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tv   Mad Money  CNBC  September 18, 2019 6:00pm-7:00pm EDT

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you know what that means hockey season is here. the raernls playing down the street, tim as you know. >> world's most famtz arena. >> jet blue, jblu. >> what does that have to do. >> nothing. >> tomorrow jim cramer starts right 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 educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. last night i warned you even if the fed gave us what we wanted the market might sell off in part sure enough when jay powell announced a quarter-point rate
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cut wall street's immediate reaction was pure suspicion. oh, he doesn't have the heart in the rate cut he's not as worried as he should be he's being dragged kicking and screaming to this rate cut because things are weaker overseas, not here that's why the averages initially got hammered before the market peoplely came to its senses later in the afternoon. dow only closing up 36 s&p advancing 0.03 and nasdaq declining 0.11%. the u.s. economy does have a lot of strength. it does. the rest of the world does have a lot of weakness so we got what pundits were calling a hawkish cut. they're so clever, meaning it's the last rate cut or maybe the penultimate rate cut apparently that wasn't enough for some money managers. what do they want they were so disappointed they wanted to be surprised and wanted powell to tell us he's enthusiastic about easing and it will find a way to strong-arm the others the bulls wanted bill belichick fed chief, okay. let's get this done. do your job chairman who won't
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let up until he wins the juggler. the juggler. they want powell to say he has the president's back in the trade war and won't allow the economy to falter and adjusted for first half stumbling and has the rate cut mojo. yeah, they were hope forego a fist pumping fed chief, a fire breathing fed chief. a chest pumping fed chief. i got to wonder have they ever heard jay powell speak i mean, chest pumping -- he's straight-laced fed chief he's not about talking the market up. i think we're lucky he didn't go all jim mora and say what is that about rate cuts are you kidding me, rate cuts. i am hoping to avoid a recess. the fed did cut rates because they see little inflation and looming decline in economic growth courtesy of the trade war. it's good. after the panicers dumped the stock and saw them, oh, they were in there just throwing you,
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steve was asking question. >> sell, sell, sell. >> smart buyers did come in and -- >> buy, buy, buy. >> the worry powell express is real it's not acting. he the economy is slowing and given that we'll see certainly more tariffs we can expect it to keep decelerating. he's not asleep at the wheel he may even be cognizant of his surroundings third, when the economy gets weaker powell will take action again. that's not what the super bowl wanted to hear they were hoping the fed would take a coordinate add prochilo with the white house and in order to offset any pain from the trade war with china, they wanted preemptive action before we get more weakness basically they were hoping powell would be symmetrical. late last year he tightened repeatedly in order to get out ahead of potential inflation that he saw coming why can't he approach rate cuts the same way let me give you another coaching lesson from the late great denny green. jay powell, he is who we thought
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he was i mean the fed hasn't had a symmetrical approach to this stuff in more than 40 years ever since the pole vaulter era they've been more worried about stamping out inflation jay powell fits in that tradition. he won't apologize or wake up as a totally new person with new priorities if you were tempted to sell stocks because he didn't give you what you want you need to adjust your expectations he's a lawyer turned investment banker i'm pretty sure he doesn't end every meeting by asking everyone to huddle up and break on three with more rate cuts. but by the same token you won't see him in a hoody making snarky comments about he doesn't feel like a bonehead. hey, how do you feel like being called a bonehead? where do they get these guys if you were expecting him to snipe at the president of the united states you may have an overactive imagination he is a professional he's not like me how do we put an end to the craziness, i'm not asking him to
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never explain, never complain but he created a monster with the press conferences. he doesn't have a lot to say beyond the fed's statement anyway he should discuss release the statement otherwise we'll keep seeing him getting treated like a gentleman pinata by the press as one reporter after another tries to trip him up everyone tries to get a crack at him. i thought -- i was waiting for college reporters, maybe a high school editor in chief to take a shot at the guy. why does he do this to himself and call on everyone like a kindergarten teacher why would he subject himself to that i half expected someone to say, mr. chairman, when did you stop beating janet yellen, please, chairman powell, don't do it to yourself and to us of course this market speaks with forked tongue there is a camp that is thrilled we did this and on a positive note about the new iphone has massive orders so the buyers swarmed into apple
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congratulations to steve dowling, remarkable person who has helped us tremendously, 16 years an investor relations retired today. remarkable job, fantastic, through all sorts of turmoil i wish him the best of luck. we all do and have other people buying the bank stocks because there is a chance powell's rate cuts may put an end to the artificially inverted yield curve and preventing the economy from sliping into a credit ruining recession. yet powell's not planning to slam his foot on the gas pedal but tapping it to make sure the economy doesn't slow down too much and that works for the banks. i love a market led by the financials a sign of health if you only remember one thing, remember that the banks ramallied. that's positive. i think it should carry us through the rest of the week when we probably start the guessing game about the recession, whatever, because powell is not omnipotent other members and seven have said they don't want any more cuts or whatever because that doesn't even tell us what they're saying, powell has a say and all he needed to do is say
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things get bad in the end our sober fed chief isn't taking anyone's bait he didn't belittle the president, he came out and did about what you'd expect him to do maybe powell should get an acting coach so he can learn to smile and in tone even periodically laugh, i mean, laugh, you know, but if you're waiting for him to do that don't hold your breath the federal reserve just gave us a soporific rate cut and 25 basis points slice a predictable two-bit haircut. you won't get something more from jay powell. but bore something good at fed chief. janet yellen was real boring and incredibly powell may just be even more boring than she was. scott in florida scott. >> caller: boo-yah, jim. how are you doing? >> i'm doing figurines pumping
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in honor of the fed chief. >> caller: i'm dodging some hurricanes >> well, yeah, i think you dodged one what's going on, my friend >> caller: i've held about a 12% to 15% portfolio position with schlumberger over the past two years, 51 years young and i'm down about 45% to 50% in the house of pain. i'm curious in your opinion should i just hold on to it? >> well, no, here's what i did the other day, my travel trust owns it, i've known the company since 1982 and we just decided to take a little bit of a loss it does have a good yield. new management is good but i think these stocks are dead in the water and nothing is going to change my mind anymore so i told you at actionalertplus.com members, i told them that we sold some. phyllis in new york, phyllis. >> caller: oh, jim it is such an honor to be speaking to you. i can't tell you how excited i am. >> oh, you're nice, phyllis. thank you. >> caller: all the good advice
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that i've taken from you >> thank you. >> caller: jim, my largest holding is wendy, wen, and i've been doing so well with it, every time i have some extra cash, i just put it into more wendy's stock. i call it my stock savings account. and i was really thrilled when a short time ago on cnbc, they spoke of a survey that was taken to find the best fast food restaurant serving chicken and i was so excited i almost jumped through the tv. they recorded wendy as number one but i wasn't surprised because i'm also a customer there. >> okay, well, let me tell you i think wendy's is a great stock i want to you hold on to it. don't put all your assets in that but they're really great and my wife likes the double cheese baconnator. you got to work out for nine
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hours after you have that and take five lipitor with it. it's really a great thing. john in mississippi. john >> caller: hey, good evening, jim. dow chemical i'm wondering what's going on. did they overprice it when they -- >> look, one thing, the numbers are always perpetually too high with dow chemical and it's got linkage to oil that's not so great. jim is doing a good job there but that's a tough road to hoe, dow chemical powell is not taking the bait. call it predictable if you want, boring even but that's what he wants it to be on id"mad," why competition is everything the latest addition to its lineup can it sow seeds for profit? real pulse on the overall health of the tech market there are a few companies that are as good as tech data to do it so i'm talking to the ceo i want to you stick with cramer.
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>> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something, head to madmoney.cnbc.com. it was sophie's big day. by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius.
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go we need to start worrying about the e-commerce space last night we had not one but two calls that made you feel like maybe it's getting too tough to beat in this business that it's getting too much competition. at least in terms of predicting where the business is going. i'm not talking about fedex and adobe. wow, now, if you listen to both conference calls after their quarters you know it's unfair for me to lump adobe in with fedex. adobe had a solid quarter. they just made missteps in customer experience management business especially when they acquired marquettea and bookings
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were light sure the headline numbers were strong but there were some areas of weakness that prevented the company from raising forecast and trimmed it ever so slightly while adobe's arguably the cheapest of the big cap cloud plays the stock sells for nearly 29 times next year's earnings -- if management can't address these booking preliminaries by their analysts meeting on november 4th i think it might be hard to maintain hence why the stock dipped a still adobe is basically a healthy company that stumbled on a couple of line items i think you buy it into weakness ahead of the conference. fed detect on the other hand this was a total meltdown. >> sell, sell, sell. >> the house of pain >> from start to finish. stock fell 22 bucks or 12.9% geez why the obliteration in part because this great company can't predict what will happen to worldwide commerce, seeing as we have no clarity whatsoever on the trade war with china which is a big, big place for fedex
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business fedex ceo, the super smart fred smith was bemoaning how tariffs are slowing down the global economy and we're next thank heavens jay powell is listen, jay powell, not jay leno there is a cost and smith is not wrong when he points out, for example, germany's weak could be china's weak is it truly internationally triumphant company that i'm proud of that said fedex reported a shortfall slashing guidance and the analysts believe there was more to do with execution than smith is willing to admit. there was rebellion, the type of criticism you only hear when the analysts feel like they've been completely hosed by management and that's why it was pummeled my view, i want to be more forgiving. it is in an impossible position. their competition, amazon, the post office, constantly innovating
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fedex is trying to fight all four on every front costing them a fortune and dropped the last bit of its amazon business which is surprisingly profitable but a big cost down the road given what amazon's asking for while this is only a small piece of the pie for fedex, in the near term smith says it means his earnings will take a meaningful hit that was not so great. when you combine the amazon surprise, the amount of money fedex is shelling out, the higher labor cost and its overall inability to fully integrate its european business and predict anything, you can understand why the analysts were furious. but i got a different takeaway i mean everyone has that consensus view i think what happen issed competition for e-commerce no matter where it is, software, whether it be freight has gotten very intense, ultra intense. whether it's adobe's digital marking software versus, say,
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salesforce for example, heather bilin wondered on the call maybe there is competition to the marketta end. i wouldn't have been as diplo t diplomatic and asked if salesforce is gunning for them if you're running a business the last thing you want is serious competition. now i think fedex may have the same problems. rivals may be cherry-picking and let them deliver the lots that are less profitable and global economy is slowing down. from fedex was ramping up to meet e-commerce demand it's now no longer materializing because of the softness of the world's economies. both business to business and consumers are issuing for fedex. the former because of a slowdown in the industrial economy, the latter because it's too darned expensive to get it right but with fedex and adobe getting hammered today i want to be gentle about their misses like all the other jackals. the fault is not in themselves it's in their stars, which is the competition and ever
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revolving e-commerce world that makes it difficult to forecast how well you'll do it's the competition that fell at the same time although one obviously fell a lot harder than the other. "mad money" is back after the break. do you think my combine is sexy? we're talking agriculture, farm equipment, everything you need to know with the cento of adco. 300 miles an hour,
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>> announcer: the trade war may have farmers feeling uncertain consumers need agriculture as much as investors need returns
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is this stock a fertile way for home gamers to invest in the american heartland even though the president has been de-escalating trade war rhetoric we have a new round of talks with china and it could flare up at any moment i keep telling you the united states is in much better shape with the quarter point rate cut but there are still sectors that tend to be caught in the cross fire you know which one is front and center agriculture. that's why a stock like deere is lagging the s&p 500 from year to date but some have been able to defy the pull like agco. the big maker of farming equipment with the stock that's up more than 35% for the year. how do they do it? agco's more nimble and has a lot less u.s. exposure, 20% versus
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deere, more than 50% yet this company is thriving in a challenged global environment. we want to know so we have invited martin regionhoggan, chairman and ceo of agco corp to come on over this time he's decided to show, not just tell bringing along fabulous new hardware. look at that combine welcome back to "mad money." good to see you, martin. how are you? >> thank you very much >> okay, now, martin -- >> tgreat job with the weather you control everything. >> behind me is something that people are thinking about. before we get started what the heck is this >> this is a combine harvester and this basically is a little factory on wheels. it's cutting, it's cleaning, it's thrashing, it's doing the whole job. at the end you have a pure corn. the purest in the industry, no dirt, no stones, no nothing.
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>> the reason why this is emblematic, what i see you've been doing is reinventing the company. some of these analysts have been saying this is just a combination of brands. this is like no other machine, right? >> yes, we had the opportunity -- messy ferguson up vented it centuries ago and so we decided to do something completely new and to reinvent the combine because we want to different enslate ourselves and that is how you can gain share in difficult markets like the sdmrus how much does this cost >> about $850,000. if you bought it now you have a deal for 800 >> that's not that expensive if it's a technological marvel, how many machines does this replace? >> it will replace maybe i would say something like four conventional smaller ones. >> tell me about how things are doing because you've got a great
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european presence. latin america has been going well your diversity does explain how om are doing better than other. >> this is the advantage and by purpose you always want to be globally diverse so that means one market is doing better than the others and we figured out this wasn't always the case so you're always doing slightly better, south america might come back, now the u.s. is suffering a little bit we are pretty much on schedule in the u.s we are fine. so we will make our guidance hopefully. >> you do have some small asia pacific -- how is that doing. >> we lost our -- we basically did built -- small tractors to the u.s. and change that they come now from south america. >> because of the tariffs. >> of the tariffs and so that hit us a little bit so we lost quite some volume in the factory, but we think we can replace that >> there's an example.
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you've been ingenious able to make it so you beat your quarters even though had you a tariff issue. >> my idea was let's say with all the unrest and the kind of disruptive influence you get from all over the world, my idea was to be independent and to fix things we can do on our own and to improve things so we are pretty much on -- we are very focused on margin improvements and so that works very well so far. >> now, we had speaker pelosi on last night farmers in each country are cherished. why is it that there's ever any cyclicality, can't the governments subsidize the farmers if they run into a problem in a trade war. >> i think subsidies in general go down. the american farmers are getting some more subsidies than usual we have a great secretary of agriculture, our former governor of georgia who knows us, we are
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in atlanta and he does the right things, it's maybe the best guy in the whole administration, he knows that, let's say, trade barriers and tariffs are not perfect. business likes free trade and so he is very supportive because the american farmer has lost most of their corn, beans, pick and chicken business in china. >> that's incredible that's a huge market >> i'm almost sure that the president didn't know that so well >> you mean he wasn't that -- >> that they would react like this i think it was a surprise, maybe not. i don't know. >> i think it escalated everything i didn't think he thought they would just go right after. incredible the whole time we've been talking in the years we've been talking you always had more faith, the analysts -- now the analysts are coming in but you bought -- in five years you went from 93 million shares to 76 million shares you bought the whole time and turned out to be quite a bargain. >> i bought and earned, of course, i'm close to owning a
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million so all -- >> you own a misdemeanor. >> well, selling a lot of these. let's just go down kind of "lightning round." how is russia doing. >> russia is okay so the problem with russia is it has by far more potential than it's really showing. and people let's say -- what is good is you can now own land privately so that means farmers can secure advertise investments, so that's likely better but it's still slow and it's difficult we have a very good joint venture partner there so i think we are growing step by step. >> brazil? >> brazil is okay. a lot of pressure in the marketplace still. unsecurity, the government, farmers are not really confident about the new president so much while in general i think they support him. >> germany >> germany is doing pretty well. of course, the german farmers are still also -- they think about brexit and they think
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about now let's say the new trade agreement. cheap chicken from mexico and things like that so they're always a little nervous. when you talk to a german farmer he would never tell you i'm doing very well. they would always only complain. that's mare mind-set. >> i don't want to bury the lede it will probably i bet take share from competitors and by the way, these are not metal >> no. >> they look like they're metal but new composites that snap right back we'll take this on i-95 after. can we take a spin. >> the great thing, this thing works fully automatic so that means you don't have to be an expert anymore it's user friendly and that's what we want it to be, high tech but not in a way that you need to be an engineer in order to operate it. >> well then, look, i'll take it for a spin maybe without caleb, the guy who neeknows how to use. martin richenhagen
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a winner all the way "mad money" back after the break.
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when the fed gave us that rate cut, our business economy is more of a mixed bag for awhile now the bears have been salivating over the idea of a possible corporate investment slowdown especially a slowdown in tech spending if you're an executive and think we're headed for recession, maybe you cut back on your technology budget. protect your margins here's the thing if the bears
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are right, how about tech data, one of the largest wholesale distributors of products and services reported such a fabulous quarter three weeks ago. it is a supermarket of technology certainly with high skills and their numbers were so incredible that the stock surged 16%. single session climbed from 81 to 95. now it's at 103. i wouldn't be surprised if it has more upside. rim hume, the ceo of tech data have to find out more about his company. good to see you. >> good to see you >> let me ask you something, how come in the midst of all this stuff and worldwide recession, every geography you this is better than expected how is that mob? >> i tell you, we are privileged to have a very wide and broad portfolio from geography and the
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ecosystem to the most sophisticated datacenters and have 135,000 customers mostly concentrated toward smb and find that a good market >> the small meaning side business typically should be more worried than they are you have good prices on your website. >> anecdotally, we believe that smb is much stronger than large enterprise at this point in time and we're taking advantage of that and, again, it's the diversity of 125,000 and, oh, by the way, in tech, something is always hot so, you know, we have a flexible sales force that's able to move to where the demand is quite quickly and take advantage of that. >> but i don't know about maybe everything is hot. you call out software, services, networking, hyper converged technology, pc, security, these are all good that's not bad. >> no, that's right.
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so we are again privileged to represent the best of the best in our portfolio so we have excellent vendor relationships and even within those big categories, something is hot so the categories are large enough and the portfolio is large enough to take advantage. >> sometimes, rich, i think you're the only one that has conviction you were in there buying stock the whole time people were fretting you're buying. >> we're confident in our company and where we're going so, yes, we like our future and we like what we see so, you know, our board authorize issizissizzed half a billion dollars and we acquired back 275 million at the close of our last quarter. so we like our stock. >> well, you should. i think what happens people should understand when you buy back stock as aggressively as you have, when you get good news, you see what happens you get that spike now, you're doing a lot of things right, investing next generation investments, strengthen end to end portfolio, transfer to digital. optimizing global footprint.
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how do these turn into higher earnings per share. >> jim, it's our point of view that digital transformation is the big market mover and it will go -- we're in the second or third inning here. this is going to go for a decade, right. oh, by the way, when you back it with 5g in the future it really is going to go to a new and different level so there's great opportunities there but, you know, we're very focused on cloud, analytics iot, security and services and we believe that those are the growth areas for the future moving forward. >> now i want people to understand when you have 100,000 clients it isn't like -- you're not best buy you don't go and look up for something, a chip, you don't go and find an individual chip for an individual. this is much more high level. >> absolutely. so, you know, we are -- participate with our business partners in the most complex datacenter deployment so we can go all the way from the pc
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ecosystem all theway up to the cloud, the hybrid cloud and all of the new technologies within the datacenter. >> you talked about huawei you have some representation with huawei, chief europe, i guess but sounds like things are okay i say, we'll hear this is the destruction of all capitalism but you just kind of treat it like business as usual. >> yeah, so we represent huawei in europe and we're -- we focus on their mobility portfolio and if you go take a look at the results in europe, huawei is quite a participant in the mobile cell phone space. >> it seems like the ideologically huawei is an enemy here but in europe they're taking share from nokia and erickson and the europeans seem to be agnostic about where they buy something. >> it seems that way the demand remains strong for that mobility in total in europe and that's a piece of it for sure. >> what do you think -- you must be listening you hear the same downbeat stuff, recession, people
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worried. you look at your order book every day. it is broader than almost any other company. you're just not seeing that, are you? >> we on the average ship and bill about $100 million each working day and so, again, you know, we move to where the demand is and we are blessed to have a very broad portfolio. so we have the opportunity of really moving to where the demand is in the market. >> one last question, how do you ship your stuff to your clients? i'll tell you where i'm going. what kind of shipping company? >> so, we use a variety of shipping companies and, you know, our supply chain is very efficient. we'll even do a lot of dropped ships from our vendor to our business partner right to the end users. >> okay, it's important because i listened to fedex last night and wanted to slit my wrists it was so downbeat but you make me feel like and this is something i've talked about on the show that maybe before you jump to the conclusion that things are bad you should look at how tech data is doing because you have a big panoply of everything. >> we focus on our strategy and execution and we see lots of
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good opportunities in the market. >> i wish you were a coach of the nfl. i would be betting with your team that's rich hume, ceo of tech data they did everything right and they believed in themselves and, therefore, they made a lot of money for share holders. "mad money" is back after the break. - stand up if you are first generation college student.
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>> announcer: "lightning round" is sponsored by td ameritrade. it is time it's time for "the lightning round. >> buy, buy, buy. >> sell, sell, sell. [ buzzer ] >> and then "lightning round" is over are you ready, skee-daddy. bill in new york bill >> caller: hi, jim how is it going? >> i am doing well how about you? >> caller: doing well. my question has to do with trade desk down 30% from its july high this week it's been trading -- would you recommend trimming, sitting tight or getting the heck out >> what was the stock? trading desk oh, i think trading desk is oversold i mean, remember, this is one of those stocks, part of the cohort people giving up on. i haven't given up on it you have to understand it is very volatile. chuck in arizona chuck.
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>> caller: hey, greetings, dr. cramer this is good luck chuck from phoenix. how about some thunder go with "the lightning round" today? >> thunder oh, oh ♪ okay >> i'm looking for your advice on holding dynex for the short term or long term. >> tens, that's the tens i like the devise. let me do work on the stock. that's enough to say i like the stock. i need to go -- sorry if i mispronounce this, ochacho. >> caller: hey, i'm calling about general electric what do you think about it >> i am a big believer in larry culp i don't think this is the year it's going to happen and think next year it will be higher. a lot of people don't have that kind of patience i am urging that larry is doing a great job, ge. let's go to tim in virginia. tim.
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>> caller: hi, jim >> tim, what's up. >> caller: health insurance innovations. it looks undervalued is hiq a value buy >> what the heck is that stock doing that five times earnings when i see that i have to make calls. that is too cheap. usually things don't get that cheap unless something is not right. we have to check it out. ashwin in california >> caller: hey, jim, thanks for taking my call thanks for all your expertise. my is micron >> i like it goldman said positive things, mute the commentary. i liked it since the 30s and want the ceo to come back on this company's american marvel innovation jim in new york. >> caller: hello, jim. how are you. >> i'm doing real well how about you? >> caller: i'm good, thanks. aisle very good. i'm calling about a stock that i bought about $10 and made a little money on but it sold half my position in snap --
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>> i think you did that perfectly. now you let the rest run if they have another good quarter the stock can go to 18, 19 that last quarter people got surprised by and my hat's off though those guys. they should come on. they probably despise me i'm a forgiving fellow jack in ohio >> caller: love your show, jimmy. thanks for your help again >> thank you >> caller: i'm looking to add a dividend income stock to my holdings national fuel gas company. nfg. >> i have always liked national fuel gas and i'm going to endorse it now i think that's a great idea. you know, you remember my pecking order, american electric power and dominion and con ed. it's good. i like it. angelo in california angelo ang angelo? >> caller: hi, jim >> what? angelo you got cramer
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>> caller: yeah. >> stock >> caller: my wife and i are in our early 80s and just about all our savings for the past four, five years have been vested in a cost -- >> well, i mean here's the problem, that's unbelievably right and i like those stocks so much but i also think that you've got maybe -- i don't want you to have all your money riding on those two. bernstein downgraded costco. that would be ill-advised. if you have enough cash for your needs, i'm fine with those two stocks i do like more diverse indication and that, ladies and gentlemen, is the conclusion of "the lightning round." >> announcer: "the lightning round" is sponsored by td ameritrade ♪♪
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how do you know when it's safe to start circle back to a formerly red hot group that's the question i ask myself about the marijuana stocks after a phenomenal bull run driven by canada's lead to legalize weed, it peaked and since then it's been an unbearable house of pain last year they were based on their grand plans for the future but now that the market sobered up they're more focussed on cold hard numbers cronos has medical marijuana licenses all over the world and rapidly growing recreational
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business in the place where it's legal thanks to an investment by altria and they have a massive war chest second only to canopy but at the end of the day this is super expensive stock in the early stages of growth story which is why i think it keeps foal falling down from 25 to just under 11 today. so let's take a closer look with the chairman, president and ceo of cronos group to get a better read on what lies ahead for the company. specifically for the cannabis industry and his company, of course michael, good to see you have a seat. so first time on state of the state here. look, you've got the best brand name this is the most recognizable brand name and secular tailwind at the same time there's vaping. at the same time there seems to be a lot -- too much hot money on the stocks. give me your overarching formula and a sense of where you're going. >> sure, so cronos, we're
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differentiated and cannabidiol specific and we focus on the consumer when we think of supply chain we look at partnering with experts, other farmers to source ingredients but then we can make products like these that differentiate. >> this is an asset light situation. our know the trying to grow as much pot as possible. >> that's right. we follow the model in the consumer packaged goods industry that's successful and pharmaceuticals focusing on ip and brand. >> you made a commitment to vaping vaping was around for ages and then suddenly i think the juul guys have made it where it's controversial. where do you think we're going with that. >> i think that there's certainly differences between the nicotine vaping space and the cannabis vaping space so we're looking at when we segment the consumer need state we're looking at specific occasions, we're looking at upcoming launch
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in canada. what we've been doing over the last few months is leveraging work for about six years, work done in israel with cronos device labs and focusing on safety, quality, what the ingredients are. our brand will launch under spinach. we picked a name to make sure it was -- we're being responsible not attracting children. >> have vape sales been affected in the last few weeks. >> canada, we're waiting for the derivative product launch so haven't been able to start sales, so -- >> give me -- you've got a terrific guy who is a consumer package goods guy, your chief innovator. is he behind -- lord jones is an established brand. is he behind it so that you're disrupting a $250 billion consumer package business. >> yeah, he helps us with. >> he's been in great places. >> pillsbury and launching
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products like velveeta focusing on functional benefits what the brand equity is built off it's the functional benefits you can get from cannabidiol -- cannabinoids >> how is this the only brand name this is the only brand in the industry >> that's why i was attracted to it there is a lot of cbd companies, very few cbd brands and just comes down to where you're focusing and the value chain one thing we loved is these aren't prodded -- you know, try some this is not what you're thinking of people think of how much hemp you're growing here. >> this is what people use instead of icy hot >> right >> i found that because i am the spokesman for the american migraine foundation, i tell you this, is what you do if you have a migraine and there was nothing to do before that. i'm not kidding. this is what you do and there's
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30 million people who will use this once people realize that it's the only thing that does work now, let me ask you while i have this in my hand. >> the product -- >> i'm not kidding look, i'm the spokesperson it is the only thing that works. we awe know it but all afraid to talk about it. even though they're using it -- no thc no issue, it's legal but people are still afraid. now, let me ask you, bank of america merrill lynch talked about this acquisition and said that you had -- you and another director had an interest in a company called gotham green partners which had an interest in redwood holdings. how do you know that's an even deal for cronos versus this company if you have a stake it this it. >> it's now the largest cannabis venture fund that jason adler and i started. we as we disclose went through everything by the book so we actually created an independent special committee of directors who led the negotiations, diligence and made the decision
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so -- >> they didn't want stock, though you gave them cash i would have taken stock in cronos. >> there's some stock given. we're pretty focused on dilution especially with the levels we look at. we wanted enough we can incentivize -- it's an amazing team and want them to be in the same vested position but one of 9 advantages we have is that our currency is primarily cash and being able to use that currency. >> speaking of cash how is altria are they happy, are they good advisers they've been through every single war this being controversy, it's not. what they do is. are they helpful. >> extremely helpful we're a young company that's focused on innovation and brands and what we're trying to do is take an industry with a regulated crop, certainly controversial and turn that into a global industry and when we met with altria what we saw this is a company that for over 100 years has taken a regulated crop and they've become a manufacturing distribution and brand powerhouse and being able
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to trach our inputs, our ip and plug that into that machine is really exciting. >> i got to congratulate as i get my stuff off i know the industry has been hurting. that doesn't mean there won't be a comeback and what will lead it are brands and do you have the best thank you. thank you so much. chairman, president and ceo of cronos. every one of these stocks is down i know a lot of you are upset they're down but you know these are speculative stocks that's what you get when you speculate. "mad money" is back after the break.
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is curt campbell, and i live in beautiful egg harbor, wisconsin, with my fabulous wife, amy joe, and i'm the owner of oilerie usa. amy joe is the love of my life. we were high-school sweethearts. we've been married 38 amazing years. she's my best friend, my rock, my light. in 2003, we were in poland. we came across a small shop

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