. broeden pointed out it lasted 68 days. be the one from may to august. put it all together and you had
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the greatest sustained bounce. however, a couple weeks ago she started tweeting about the big hurdles. pretty timely considering we got hit with a fairly rapid pullback. what kind of hurdles is she talking about? let's look at the longer term monthly chart. this is really important. first, when we spoke at the end of february she told to us watch out for the 2132 level to this. you can see it from this striped line. when the s&p 500 started to approach those a couple weeks ago it got swatted down hike a fly. now it is intractable. so that 2132, 57 area. a crucial hurdle to jump if it
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will get its chart mojo back. that one represented 3.6 reality. brodin says it will be clear. let's go back to a different year we chart for the s&p 500. why else did brodin start to worry that the rally might be getting made out? if you look at the previous big upswing before this one, the robust rally going into last november, okay? it lasted for ten trading weeks. once we got to i am a 22, there we go. when it peaked last november it was 24 weeks. to the previous top of may of last year. when we peeked a couple weeks ago. it was 24 world series.
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this is known as symmetry. it she's matching this with this and that with that. meanwhile they noticed the timing cycles which suggested the bull move had run out of steam. it was clear it was very much about the charts. which were giving people all kinds of reasons. remember people default to charts? as i told, we are really in a miasma. after a terrific rally from the lows in mid-february, here we go. the tech heavy nasdaq peaked at least for the moment on i am a 18. right around the same time the s&p 500 started giving up the ghost.
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this was something we could have predicted. it was 94 days. one day less than the 95-day high to high move from the previous rally. i mean, to me, it is not a quince dense. it is too much. it is too much hike all the stuff that she shows us. the symmetry keeps making sense. she's not saying it's time for the nasdaq to get pummelled. so the charts as interim retd by carol, the jet fuel propelled rally that we've been having in the recent months. the high was on april 20, 20 level. if that ps, it is back on. in other words the charts say we
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need to be kashs you this this slirmt. it shows there's not enough money. should you still be shopping for investments? i'm telling you why all isn't lost when it comes to bricks and mortar. then with the new ceo at the helm, a "mad money" regular, is it possible? we'll be fully some morer to. and a power that holds everything from the. i'm going to idti to see if it is in need of a reboot. so stick with cramer.
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we have way too many stores in this country. the number from all the major retailers with substantial mall exposure have been nothing short of disastrous. i can't final a single mall doing better than last year. some retailers like sears holdings, i don't know. i have no reason for them to be in business. we've witnessed a number of retail bankruptcies. anna's linens, quiksilver, rei, supports authority. these are nationwide chains with stores in many different shopping venues. yet today, the largest strip mall operator hit 52-week highs. while the largest retailer are just pennies off the week long high.
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up 12% year to date. they've been among strongest performers in the entire stock market. they're performing the index about 6% for 2016. this is a puzzle we have to solve right here right now. the quarters they reached were just recorded. you can argue i'm cherry picking. even the worse. how is this possible? how can the real estate this be as strong as they are despite the rise of omni channel, the retail business of amazon, the myriad bankruptcies. there are multireasons even though they've failed. the short businesses here are a bit lower than the large part. they've roll over.
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how did they do it? when you talk about it in this country. you're speaking of office buildings and then residential construction of apartments. not strip malls and shopping centers. these companies are about as prudent as it gets. the balance sheets have reasonable amounts of debt. they can borrow low. when a vacancy occurs because one of the retail bankers goes bankrupt, it is good news. they can raise the rental for the next tenant. the rents have gone up consistently for years. so in a when a long term supermarket like a super margaret goes belly up interesting space can be rented out at a much higher price that the earnings tend to go higher immediately. that's what it can do.
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demand greatly exceeds supply in the trust that infls vo shopping. it is where you go in inclement weather. simon and federal only make it in the most highly trafficked locations. the mall doesn't necessarily need to be park with more stores. federal realty has explored the property for high quality z engs real estate. the assembly row problem has been a problem. dhb talking about imax. restaurants that would be in a mall. chain stores like this ross them need more locations. they're bargain basement prices often undercut those of amazon.
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while it is perfectly natural to be they within shorts, given all these positives all i can say is, think again. >> caller: boo-ya, jim. >> greetings from the home of the all-star game. jim, going into, i want to talk about game stop. the reported earnings on the 26th. and i want to get your take given the market this volatility. >> boy, game stop is as tough as it gets. the stocks got about a 5% yield. he's not totally in the old malls. and yet i'm gun shy about retail. let's put it that way. i want to lumpl game stop into retail because there are some
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challenges. it is difficult to say i want to you buy it right here and right now. >> go ahead. >> my question about whirl pool stock. it has jumped quite a bit. all the way to 190 which has been the high for quite a while. now it has drop off again. i'm wondering if it is something to be concerned about. >> you know, i remember in 1982 going over this stock for my personal account when i was trading i said look at all the brazil exposure. mall retailers might be in trouble but mall real trusts, that's a different story. call it revenge of the mall. there's. more ahead.
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. an incredible chance to check in with what may be the most controversial in the market today. i'm talking about the pharmaceutical roll-up. over the past year, it has been accused of price gouging, the one that worries never most, accounting. they announced that they're replacing their admittedly low, here is the question we need to ask. is it possible valeant can turn itself around? we don't know the answer. let's take a closer look with the brand-new chairman and find out what he thinks about this country's prospects.
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welcome back to "mad money." >> good to see you. >> this is a tough one. i've known you many, many years. you're going to a company that while there are 20,000 people who are all very nice, one of the great investors of our time. the said jacked up prices, why would you want to be a part of that? >> i've been in the pharmaceutical business for 35 years. what i've tried to do is go to the data. i hear a lot of news. good and bad. in material of the growth they've grown phenomenally in the eight years that mike was there. there's some noise. i know that. i looked at the information. what do the people look like? candidly many of the people there, 22,000 people.
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all dedicated to trying to improve patients' lives. saying if the accounting had been semiinteresting company would have lost money rather than make $8.14. i'm sure the people are very nice. but account thing seems wrong. >> so i understand. let me go through this. what else is there? that was the other thing. they have a global leading brand in a number of areas. the bausch & lomb products. great products. leading brands in dermatology. leading brands in the g.i. industry. that was really important to me. do you know the biggest surprise and what really got me. i looked at the pipeline.
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are they going to grow organically or not? we have 33 products in the pipeline. ten products that will launch in the next 10 to 18 months and they have products in the dermatology space. products in the gastrointestinal space. new products for glaucoma. >> more than $30 billion in debt. the research, look at the r&d bug. pfizer and merck are 15%. this isn't a knock-off drug company. they have to spend more money. you have to be able to pay this debt. you must have to sell some debt. this is a situation that's dire. >> he know we have some things to work. on i believe we'll be generating cash. we've got over $10 billion in
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sales. i do think the foot present is in place. do i have to execute on things? the first thing i need to do is stabilize the company. working with patients. then i have to turn it around and that will be launching some new products. i have to make sure that i take care of the debt holders. i'm comfortable we have a plan to take care of debt holders. and then generate the total share on the return. >> you do stand to benefit, according to the press reports, $65 million is the package if things go right. you left and you get this. are you doing it for the money? >> this is not about the money. this is about to me, i love the pharmaceuticals. this is an industry that does more good for people than any other industry if i can may a
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small role, i think i will have done something important. that's what this is all about. >> you were last on in february. you were urging people to not tender to a businessle about it. stocks at $94. nfl or viewers feel you left them with a $94 stock. you get to go to valeant and they are questioning what they own. >> i can't say too much about the company. what i can say -- >> you did come on. >> you're right. perigo, biff joined it. it was a great company. when i joined while i was there, it was a great company. >> but mabel perigo needs you. i mean, you liked it at 160 and now they're at 94. maybe perigo needs joe papa. >> i'm really excited about the
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opportunity at valeant. i'll leave with it the great succession plan that occurred and i'll look to trying to make a difference. >> that i know they're as many of the i'm that line. what's the first thing? i know you said stabilization. does that mean get multiple investigations behind you? because it could behinder what you're trying to do. >> i think the first thing, rerecruit my employees to my company. they get the engagement. that's an important message. they've had a tough nine months. no doubt about it. i think i can do that. i've got to deal with some of the regulatory issues out there and we have to plan to do it. just last week we announced we on put together a patient access and pricing committee. >> how can you roll back prices? >> i don't know the action yet. we're clearly going to look at patient access. if people want our drugs, they
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get access. the industry in my mind, it will be about making quality products for people to improve their health care outcomes. >> i was contacted by an industry individual. >> when you get in and you look. you've only been there a few days. the i was, we have so many people in perigo. i had a house in dublin. this is where i grew up. and i look at what's happening. okay, the foremost pharmaceutical guy in the state. the local company comes the this situation. and frankly, maybe it's not solvable. maybe it's not. >> relative to how i can solve it? >> the balance sheet. i keep coming back to that balance sheet. a pretty good balance sheet.
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you always had investments. >> i do think we can manage through it. it is an absolute priority for me. i want to be clear. it is an absolute priority. and also get the returns that we're looking for. can you get that behind you? >> i'm going to work really hard on it. that's an objective. i think if i continue to focus on trying to improve patients' lives. then i think that's important. of course, working with our fission partners. that's an important part of how i believe we'll be successful. >> i have to hand it to you. you came on. you know i've been very critical. frankly, if you had not come on, i would have had a lot more questions. i hit with you tough stuff and i know that and i appreciate you coming on for our viewers and ourselves wefl to figure out what to do. >> i would say it has always been a pleasure having a chance to talk to you. i'm looking forward to what i need to get done.
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>> and we'll leave it like that. the new chairman and ceo of valeant farm suit cals.
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pharmaceutical. it is time! time for the lightning round! >> are you ready, skee-daddy! let's start with ed! >> caller: a favorite of ours. ability to maintain with increased competition. >> i think the cloud is real. i'm going to stick behind it. cody? >> caller: i appreciate you taking my call. depot med. >> the new york post had a story saying they're coming back. i don't want to get -- this is way too hard for this guy. i don't know if it is happening or not. how about mike in virginia? >> caller: hi, jim.
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i've owned flexor for a while. >> i hike that part of the gas industry. let's to go sarah in oklahoma. >> caller: boo-ya sooner! >> what about oracle? >> i think it is a buy. very inexpensive. let's to go jerry in massachusetts. >> caller: boo-ya, cramer. >> boo-ya. >> caller: i'm sfwuk $25 a share. >> harman is a great company. but foreexposure is not that good. i would stick with them. i believe in the company still. i know it was great, then it's bad. you know what? hold it. just hold it. we're not done. let's to go adam in south carolina. >> caller: hey, jim. thank you for taking my call.
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danbury resources. >> no, no, no. way too speck had a i have the. if anything i am a seller. let's go to joe. >> my challenge, tmo and i would sell. th that, ladies and gentlemen, is the conclusion of the lightning round. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.
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how concerned should we be? consider a company like integrated device technology. it takes low power, high performance chips for a variety of niche markets. now 2016 has not been a good year for 2016 integration devices. management gave weaker than expected. and even though shares have rebounded from the lows at the market wide bottom, it is still down more than 20%ier to date. however, when we go grated report a week ago, they were in line and managed to beat the consensus numbers. if this is an harbinger of things to come, perhaps the rally can be a sign of thing to come. the president and ceo of
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integrated device technology learned more about the company and what it is up to. welcome back to "mad money." >> thanks. good to be back. >> i think that there are two. the company that has really, that has, i want to talk about it. some enterprise features that have been a little bit slower. i want to start fresh. it is so exciting to me. i'm holding up the gas sensor chip. it could be a total market than anything we have. >> it is a great new thing and the first time we've talked about this in public. what you've got in your hands is the world's smallest and most gas sensor have its kind. that we're able to price at a consumer price point. what could you do? you could detect in a smartphone or awarable or a can super device pollution in a crowded city. your kids have allergies. could you get a pollen down or
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particle count. fun night out on saturday. could you think with a portable breathalyzer that could you use your hand or able climate control, et cetera. so this comes to us by virtue of an acquisition we made last december. it gives us access to a whole wealth of sensor technologies like gas, like temperature. like areas. but also gives us an exciting new foray into our newest segment which is automotive. >> are not you relying on the kind not of auto company? i would want this for a car for my kids. how do i profit from it? i don't see anybody offering this in any of the cars that i'm looking at for my daughter right now. >> you will start to see in it more and more automobiles. the immediate channel we have is things like automobile.
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in our channel, we can take not just gas but think about different sensor types. gas sensing. we've had it for data centers. we can now do remote temperature sensing. so for instance think about taking temperature of your food, your kids' temperature from the distance of about a meter or two. so all those thing are technologies that we now have access to and you will be seeing, showing up in consumer applications between the end of this year into next. >> so how much of this is what we regard as the wireless products that you have? it seems we just mentioned. there is space between where you have the sensor and the person. this is just become your expertise. i want to know how proprietary it is. >> it is very proprietary. we think we're now an emerging leader in the field. if you think about it from a company's perspective, b think
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about where idt has grown. while the stock to have a pullback in march as you mentioned, we had beaten our guide. even in the march quarter. the forward guidance was a little weaker than expected. think about the diversification that we have now demonstrated for the company. three years ago we were growing in communications infrastructure. including us powering the 4 g networks. two years ago that plus date centers. last year, all of those which we've discussed. now think of all those three things. so in a small cam innovative company, i think it is hard to find a company with that kind of core technology. >> it looks like you mentioned, enterprise has remained fairly
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weak. not that different at all. you satisfy it is the cloud that does well. what occurred here? >> all markets move in cycles and we've had for instance over two years up into the right tear in our data center business. about, between 35 and 40% of our business. we remained very bullish on that business. what you see is the cloud players continue with very strong growth as evidence in many earnings of this company this last cycle. the enterprise sector was much, much weaker. you have the classic tale of two cities between those two market segments. we remain very confident in that market segment as an engine of growth going forward going into the second part of this year and beyond. >> excellent. thank you so much. some of the most exciting technology that has come across our desk in a long time.
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>> to see you, sir. >> i think there's a lot here. interesting company. ...ever. get your own 24/7 dedicated business account team. and with double the lte coverage in the last year, you can get more done in more places. right now, get 2 lines with 6 gigs each for just 80 bucks... and for a limited time, get a hotspot free. yeah - free. switch your business to t-mobile @work today.
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i have to say i thought joe papa did well. the problem is the balance sheet. it is very, very difficult to come one something that allows them to have $30 billion in debt and boost r&d and still have a good pipeline and do all the things to be a great drug company of joe papa did a good job at perigo. i didn't like the way it was left. i explained that and he explain his stuff and you have to make a judgment. to me valeant is the ultimate battle ground stocks and battle grounds make me very uncomfortable. you need to know that. there's always a bull market somewhere. i promise to find it for you. i'm jim cramer and i'll see you tomorrow. e.t. phone home. when you find something you love,
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you can never get enough of it. change the way you experience tv with xfinity x1. >> all: cheers. tonight on the profit, amazing grapes is a wine bar and retail shop, the brainchild of a real estate developer who seems more interested in sipping than selling. this is ridiculous. even with more than $3.5 million in sales this past year, amazing grapes is operating at a loss and still can't pay down their mounting debt. this is a business without leadership or direction. i wish that you had passion for the business. you wouldn't be losing money. if i can't find somebody from within to take over amazing grapes and manage its assets, this business will be crushed. >> are you the grim reaper, or-- >> sometimes. my name is marcus lemonis, and i fix failing businesses. >> we're out of business. >> we were out of business before, we just didn't know it.

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