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tv   Mad Money  CNBC  May 20, 2014 6:00pm-7:01pm EDT

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mostly everything but tesla impressive the way it bounced. keep that in your focus. >> i think it is time to get frickin' short to borrow tepper's words. >> i'm melissa lee, thanks for watching. see you backfocus. >> beakers? >> i think it's time to get short in tapper's words. >> i'm melissa lee. meantime, "mad money" with 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. 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 fewer days like today. my job isn't just to interta intertape -- entertain you but to teach you. call me at 1-800-743-cnbc. tweet me. sometimes i like to reminisce, about what the stock market was
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like for the past 35 years until probably a month and a half ago. i'd like to stroll down memory lane. recall how stocks used to interrelate with interest rates. only recall with horror how this market now acts as if history has stopped repeating itself entirely. as we experience another insane day. where bonds flew higher. rates went down. yet, the stock market, it got hammered, mercilessly. dow tumbling 138 points and the s&p dropping. for a grizzled veteran like myself, it's like the whole world has been turned upside down. understand, since 1979 that's been one thesis and one thesis only. when interest rates rise, stocks go lower and vice versa. interest rates in the stock market's competition, it can be a really potent competitor. what drives rates higher which
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causes the federal reserve to raise short term rates to ensure we don't end up in the inflationary world where places go sky high as they did for real estate housing for the great recession. or rates can go higher simply from other kinds of inflation as buyers demand higher returns to off set that inflation. rates can rise if the government needs to borrow too much money. if the treasury offers too many bonds that will drive up rates. supply. which is among the bonds started the bond buying program. it didn't want to push up the interest rates when the rates needed to be low to get the economy moving again. so now, sorry to give you such a painful lesson but you need a painful lesson. what drives rates lower? pretty much the opposite. declining loan demand. might want to buy a house. everyone does that collectively, interest rates will go lower. keep supply tight. or they can decline because the
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government has less need to borrow money. because the deficit is shrinking thanks to higher tax receipts or foreign investors don't like their own bonds. remember when bond prices go up, interest rates go down. any one of the reasons can cause rates to decline. now, in the current decline, in interest rates, all i can say is it is subject to many different interpretations. let's give it that. some feel it's a lack of supply. and while the latest government data shows a huge surge in buying. another interpretation is the one we're stuck with today. it's far more nefarious. rates are going down because this country has failed to generate any real economic growth and is slipping back. on days like today, we tend to forget that employment has been quite strong and that loan growth has been good. i can think of the figures every week from the fed. you see the numbers all the time. they're good. we're oblivious to the growth in
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non-res den shall construction or the boom in oil and gas that's begun to impact the states. new projects take advantage of the lower prices of fuel as we talk about all the time. instead we take our cue from the weakness and say here comes the recession. yes, i actually heard that about a dozen times today. here comes the recession. so we should sell all stocks because they're only up here because the economy is getting better, but bonds tell us it's over and getting worse. i buried the word recession, because i think it's false and incendiary to suggest we're on the verge of one. but because many mentioned it, i have to at least acknowledge the sacrosanct right to be wrong and obtuse about what's driving stocks. on any given day, we have more than just the bond market making it feel negative. we had retailers signaling
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weakness that means that the consumers will spend on anything, an pafrl, teenage tchotchkes and handbags. that dove tails with the rates or reinforces it. then we get data out of caterpillar which has been the hottest stock. which calls into concern the non-residential that i talked about. and of course, a lot of trouble with cat stems from weakness in mining equipment, however, the part of cat's business that we care about, industrial construction, was up 17%. completely nullified the negatives. but when the market gets into this kind of funk it doesn't want to hear the other side of the story. home depot, largest retailer in the world said that it was very robust, used the word robust many times. does anyone care? no. hey, we hear nightly on the show that oil and gas businesses are drilling around the clock and scores of factories and refineries and processing the
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stuff, increasing new housing starts, apartments or otherwise. totally ignored. jobless claims from last thursday. best in seven years. rendered irrelevant because that was four days ago. those bullish facts didn't fare -- they didn't come into play in today's bearish story. they don't fit the bearish analog. so in days like today they get overlooked. we focus on the correction. the big correction. of course seen by gurus all around the world who now insist on a 22% decline. who wouldn't want to bail if we knew that was coming with the recession just a quarter or two behind? hard to say this stuff. but i'll do it. so what happens next? i'll tell what typically happens in the second day after one of the doozies. first buyers kick the tires on stocks with companies with terrific dividends. you think pepsico, kimberly-clark. and buyers will select the stocks of companies that can grow regardless of economic
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environment. now, namely the momentum names when we thought growth was weak. as the consensus now seems to be saying it is again. that would be which would tell you that given the it fact that it beat the metrics if the stock goes up we're in that world. some of the buying happened today. but it was overwhelmed by computers which spit out instructions that say, rates are going down, sell all stocks. it's like -- it's like a marionette. that short term thinking which flies in the face of everything in history except the great depression period takes hold. that's all the rabid dog machines need. the interest raets are going down and staples, caterpillar and dick's shows us, taking our cue from the big boys. that means sell stocks because we sold stocks last time. sometimes the market is precisely that stupid. no one ever said the market was
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run by those who make brilliant decisions under fire. here's the bottom line. on days like today, a wacky darn mind all its own, one that can reverse itself on the next piece of data and imagines it hears as it did all day today. jude in new jersey. >> caller: hi, jim, how are you? >> i'm good. how about you? >> caller: okay. first of all, thank you for all the money you helped me make. >> you're quite welcome. thank you. >> caller: thank you. number two, you have a terrific staff. people don't appreciate how good they are. >> i have the greatest staff in the world and they brings me four packs of smarties to keep my energy going. >> caller: i have a question related to the stock market. now that red lobster has been divest dive divested from darden, is garden a good investment? >> i went to olive garden -- couldn't even get in the line on the way to j.c. penney. i said this place is so poorly
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run, how come you can't get on the lot on any olive gardens i go to and they don't make enough money? the answer is yes, good riddance to red lobster. but let me see the proof of olive garden turning around. the market has seen only one side of the story right now. i won't use the "r" word. this market has a mind of its own. apple has been quite the mac daddy. up 15%. is the run done or just getting started? the results are out for salesforce. i have an exclusive with the ceo. it's determining tomorrow's action. plus, today's declines -- well, let's say they your had undies in the bunch but i have a stock booming off of boxers and briefs. don't move. "mad money" is back after the break. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to
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those of you who watch the show frequently know i don't put too much faith in the charts. i think if you want to make money in stocks you have to know something about the actual companies these stocks represent. how their business is doing. whether it's getting better. getting worse. whether stock's valuation makes sense and whether the kind of numbers whether it's operating cash flow or whatever you want to use, that the company is generating underneath. however, i do have a lot of respect for what the charts can tell us, particularly in a market as wild as this one. and sometimes the forecast of these professional chart watchers are so accurate it's kind of staggering which is why i devoted a whole chapter in "get rich carefully" to explain how you can use the charts to be a better investor by marrying them to the fundamentals. the facts about individual companies, i'm always going on about.
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and that's why tonight we are going off the charts with the help of someone who has been so uncandidly great. it's amazing. i'm talking about a brilliant technician who runs the fibonacci queen website and one of my colleagues at real i asked her to analyze two different tech value stock, apple and ibm. make no mistake, they represent real value here. not the sales enterprise. actual value. the latter is selling for an absurd 9.3 times next years numbers. hence why we open both in my charitable trust, and we're technically inclined but not that much. when it comes to apple, broaden has earned her title. she's become the queen of calling this stock. the last time we checked in with her, it was back in january 13th. apple was traded at 535. and she said using her
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disciplined mathematical record it will go slightly below 500 and then rocket up to as high as 603. sure enough, couple weeks later, apple bottomed at 499 and then began to climb steadily until it hit 604. isn't that incredible? i mean, right at her target. if you bought on her say so, you had a gain in four months. and now that apple has met her short term target where does she see it going next? the same method that allowed broad on the call this big run from the bottom, okay, well, it's making her feel cautious about the stock right now. she is not about looking for pictures in the action, the head and shoulders, the cups, the handles as she is about rigorously following her mathematical patterns. her analysis is based on the
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work of a mathematician, leonardo fibonacci, sort of the man who one who discovered pine cones and petals in flowers. for whatever crazy reason these ratios do seem to show up at key points in the stock charts too. sew so she looks at the previous stock price and runs through it through the prism of the fibonacci ratios to find where the stock is likely to change course and it works. that's how in mid january she predicted that apple would bottom and then rebound dramatically. the problem is that the fibonacci based method is telling her that apple could be due for a temporary pull back. what exactly is the problem here? okay, as soon as apple broke above 597 on friday, you have to keep track of all the percentages it made a 127.2% retracement of the previous december to january decline.
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now, for chartists, any fibonacci retracement of over 100% is known as an extension. and broaden points out many moves will terminated the extensions of prior swings. now that apple has crossed this extension she thinks it's wise to ring the register on some of your position. obvious, broaden can see apple going higher here. she can make a case for 625. however, because apple has hit this key fibonacci extension point it's in a vulnerable position where there's much greater likelihood of it getting hit with a downside correction. for those of you who think this is mumbo jumbo she has examples of this happening. look at netflix. here's a stock that peaked in march, not long after it retraced 161.8% of the prior
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decline. that's another key fibonacci extension ratio. netflix got hit with the $145 decline. i want to avoid that. why don't we go to the chart. it made a 161.8% extension, and right afterwards the stock stopped rallying and tumbled 45 bucks. of course these extensions work both ways. look at linked there's daily chart. when it declined enough to make 127.2% extension of the previous swing back in february, the stock put in a temporary bottom. and it caught a quick 32 point rally. the point though is when the stock gets extended in fibonacci terms it's often signaling that it can be reversing its trajectory. apple has been rallying as broaden could be worrying it's in for a short term pull back. on the other hand, when a stock gets extended to the downside,
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broaden believes it can signal a terrific rally is about to occur which is what is happening in one of the most hated stock i know of -- ibm. if apple's a victim of getting extended to the upside, ibm is on the downside. look at the weekly chart of ibm. ibm's recent low in february, the stock meant not one, not two but three key fibonacci extension in priors swings. 172 level. the stock bottomed at 172. she actually really called this one like to the dollar. since then, broaden points out that the low has held and while it's pulling back it's not extended -- not extended at the levels. in fact when she looks at the daily chart, broaden thinks ibm is not just buyable, but extremely buyable here. she's got to be the only person who feels this way. first of all, the stock is
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sitting right above a thick floor of resistance made up of fibonacci levels running through 185. second, when broaden applies the fibonacci methodology to the x ax exof the chart, she notices that ibm could be meeting a confluence of fibonacci timy cycles between today and friday. talk about precise. again, the fibonacci ratios about where it will change course, so ibm could stop declining and start rallying this week. contrary to what everyone is thinking. the chart as interpreted by the fibonacci queen who earned that title about apple suggested it's time to get more cautious on apple after this big run and more bullish on the hated running dog ibm after its recent pull back. i don't think the charts hold all the answers. i'm a fan of both stocks here. but broaden's work is definitely something to keep in mind going forward. why don't we go to dean in kentucky. dean? >> caller: yes, sir, howdy, jim.
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>> how are you, dean? >> caller: i'm doing fine. how you doing? >> i couldn't be better, thank you. i have a great staff here. what's up? >> caller: i have a very important question about cisco systems. since john chambers had be bebeen -- lately, do you think his stock is a buyout candidate and where do -- >> no, i don't i it's a buy out. i think they reported an excellent quarter. it was surprisingly better than that. i think it's cheap, got a good yield. it's a value stock with genuine upside. i like what chambers is doing. apple and ibm, two real value tech names but still different stocks. when a technician like broaden says to get bullish on ibm i think it's worth a look. still to come, hanes brands has you covered when it comes to tighty whiteys and t-shirts but
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can they give you the right support? i'll try it on for size. but first salesforce reported and after the break i have an exclusive with the ceo. don't move. "mad money" will be right back. tomorrow, kick off the trading day with "squawk on the street." live from post 9 of the nyse. >> the ceos that come by say can i press this button and then they hit bye-bye bye. >> it all starts at 9:00 a.m. we needed 30 new hires for our call center.
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last time reported back at the end of february, the into of the market changed dramatically. the momentum was falling out of favor. it delivered a terrific quarter, but it didn't matter. the stock crushed the next day. since then the crm cohort has been a house of pain. sales just reported after the close tonight and i think the market's reaction to this quarter could be every bit as important as the reaction to it last time. especially since the company delivered strong results at least from the street was looking for. one cent earnings beat off a ten cent basis. but the revenue came in higher than anticipated. up 37%, deferred revenue, also exceeded expectations. up 34% and perhaps the best of all, salesforce had better than expected operating cash flow. all that said, if the market
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keeps thirsting for the stocks of decent growing companies that have reasonable valuations with solid earnings and big buy backs, nothing here at all that can rekindle interest despite the outsized and superior revenue and cash flow growth. let's check in with marc benioff, charge and ceo of to hear more about the quarter and where his company is headed. welcome back to "mad money." >> jim, thanks for having me back. >> marc, we're all searching these days for a how to measure high growth companies. what are the metrics that give you the most true picture because sometimes earnings per share don't lead to the right conclusions. i have felt that the best and most transparent one for you is operating cash flow. because that's how much you make. and i was thinking that you could do between 335 and $349 million, up about 23, 24, a combination of what oppenheimer said, wells fargo and bemow and
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you came in at $473 million. so something -- must have been very big mega contracts to be up 67% year over year. >> well, jim, you know that i measure success by our customer success. that's always the most important thing to me. we have talked about that. that's what i focus on each and every day. that said you're right. this was a great quarter and you can see it in the operating cash flow with these incredible numbers that we're delivering in our report. >> now, is the makeup different this time? are there -- are there -- are there deals that are equal to say a tenth of that? did you sign some deals for -- i mean, what are the biggest deals you signed? >> well, jim, we had a great quarter and you can see it at the top line. let's not get away from that. we delivered 37% growth in this quarter and i have to say, you know, if i was on the show a year ago, i'm not sure i could have told you that we would have grown 37% year over year. this is amazing.
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$1.25 billion in revenue for the quarter. a huge congratulations to my team for that amazing delivery and really to tell you we're delivering well across all of our metrics. you know, we have a full portfolio of revenue. we have small and medium businesses, large businesses. yes, we have large enterprise businesses as well. >> let's go over the verticals. what i was thinking maybe the market was saying well oracle is not going after you as a platform. but going after the verticals. how was health care for instance which i think is important because of the affordable care act. >> well, health care is great. a major deal we did in the quarter was with manual life it was a fantastic opportunity to help them connect with their customers in a whole new way. it has challenges to be able to use new technology. the cloud, social and mobile capabilities, to find new ways to connect with their customers and that's what we're doing for them. >> how about retail?
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>> well, for retail, of course, we have phenomenal relationships with great companies like walmart, like the gap. like the limited stores and all of those customers did great things for us this quarter. >> financial service, some new customers or the people you have interviewed for instance work day which has good luck as of late. >> will, we have had a great quarter actually in financial services. of course we have a great relationship with bank of america, continues to be a great customer of salesforce, as well as the major banks and one of the largest transactions was with cigna. which the insurance industry has really performed well for us this year. >> okay. can you get -- you did not give us any breakdown for foreign exchange. i know that i was -- as soon as i hang up, you're going to say why didn't i ask him because foreign exchange has played havoc with other companies. you don't break it out. >> it's mostly stable. we have actually talked about when foreign exchange is really difficult in the quarter. i mean, i have been coming on
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the show now since november of 2008. and over those many shows, there's times when the euro of the yen are doing unbelievable things. but we see a lot of stability in foreign exchange. that's helped us in the quarter. >> okay. you have seen the way that the group has acted. i don't want to say that it's irrational or rational because your stock has been phenomenal over the years. but do you think that there is a sense that it really doesn't matter what you do, because you're not buying back stock, not offering a dividend and not giving earnings per share that makes it ten times earnings? >> i have to tell you the same thing i told you november of 2008 and you asked me the same question. and what i'm going to say is my job is to focus on my customer's success. this technology world, jim, is changing very fast. the world is going to the cloud. you know that. it's going to social networks and it's going to the phone. and i'm running my business from my phone today.
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the shift in technology, the shift in our customers' needs to be able to connect with their customers in new ways is really what's paramount to me. and so that's what i'm focused on and i have to leave the stock market to you. you know, if you want to ask me about the technology industry i'll tell you all day long. but the stock market i'll have to, you know, leave that analysis back to you, jim. >> well, you did -- in the content of the social mobile cloud but this release is a lot about -- most of your website these days. the 50 billion connected things, the internet of connected things. how does salesforce fit in with the 50 billion different connections? >> it is amazing what is happening. of course we have the cloud exactly like you said. 5 billion mobile phones but there's really a trillion sensors that are getting installed in the world.
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every devise and every part of our life and all of those thing, are creating an internet of what we call things or an internet of everything or what we like to say is an internet of customers because behind every one of those sensors and behind every one of those posts on social networks and behind every one of those phones is one of your customers and it really creates an opportunity for you to connect with them in a way that you haven't been able to before. and that's what salesforce is doing. it's giving our customers tools for sales, for customer service which is completely transformed for marketing. and deep customer engagement. one of the most exciting things we rolled out this quarter was for home depot and an amazing new site for all of their customers to work with them in understanding how to use all the products that home depot is providing. those kind of communities are more important than ever before. so when you look at the internet of things, when you look at the sensors, when you lock at all that's happening, just realize
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it's more important than ever before to connect with your customer. >> one last question, marc. during the ipo period i know it's the stock market's mind, whatever, but you have seen a lot of companies become public that say they're a cloud. are there faux cloud companies and are we seeing too many me too players that wouldn't know what to to with a salesforce crowd? >> i think we know what the cloud is. it looks like a google, yahoo! or salesforce. as a service that you're using over the internet. what we call the technical term is multitenant, a shared service. and the cloud is not a private cloud or something running inside your company and for companies who have kind of put it out there that they're cloud providers but they don't deliver that service, well, they're not delivering the service, well, then they may be exactly what you're saying a faux cloud
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provider. don't forget the future is the cloud. it's social and mobile and connected and engaging with your customers and that's why customers are turning to salesforce. no one is helping more customers connect with their customers than salesforce. >> well, i know if operating cash flow, my metric does matter, then the stock is going higher not lower. but it's a difficult market to figure out. marc benioff, cofounder and chairman and ceo of salesforce. >> great to see you. >> understand, this is a very difficult market to figure out what they want. but if you want to know what the expectations were versus the beat, salesforce delivered on every single line. stay with cramer. coming up, boxers or briefs? hanes brands is giving you a nice lift. up over 15% this year alone. but is it still the right fit? or should you go commando? don't miss cramer's take.
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what the heck is happening with hanes brands? hbi. it's totally on fire of late, the stock is up 16% year to date while the rest of the apparel space has struggled. not only that, but hanes has given you a double including
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dividends since i recommended it 14 months ago. leaving pretty much every other player in the dust that's the kind of move associated with high-flying tech stocks. not a maker of underwear, socks, bras and t-shirts. i know, software as a service? underwear as a service? oh, doctor. hey, what's going on here? how has hanes managed to run so much and can this move continue? this might surprise you, but the truth is that hanes brands is among one of the best apparel companies on the earth. i think it actually goes higher after we finished with this retail inspired down turn of course. at a time when retail has come at best inconsistent, hanes is totally consistent. hanes is not only adorning, but it's kicking butt. when the company reported the first quarter results back at the end of april they knocked it out of the park. delivering a heroic 18 cent
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earnings beat. man, that's unbelievable. off of a 76 cent basis. more important, 180 basis point rise to 10.8%. two percentage points better than what the analysts were looking for. you know what that means they're making per every one of these things. and remember, this was the first quarter when the cold weather was so horrible that no one was supposed to be buying anything? hey, if that's how hanes does in a quarter that's supposed to be super difficult, can you imagine how well they'll do the rest of the year? now that the weather is nice and sunny? management did tell us the point of sale numbers are trending higher since april, up mid sing single digits. a lot of them kept their guidance in line. how is hanes putting up tremendous results? simple. hanes brands is not merely a maker of underwear anymore. but a well oiled machine designed to produce profits. first of all, the portfolio bedrock brands that we all buy,
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bali, and champion and maidenform bra business. we don't all buy these, but which they bought in october. this gives them the pricing power to sell at a premium to weaker brands without scaring away the customers. second, it's terrific operator that's really improving. what sets them apart they own most of the supply chain. currently over 80% of the company's products come from large-scale facilities and dedicated contractors and low cost country. they manufacture stuff in vietnam. i know prices have gone up a little bit. it gives them the ability to manufacture really inexpensively rapidly scaled productions. when hanes internizing production they can achieve 15 to 20% cost savings. i think they have the manufacturing side of the business down to a science. third, it's an innovator. they do a lot of -- they innovate. in fact, this is exactly the
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kind of stealth technology company i write about in "get rich carefully." sort of the under the radar version of under armour. i realize this sounds far-fetched but consider the new products. there's the comfort blend. you know the commercials with michael jordan, and a guy wearing a shirt made out of kittens? i wear this stuff. or how about their play tex flexible fit technology for self-adjusting bras that mold to your shape, i don't wear this stuff. you don't need to hunt through different cup and band sizes, and yes, as a father of two daughters i know more about buying bras than i ever wanted to. then there's extemp. yes, the shirts and underwear that are designed to adapt to the temperature in order to keep you cool and dry. pure brilliance. it's not just under armour that has this kind of thing. if i was a child i would have loved this, tagless! they take out the stupid darn
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tag from your t-shirt or underwear. it's been itching since i was born. fourth, hanes is aggressively expanding the athletic wear market with champion which has seen a 10% increase. plus, you have to go to modell's, the sports academy. they're rolling out a shop for champion. this is up in 35 where the champion has managed to put up a 50% rise and a 15% increase in floor space. remember, dick's had only glowing things to say about apparel. then there's the maidenform takeover and the future for acquisitions. it has the $583 million deal which closed last october. management has been executing flawlessly. they plan to internalize maidenform next year. it measures what a company makes with four things like interest
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and taxes is in the low single digits. hanes thinks they can boost it to 16% by 2016 so there's tremendous upside. it's not done giving yet. given how much money hanes can make by acquiring other brands and by bringing manufacturing in house i think it's terrific if they make another acquisition like maidenform. i bet another deal could be imminent. as the ceo came out last month and said there are quote, it was a -- quote, no constraints to an acquisition or lack of opportunities who says that unless they're about to do something? if they can't find anyone to buy, they can return that bountiful cash flow to you the shareholders. it yields 1.5% or initiating a buy back. the companies throw off a giant amount of cash. however, not only is hanes brand a fabulous operator, but even after this run the stock is
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relatively cheap. sells for -- and considering the history of giving conservative guidance, they underpromise, they overdeliver. the excitement was palpable in the latest conference call. they have been roaring because they're firing on all cylinders. i think this $81 stock could be headed to the 90s and beyond. all that said, we don't like to chase "mad money." oh, if you caught a double base to my recommendation, don't be a piggy. ring the register on half your position and play with the house's money. do not move. "lightning round" is next.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? craig in pennsylvania. craig? >> caller: booyah, cramer. my man. how are you feeling today? >> i'm doing good. how about you?
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>> caller: that's good. you mentioned a stock the other time ago. a competitor is coming out with drugs in the same field. i don't -- it's g. with pharmaceuticals. >> that's a british company. i don't think anyone can challenge them in this country what the heck do i know? let's go to bob in new york. bob? >> caller: hey, booyah. >> what's up? >> caller: hey, as far as -- i want to ask you about pioneer natural -- >> pioneer is flat lining at the 200 level, but i think this permian place which they have is amazing. the stock will go up over time. i really like it. isaac in pennsylvania. isaac? >> caller: hey, jim, how are you? >> i'm okay. how about you? >> caller: just fine. thank you for taking my call. >> you're welcome. >> caller: my question is about
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aetna. >> i think aetna is a terrific, terrific health carost containment play. i think the whole group is on fire with the exception of united health. john in new york? >> caller: hey, booyah, cramer. >> booyah. >> caller: thanks for taking my call and for your help. what about popeyes? >> it's taking a breather, but the long term thesis is good. i know the stock is down from 44 down to the high 30s. you know what? long term performance is what matters here. i think the stock does go higher as they remodel the store. let's two to ken in virginia. ken? >> caller: big booyah to you. how you doing? >> i'm doing well. how about you? >> caller: i'm hanging in here. after getting my feet wet, thanks for getting me in the game. >> you're welcome.
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>> caller: question, gbx. >> green briar. i prefer trinity, if it can go back to 75 that's a buy buy buy. that is the conclusion of the "lightning round." [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade.
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just not enough good retail news to outweigh the bad. that's today's judgment and it colored everything in the market. every day we come to work in this business we make a new
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assessment of the world. of course part and parcel of that, we forget the old assessment. it was based on the four key retailers, staples, urban outfitters and dick's sporting goods. i would say it includes home depot too, but they didn't fit the negative thesis. that's because to do it yourself store took pains to say that may unlike the weather impaired months was robust. and for a business like home depot which can have sales carry over into another season as opposed to the lost forever power plays this was excellent news. should we take from our cue from the four poorly performing retailers? that was a tough call. let's break them down. urban outfitters tumbled 8% today. it had miserable performance at the flag ship chain. it didn't matter to a soul that it's terrible, the excuse is miserable. no one seemed to care that
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anthropology house is putting up good numbers. expensive teen division is the fastest growing of any i foal lie. the only conclusion people wanted to draw from urban the once great growth retailer is slowing because of a sluggish and hard pressed consumer. the consumer -- shopping at free people and an throw poe ji too. if we look at staples, down 12.6% today, they can't reap any real benefits from the merger of office depot and officemax. it includes big store closings. the read through isn't that staples doesn't know what it's doing which is my conclusion. it's the very damming judgment that small businesses aren't spending. no one thinks that the business person is spending at office depot or conclude that's office supply shop could be the reason here. dick's which had a monstrous 18% decline today has thrown itself on the hunting and golf sword.
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even though it called out apparel and footwear as positive. no one is listening to that. stock was crushed on you guessed it a weak consumer. when not in doubt invoke shakespeare. the fault isn't in the stars but with the management. follow, tgf's which dropped and it was a bad one. it was a true disappointment. very hard to explain because they have been so consistent. and the ceo is a phenomenal discount merchant but you have to wonder if she lost business to the resurgent j.c. penny. when you see plus 6% at penney, those new sales come from somewhere. i think it's coming from tgf. home depot has the pulse of the homeowner and the winner really decked the beginning of the quarter. it also became clear that number, well, they wouldn't have to be cut at all. that's all that matters. i think home depot should trump the whole quartet of dick's and
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tj. each day we reassess the whole economy based on the meager data we have. i think we should reassess the assessment. i don't believe things are nearly as horrible as people make them out to be. the economy my friends is a continuum. the numbers i heard were heavily influenced by weather or poor execution. i'm just not buying the end is near theory that's been gaining a lot of steam in the last 48 hours including people saying the market is going down 20%. i think it's business as slightly less than usual. allowable. and not that calamitous.
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when we arrived at our hotel in new york, the porter was so incredibly careful careless with our bags. and the room they gave us, it was beautiful. a broom closet. but the best part, / worst part, was the shower. my wife drying herself with the
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egyptian cotton towels, shower curtain defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. with millions of reviews, a visit to tripadvisor makes any destination better. two things i heard all day today, one, we're going to have
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a 20% correction, two, we'll have a recession. they seem a little far-fetched to me. i always understand that it's worth taking a profit if you have one. but the market is up a great deal. recession, i just don't see it. i like to say there


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