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tv   Mad Money  CNBC  May 21, 2018 6:00pm-7:00pm EDT

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a lot of facial expressions by dan off camera directed at the four of us. >> they weren't nice either. >> none of them nice. >> know what is nice win resorts, see that thing, wants to go haunix. >> i'm melissawatching see you back here tomorrow at 5:00 "mad money" with jim cramer starts right now my anything 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 just want to make you money. call me at 1-800-743-cnbc or tweet me @jimcramer. you cannot overstate the importance of trade to the stock market today we saw what happens when we get a real sense that we reached a cease-fire in the
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trade war with china that's why we rallied so hard today. dow surging 298 points, s&p gained 0.47% nasdaq advanced 0.54%. while we often act like the capitalization stocks like caterpillar and boeing, how many times you heard those are in the cross hairs here the truth is, it's much, much bigger than that so put aside how lasting the truce might be i'll deal with that later in the show let's talk why this rally makes sense. first, we spent time talking about selling into china but today's rally has as much to do with chinese companies selling into our market, as our company selling into theirs. a trade war could make life very expensive for most americans this story was ignored for too much of the day. the retail stocks were under pressure because of fears chinese goods would become
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ex-pen sich. we import so much cheap stuff that the prospect of the trump administration putting tariffs on those goods worried investors. so when we heard about the truce, we figured the consumer is going to be spared the shock of those higher prices that's how the department stores managed to put on quite a show today. macy's hit a 52-week high. it doesn't matter if clothing prices rise, at the end of the day, chinese imports are a major reason why apparel is so darn cheap in this country. almost all retailers buy goods from china it's possible overtime they could shift all of their sourcing from china to other countries where they make goods. but it can't be done overnight and in the interim, clothing would become a lot more expensive, crimping the margins, causing the consume tore get sticker shock. same for home depot. we don't know the exact amount of goods made in china and told
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here but home depot managed to rally a couple of bucks. i was surprised costco didn't move up, but walmart did, dollar free, dollar general gaped they sell a lot of cheap chinese merchandise. the biggest winner is union pacific, which ships tons of chinese goods from west coast ports to the rest of the country. trucks are too expensive at a time we're worried about inflation, the last thing we needed were tariffs on retail goods. so we can all breathe easier now that we've lost an immediate driver of inflation. i told you it's trade, not the rising interest on the ten-year treasury that's hurting stock prices and the retail element was a huge part of that. putting the trade war on hold creates a much more positive backdrop for everything. so now let's deal with the chinese market itself. this is not just about huge
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companies like boeing and caterpillar. their stocks soared 3.2% and 2% respectively boeing doesn't need china. there's so much demand that the chinese don't buy from them, someone else with. caterpillar sells a lot of coal mining equipment to china, but to me, it's not that let's spend some time on the non-covered stories, the under-the-radar china touch that would have caused the most wory. the people's republic is responsible for a significant chunk of the growth, and if the chinese decided to make it do more difficult to do business over there, countless companies would have been hurt china's daily ran a story headlined "honeywell bets big on growth in china. as someone who owns honeywell, i was worried about the lead paragraph. honey well said on friday that china is the single largest
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contributor to its global growth and it was committed to expanding business in the country. end quote. how much of a contributor? get this, 20%. yikes! how about how united technologies china worries have been a huge burden on its stock. 600,000 otus elevators are installed each year in the people's republic. consider illinois tool works what does that have to do with china? it has 45 businesses in china. no wonder the stock rallied $3 today. how about 3-m? its chinese business is growing by double digits surge call mask-- surgical mask, that's part of their biggest sellers because of the poor air quality. let's not forget about two other
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obvious ones i'm talking about fedex and ups. these two companies have spent fortunes building out their chinese exposure there was a possibility the chinese government might ensure that ups and fedex's planes get stark on the tarmac while chinese planes went out ahead of them of course, let's not forget the obvious, we know that apple's growth depends on chinese sales. apple manufactures a great deal of its product in china, so it was always thought to be protected. but that didn't stop many from fearing a possible iphone boycott. what b-- few consumer stories ar more dependent than growth in
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china than starbucks starbucks is opening a new china location every 15 hours. nike, 8% of the chinese footwear industry is theirs in each case, what matters is not the total percentage of sales that comes from china. that isn't the story, people it's the percentage of the company's growth that comes from china. the people's republic is the future for many companies. so if you believe this truce is for real, then the rally is for real, too. on does this rally have staying power? i think that it has as much staying power as the truce investor also pay more for all these companies because they're so dependant on china for their growth, not their sales. if you take the trade war off the table, you put more points
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on the table that's exactly what happened today. dave in florida, dave. >> caller: hey, jim, how are you? >> good. how about you, dave? >> caller: good, i wanted to wish you a big beachside boo-yah from miami >> done well >> caller: yeah. love your opinion on monster beverage you have dual head winds coming in, rising fuel and aluminum prices so just wanted to get your thoughts on whether i'm a buyer or seller? >> no, ave, you correctly nailed it. everything you just said is a problem for monster, and very few people saw it coming if you're on the campbell soup's call, the can prices are ridiculous but you're right about monster everything you just said is why i don't think people should be a buyer. and i liked the stock for a long time jess in tennessee. jess >> caller: boo-yah from tennessee, jim >> good to have you.
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>> caller: thank you i'm calling regarding -- [ inaudible how do you think this will affect their stock -- [ inaudible >> i missed a part of that, you broke up i think that the question is how westrock will be -- let me give you why they were down today, which perhaps is the -- excuse me oh, could you -- jess, could you start the first part of that question i missed it. >> caller: sure. westrock being a larger consumer and exporter of recyclable corrugated, how will the ban in china affect their stock >> stock was down today. why was it down? people feel that maybe with the truce, the chinese will start buying news print again from waste management that means that therefore what could happen is the cost of the raw material for corrugated is going to go higher i think they'll be fine, but i point out that had been helping
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their bottom line. i still think the bottom line will be excellent, though. stewart in new york, stewart >> caller: yes, jim, the pending oil crisis, nobody seems to be mentioning the oil zrdrillers, transocean and diamond offshore, aren't they going to come to life one of these days >> wait a second, let's think about this transocean is up 28% diamond offshore, not as much, but not as high quality. i suggest that you buy slummer j jay. go high quality. scott in colorado, scott >> caller: i heard a bit of scat of blackberry goinginto cyber security is blackberry a buy? >> i happen to think the intellectual property is worth about -- i used to say $8, but
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worth the whole price of the company. blackberry is doing well i'm not sure about their cyber business i just know that they built a very under the radar good business after being over the radar for so long. so i don't mind owning that stock. the rally has as much staying power as the truce does. and boy, what a breath of fresh air that is. on "mad money" tonight, international flavors and fragrances announced a $7 billion deal a few weeks ago is it the sweet smell of success or does the market think it's gone sour? and some of the biggest titles in the gaming industry. how can the company fend off fortnight compcompetition? and still zillo. it's up 23% over the last year
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could it continue to build on that solid foundation or is there a new business line that's worrisome? i'll talk to the ceo so stick with cramer don't miss a second of "mad money. follow @ jimcramer on twitter. send jim an e-mail or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. [fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible.
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[hero] i'll take my chances. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com
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it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which can save you $400 or more a year. it's a new kind of network designed to save you money. click, call or visit a store today. it seems that wall street doesn't always know what it wants. sometimes the market will punish a company for doing something that turns out in retrospect to be a very smart move i bring this up because two weeks ago iff, everything from personal care products to household cleaning products to food and beverages, saw its stock get slammed, down more than 10% in a single session this company is a long-time cramer fav that's made us a killing over the years why did it get hit
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even though they reported a strong quarter, the company announced it's acquiring a competitor for $7.1 billion. iff's only paying a 13% premium, and it will give them a lot of exposure to the market the problem? iff needs to raise $2.2 billion. but i have to say, the numbers look promising, $145 million in cost synergies, the deal is expected to be double digit additives in the second full year so could this be a buying opportunity as iff transforms itself let's check in with andreas fibbing, the chairman and ceo. welcome back to "mad money." >> thank you >> so i puzzled over this, because any time anybody makes an acquisition and it's going to be double digits, i'm willing to go through the valley. but i guess there's some people
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who say i'm going to wait for the equity offering when that occurs >> maybe what we have seen, and we were on the road since the announcement talking to investors, particularly in the u.s., many don't know fruit a room very well they have huge exposure to naturals it has somed adjacent businesses like natural color so we have to explain more and close the deal in an appropriate period of time >> your company can be nimble. something like 3,000,5,000 smaller, but can't you hire a sales force that gets to them or is that not your style >> we could, but it would take a much longer period of time we have 3,000 customers, and
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they have 30,000 customers a lot of smaller and mid-sized customers. and that's what we are after, including the portfolio they have >> and then i saw that eastern europe matters so some of these emerging markets are good that they have that you need? >> it's very complementary we have a smaller presence on the foot print we believe this can accelerate our profitable growth going forward. >> i was looking at your previous presentation when you were down at the consumer products show. you said drive enhancements, naturals, you could not get where they were through your own rnd? >> we have done a very good job already, but they have some supplemental platforms we don't have, and that could be very helpful to satisfy that consumer demand, which is probably here
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to stay with an the millennials. >> i feel that the conference call, they were very involved people in the nitty gritty tell our viewers, when you say naturals, what are you talking about? >> we talk about clean label products, products which are not just always organic, but they have a natural ambience, clean labels, and -- >> you mean not a lot of preservati preservatives. >> absolutely. >> dried fruits, how does that work >> we ourselves, we take food sites and transform them into taste solutions. this is 100% organic and natural. we did it with acquisition last year, and some of the technology we are acquiring is very complementary >> there were some analysts that felt your fragrance business accelerated. how do you feel about fragrances
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right now? >> very strong we had 8% top line growth first quarter, and volumes are coming back, and what is helping here, as well as one of the acquisitions, a smaller one was active cosmetic ingredients, lucas cosmetics. and that's helpful >> talk to me about the cross selling opportunities, because i bet they're substantial. >> i firmly believe this is long-term probably the greatest value creation opportunity >> tell me >> if you look at some of the adjacent businesses like natural colors, where we still have the trend in the u.s., going from synthetic to natural, if we sell this into our customers, if we see the food protection business into our customers on the other hand, you see iff technology going into their customer base, that will create
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a lot of topline synergies and bottom line synergies, as well there's not much overlap with the 3,000 customers we have and the 30,000 customers they have and every new technology we are acquiring goes now to a much broader customer base. >> so talk to me about these millennials, how we know what they like. >> so we do about 500,000 consumer interviews every year, many of them are millennials, and we figure out what they might need taste is a very local thing. so it might be different within the country. we know in brazil, for example, the flavor for blueberry yogurt in the northeast is very different than in the south. and we try to accommodate that >> are you doing much work for the actual supermarkets themselves and private label >> we do some work on that, absolutely that's where frutarum does more
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work and that's very helpful >> they're growing so fast >> maybe we see the development here in the u.s., as well. europe is very strong on private label. >> that's the chairman and ceo of iff the stock is down 18%, that doesn't make sense to me "mad money" is back after the break. coming up, does take-two interactive have what it takes to capture the imagination of gaming's next generation cramer sits down with the ceo.
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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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modern gaming is connecting players across the globe and bringing the best of them to packed arenas. will changing times be just the challenge that brings take-two to the next level?
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>> not long ago, everyone was freaking out that the big video game publishers were in the cross hairs of these new battle royal file player games. fortnight, player unknowns, battlegrounds. the stocks of electronic arts, activision and take-two interaction, they sold off hard. but when we heard from these companies, the numbers were excellent, and the stocks have caught fire. consider take-two interactive, the company responsible for grand theft auto, red dead redemption and other titles, like wwe 2-k-18. this stock was already running off of the pin action from activision it's up about 25% from its early april lows that's the context you need to understand when looking at the quarter they reported last wednesday night. the numbers were a little complicated. even though take-two gave you strong top and bottom lines,
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guidance was tepid they pushed out a new release, but the stock shrugged it off and rallied. everybody is focused on red dead redetermi redemption two let's take a look with strauss zelnick, the ceo welcome back to "mad money." >> thanks for having me. >> first, a lot of people buried the lead i'm going right there. 25 years, happy anniversary. >> thank you very much i've only been there 11. >> all right still what it says is this franchise is still got great growth you have a moment in the conference call where you talk about how come there's so much media consolidation, and you say it's because the ones consolidating don't have that kind of growth what is the secret >> unfortunately, it's well known, which is we're in the only growing sector in the entertainment business, which is interactive entertainment.
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and our cohort is about 37 years old. and you continue to enjoy the entertainment that you grew to love when you were 17 for the rest of your life. so that cohort will continue to grow as people naturally age so the wind is at our back what we do, we still have to execute. >> grand theft auto, 95 million, calling it the greatest entertainment property it may be the greatest sales of a product in any consumer market, especially at that price point. >> i think we're beat by iphone. >> that's a good point >> 95 million of entertainment is extraordinary. >> it's the highest grossing entertainment product of all time and it's the highest rated game for this console generation consumers love it, and four years after its release, grand theft auto just had another record year. >> another thing i thought was important, you don't buy back
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stock. you spend a fortune buying back stock. >> at the end of '18 and the first quarter of fiscal '19, about $300 million at an average price of $99 a share you know, jim, there are three ways we treat our capital. organic growth, inorganic growth and returning capital. we like to do buybacks when we perceive there's deep value in the marketplace. we'll see how it is in the fullness of time >> you gave a date for red dead redemption risky to do that >> hand on heart, it's october 26th >> i want people to understand this is a studio, two brothers do the great work at the studio. and they're artists. the last thing you're going to do is tell an artist what to do and when it's due. so they told you it's good >> that's right. when i said hand on heart, it's over a thousand people put their hands on their hearts. >> we talk about nvidia, and the
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revolution in chips. play into all the different things you want to do? >> absolutely. we have -- technology forms the backdrop on which our artists create one of the reasons this is such an exciting median, we still have an upward curve that technology will enable us to do. >> you mentioned that people don't think westerns are that good what is the secret here? >> conventional wisdom before we launched red dead redemption don't work in video games. that's no longer the case. westerns seem to find their moment at certain times, and i believe this is one of those moments. >> fortnight, you say that expands the category obviously that's been proven empirically. why did people you think -- you can't control the market, but people think it's going to take away from you. >> fortnight is a free to play title.
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secondly, it apparently speaks to a younger audience, and there seems to be a good deal of audience that they're new to the category as they age, they will obviously be consumers of more mature titles currently they can consume titles rated for everyone. my view is that -- it would be great if we could corner the market the emphasis is on innovation. >> nba 2-k, anything to worry about? >> it had another record year. >> you did say when you gave guidance that you didn't -- that you were surprised >> we got it up to fourth quarter and fell a little short of expectations. we still sold 9 million units. another record year for the title. it's continuing to boom. >> how was that march 8th meeting with the president >> it was interesting. >> oh.
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>> it's kind of broad ranging word there >> you know, i haven't talked a lot about it publicly. i think that the truth is, when you're asked to show up and have a conversation on a serious topic, you show up our position is plain. >> okay. it's been consistent i know that the president talked about movies, so it's not like he was picking on video games. >> not at all. >> your private product -- >> private division. >> a lot of names. when can we expect something big? >> private division is intended to bring the independent developer community into our publishing family. >> they think to go to you, otherwise they would do it on their own? >> do it on their own, get independent capital. i think these are highly creative, successful developers. they have availability, they have capital available to them we had to make them comfortable, that they could be within the four walls of a major publisher,
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and still have creative freedom. what this allows us to do is expand our foot print beyond the incredibly creative people who work within the take-two family to independent developers. we won't have any releases in the current fiscal year. we expect them thereafter. >> i don't want guidance on that, because obviously you want creative freedom that's always sometimes in conflict with guidance that's strauss zelnick, chairman and ceo of take-two interactive, which is just in a growth path that is, well, it's still accelerating "mad money" is back after the break.
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♪ what the heck are we supposed to make of zillo here the stock has doubled since may of 2016.
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you wanted to know what a home was worth or find listings their site is the place to be. last month, zillo said they were getting into the home selling business after all, who knows about the value of real estate stan zillow they don't see any appeal of moving into a risky business like flipping houses the stock industry got slammed on the news but it didn't take long for zillow to bounce back look, i don't blame anyone for being confused, so let's dig deeper with the ceo of zillow group, and why he likes the new direction. welcome back to "mad money." how have you been? >> thanks for having me. >> spencer, i have a quandary. my wife is in real estate, and
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she swears by it everybody likes to see how much their home is worth by looking at your site anybody who gets the premiere level really does well so why do a pivot, given the fact that business is pretty darn good? >> business is good. we don't think of it as a pivot, but an extension what's happened in the whole economy, they want to press a button and have magic happen and that revolution is coming to real estate. so we're letting the homeowner get an instant offer and that's very appealing to a lot of consumers. it has been controversial, but we think the opportunity is large. >> i'm gold, because i said, i love your model. it's got no cost it's just one of the least risky business models i've ever seen >> we think like it as netflix
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moving into originals. >> i wish didn't use that, that's good. >> they use their data advantage, and then they built that muscle memory, that dna to be creative. and it was a big swing for them and created a huge difference. amazon moving into aws, similar. so for us, it's additive to the core, selling advertising to real estate agents most people are not going to accept the offer we make for their home most people will want to sell conventionally when they do, we will hand them off. so it enhances our core business >> you're in two of the hottest markets. is that necessarily a great test for what's going on in the rest of the country >> we think in a slower market, our offer relatively speaking might seem more attractive to a seller we think it's appealing to sellers. >> i remember speaking to a
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banker at citi and say why don't you keep these homes you've got? he says oh, no, they're just such a bear to maintain. what about you you have to main stain >> well, we're going to sell them quickly we'll sell them after a couple of weeks or months the model calls for at most 90-ish day turn time we think because we have access to buyers using our websites, we can premarket the home almost before we buy the home, we can start selling it to a potential buyer. we're not going to buy and hold, we're buying and selling >> i didn't care how quickly the fed raises rates just one of your divisions, are you doubling down on that one division and it worries me because i know you'll do well as rates go up. >> our mortgage business doesn't like higher rates. so we have a bit of a
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challenging mortgage quarter we made some decisions to reduce some mortgage links on the website. the homes business will do okay in rising rates. it's about offer thing service to a seller. flipping is really about taking advantage of a distressed seller what we're trying to do is provide a service to a seller so they don't have to deal with the complexity, the uncertainty, the time of selling. >> with your big data model, you really would know more than anybody else >> we have a huge advantage in this business. we have access to sellers, because they're using our website. we have data on buyers before we bid on a home, we know how much people are looking for a home like that we can reduce days, because we can premarket to a seller. imagine the buying experience, buying a home owned by zillow, where a buyer can get a mortgage
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from a partner this is what the on demand economy is all about touch a button, have magic happen >> i do worry, though, this is a different skillset, and i know there are people who have periodically screwed up in this, particularly in a hot market you are to me a technologist this is a bit of a different sort of capital business >> you're right. and we have hired the best in the business the team that created colony america homes, that team that sold to invitation homes, this is the team that bought 35,000 homes through the recession. that's the team that we have acquired essentially so that people is the team running. you're right, we're tech people, and we went out and got real estate opportunities >> one last question, i till regard it, real estate porn, people checking the value of their houses housing is going up throughout
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the company. more checkers, more business >> 175 million people using our website every month. there is a little bit of voye voyeuri voyeurism, but that's okay, we embrace that >> if anyone is going to get it right, it is going to be spencer. "mad money" is back after the break. polk county is one of the counties
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that you don't think about very much. it's really not very important. i was in the stone ages as much as technology wise. and i would say i had nothing. you become a school teacher for one reason, you love kids. and so you don't have the same tools, you don't always believe you have the same... outcomes achievable for yourself. when we got the tablets, it changed everything. by giving them that technology and then marrying it with a curriculum that's designed to have technology at the heart of it, we are really changing the way that students learn.
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and i can't wait for ten years from now when i get to talk to them again and see, like, who they are. ♪
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welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com i wrote letters to 48
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newspapers, asking, no begging for a job. you know what i have here? i have here 48 rejection letters. i kept every one of them [ laughter ] [ applause ] first lesson, it's okay to fail. but it is not okay to quit well, there we go. that's my stepdaughter charlotte that graduated this weekend, and my wife, lisa, is on the board of trustees at bucknell. that was some great weekend. the president of bucknell, i really appreciate the opportunity. and well, enough talking about myself it's been enough for the last 48 hours. and now, it is time, it's time for the lightning round. are you ready, skedaddy.
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mauriceio in florida >> caller: hi, jim, calling from miami. i would like your take on -- [ inaudible >> raw costs, they're too worried about the idea there are too many ships coming on i think it's a buy let's go to robert in florida. robert >> caller: hey, how are you doing, jim >> good, how about you >> caller: good. i've been a fan of allegen and in the last year i cross averaged it down annually. should i strengthen my position now or sell it off >> we're very similar, i have said that has been my worst stock in a decade. i still would like to believe, but it is just not acting well, and i'm not going to tell you to buy any more here. dave in massachusetts, dave. >> caller: boo-yah, what's up,
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cramer >> i'm good. >> caller: my question to you is, tyson foods. i'm at 50 shares should i sell? >> caller: i think the stock has come down, but i have no catalyst, and people did not like that last quarter i hesitate to go where everybody else is fleeing. that food group is so darn hard. let's go to john in louisiana. john >> caller: jim, thanks for taking my call >> thank you >> caller: hey, i'm looking at an oil company that i would like to buy, and i would like to get your take on it. it's karizo oil -- >> it's too late, unless oil goes to $90. they raised some capital, really well run company i wish they would come back on they're smarter than the average bear in oil, but i have to say no angie in tennessee
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>> caller: boo-yah, darling. it's your stock trading songwriter >> it's not going to run fast, but it's had a great move. joe has a good pipeline, fixing the balance sheet. got him out of legal trouble i can't tell you to take profits. michael in new york, michael >> caller: hey, jim. calling out from long island i wanted to thank you for taking my call. i give you a shutout for all the dissemination of good information. >> i sure try. >> caller: calling my stock of the day for your opinion is okta it's gone up over 50% this year. i've actually averaged up on it. and i wanted to know should i stay >> i can't tell you to pull the trigger. it's up almost 100%. that is way too much for me to come in and say buy. so i'm going to say hold will in texas, will.
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>> caller: boo-yah, jim. >> boo-yah >> caller: i was wondering what you thought about crisper therapeutics >> it's another one that just has run so much. again, i know this is going to sound like i have gotten bearish, but here's a stock that's up 175%, and i have to say -- i'm not saying the ship has sailed parish in texas, parish. >> caller: boo-yah, jim, all the way from texas sorry about your sixers. my question is about walgreens >> i think it's too legal to sell my inclination is much more to be a buyer than a seller i think that people hate it. so i'm going to say, buy buy buy. andy in new york, andy >> caller: boo-yah, jim. >> boo-yah >> caller: thank you for taking my call. >> quite welcome
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>> caller: southern. >> southern's come down too much, as has deminion. both are down too much and that, lamg, dies and gentle is the conclusion of the lightning round. >> the lightning round is sponsored by - day. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at hollidayinn.com
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was it irrational the stock
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market took off on the trade truce we heard about over the weekend? when it's so short on specifics with no real agreement in hand i talked about just taking a war off the table is great for stocks at the top of the show, but can there be something real afoot that can help corporate growth or is it all for show? the president's crowing about how farmers can do well and the administration is adamant it will sell a lot of energy related products to china. that's all well and good american farmers already do well good it's one of the most heavily subsidized industries in the country. as for energy, except for some that will come from alaska, we already had a deal with china to supply the stuff as i mentioned, today's rally is not about farming or energy. it's more of a relief surge based on the sense we're not going to have a knockdown, dragout confrontation with china
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that lasts forever, and has bad pin action all over the place. but how about new opportunities in china any real hope here, given how stifled our trade is in prc, or are we dreaming? one of the president's tweets did sound very positive, on china, barriers, tariffs to come down for the first time. when the president's chief economic adviser larry kudlow came on "squawk on the street" this morning, we drilled down on the comment. this could be a genuine game changer. many companies are forced of these 50-50 joint ventures with local chinese affiliates that want to operate in china the chinese get information you hour companies make what they make those partners are then able to steal our intellectual property. larry said that american companies won't necessarily have to do these joint ventures in
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china anymore. they might be able to sell their products without giving away the store. that would be huge secondarily, larry said he believes many of our financial firms may be free and unfettered to do business in china by themselves that's always been a big issue with me. which is why i dismissed the idea that china would ever be profitable for goldman sachs, et cetera american express, for example, only been recently cleared to submit an application to do business in china. that's something they did for 14 years. if china gives our credit card companies to do correctly the kind of business they do in other countries, that will be a major positive larry worked in the reagan administration, which had a trust but verify relationship with the old soviet union. of course, as much as i like and
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respect larry, that's a mighty big if these are ongoing negotiations who knows where they will end up but if everything goes according to plan, it's possible we could have a positive outcome here for american business. stick with cramer. to their retirement savings. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in down markets. so they can focus on new things like exotic snacks. talk with your advisor about shield annuities from brighthouse financial- established by metlife. welcome to holiday inn! thank you! ♪ ♪
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with all the talk about trade and big industrials doing well, micron was the star of the day. you want an opportunity? nvidia was down today. i think nvidia is every bit as exciting a story as many of the stocks that rallied. let's not forget intel, which is cheap and didn't do well because of china worries if we take china worries off the table, it may be the cheapest of all. i like to say there's always a bull market somewhere, and i promise to try to find it for you here on "mad money." i'm jim cramer and i'll see you tomorrow
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narrator: in this episode of "american greed"... john fox makes millions selling fine wine and lives like a classic rock star. every day, john would come to work in a different car, a different fancy car. ferraris, maseratis, multiple mercedes. narrator: fox's customers are enticed with low prices, and they ignore the financial hangover to come. "stay away! stay away!" narrator: fox, too, is reckless. he steals clients' money and spends nearly $1 million on scores of women he meets online. i think he was definitely a sex addict. narrator: as fox's $55 million wine fraud comes crashing down,

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