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tv   Mad Money  CNBC  September 22, 2016 6:00pm-7:01pm EDT

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>> i love mobile, i want to play it with delphi. >> i'm melissa lee. thanks so much for watching. don't go anywhere, "mad money" with jim cramer starts now. 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 "mad money." welcome to cramerica. other people want to make friends. i'm just trying to make you some money. my job is not just to entertain you but to educate, teach, put it in context. so call me at 1-800-743-cnbc or tweet me @jimcramer. yesterday's drama over the fed's decision not to raise rates, it just steamed me. why? because it was a classic
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misdirection play. yet the entire episode was like a big play action fake with you, the audience, being the one that got faked out. that goes a long way toward explaining why we had such a terrific rally today since the fed told us it was keeping rates the same. with the dow gaining another 99 points, s&p climbing 0.65%. and the nasdaq falling to a record close, 0.84%. today's move wiped out all the losses from what's historically been the nastiest month of the year. giving only six more trading days in september to get through, we might end this miserable month higher. why do i think all the hammering over the fed was one by cue buky show? first there's the pregame leading up to the decision. going into the fed meeting there was a plethora of bets placed statements made which were widely view the as evidence we could get a september surprise. and out of nowhere a lightning bolt of a rate hike that could really send stocks tumbling.
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we heard all about this dire possibility. then the moment the fed announced that it was standing pat and waiting for more information before it moved, the media started acting like everyone who predicted a surprise rate hike had never existed. these ca sandras got off scot-free. i scoured all the wires, the twitter world, nothing about them save one critical tweet by me. it's as this these commentators hadn't said anything at all. i found the way these doomsayer got off to be totally ridiculous. it reminded me once again about the asymmetrical way we treat money managers and prognosticators. if you're bullish and you get a negative outcome, you'll be ridiculed endlessly, tape played continuous loop over and over again. if you're bearish even minutes before the event when you get it totally wrong, there is zero accountability, even though the
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opportunity you cost your acoh lites is mind-boggling. nobody ever gets called a moron for being too negative. these bears will be solicited to come on air again. they'll still be valued commentators sought after by reporters, producers, web people, you name it. and their incredibly wrong call will never sully their records. plus these pesz mists, here's the real trade for you. they never admit to being wrong. they're simply early or slightly off or almost right. hey, chief, almost only counts in horseshoes and hand grenades. they could not care one whit that they kept you out of an opportunity to make money. it's none of their business. if that weren't enough of a fakeout, almost 100% immediately veered not to the positive implications of the stock market which if you stick with me you're about to hear some, but to the parlor game, the tiresome, boring, relentless parlor game of whether we'll get a rate hike in november or december. wow, scary. i was astonished. can we at least for like mieb an
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afternoon digest how the fed's decision to stand pat is actually going to help people make money? why do we instantly have to play the well, if not now, when game. can you imagine if this were the nfl and in the postgame after a big win, the coach was only asked about next week's opponent? they would be drummed out of the press corps. i think telling people this could be amazing for the bond market equivalent stocks or ignite the flagging industrials. now with so little time left in the year, these cowards and wrong-headed fund managers are going to have to start buying. i'm not playing this misdirection game, uh-uh. i set out my thinking publicly in last week's game plan to embrace stocks both before and after the fed meeting, betting that we'd have some terrific quarters like those of red hat or adobe or fedex or kb home
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because of the red hot california real estate market. even if you didn't chood to participate, let me fill you in on what could happen next. going into the fed meeting we were witnessing a serious rolling over in those -- they didn't report great earnings. their stocks had gotten so high their dividend yields weren't attractive anymore. kimberly-cla kimberly-clark and clorox were in total sell off mode. even if you want to play the when is the fed moving next game, why? well, if rates aren't going higher immediately, the newly fattened yields of the packaged goods are more attractive. the fed ensured that the dollar wouldn't skyrocket versus other currencies. we're now -- these conference calls are going to go very well.
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remember i kept telling you you got to keep one eye on oil. a weaker greenback forces the hice of crude higher. at times a dollar's weekness can even overwhelm supply and demand. we got an inventory number yesterday that showed a very big decline. that's bullish for stocks but obscured by the great september rate panic. you marry that, though, with the newly weaker dollar, and you got a home run. oil, which had been written off at 43 last week. how about 46? you know what else the press should have been talking about? consider what's going on on capitol hill these days, the last two days. first wells fargo's ceo john stumpf went before congress, and i haven't seen this group of angry lawmakers be this united since how about december 8th, 1941? they were all trying to outdo each other. piles on a horror show of indignation. they were so many yellow flags
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on the field it was unbelievable, but there was no penalties because it was just, hey, this guy deserved to be thrown out, huh? how did the banks do? this market is looking for stocks that really haven't run yet and those stocks are cheap in the bank group. how about yesterday when it was mylan's ceo heather bresch's turn on the hot seat? she probably rues the day she ever heard of the epipen. you would have thought that bresch was harley lieman. but did it impact the drug stocks? not one bit. when you have some of the worst stigma i have ever seen, when you have direct political opp robe yum, a verbal beat down of these executives, some of the ugliest gang tackling since the late buddy ryan coaching the nfl and the sector gets off unscathed -- of course it would have been one thing if we were mired in earnings hell during this period. this has got to be the single
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most positive weeks for earnings in 2016. almost every company that reported went up. even some of the misses like the big misses like the serial disappointor, bed bath & beyond, saw its stock rally. here's the bottom line. in this incredibly, those who decide once again to find ways pair liedsing us before and after the fed news were yesterday's stars. they got the mike. they got the ink, the online videos, the headlines, whatever passes for, hey, they're on your handheld, they're probably in like a take two game. their recommenden strations ruled the rhetorical roost. but those who tried to figure out a way to profit from the moment, even though it helped your portfolio, it didn't seem to matter to the media and it's acoh lites. -- now they're on to a new bout of fear monger about the next fed meeting. hey, it's all about the fed, isn't it anyway? soon the fed dissenters will be
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on the road talking about the need to tighten, playing right into the hands of the paralyzed and confused and their false idols. remember the next time this hatches, don't be fooled by the misdirection play. focus on what matters, finding the stocks of high quality companies at good prices rather than fretting endlessly about something you can't do without, the fed. bernie in north carolina, bernie. >> caller: jim, gold bouillon. >> i like that. >> caller: that's a greeting variation, not a question. the question is gilead. last quarter earned 25 cents per share more than amgen. political head winds exist for gilead, and it will buy some company. but right now is gilead undervalued at almost 100 points below amgen? >> gilead is extremely undervalued. amgen is incredibly cheap too. i prefer amgen over gilead
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because they have to start buying something with that money. they should have been buying some of the companies we talk about all the time on this show. they could make money. gilead won't come on the show, but at least they could watch the show. ray in illinois. ray. >> caller: hi, jim. my question is on monsanto. it was selling at about $108 prior to the offer that bayer gave it for $128. after that offer, the price went down to $103. my question is why would it go down to $103, and then would you expect to recover as you get closer to the buy out date? >> it's kind of like the chicago bears. it could go 0-3 and no one makes the playoffs. this company is -- this deal is not to be believed, and i've been saying that from the moment it was asked because the farmers will not let it happen. take it from me. monsanto is not going to be able to close that deal, and i wish i were being an advisor in that room.
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i don't want any money. i would just tell them stop wasting our time. don't be fooled by the fed talk. i know it takes up a lot of air time and web time and tv time and newspaper time. but i'm here to help you focus on what matters, finding the stocks of high quality companies at prices to sal vat for. on "mad money" tonight, can red hat connect your portfolio to profits? then i've got an idea for one more perk for those who love amazon prime. stock picking brought right to your door. jeff bezos, i hope you're watching this one. i know you never miss the show. occasionally maybe. and i'm taking a look at wall street warrior lululemon. is the retail name overstretched? is it a one trick pony or just hitting its stride? may i suggest that you stick with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question?
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tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business.
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comcast business. you're at the top of your game.. at work or at play, you're unstoppable. nothing can throw you off track. oh hey, she's cute. nice going man. things are going great for you. you've earned a night out. good drinks, good friends. yeah, we can go ahead and call this a good night. wait, is that your car? uh oh. not smart. yeah, i saw that coming. say goodbye to her. ouch! that will hurt your bank account. you're looking at around ten grand in fines, legal fees, and increased insurance rates. i hope you like eating frozen dinners. alone. let's try this again. smart move. because buzzed driving is drunk driving.
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there have been so many gettable wins the past couple days that you got to be kidding yourself if you're waiting on the sidelines until the fed meeting before doing any buying. take red hat, provider of open source operating systems, along with middle ware, virtualization and the quick growing cloud business. it roared up nearly 4% today in the wake of a terrific quarter. all i can say is if you didn't see this one coming you weren't mat watching "mad money." the last time they reported, the quarter was widely panned incorrectly. stock got pummeled wrongly. we spoke to the ceo and he explained red hat was doing fairly well. when it reported again last night, red hat posted a 1 cent earnings beat, up 17%
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year-over-year. don't see that with many companies. even better, management gave an excellent forecast for the next quarter and also raised their fuel year's sales and earnings guidance. it was a classic beat and raise quart. now up nearly 9% since the last time we checked in with these guys three months ago. what's driving this company's -- let take the financial officer, find out more about the quart. welcome back to "mad money." >> how are you? >> now there's some things that happened this quarter that are amazing. 60% growth in deals over $1 million. how does that happen? >> i think, you know, it's a great statistic that we saw this past quarter. so that's quarter on quarter, year on year. i think what that really shows is that a larger number of our customers not only are repeating business with us about are expanding their business as far as not just the operating system, but they're using us to
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set up their hybrid clouds, to look at open sack and open shift, and i think that larger amount of spend that they're doing with us ask kind of now more pervasive across the larger numbers. so looking at that 60%, 55%, is a great stat. >> it's very rare that we see, other than facebook frankly, a company that has been around for a little bit actually have accelerated revenue growth out of nowhere, particularly in an environment where many cloud companies have stumbled. how can you get accelerated revenue growth? what did you do? what did you spend? what did you see that it happened? >> you know, i think the major thing here is innovation and that's a top focus for us at red hat. there's so much going on when you think about i.t. and technology. so much. i think in your program, you talk about it every day. >> we have to. it's the fastest growing area of the world. >> when you look at red hat and how we're positioned, we've got a fool software stack and operating system and we're constantly innovating ourselves
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by listening to our customers and part of the open-source community. that allows us to constantly look at expanding our portfolio. in addition to the operating system, focusing on cloud forms, which is our cloud infrastructure. >> right. >> is really helping us continue to innovate and continue to grow as a result of that. and that increased spend with customers and also a larger number of customers is helping us have that -- >> you keep winning the old ones back. nobody leaves. >> that's true. again they see the value. >> now, this morning i was mentioning you in my segment that i do with david faber. he says, would you please ask them where they fit in in the cloud? i'd like to use an example from your website. e-trade boosts reliability and performance by using red hat. i thought you could walk -- david will like this -- walk people through what happened in e-trade that made them better and more efficient and happier with -- their customers happier with them because of red hat. >> so i think it's -- whether
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it's e-trade or whether it's a large number of other customers that we have. >> you have a lot of financials. >> we do a lot of financials. it's tech and media, it's public sector. >> cambridge university. you have some really good -- >> yeah. it's using an open-source community as they look at how they're going to do their i.t. environment and stand-up clouds. that enables them to be much more efficient both in the cost of their i.t. infrastructure as well as the output as far as what they can provide. >> we can't see it ourselves. >> you can see it. and that's the beauty about red hat, it's behind the scenes, but it enables many of our customers -- verizon is another great example. i mean verizon, if you think about verizon, they're probably one of our larger customers that have a much more extensive use of our portfolio. so, you know, more recently we've been working with them on network function virtualization where they have five of their
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major data centers on nfe, which is an open stack environment, and open stack is early as far as where the adoption is. but verizon is really leveraging that so they can provide additional services to their customers. >> in your deck, you talk about the public cloud is our fastest growing channel. the pace of the public -- i mean everybody is just leaving these old systems, right, and going toward this? it just saves a huge amount of money or bring you in? >> well, i mean yes. the whole thing about cloud is the public cloud, private cloud, what we look at from a red hat standpoint and we talk about this hybrid cloud because our customers are talking about the investments that they made on prim as well as looking basically moving to public clouds, whether it's amazon, whether it's microsoft azure. we want to make sure it doesn't matter whether it's on program or off pram. they have the flexibility using our software to be able to manage in both environments. so that's kind of what we see. the growth for us on the public
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cloud side has been one of our fastest-growing segments of our business, but it helps support. one of the things we talked about at our analysts day back in june is when we look at the spend of our customers, we see growth in spend in the public cloud. we growth in spend privately on pram, so that really supports our overall thesis and strategy around the high briybrid cloud. >> what is the state of technology? it depends. we talk to a lot of companies that are in slower growing. yours seems like it's actually accelerating. >> i.t. spend is up but at a lower rate than in the past. because more companies -- we're looking to drive some efficie y efficiency, and that's a great opportunity for red hat because, again, when you're open source, the cost of implementing open source versus a proprietary system is much cheaper and much more efficient. so it plays into what we're
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doing, which is why we're growing. you mentioned our growth this past quarter at 19%, why we're growing at so much higher rate than other technology companies. >> well, to me, it's a very clear runway, and the stock still isn't up for the year. i mean you're going much faster than every other company that i deal with. that's frank calendar rowny, chief financial officer of red hat. this stock is not up enough after that great quarter. it's got more ahead. "mad money" is back after the break. >> announcer: coming up, jim goes to the mat with a retailer that's about more than just yoga. the ceo of lululemon joins cramer at the flagship store for this flagship brand. >> i'm buying and i'm checking out point of sale or -- >> well, point of sweat. >> announcer: when "mad money" returns. these goofy glasses.
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yeah. well, we gotta hand it to fedex. they've helped make our e-commerce so easy, and now we're getting all kinds of new customers. i know. can you believe we're getting orders from canada, ireland... this one's going to new zealand. new zealand? psst. ah, false alarm. hey! you guys are gonna scare away the deer! idiots... providing global access for small business. fedex. it's not just a car... it's your daily retreat.
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go ahead, spoil yourself. the es and es hybrid. this is the pursuit of perfection.
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sometimes i find myself wishing amazon would just create a stock market that's fair and honest so we could abandon the one we currently have. that's because on a day like yesterday, only a handful of people were able to buy stocks that benefited from the fed's decision to leave rates unchanged. but if jeff bezos were running things, he with quickly democracyize trading. accurately prompt you about what you might want to do in the case of a particular event. here's how it would work. instead of looking for a book about a given topic, you'd be looking for a stock that people like under various scenarios. so if you enter "no rate hike" out would pop a series of names under the heading "customers who like no rate hike frequently bought." and what would amazon have listed yesterday if you said --
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if you liked a stay the course scenario? how about the stocks of acacia and twilio? in my dream scenario, you would use amazon prime and with one click ordering these stocks would instantly be in your account. no need to do more than that and you would own these stocks at the best available price that amazon gives you. who needs brokers? if they can do it for books and music and pretty much any other product under the sund, why not stocks? acacia and willio both of which have long oneways. acacia is a communications equipment disrupter. twilio is a software platform. that's essential for much of internet commerce, one used by u ber, airbnb, whatsa's app. don't need a whit of global growth to make their numbers. at precisely 2:00 p.m., that statement came out. they took off like bats out of hell because the fed statement
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made it clear not only would there be no rate hike, but they also trimmed their long term economic growth forecast. that's twilio time. that's when you reach for acacia because they keep growing no matter how well or poorly the economy is doing. the poorer the better. the problem is the current algorithms all owned by the biggest and fastest hedge funds are so quick to respond that you can't possibly keep up unless you have something like that amazon button at the ready. right now that doesn't exist for regular investors. for years when i worked at my old hedge fund, i had all these stocks that fit the picture of a slowing economy at the ready. i killed it by knowing to buy the stocks of u.s. robotics. on any statement about a sluggish growth from the fed. my goal was to get these stocks before others could think of them, which is why i had them lined up and ready to go at the equivalent of 2:01 p.m. when the fed speaks. but i was doing this 20 years ago when it wasn't as big a deal. now because there's no amazon button for stocks, everything is what's known as lifted ahead of
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you by the machine gun algorithms who can think faster than you, directed by these high frequency traders. if we had this machine learning instrument available at amazon, i bet we could outrun the al go guys. the ceo jeff bezos hasn't yet built the kind of virtual exchange that would give us a chance. it's evolved into a he who draws first situation wins. we know the growth companies are the ones that triumph. so they're the ones to grab. unfortunately the big boys will push them up before you can get near them. the only kwa to equalize the situation is if amazon offers us a stock button. we could keep it anywhere like our amazon button that orders tide when we're out of it. it would let us pick out twilio or acacia, and with prime, we'd pay no commissions. can you imagine instant access to what the big boys have delivered right to your door?
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only amazon can level the playing field, which is why i'm begging jeff bezos, please set it up. why don't we go to natehs in michigan. >> caller: booyah, jim. >> booyah. >> caller: i wanted to ask you what your take on elf is. >> i did some work on elf and i thought it was pretty darn exciting. i hate stocks that open up -- but like it a little more than estee lauder. i thought e.l.f. was good. as i said to david, i thought it was an attractive offering. joe in new jersey, joe. >> caller: hello, cramer. >> hey, man, what's shablging? >> caller: i was rooting for your eagles monday night even though i'm a giants fan. >> thank you. that's very kind of you. i would not root for your team. >> caller: that's okay. >> what can i say? >> caller: my question is on gnc holdings. they recently missed with earnings, and they're losing
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market share. but their balance sheet looks good and they've got a nice 4% dividend. their earnings per share is trading at just over seven times earnings, and there's rumors of a takeover. >> you know, i got to tell you, it has been -- it's occurred to me and to jack moore, who's the strategist at the street, that this is one to recommend. but i would be doing it on a takeover basis, and the fundamentals just aren't strong enough to justify me coming out and saying buy gnc. but i hear everything you said, and you've done your homework, joe. all right. jeff, what are you waiting for? we need a new way to invest in this high frequency market. keep twilio and acacia on your bull pack shopping list. much more "mad money" ahead. i got a workout this morning at lululemon. don't miss my exclusive with the ceo. then with a september rate hike off the table, is it time to
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recalibrate your portfolio? i got a way to keep your money rising no matter what. we're playing am i diversified? and get your light sweaters and pumpkin spice lattes ready. it's the first day of fall edition, autumnal lightning round. stick with cramer. [child speaking indistinctly] announcer: are your children in the right car seat for their age and size? is the seat supposed to be forward-facing or rear-facing? did they move to a booster seat too soon? it may be too late to check when you're on the road. [blaring car horn and skidding] fortunately, you're on the couch.
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should we be worried about lululemon here given the recent heinous action in the stock and the constant worry of the analyst community that athleisure has peaked? three weeks ago the yoga inspired apparel change reported what was widely regarded as a suboptimal quarter, down 10% in a single session. it's continued to be hammered ever since. what was so wrong with the quarter? lulu delivered in line earnings, 4% same-store sales growth. wall street was looking for a stronger 5.8% increase. while management raised guidance, they didn't raise the forecast as much as the analysts had been hoping they would. in short, it was an okay quarter. when you're dealing with a high flying growth stock, anything else than a flat out beat is considered a major disappointme disappointment. however, even if the decline, lulu is still up -- if the store
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is intact, you just might be getting a rare opportunity to buy a high quality growth story at a major discount to where it was trading just a month ago. earlier today i got a chance to go straight to the horse's mouth and check in with laurent potdevin, the ceo of lululemon. take a look. laurent, one of the things i want to get done right at the top is you are not a traditional retailer. and if i use traditional methods, i may misa longer term bigger story. i want to give the floor to you to explain it's not just apparel. >> it's so much more than -- i mean it's so much more than apparel. i mean it's about people. so when you think about lululemon and its history, i mean it's an investment in people, giving them their best life, personal development, and creating incredible product that allows them to live their life so it's driven by function and you've said it really well. it's like a metaphor for how people want to live their life. >> it's a lifestyle that apparel
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is part of. >> the product allows us to connect people, but it's so much bigger than the product. think about people living their life. it's really a combination of the evolution of athletism and mindfulness coming together. when you think about that, we actually sit in a really unique position where we marry function and fashion beautifully. >> all right. now, there's ways to pigeonhole you. we can look at comparable source sales. that's one way, and they have decelerated. we could look at it as athleisure and say that has peaked. or we can say you're basically not bound by those because they're missing the bigger picture. and i'd like you to explain to the critics, the people who have downgraded your stock saying this whole movement has peaked, that maybe that's not an accurate picture of where you're going. >> i think it's a very narrow way of looking at the picture.
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you think about millennial and generation y and z. we launched our social impact yesterday at cgi, and its ability to do well and do good as a brand, which means so much to people. it creates a loyalty with our guests. it creates incredible retention with our employees. i get more thank you notes from our employees launching this program than when we pay bonuses, and it's a huge, huge part of what's putting us in a position today where we've got the lowest turnover since the brand was created in 1998. so it's amazing product is permission to play, but we're really supporting a lifestyle that we feel is timeless across gender and around the globe. >> what do you say to the critics who say you're a one-trick pony and there's athleisure stores all over these blocks that we are in the flat iron district. >> well, think about boston marathon. guys and women like running under three hours and we had the biggest increase in market share, right? so that speaks for the product. i mean think about our abc
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pants, think about how you can live your life in our product from morning to night whether you're riding to work or whether you're at the gym or you're sweating or meditating. it's so much bigger than that. so when you think about our global expansion across gender, categories, and regions, you know, the sky is really the limit. it's up to us to really prioritize those opportunities as we roll them out. >> i want to go back to a term that i think that older people, older analysts, don't get or sneer at that actually attracts incredible people. like people from nike who work here. mindfulness. i say that because as someone who is older generation but listens to younger people, this is something they're drawn to. and if you don't get into what they're drawn to, you're going to miss the next generation's shopping. >> totally. i mean think about yoga and mindfulness. obviously we started as a yoga company. i mean it's still at the roots
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of what we do. but people go from yoga and discover other aspects of the brand, but we also have runners that actually discover yoga and meditation through their interaction with the brand. so, you know, it's a trend that's not going anywhere, and we actually sio ga -- you know, the practice of yoga and medication is such an integral part of where the world is going. it builds resilience to deal with all aspects of your life, and it's a big part of the program. >> so with this, if you're someone at home and you want to just look at an analyst's report where they down grade, saying this business has peaked, obviously that would be a reason to say i don't want to be in it. but the things you're talking about are very hard to grasp because we can't use a spreadsheet. yet you're saying somehow it's going to produce better earnings down the road? >> it absolutely will. think about the effortless loyalty we've got with our guests. everything we do is driven by
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innovation. when you think about everything we do, everything starts with function. so if we don't solve a problem for the athlete and if we're not proud of the product, we don't do it. and every time we drive innovation, whether it's in our to and from product or whether it's in our sweaty activity product, product flies off the shelf. so innovation drives who we are. we've credited this market, and we continue to lead this market, but it's driven by innovation whether it's in product, whether it's in the way we have recently developed digital, or whether it's in the way how we think about our international expansion. >> now, my daughter, who is part of the generation you want to reach, doesn't know what to buy me for father's day but says, well, i'll go buy these abc pants because everyone says they're so comfortable. that's kind of again the e those. the younger people know what they want. >> that's really the strength of the brand. when you think about our decentralized leadership model, it's really giving our store managers, our ambassadors the
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autonomy to have authentic relationships, and we have no endorse many. so when people speak on behalf of the brand, they speak about their own experience, and that's incredibly powerful. >> now, the notion of unique differentiation at the store is something that you have brought home more than any other people. the store is not a box. there's something else happening here. >> it's a community. i mean if you think about how we go to market, i mean we've got a light footprint, right? we have 370 stores. we've got incredibly pruktive stores. we've got amazing locations. but when you think about how we go to market, it's incredibly unique. we engage ourselves in the community. we connect with the most relevant ambassadors. we learn from them. we are curious. and we get pulled into the community, and that's why we've got such amazing stores. and now with all the work that we've done in the past couple of years from a digit stal standpoint, we're actually augmenting the power of the stores. >> a lot of people say the mall is dead, but you're moving into the malls. so why are you going into a
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moribund institution? >> we've got amazing locations in the mall. the mall is dead, i mean i actually don't think it is. i think digital augments what we can do in the mall. think about the brands that drive traffic in the mall, the louis vuitton, lululemon and tesla. we've driving traffic and we've got successful stores in the malls. >> inventory lean, spend a lot of money -- your digital is doing well. you were in investment mode. has that obscured the power of the earnings? >> think about it. i mean two years ago you had an organization that had grown exponentially fast with investments really lagging behind the growth. so the past two years, i mean we've built behind the scene infrastructures that we can support a complex business. we had no digital strategy. we had no international strategy, and we really evolved. i no not have been able to have achieve any of that without the
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most amazing management team i've ever gotten to work with or that the company has ever had. >> where are the people coming from? where are you attracting talent from? >> starting with product, a pointed lee holman, who's got an amazing athletic and fashion background. >> from nike. >> and burberry as the first ceoive director for the organization. we've got stewart with an amaze -- it's an incredibly diverse global team. so with diversity, i mean diversity breeds innovation and being curious and collaborating. >> laurent, let's go look around the score, but i want to thank you so much for everything you've done. >> thank you so much for having me. ♪ >> all right. it's a box, but it really isn't just a box, is it?
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>> it's so much more than a box, right? when you think about what we're best at in the world, i mean we're best at creating human connections. >> okay. >> so when you think about our decentralized leadership model, the autonomy that we give our people, how we engage with ambassadors, i mean we listen. we've got microantennas all over the world, and we listen to f t feedback. we create amazing experience and the retail store happens to be the place where that happens. but we're certainly not constrained by the store and i would take that one step further. we're driven by innovation, we love it. we create amazing product. we create amazing environments, but our mission is to create experiences for people to live happy, healthy, long lives. so an experience can be a product. an experience can be a service, and it can happen anywhere. >> back to school, holiday season, feeling good? >> i'm feeling really good. we've got amazing product coming in. we're ready. and really, really pleased. >> many of the ceos in the business tells me thinks are
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promotional. it does not seem to be the kind of thing you're talking about today. >> i think we don't have to be. as long as we focus on innovation, every time we focus on innovation and we deliver value to the guest, and i go right back to listening and fostering collaboration. when we listen and deliver innovation, product flies off the shelf and we see very little price resistance. that's really the focus. >> and when i'm buying and i'm checking out, point of sale or? >> well, point of sweat. >> thank you so much. this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes.
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understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. it's a very specific moment, the launch window. we have to be very precise. if we're not ready when the planets are perfectly aligned, that's it. we need really tight temperature controls. engineering, aerodynamics- a split second too long could mean scrapping it all and starting over. propulsion, structural analysis- maple bourbon caramel. that's what we're working on right now. from design through production, siemens technology helps manufacturers meet critical deadlines. i think this'll be our biggest flavor yet. when you only have one shot, you need a whole lot of ingenuity.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time! it's time for the lightning round! when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." i'm going to start with daniel in california. daniel. >> caller: booyah, professor j.c. >> booyah. >> caller: thank you for the teaching and sharing of your knowledge. >> oh, thank you. that's what why we come to flay every day. >> caller: epr properties has had a tremendous run since last
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year, paying nice dividends every month and good value. it is now selling 6% to 8% below it's all-time high, which is one of your rules. is epr properties poised for another run in the -- >> yes, i say pull the trigger. jeff in indiana, jeff. >> caller: jim, booyah! >> colts fan booyah. >> caller: colts fan booyah. really enjoy the show. stud for talking to me. thank you for never sleeping. >> no, i don't like sleep. it just doesn't fit in frankly. >> caller: that's -- amen to that, brother. i'm calling about the media cohort. the group got slammed on tuesday when there was an indication from a company that political revenue might be coming in below estimates. >> i read that too. i said, oh boy, i'm worried about that group. >> caller: so ew skrip, it was down nearly 9% tuesday. it was flat yesterday, bounced back a little bit today. what do you think?
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>> i think people are too negative on that. down 20%, i don't want to sell that stock. i totally read the article, and i agree with you. man, we have smart listens. good call. let's go to loris in california. >> caller: hi, jim. looking at exel. >> you know, i probably overstayed my welcome in this thing. we recommend this thing at 3 and 4 and now it's up to 15, but i really believe that they've got the right drugs. i don't want to get -- i know i should say, listen -- well, i'll tell you what, if you bought it at 3 or 4 and it's at 14, let's take some off the table. let's be prudent, okay? now, let's go to jay in washington, jay. >> caller: hey, jim. big booyah to you from washington, d.c. >> well, good luck because i don't want you to be 0-3. what's up? >> caller: my stock is pfizfsir. >> i was going to mention it the other day when i did the credit
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cards. you've got a winner there. stephen in pennsylvania. stephen. >> caller: black and gold booyah for you. >> uh, yeah, okay. >> caller: i've got etn. >> black and gold? yeah, that's good stuff. a little stunned at this steeler thing. what a terrible towel you just threw me. you threw it at my face and i'm doing a show here. what's the point of that? you know what, i like his stock. i feel bad because i also happen to like antonio brown. and i'm a little thrown off. i got some other things going besides just a show, all right? i'm losing in fantasy, too. and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. so that i can take my trading platform wherever i go. you know that thinkorswim seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go!
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most comfortable sheets you'll ever sleep on. try them for 30 nights and get $50 off your first set at, promo code: tv. and i'm just a guy who wantsants to sell him that so i used truecar. it told me what other people in the area paid for the truck i want. and because we're a truecar certified dealership, i already know the truck he wants. so we're on the same page before he even gets here. -it's fair. -and it's fast. look good? looks great. this is how car buying was always meant to be. this is truecar. ♪
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summer sadly may have ended today, but there sure is plenty of growing going on capitol hill hill. it's important to remember wile you're watching mylan's ceo testify before congress that the nafty pin action in pharmaceutical stocks could eventually wreak havoc on your own capital. a diversified portfolio can stand strong as political head winds blow. so that's why we play am i diversified. tell me your top five holdings and i'll let you know if your
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portfolio is diversified. first we have a tweet from @cool kid 101694. he wrote, am i diversified? lockheed martin, ulta salon, american tower, johnson & johnson, molson coors brewing. all right. here we go. lockheed martin, great defense contractor. american tower, that's the company that powers all those cell phones so you can get great -- you really get great reception. johnson & johnson, kind of a classic stock to buy after the fed did nothing. same thing with molson coors beer. ulta beauty, a whole segment about how that was a good quarter. retail, beer, pharma, let's call it tellco and defense. this is perfect. that's why cool kid 10 -- i think that must be his zip code -- did it right. very cool kid indeed. how about stephen in texas
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getting ready for thursday night football. stephen. >> caller: hello, dr. cramer. a big texas booyah from big d, dallas. >> oh frr, from dallas. i'm sorry. go ahead. >> caller: i've got five stocks and would like to find out if i'm diversified. i've got apple, emi cummings motors, epz dominoes pizza, netfl netflix, and swks. am i diversified? >> all right. let's go to work, cowboy fan. let's look at this. apple obviously largest company on earth. great technology company. cummins is a fantastic engine maker. dominos is a technology company disguised as a pizza company. what a stock. skyworks, it's cell phones. may have a problem here. we're going to get to that. and netflix is of course entertainment on the web.
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i like both apple and skyworks, but we are going to have to take skyworks out and going to have to put in a health care company. hey, you know what? we just heard johnson & johnson. make that move. look, i'm even willing to help a cowboy fan. that could be because jerry jones was on the show and he's pretty darn cool. stick with cramer.
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experience the thrill of the lexus is f sport. because the ultimate expression of power, is control. this is the pursuit of perfection.
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want to see a $100 million family fortune disappears. a supersize family feud that lands a in jail. i've been looking for something to do with this towel in ages. what you do is you polish up the helmet for the 425 national game. you know what i mean? isn't that the right thing? all right. i like to say there's always a bull market somewhere. i promise to find it just for you right here on "mad money." i'm jim cramer. just a second. i don't want to miss a spot right here. and i will see you tomorrow!
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♪ >> narrator: in this episode of "american greed"... safe money specialist paul kruse promises big returns, while stealing his clients' life savings. >> he was arrogant, he was greedy, and he was evil. >> narrator: money starts flowing. >> $400,000 in, $400,000 out. >> narrator: and kruse lives large. >> he was dating an exotic dancer and actually was paying for breast augmentation out of these people's hard-earned money. >> narrator: his assistant says he makes an indecent proposal to her teenage daughter. >> "i'll buy you a bmw if you would show me your boobs." >> narrator: and she's left with only one choice. >> taking his ass out. you want me to put that more mildly?


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