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tv   Mad Money  CNBC  March 12, 2019 6:00pm-7:00pm EDT

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>> nice to be against everybody, dan. that does it for us here on "fast. see you back here tomorrow at 5:00 don't go anywhere, "mad 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 my job isn't just to entertain you but to educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. every now and then you get a conference call that captures the panply of what is going on right now and what is going wrong in the business world. that's what dick's sporting
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goods of all things gave us today. worth trying to learn from what went awry at this retailer lost 11% of its value in one day, stop, teach, context. before we get to dick's, action. mixed session. dow slipped, s&p advanced, nasdaq gained. it's all about boeing. aerospace titan slammed today after a host of international airlines grounded the 737 max 8 planes involved in two separate but seemingly similar crashes. because weighted towards boeing, distorts index boeing in tough position, can't find anything wrong and faa can't yet country after country is grounding their planes. always come out just fine, right
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here given we don't know if there's going to be another shoe to drop, even if boeing stock is too risky, other stocks worth buying here and now. best way to identify them is get your hands dirty nitty-gritty, it's the craft listen to the dick's sporting goods conference call even if you don't want to buy it we're going to explore the craft, think make you more money than just saying retail sales, fed, whatever. set the stage. dick's reported okay quarter, not great, not bad but murky outlook. judging but the decline would think would be gloomy about the state of the consumer and its own prospects. it wasn't at all still spending on sporting goods but problem is online.
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dick's has seen online grow 19% to 23% and issues distorted performance but it's clear that digital is the future went to see dick's when public big box store for all things sport. 34% in five years, one of the greatest growth stocks of the era. next nine years, up to $62 but today back to $34. what caused that multiyear weakness for a revolutionary store? have people lost interest in sporting goods including apparel? absolutely not does dick's have more brick and mortar competition no, in fact number one be competitor sports authority closed all locations less than two years ago. boom, liquidation.
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so what happened you can probably guess where this is going, amazon happened much of what dick's sells can be bought from amazon, not private label or special nikes or outdoor and fitness, strong year over year sales, dick's excels at it. good company, this is not sears, dick's is best at what it does but just about everything else they sell you you can get on amazon so needs to spend more money for its own presence competition from amazon always puts pressure on pricing dick's knows it needs to constantly update the web site like amazon does, costs money. what happened? management dropped the ball. told us this morning they need to spend to keep up with the
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competition. dirtiest word in the stock market, they have to invest and money managers hate that typically means building out dedicated e-commerce and those who fall back never catch up no choice but to do it if you're retailer and so expensive, lowers gross expenses even if you come out on top. he explained there's a big opportunity to keep improving onli online experiences but to do this she said investing heavily in fulfillment capabilities. dick's has to invest in robotics to drive automation and firepower that amazon can bring to bear with phenomenal web services business.
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dick's is supposed to know sporting goods, baseball bats, air jordans, not robotics. as hobart says, dick's has no choice but increase investment and make the shopping experience easier for all athletes regardless of when, where and how they shop us dick's has to keep plowing in money to keep up with amazon and what do they have to do to drum up more customers? work closely with industry leaders google and facebook and drive digital marketing up now fork over huge money to facebook and google to reach consumer can't rely on people going to home page.
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not how people find things, they google it. no wonder senator elizabeth warren is calling for break up amazon what else is dick's having trouble making money at per sale chief financial officer said this decline in gross margins driven by higher, shipping, fulfillment and freight cost you have to get to the consumer as quickly and cheap as possible, as cheap as amazon does, you have to eat costs, including the pesky trucking costs that keep getting more expensive and invest in stores and employees to offer better service than the web if customer doesn't come in, also has to spend money on the mobile site.
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we get worthwhile investment ideas. under armour had a difficult period in case you're wondering about that stock lately. nike is just on fire throughout. goes throughout dick's quarter if it goes down, you have to buy it and ceo, i met him when the company became public, he's the bright light in the sporting goods business he believes rents will continue to go down for shop s centers, in part because of closures of sears and j.c. penney's, tells me not to buy these real estate trusts, even with high yields. don't get bought in. reading this classic manual of how to think about the web, retail, the net, everything we talk about, f.a.n.g., dick's
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sporting goods conference call says one thing, bite stocks of amazon, alphabet, adobe, nike. invest in robotics of amazon made by honeywell, and for dick's itself, i think you ought to stay away, right now too hard to be a brick and mortar retailer if you have too much commodity merchandise that can be bought more cheaply and conveniently via amazon. scott. >> caller: i watched you interview on february 14th, ceo of twilio and syngrid. i entered at 107 and today the all-time high of 2126. question is do you feel i still take profit off the table or
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still long on it >> i got a conference call thursday and kicking myself. but you got it right don't sell twilio. do not, it is not a trade, it's an investment. jim in new jersey. >> caller: hey how you doing today, big question you've been tolling -- energy, had -- >> loved cheniere since the show began. what do i think? still like it. doing work with the next one but i like that. people say jim you're being a pig on twilio, i'm not being a pig. i think that you -- deal with jeff lawson as visionary
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$15 billion, i think could go to $30 billion. yep. dick's gave us plenty to think about what is happening with overall market you know what is going wrong with brick and mortar. there's revolution going on and vm ware could change the game. find out how and dollar, if the value drops could it be good for rest of the economy? off the charts to find out and is coupe pa still a crown prince or a pauper i'm talking to the ceo stay with cramer >> announcer: don't miss a second of "mad money," follow @jimcramer on twitter have a question? tweet cramer, hashtag #madtweets send an e-mail to or give us a
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call at 1-800-743-cnbc miss something? head to
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over the past couple of weeks things have gotten a lot more difficult for some of the cloud stocks we have a pattern, one cloud king reports a great quarter, then settles off but some better than others, best, vm ware, pioneered virtualization software that lets you run multiplecomputers on a singleserver. a rock solid quarter and stock rallied. still higher from before the quarter. vmware most resilient at present moment check in with sanjay punham,
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welcome back to "mad money." >> great to see you again. >> great note from deutsch bank, in race with new tannics give me the skinny on what you think. >> we had a great quarter, 21% product growth, 16% revenue growth, fantastic. beginning to see separation between the winners and those not doing well vmware, amazon, dell, some of the competitors not good ranked a lot of companies, vmware one, microsoft number two, red hat number three and newtannics number four hard to build with just eggs
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competitors just have one of the products focused on building best software defined architecture. >> is there equivalent of home depot to buy vmware, it's not that simple. >> fact of the matter when you put huge storage management and focus on cost, complexity and carbon 40% of the homes the u.s. energy is how much we literally save in compute impact but storage virtualization has huge roi. and big part that pulls it together is automation like a self-driving car. self-driving data center has all the automation, analytics and
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same way you like the capabilities, want to be so automated, smart and intelligent. >> we had a partner of you guys, how you relate to that think best in show >> we have a special relationship with aws, second or third year of partnership. we've taken that same data center capabilities and built it natively to amazon vmware cloud in amazon many companies and federal sector large customers look at this as way to elastically expand and contract what they need to do in the cloud with the best benefits of the vmware tools but now working in amazon. treat as preferred vendor,
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number one in cloud space and going extremely well >> regarded that as primary part of your company until you're paired with a fabulous client. how did that come together >> votophone, cloud infrastructure for telco clouds. saw that, redid open source stack and 15 countries are running on vmware. partnering for network virtualization and at&t is working in areas, our goal is get every telco thinking about 4g to 5g, vmware is the company to help you in the transition. >> i thought it was compelling if you're just going to be in one thing, networking, you have
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be to be in another, 5g is going to be huge vmware is not one-trick pony but much bigger. and 5g is next holy grail, five years? >> will take several years but agility comes from software and you talked about networking, that business is on fire reason is it's software defined, people invest and optimize the overlay capabilities of networking allows you to do things you couldn't before in data center, securing the center, microsegmentation, expanding into the cloud part of the reason we have special relation with aws is networking capability is second to none. >> and relationship with dell. >> special relationship. economic interests are perfectly
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aligned. and talking about the infrastructure or mobile work space on dell laptops, perfect synergy for them to do well together that's reason seen a good expansion on the business. >> you've talked to me about diversity and inclusion. we have michael dell tomorrow to talk about these big issues. it was international women's day, we didn't do enough on it you made a point of having women at senior levels, correct? >> it's very important i tweeted out in my organization 4 of 6 direct reports are women. that's important in tech we don't do well, 20%, 30%, when 50% of society and african-americans and latinos, we need to create role models. i think it's important that's what i wanted to
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exemplify, but taken it a step further. even in india, launched a program to target women coming back to the work force and teach them for free. had 2,000 people sign up for the program in two months. this is the commitment we want doing well, important to also do good. >> one of our themes for 2019 too, haven't talked and done enough about the issues. >> thanks to sanjay poonem, follow him on twitter, inspirational. back after the break
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i keep telling you there are reasons to be sanguine about the market couple more. dollar finally looks like it's poised to go lower would be gigantic, causes
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analysts to raise numbers for everything from procter & gamble, apple and alphabet dollar has climbed steadily, purges american companies in the face and kicks them when dead. makes exports more expensive and overseas, foreign earnings translate into far fewer greenbacks because of the exchange rate. benefits for strong currency too but mixed blessing vacation to europe, money goes further, nice suit like this in milan, it's buy one, get one over there but perspective of the economy, more harm than good, index fund that mirrors the s&p, earnings boost from favorable exchange
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rate and stock market gets one more reason to rally bulls want a weaker dollar question is will we? most expect it to trend ever higher while allies, even the chinese, everyone is struggling. carly garner is a brilliant technician, author, better of sense of what is going on, she believes the dollar -- gutsy call, but right on many things, thinks is headed lower flabbergasted when i read this this chart of the s&p 500 and the index. garner points out immediate relationship is not always straightforward. s&p can go higher with strong dollar green is dollar, s&p up here
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but long haul, correlation currency moving to higher levels that according to garner prove to be extreme and unsustainable. okay apart from a record breaking rally in 2001 and 2002, hard time breaking above 100. see the 100 here ceiling of resistance for meaningful stretch right now at 97. asking you to look at this kind of thing, more than that axis. why does it matter noticed a pattern. stock market tends to ignore any strength of our currency until the dollar index begins to approach the same levels dollar and s&p can move same direction for a while but mid to high 90s, investors worry about negative impact on earnings and triggers a selloff of stocks
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surged in 2016, spending time over 100 s&p 500 slowed to standstill strong currency wasn't only thing causing stocks to stagnate but didn't help. then dollar peaked and went lower and s&p rocketed see the correlation there? it's important you know this, hidden for most people then the greenback got stronger last year and market had trouble getting higher remember that? why does garner think we'll get weaker currency we need? check out chart showing the seasonal patterns in the dollar index. look at this, this is where we are, people. typically greenback peaks in early march and is slammed through april. bingo. or weekly chart of the dollar index. hard time break out above 98
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and when it happens, doesn't last long. axis was here, now here, doesn't get through it, powerful ceiling of resistance keeping lid on this no one is thinking of this other than carly if it can break out, likely 100 but can't break through. and williams percentage r, measures overbought and oversold it's come up too far, too fast, might be due for pull back as always when this happens really in the zone grapple with the fundamentals. reason that dollar is robust compared to rest of the developing world, perfect economy, foreign investors exchange euros and yen for
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dollars to buy treasury bonds, u.s. stock and u.s. real estate but garner believes the bullish fundamentals are baked into the dollar index two sides to it, not just dollar but every currency greenback against foreign currencies daily chart of the euro, it goes up, dollar goes down unfortunately europe has been a dog for ages but garner points out currency experienced a key reversal, hard to see. thursday pummelled on a bear's forecast but also the day for option expiration and influenced it thinks this was about the options market sure enough bounced on the friday and supported by floor of
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support at $1, 1.27 dd cou could see it go to $1.86 or $1.22 to get it rolling thinks it's going to -- would be staggering may seem like small increments but in world of currency, significant. and finally one mystifying people is british pound. since brexit vote, it's been in no man's land. hard to read but here is where we are, brexit around the corner presuming on schedule, big assumption in line with the levels plummeted to after the referendum never came back. hard to predict situation but i think a real chance that british parliament can't agree and will kick it down the road and pound
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will rally lines up with promising signs from the chart stock market has been held back by strong dollar, just has but carly garner cuttings dollar could be peaking would be amazing and major positive for your portfolio. ryan in washington >> caller: jim, boo-yah. really appreciate all the work you and your wonderful team do >> what a staff. thank you. >> caller: my question for you, with strong u.s. dollar and fed on pause, looking to add exposure to brazil's emerging economy, recommend investing in this market and if so, do you have a favorite? >> no, i happen to think that latin america -- i'm more bullish on that than colleagues but take life in my hands
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mentioning brazil. thanks for the kind comments, don't think i'm out of school but don't like to suggest trades on "mad money," like investments, i don't think brazil is investment dave in new york >> caller: i'm new to your show, enjoying it. never been invested in stock market at all, always different real estate but liquidated holdings and have significant amount to invest somewhere notice that you regularly suggest first 10k to be index fund but regarding a much larger initial investment should that index fund position also be larger a percentage of total holdings >> great question. fits into what i'm feeling passionate about initiative called invest in you,
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ready, set, grow partnership with app can't tell you how important keep the $10,000 -- i want it to grow, grow, grow "mad money" portfolio to be dramatically smaller than your index portfolio. that hurts, based on stocks but index fund first pay attention to acorns for more financial knowledge. carly is alone in thinking this but i've learned she's right far more than wrong. more "mad money," coupa not a household name but not out of nowhere, sitting down with ceo of coupa cloud has been tough and chips, semiconductor led rally, why you need to take note
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and rapid fire lightning round, stay with cramer that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.
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as i told you before,
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cloud-based software companies reporting fabulous results with notable exceptions red hot stocks get pulverized, crazy. cloud stocks are most important in the bull market led whole market higher in january and february and lower after pattern emerged. we need them to start breaking that pattern one of our cloud princes is software platform that helps identify the cloud -- coupa delivered excellent top and bottom line, 45%, earnings guide came in somewhat high for next quarter and full year but what matters to me is the revenue forecast nobody wants to read headline about downsized earnings growth,
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but swiftly gained back and finished down about $3 not a new narrative. still cloud stock going well after quarter. coupa also hosted analysts meeting earlier today, talk to rob bernshteyn, chairman and ceo, welcome back to "mad money. great to see you, have a seat. talking about this pattern, stocks have been the best. want you to talk about how your stock has had remarkable growth last year and this year. just closed out fiscal 2019 with strong, great analyst meeting. give me the bullet points you highlighted today. >> been the same nearly a decade now building this business really strong, growth, careful management of the marketing and leverage of the bottom line.
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feel we're just getting started with this business penetrated less than 10% of the global and fortune 500 driving deals that get customers self-. >> just profiled a client of yours and how do they save money using coupa. >> do a lot more, drive compliance, visibility and transaction flow but data center operations company saves on air filters through coupa. manufacturing company saved more than $5 million on air and ocean freight. retailer saved more than $10 million through coupa. >> i have a lot of companies saying freight is bad. if you have that penetration, that small, lot of these guys
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should be calling you. >> lot of them are calling us. managing our way into the market, not pushing huge marketing campaigns and massive outreach with sales people around the world, managed way. shopify, pelteten, looker, visibility to spend and manage effectively for years to come. >> some saying use coupa pay and want to buy through it, want to embed it it sounds like. >> spend and buy through coupa, why not pay? credit card process, instead of a corporate card that someone makes purchases, virtual cards
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request services you need, virtual credit card number and make the payment simple for end user and company has visibility of the spending happening so can continue to optimize >> good federal business u.s. postal service, that's fantastic client got to save. >> excited about that federal customer over half a million workers at united states postal service, spending billions on everything from maintenance to operations to pest control. we're going to help them optimize all of that, get it to the right vendors and save a lot of money a very significant deployment in federal government >> my utility is national grid they're a customer of yours and integrated with hanna and areeb ba is a competitor but you're
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able to work with s.a.p. anyway? >> we implement connecting to oracle, any erp out there. version of truth as pertains to spend is happening with coupa, the system of interaction for spend. reconcile back to a gl, s.a.p., oracle, others >> 51% billings growth, areva is gigantic, you're growing faster than they are. >> growing rapidly but thoughtfully, making sure each and every customer is getting measurable value and grow from it we're a value as service company. offer value through the technology and best practices with customers. >> bsm for me is bar sam ma gill
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but for you -- you have to learn about the platform >> correct >> that's rob bernshteyn ceo of coupa software, it's down where it should be, going to have many years. infancy, gigantic. "mad money" is back after the break. -i call it my comfortable future plan.
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at >> announcer: lightning round is sponsored by td ameritrade it is time and then the lightning round is over, are you ready? s chris. >> caller: how you doing >> well, how about you >> caller: great boo-yah from boston. >> i like boston what is going on >> caller: i bought wiebe bo
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corp. in august, doubled down at 63. >> i'm not a fan, just not a fan. what can i tell you? just feel it's a dice roll remember ali baba. that's it. rob in kentucky. >> caller: my man, jumbo 145th boo-yah kentucky derby >> good stock. >> caller: fast women and beautiful horses, position in hannen armstrong sustainable infrastructure, 52 week high 5.4%. >> i have to do work i don't know it, closed fund i will find out what they are if i can and come back. jane in new york >> caller: how are you boo-yah to you, first-time caller from queens, new york
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asking about this azaz >> i thought it was good quarter, drone business is good, lot of the defense stocks are down, people didn't like the federal budget for them but i think fine erik in massachusetts. >> caller: how we doing? my stock is nvta. >> genetic information companies recommending them for spec only but recommending them. we've been listening to a lot of cloud-based companies and charles river lab doing technical work like this group. clyde in california. >> caller: been holding schwab in ira for a couple of years, doing well, now a dog. what would you do? >> don't give up on it, bullish
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for 2019 and not bearish so ill-advised to tell you to dump it jamie in missouri. >> caller: thanks for your insight. looking ator mat technologies. >> i though it's not done much lately but i like it very much that's the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade.
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why do we like a rally led by semiconductor stocks? what makes them better leadership group than the transports, down ten straight days, health care stocks, investments in banks simple, have tentacles in everything housing punches above its weight, housing strong, strength might spread to banks. in data economy, semiconductors punch above their weight like housing. nvidia in faster growing, nxp 7 on the auto works side, there's a lot of sides but semiconductor drought,
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started, each side peaked. rolling over first, skyworks, lot of exposure to china, cratered when trade war took off. then qualcomm gave up on takeover attempt u.s. regulators blocked deal and chinese regulators and lam research, smelled a peak lam confirmed as stop in orders. saying that demand remained strong as flash memory peaked. saying that more sophisticated and harder to make still commodity chips and too many of them micron began decline, stocks in
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half then broadcom astonished the world acquiring ca, comeuppance. and didn't need approval from chinese regulators nvidia blew up in spectacular fashion. something also hit amd but never loved the way nvidia was, amd, talk about a comeback, starting now. no more deals, glut of commodity chips, peak in data center, gamut painting a picture of worldwide slow down and inability to consolidate overpopulated group and yesterday everything changes nvidia is doubling down on data center and artificial
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intelligence relations could be for real. also don't want to bet against apple catches up part of the hope that glut of chips could be gone and apple could be buying chips again in large numbers we don't know. there's no auto turn but don't want to bet against. demand better than expected for micron and lam and the semis punch above their weight stronger global economy and positive view of the trade talks about china. i doubt gaming chips are so horrible they can keep weighing down rest, including nvidia and amd. that's a lot of research about the market but so many stocks caught up in markets that seem more solid than people think now what
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semiconductor stocks changed marketer perceptions to the positive i would buy any i just mentioned anytime they pull back stick with cramer. your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.
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the other day when cvs, charlie victor sam, was down at 52, bemoaned so bad couldn't say the name whispered it charitable trust, i knew i had been wrong don't like to say but bernshteyn recommends it and two insiders plunged down $500,000 to buy stock, including dave doerman, old friend who doesn't throw money around idly. bernshteyn piece not complementary of the pharmacy but liked it like to say always a bull market somewhere and i will find it for you here on "mad money," jim cramer, i'll see you tomorrow.
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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." ♪ narrator: first into the tank is a twist on a classic middle eastern favorite. hello, sharks. my name is jesse wolfe. i'm a ucf student from orlando, florida, and my company is o'dang hummus. today, we are seeking $50,000


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