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tv   Mad Money  CNBC  June 10, 2016 6:00pm-7:01pm EDT

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>> don't sell the upside call. i love the trade. we're losing a couple of good ones behind the scene. iwm, get a bounce in the meeting next week. >> our time is expired. we'll see you here next my m make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i'm promise to help you find it. "mad money" starts now. >> hey, i'm cramer. welcome to "mad money." welcome to kra mare can a. people want to make friends i want to make money for my job. not just to entertain but teach and coach. call me 1-800-743-cnbc or tweet me @jimcramer. all right. tough day, what can i say? >> look, we've moved too far too fast. last three weeks have been all good so now we're in what i call
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consolidation mode and we can't rally unless oil stops going down, which it might not, hence today's decline. dow tumbling 120 points, s&p plungi plunging 1.2%. all right. so with that in mind what's on tap for next week? the market moving action ahead frankly is not going to be out of earnings as you can tell from most of these in front of me it's in global events and it starts sunday with china's may industrial and retail production figures. as has been the case for ages the estimates and i was looking at all -- oh, my god they're so high, way too high, 6% for industrial, more than 10% for retail. i think the prc is going to disappoint again. these numbers matter tremendously because if industrial production is not up nicely we will get another freak out about a worldwide slow down. plus the chinese retail numbers are important for nike, that
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stock has not been acting well, starbucks, yum! just okay, apple. all which have huge sales in the people's republic. expect some pressure in these stocks if the retail sales number are as poor as i think they are going to be. on the other hand we've seen strong chinese auto sales for the month of may so maybe it's possible we get decent numbers that are in the ballpark. i just worry that for this market to get to the next level we need china to pick up the pace and monday's reaction i think could be proving -- prove very important, even though i have to tell you in these thin markets it doesn't seem like anyone is paying attention. they pay attention to china. regardless of the chinese figures please don't be so quick to hit the eject button on apple. as it holds its developers conference next week, this is all week, not just monday and that's been an occasion where news comes out that can possibly impact the stock. i don't want to overstate it. there have been plenty of times when this celebration of small business ingenuity because they
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develop apps has merely evoked a yawn, however, i think it could be a rallying point for analyst toss say good things about apple because they see it stuck in a rut. i'm looking for anything that gives us a sense that there's even more service revenue coming because that's the key line item that will get apple off this iphone sales treadmill. tuesday u.s. retail sales come into focus, we know from the headline numbers the retailers had some, you know, they are not that many that its strong performance in the month of may, really just dollar treated, dollar general. i think we will get another not so hot number and that's the aggregate number, that's going to take interest rates down even more than they have already fallen, that's a big undercurrent to this market, that means the financials could remain under pressure yet again. because they need higher rates to grow their earnings. they've gotten the exact opposite. that's the most hideous group in this market. across the atlantic we have eurozone industrial production. if we get some strength you are going to feel like a knuckle
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head owning ten year german buns and the yield almost nothing. they may be the most overvalued pieces of paper in the entire world right now. they are more overvalued than uncoated free sheet. i can't believe anyone is foolish enough to own a ten year german bond. as my friend josh brown said on the halftime report today they should take your money away if you are a fund manager who is buying those bonds. i say amen. wednesday is even more macro. it's the federal reserve june meeting. now, amazingly one week ago when we got that weak nonfund payroll report june is supposed to be a live meeting expecting a quarter point rate hike. it was an incredible sentiment reversal, but i've told you repeated that the nonfarm payroll number is the most important data point in the universe like it or not. that doesn't mean the fed will say nothing. i expect a thorough hearing from
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the tone deaf ideologues on the board who want a series of rate increase that is could throw us into a rescission which they can then undo the rate increases. yeah, i know, ridiculous, but that's what many of these jokers seem to want. this is the first company we have to worry about next week, for the longest time this company was considered to be a proxy for apple's iphone builds. i no longer think it's reliable as apple spreads its business out and no company is allowed to talk about apple's business without putting that business at risk. there will be questions about large customers on the conference call. apple stock will most likely be buffeted or volatile in relation to jabil not just the developers conference while it starts on monday does last the whole week. thursday is chock full of results, numbers from kroger, kr, that's a stock down 12% for the year. that's highly usual for this
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operator. the supermarket company has such a strong track record. i feel bad if i say anything anything about it. i turned hot on whole foods a little while ago and i was right. what are we listening for specifically on the kroger call? simple. have they finally gotten their arms around that stupid little $800 million purchase of that second rate retailer roundies that they closed in november. i think it's been a distraction and kroger has had to take its eye off the ball. the stock is down enough and might be worth a trade because they've had more than six months to get this thing right if they have. the stock can be higher. even after that i still prefer whole foods. rite aid reports on thursday morning. given that walgreens is owned by my travel trust, i want to hear about when walgreens'
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acquisition of rite aid is going to close. we got press reports that the fdc's approval is eminent. i want to see this deal get done and my intel -- any intel is most welcome. maybe we'll get it on the conference call. after the close thursday we get big numbers. first there's oracle and i think this stock has become so cheap i have to question how it can't rally on pretty much any number other than a giant shortfall that i do not expect. the darn thing is selling for 14 times next year's earnings. it's just not right. let me make two things perfectly clear that are more important than actual oracle stock. oracle is going to trash workday and bash the ceo has been trying to turn off the oxygen at workday. i bet he will be talking about big bins over workday. i expect larry ellison to talk about oracle's software is a service and platform is a
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service. cloud business is much bigger and growing much faster than ellison is a competitive, he's aggressive. you might get a couple of -- he could take some shots at amazon, too. all of these things they sound off the cuff on the call but i think they're well orchestrated al voes. if you don't own any of the targets, here we're talking about amazon, workday and sales force, do you know what you ought to do, wait until the blast zone clears and buy them friday when people are going to be very nervous by what oracle says. i don't like getting political here but there may be a win-win coming when smith & wesson reports thursday. we have two candidates running for president. hillary clinton plans to come in with gun control legislation blazing that means smith & wesson is going to have good months because gun sales spike when people think gun control legislation might be on the horizon. the latter, donald trump, he is
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pro gun, he is like a gun commercial. smith & wesson wins either way. i'd buy half before and half after. the worse that happens the stock spikes on the quarter and you have a smaller position than you would like, i call that a high quality problem. friday we're going to the movies and we're going to see "finding do remembery." i expect this to be a huge hit for disney's pixar. nothing moves the needle anymore for disney expect espn stats. sea world hit a 52 week low today. that may tempt you, but the word is that findy dory is reportedly critical of aquatic captivity for the sake of entertainment. that means this potential blockbuster could hammer sea world stock when we come in on monday. i say stay away from sea world because of "finding dory." don't forget at 1:00 p.m. on
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friday we get this baker recamp. that represents two weeks in a row where more rigs are being used and that's putting downward pressure on the price of oil that couldn't hold the 50. the market marches to oil, be prepared for another hammering if that rig count keeps climbing. bottom line, next week have your own macro data, light on earnings but a critical week nonetheless because these big picture forces they're playing havoc with our markets. and making a lot more treacherous right now until we work off all the excitement in the overbought too hard to start buying. gary in ohio. gary. >> hey, gary. >> caller: hey, how are you doing, jim, booyah. >> booyah. >> caller: i'm calling from cleveland, i want to know about citi group. i wanted your input on t. >> cleveland is a little like
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the cavs, you know -- here is the problem, my travel trust owns citi, it's one of those weird instances where it doesn't matter how well he's doing. in the end because the federal reserve is not going to raise rates people do not want this stock. i think it is the cheapest versus the book value of any of the banks and we bought some yesterday for the travel trust so i am not backing away from citi, but what do i expect? the house of pain. >> sometimes you have to live there before you can get the house of gain. we have a critical week ahead with a lot of big picture forces that could reek havoc on your stocks. want you to keep plugged into the news next week. i want to break it down. on "mad money" tonight does a company like energy have the power? boy, i think so. i'm going to sit down with the ceo to find out. then do polos and profits correspond? i'm eyeing ralph lauren's turn around strategy, see if they can
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fashion a come back. one of cnbc's disrupters that's seriously cool. i mean, really, like ice cold beer. i will tell you how it's focused on transforming your fridge. i suggest that you stim with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to i asked my dentist if an electric toothbrush was
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down south in louisiana, arkansas, mississippi and texas, a generation transmission and distribution utility 2.8 million customers. energy has a pure play power generation vision up north. it's this commodity sensitive power business that the company is trying to transition away from. the moment the fed gets more sing wine about the economy the utility cohort is probably going to get slammed. as long as hikes are on hold this group can continue to perform. s&p is basically flat over that period. let's check in with the chairman and ceo of enterg why: this is one of the few executives that i paid. i'm sorry, i pay my daughter's utility bill. she is one of your customers. explain to our customers why
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it's important to transition to a pure play technology. >> they are two different operations. the merchant business is suggested to volatility, gas prices drive the marginal price and gas is a very volatile commodity. our investor base if you're thinking utilities and thinking steady predictable growth with a high dividend yield, et cetera that really doesn't match with the commercial realities of a merchant highly volatile almost like marketing and trading. >> the thing i didn't understand when i look at a lot of the plants that are merchant you have a lot of nuclear. isn't nuclear the cheapest and best? >> on marginal cost basis nuclear is very cheap. what we've seen with the really lower natural gas prices that drive those markets because of all the shale that's going on that suppressed prices and lts the market design in the competitive markets in new york and new england doesn't compensate nuclear plants for the attributes they bring. their car bonn emissions there
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aren't any, no socks, no knocks, no c02. other technologies are subsidized to provide those and so that actually further suppresses the price that the nuclear plants get. >> i know that all the scientists that i deal with and all of the people who are truly environmental who are scientists all say nuclear is the best. no one is protesting your coal plants. >> we have very little coal in the south and, you know, while they do have their detractors they've been very reliable for us. all of the above is what we need obviously. >> in the trcountry. >> there is a lot of natural gas being built. >> when i look at your region it is a growth region but you have not been able to raise the dividend as fast as the others. is that because the merchant problem. >> it had a lot to do with the merchant plants and also we've been growing the business significantly over the last couple years. we got to the point where last year we raised the dividend for the first time in five years. our objective is that we will be able to do that type of dividend
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raise into the future. the utility business that supports that, we don't pay anything out of the merchant business towards the dividend will grow at 5 to 7% a year through the end of the decade. >> two years ago i would have said you are the fastest growing area of the country. with oil coming down is it split because you still have a lot of buildings being built because of natur natural gas. >> we have a lot because of energy in general being low. the oil patch is not a big electric user. terminals are still being constructed, big electric users. steel mills under construction, big electric users. we still have all of that growth continuing. there's been some delays, project delays. >> right now other than the apple building these are the biggest projects in the country. >> correct. we still see a significant amount of industrial sales growth and we have a system that we need to modernize. some of our plants are 50 plus years old.
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new technologies have been ever increasing in terms of the efficiencies, the heat rates are lower, higher reliability, those are gate for our existing customers. >> there's one of the charts in the presentation you had, great investments provide customer benefits. this looks like the internet of things that we keep hearing about. you guys are technology companies now. >> correct. what we're talking about is the integrated energy network. advanced metering and then we're able to advance that with new technologies on the distribution side. to date we have been spending a lot of money on generation and transmission, we get into distribution closer to your home, that's where battery storage can play a role, distributed energy resources. >> exciting is it you have. >> it is. we've got renewables under construction in new orleans, three plants that we have already constructed in mississippi, one in arkansas that we're putting in place in the next couple years. we're also going rfps for renewables in louisiana, arkansas and new orleans. so that's a big part of the business of the future as is all
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of these technologies on the distribution grid. >> the lead director from home depot said if you are in the boardroom now you have to have someone involved with security, cyber security. i look at what you have and i look at the technology and i'm thinking the bad guys they want in to try to, you know, cause mayhem. what are you doing about cyber security. >> it's an important topic for us and the utility industry. we've got a big advantage that we share information on those sorts of things through the edison electric institute and others. we have a chief security officer, we spend a lot of time on cyber security and physical security. the electric grid has a couple of things going for it. one, it's very redundant so the first thing that happens if a bad guy takes out a line, other lines pick up the slack because we're prepared for that every day, storms, branches, accidents and the like. so we've got that going for us. plus the ever changing network makes it a little bit more
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difficult for them to figure out. we're very, very focused on and very, very -- taking it very seriously to make sure we're on top of cyber security. >> you can't give me a date when it's all over but obviously you already started increasing the dividends to you're taking the posture, this may be a faster growing dividend than many other companies in your industry. >> they end of the day with the growth we're seeing in earnings we should see a pretty fast growing dividend. right now we're growing the dividend to get into that payout ratio target of 65 to 75% of that utility segment earnings, but what we also need to remember is that we have a significant amount of invested capital and generation, transmission and now on the distribution grid. >> excellent. it's been a great situation for our investest and i love that. he is the chairman and ceo of entergy. "mad money" is back after the break.
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of this new turn around plan outlined by ralph lauren, the beaten down classic power retailer? i bring this up because when stefan lar sons ralph lauren's new ceo presented his way forward strategy on tuesday the market's reaction was down right schizophrenic. initially wall street seemed to hate the plan. stock plunging $10 at the open, went from $96 to 86 bucks right after the press release came out. but over the course of that session market started to make its peace with the company's new direction and the stock rebounded back to sy 94 by the close. still even after this week's incredibly volatile trading ralph lauren stock remains down 16% year to date. i've got to tell you i can the skepticism is misplaced about this turn around. in retail circles stefan is
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known as a turn around after his time he spent at the gap. last september he was brought in to do the same thing at ralph lauren. it's worth giving his plan serious consideration to see if it has legs considering how difficult the previous situation was. who thought they could turn around old navy. you need to understand why they needed a turn around. the fact is it hasn't been smooth sailing for ralph lauren in recent years with the stock plunging 40%. that's right, 4-0 in 2015 followed by that additional 16% decline in 2016. consider when the company reported back in february even though management delivered solid results they slashed their four year revenue guidance and that caused the stock to plunge 22% in a single day. so what is ralph lauren's problem? frankly it's got more than one. for starters the apparel landscape has changed pretty
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dramatic with consumers shifting away from e-commerce platforms. style changed rapidly these days thanks to the rise of fast fashion. i want you to think 21 h and m all can quickly alter their merchandise to accommodate what's hot. the whole environment is a lot more competitive than it used to be and ralph lauren has struggled to adapt even as it is hard to consider this fabulous brand in the same paragraph as those other merchants. case in point ralph lauren's supply chain, totally out of date. that means they have long lead times, around 15 months versus an industry average of 6 to 12 months with the iks months guys doing the best of all. think about what that means. right now ralph lauren needs to plan what it's going to sell for the fall, next fall, because otherwise the merchandise won't be ready in time. that's right, we haven't even gone through this fall that's coming up. how the heck do you know what the consumer will want by a year from fall. that's why the company ends up
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with too much inventory, margin crushing mark downs and more fire sales to off price retailers which is the worst. it's so bad to see ralph lauren in one of these, you know, stores that i like to shop at without favor. you can see this weakness in ralph lauren slowing revenue growth, fell from 7% in 2014 to 2.3% in 2014 to negative 2.8% in the 2016 fiscal year. this is ralph lauren that we're talking about not to mention declining same store sales and shrinking gross margins. before they brought in the new ceo there was a feeling that the brand was in crisis. you can buy ralph lauren's merchandise virtually everywhere and i hate that and i do mean everywhere. jcpenney, kohl's, macy's, tjx. say it ain't so. in short ralph lauren was ripe for a massive overhaul. at the end of september the company announce it had had tapped larson to take over as ceo with the founder and name
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sake stepping down from top job. which brings me to the turn around plan he just nounsed this this week. the general idea is to revitalize the company's core brand and get closer to the consumer. he wants to eliminate a massive amount of products and focus on selling high quality merchandise through primary brands, namely ralph lauren, polo and lauren. on the conference call they acknowledged that their -- >> there's plenty of room to cut dead weight without doing too much to revenues. secondly i wants to tighten up the company's distribution system, close 50 underperforming stores. third, larson is all about improving the supply chain in order to reduce those ralph lauren lead times, try to do it by 40%. it should only take them nine months to get new merchandise to market while implementing is steady flow of test products that will operate on an eight
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week timeline to figure out what the consumer wants. so smart. fourth, he's stream lining the cost structure by slashing unnecessary management positions and cutting roughly 13% of the workforce. i know that sounds tough but they needed to do this. statement larson is hiring new talent, improving the shopping experience and building out the e-commerce business. larson said his plan will result in 180 to $220 million of annualized cost savings as he stream lines the organization that's on top of the $125 million in cost savings from restructuring announced last year. in order to get the costs down permanently ralph lauren might take up to a $400 million restructuring charge and $150 million inventory charge in order to liquidate the company's unwanted excess merchandise. most of those charges are being taken over the next ten odd months. that will not feel good if you are a shareholder. while this plan could set ralph lauren on a better long-term path and i really have to emphasize long-term it's going
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to hurt in short term. they expect revenues to decline in a mid single digit clip with the operating margeins coming down 160 basis points. to mention the generally -- not to mention the generally weak retail environment across the whole u.s. but by next year larson sees ralph lauren's business stabilizing. by the year after expects it to start growing again. the stocks initially sold off hard on tuesday because investors panicked about the hideous guidance or the current year. at the end of the day they had more thought. they correctly i think had gotten more comfortable with the plan and the stock managed to rebound dramatically. it was down 10 on "squawk on the street." i said just go buy t the guy is doing what is necessary. here is the thing that makes it nerve-racking, major turn around in retail take a tremendous amount of time. i want you to consider, for
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instance, pvh, the parent of whommy hill higer and calvin kline. they decided to revamp the calvin kline brand and acquired warnico which brought calvin kline licenses back. this turn didn't happen overnight, it took forever. the integration was long and rocky and took years to pull off. if you were patient eventually the ceo delivered and calvin kline started putting up much better numbers. hence why the stock has roblngted up more than 0% year to date. that's one of the few out performers in retail. how about coach, another high quality brand going out of style. with a stock that seemed to be in free-fall ever since it peaked in 2012. a new ceo has overhauled the brand, brought in new talent, renovated the stores and made a
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smart foot ware acquisition. let me give you the bottom line. ralph lauren's turn around plan might cause some near term pain. that is without a doubt. as stechb larson rips off the band said and makes systemic changes. eventually i think he can deliver. i believe in this. even if those turn around do tend to take time. ultimately why do i have faith? because in the end the brand is as iconic as ever. it was just too ubiquitous and too dated. larson is changing that, changing it for the better. call me a believer. phillip in massachusetts. phillip. >> caller: booyah from boston, jim. >> i'm doing good. >> caller: i want to know if you think chipotle can rebound considering their earnings per share are so high or do you see value in fees at that restaurant group? >> cmg, i don't want to compare it with fiesta.
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we did a lot of stuff today about mo's and how that's passing chipotle. i remain committed that chipotle over the next 18 months is going to return. okay? i'm not backing away. i could be wrong but i have to stick my neck out on chipotle. i'm a believer. >> ralph lauren was in serious need of a wardrobe change and the new ceo has it under way. the company has a lot of tail lorg to undergo, but this is the guy to get it done. much more "mad money" ahead including my exclusive with the company that's challenging the fridge dare, it's a revolution coming to your kitchen. you will look it, that's why they are one of the cnbc's disrupters. this is the fourth analyst. you're not going to want to miss it. i'm blown away by it. did you catch howard hamlin on cnbc yesterday? he thinks oil is a turning point.
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>> finally a friday edition of the lightning round and a look back at this week that was. i suggest that you stick with cramer. every year, the amount of data your enterprise uses goes up. smart devices are up. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday.
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we are always on the lookout for revolutionary companies that have the potential to be real game changers even if they are not publicly traded. cnbc rolled out its disrupter 50 list of innovative startups. at number 18 was a company called fenonic. we have reinvented the refrigerator. they use semi-conductor technology. basically you run an electric current through certain materials and it creates a temperature differently making one side hotter, the other side colder. that's allowed them to build a better frencher, already no noise and consumes 25 less --
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percent less power than traditional heat exchange refrigerator. plus their technology allows them to make refrigerators that are a lot smaller than what we are used to. they have revolutionized refrigeration, they are already selling med grade refrigerators for the medical market. because these thermo electronic cooling devices can be any size they are working on a host of other applications including cooling down computer processors, server, farms, even fiber-optic networks. anything related to heating and cooling they have built a better mouse trap. let's take a closer look with the ceo. welcome to "mad money." >> thank you, jim. >> tony, i have to tell you when i was doing my reading for this the one thing i came up with is no one is ever going to buy another kind of refrigerator
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again because everyone is used to the breaking down, we are all afraid about the environment and what it means. this isn't a better mouse trap, this should be the only mouse trap. >> it's not just refrigeration, we have that same attitude towards electronics, climate control and advertising. >> you're talking about hvac one of the largest markets in the world. >> we're displays versus replace. we want to take the existing solution, scrap it and come up with something different and better. >> the reason i haven't seen it yet it must be five, six times the price. >> not at all. the consumer market in particular is unforgiven. for young can ps that launch into the market with the expectation of soaking the rich it's a slow uptake. one of the benefits of engaging the market it's the most cost demanding. beyond innovation at the device and technology level we had to build the supply change and contract assembly backside from scratch.
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we cannot only compete on performance, we had a strong cost position as well. >> something that's obviously commercial and medical, but i'm thinking with higher we are talking about having a refrigerator, pc richers that i might be able to buy that might be cold next time next year. >> they are in production as we speak. >> they are? >> they are. >> i should wait if i'm going to buy a refrigerator. is it as cold as a regular refrigerator. >> in honor of the fact it is friday, this is a pharmacy frayed product. >> do you know this is -- people think -- this is the cheapest beer in the world and people pay premium for it. >> i went to school in southern california. it's my favorite. >> these are freezing cold. >> excuse me. you know, all the mexican ones you can't twist off. do you want to join me? >> i would. this is a little impromptu i admit. well, cheers. >> making the world a cooler place. >> yes. now, all these -- let's say i
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make conventional refrigerators, i'm whirlpool. i'm watching this show right now because they do, he is a good guy, aren't i saying to my colleagues we're out of business? >> i don't know about that. >> why not? >> whenever you're disruptive -- >> this is a cold beer. >> the beauty of the semi-conductor innovation is we're leveraging what semi-conductors have done many times before. the tran cyster has given us the it world. you've seen no change in compressors, heat sinks and fans going on 100 years despite servicing $30 billion in global markets. the dilemma any young company faces is skepticism. you just addressed the first question. >> right. >> can it even get cold. >> frankly i find it a little hard to believe. one of the things about disrupters, let me just say every single case i find it hard to believe. we had ice cream on last night that was good for you. it was good for you and tasted great. these are things that are not supposed to happen. do you understand? when i see this and i know that
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all of the stuff that my kids think is just really dangerous and horrible goes away, then i think that it's really -- it would be ridiculous to have the other stuff a year from now. >> we couldn't agree more. when you look at the product offering that we had in our early development the market penetration strategy is often defensive. we have to go after product categories to displays -- >> higher is ge. why would you have to convince anyone? are they going to make this stuff? >> yes. so the beauty of the product offering that we have is working in collaboration with higher, they will do the final product assembly at their facilities in china, we manufacture the semi-conductor components right in durham, north carolina. our business model recognizing some customers are more sophisticated than others we have to be willing to provide the full design, articulate the product value such that they take on the assembly, we sell them the parts that go with it. >> the missing ingredient is how
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much money are you losing? >> phononics is a private company but we are launching markets in diversified areas. >> it's conceivable you can make money doing this. >> we can make money. the products we're price rg at parity with products already on the market despite the fact that it's superior. >> how have i not heard of you guys and why is everybody not lining up like tesla? i like -- just like i wanted tesla. >> i started my career in research and development then spent a stint in venture capital. i have invested and been a part of disruptive technology companies and we are a bit guard. when we come out we want to come out in force. once you have products in the market and customers, we prefer them to espouse spouse our benefits as much as we do our own. >> i don't have to wish you good luck. i don't know how you're stopped. >> there is a long road ahead. >> the warranty, does it break? >> that's one of the benefits, you can add time on to the warranty because you don't have
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moving parts. >> tony is founder and ceo of phononic. i want one. their highest complement. just get me one. stay with cramer. ff
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>> announcer: lightning round is sponsored by td ameritrade.
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[ bell ringing ] >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? that, ladies and gentlemen, is let's start with randy in georgia. rand randy. >> booyah. jim, how are you doing? >> i'm doing well. >> why don't you tell me by eight by eight. >> voice over internet protocol. a lot of people think it's going to be a take over. i think it's time to take a little off the table. dave in illinois. >> caller: dr. cramer from the windy city and home of the best record in all of major league baseball thank you for taking my call. >> thank you for killing the phillies. what's up? >>. >> caller: number 163 in your biotech bible, let's get serious in crb.
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>> remember we had them on, i think that one is a buy. and that's the biotech bible that my friends and i put together that he's referring to. let's go to terry in mississippi. terry. >> caller: yes. booyah, cramer, from long beach, mississippi. >> nice. i love mississippi. what's up? >> caller: okay. i'm just wanting to know if i should hold or jump ship on crc. i purchased it $2.46 prior to a reverse one for ten split. >> no, it ain't my cup of tea i'll tell you that one. occidental that's the one to buy. that's what my travel dust does. ronald in massachusetts. >> caller: hi, jim, how are you? >> im great. how are you about you. >> caller: pretty good. i love your show. i watch you in the morning and evening. >> can't get enough of cramer, you and my wife. go figure. >> caller: i have owned avery den son for a long time and have reinvested the dividends.
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>> you are so smart. avery dennisen has been a stock i have loved for 30 years and continue to love t i would not take profits. that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. nike had a rare up day. >> i say give me and stefan a break, but then again last night's victory for the cleveland cavaliers led by the nike wearing lebron james could be one off, too. sorry. i got to talking about apple with my daughter this weekend over a delicious lunch at olive garden the one on east hanover, tenth, jersey, i was distraught. amazon is generous. my executive producer told me about amazon prime and ever since then i've been saying you have to buy the stock and i continue to recommend it.
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>> this is fabulous. i have homemade granola by carl quintanilla's wife every morning. she makes great granola. i still want that granola. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on
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all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet?
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♪ "dinner!" "may i be excused?" get the new xfinity tv app and for the first time ever stream live tv, watch on demand, and download your dvr shows anywhere. why am i so hung up on the
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price of oil being stymied at around $50 a barrel and refusing to go much higher than that level? i'll tell you why. it's because of kont indicators, kont indicators like harold hamre, the chairman and ceo of continental resources. he was talking about the price of oil being at a turning point he said ready to launch from 50 bucks all the way up to the 69 to $72 area. oh, boy, i said to myself. that's why oil is going nowhere. in the years since i've gotten to know this delightful giving man, a pioneer in the business i've come to know him as the ultimately wrong way prognosticator for oil. that's right. when crude was in the mid 80s going down to $25 a couple years back hamre came on "mad money" and predicted it was quickly going to rebound up to $100. i always remember it because i had suki the deposed ceo of shaneer energy come on the show
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and he said the total opposite. telling us oil belongs substantially lower, perhaps $60, maybe even less. well, we sure know who made the right call. suki talked about how traditional oil people don't have market departments to tell me if there is any demand. they don't say we can't sell that oil right now, instead they keep pumping and that's exactly what hamre did and it was totally wrong. hence why his company, continental a was wrong the biggest losers during the dow turn. he is the last guy i would follow on this issue. not only that but ham indicated on squawk yesterday that he was ready to start pumping again. with oil up $50, quote, we will complete wells that have not been completed, meaning that this price is where continental he thinks can exploit an amazing opportunity. did he say at the he didn't something to start using new rigs to drill. ham is doing what a lot of other
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oil execs in this country is doing, starting production itself which is a negative prophecy because all the new supply they bring on line will push prices lower again. you can't get oil to rally if most oil people share ham's bullish mindset. i have to tell you from talking to many of them they do. more important it shows that these guys really never learn. i mean, honestly what is ham doing predicting the price of oil begin he has been so off base for so long. this guy has been so optimistic i have to tell you you've got to bet against him. given that oil is all that seems to matter to the stock market, though, and if oil is down like today we can rest assured that stocks are going down like today, ham's comments are important. even if it's a contra indicator. he is turning the spigot on again and that will encourage the saudis to pump more oil in order to send oil back to where ham can't pump without losing a
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lot of money. crude is going back to the $40 not the $50 or $60 if you're asking me. let's be careful because as long as this linkage holds lower oil means lower stock prices. harold, here is my advice. if you really are going to turn the spig got on as you said in squawk, start selling continental resources stock. trust me, you won't regret it. at 40 bucks ham and his fellow shareholders have caught an amazing move in continental regardless of where his stock traded during the hay day of higher oil prices. hall, time to ring the register. can a change, can a change. stick with cramer. if you really are going to turn hall, time to ring the register.
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will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us. a loan would take too long. we needed money, now. my amex card helped me buy the ingredients to fill the orders. opportunities don't wait around,
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so you have to be ready for them. find out how american express cards and services can help prepare you for growth at i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money." i'm jim cramer and i will see you monday.
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male announcer: america is struggling to shake off the recession. public distrust of wealthy ceos remains high. but more and more bosses are looking for radical ways to reconnect with their workforce in order to find out what's really going on in their companies. each week, we follow the boss of a major corporation as they go undercover in their own company. this week, the ceo of belfor, the world's largest disaster restoration company, poses as an unemployed insurance salesman looking for a new line of work. - tom kelly, how are ya? - hey, tom. we got a newbie. announcer: the boss will trade in his italian suits


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