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tv   Mad Money  CNBC  July 30, 2019 6:00pm-7:00pm EDT

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pin stripes. my question before "final trade" is thor a met this time tomorrow yes or no, melissa >> yes. >> yes, he is. >> nice job, mel. >> mckesson after the bell tomorrow goes higher. >> see you back tomorrow at 5:00 for more 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 [ cheers ] [ applause ] >> hey, i'm cramer welcome to a special summer in the street edition of "mad money" from the heart beat of the market, the new york stock
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exchange welcome to cramerica other people want to make friends, i'm just trying to make you some money my job is not just to entertain but teach and coach you. call me or tweet me @jimcramer how the heck are we supposed to figure out what is going on when the president of the united states starts bad mouthing china when his hand picked team of the negotiators is set to have a state dinner with chinese counter parts? these trade talks are so important, no wonder the market is confused. down hard on trump's tweets or betting on the hope the federal reserve will bail us out with a rate cut tomorrow afternoon that we certainly need. that's why the dow closed down 23 points, s&p dipped 2.6% and nasdaq lost 2.4% maybe the president, maybe it's not a brilliant plan here. i can see where he's coming from man, it does not inspire confidence about these trade talks when you tweet stuff like my team is negotiating with the
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now but they always change the deal in the end to their benefit. they should probably wait out our election to see if we get one of the democrats like sleepy joe, then they can make a great deal like in the past 30 years end quote. all right. i didn't find that all that reassuring china trying to wait trump out is the nightmare scenario for the stock market trump advising them to do that is less than ideal when he goes on to say we have all the cards, i think he's telling us to get ready for another round of tariffs this time on the last $320 billion worth of chinese exports he hasn't hit with yet to me this rhetoric doesn't make sense unless the president needs to undermine his treasury secretary trying to get china to buy something, anything as some show of good faith [ applause ] >> all right you know what? forget that. forget it.
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let's boil it down let me refrain this. i went to philadelphia last week to address the eagles at their summer training camp they had refs to explain new rules to the players i wish i could convene the zebra stripe refs now because i think they would throw a flag and nail a president for taunting, setting him back 15 yards. there are no real referees when it comes to negotiations between the two most powerful countries on earth believe me, you know, you watch, i am very sympathetic to the president's arguments on china i'm in favor of them he's not wrong but just because something is true, that doesn't mean you should tweet it to the entire world. i found the timing terrible. more than that, trump is making one major mistake. not all of his potential democratic opponents want to go easy on china. senator elizabeth warren is pulling strong i think she will win iowa and if you look at her platform, she wants to be tougher on the
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chinese than trump is by far that makes sense warren wants democrats to go back to the party of organized labor and free chad dtrade devad the market she wants to blast him for dumping the pollution here president xi may not be watching tonight but if you hope to wait out the trump administration, it's the devil you know and not too late to headache a deal with the devil, at least the one closing the door it's harder to tell than you think. one thing is for certain, the strong quarter from apple just tonight wouldn't have happened if this tariff tussle gets out of control kleenex knnitpicked a slowdown wearables and services are a huge service for apple bigger than a fortune 50 company
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in less than the time tim cook was ceo. do not dismiss the streams or coming credit card street. that will produce more revenue than anyone on wall street is expecting including the uber bulls will be able to have a long term value of a subscriber when this is done, own it, don't trade it what else? lately we had a slew of reports showing american companies are cutting back exposure to chinese manufacturing. the old restoration hardware ship in sourcing and blew away the numbers and fell to $8 today. thanks to the leadership of its ceo gary freiedman why? they say it's and i'm quoting from the report a result of lower demand in the chinese light duty trucking construction markets, end quote that's closed down $8. that wants you want to flee from industrials and hide that
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benefit from lower interest rates like the one we're supposed to get tomorrow d.r. horton say making a fortune, great quarter or treks makes plastic decking that looks like real wood i got it you can't tell both split hard. it's up 19% as its adding capacity to meet rising demand i love that. thank the companies that make building materials like martin marietta no wonder the stock is up 10%. that's the thing that might force the fed chief jay powell tomorrow to reconsider the rate cut but we've had eight bad -- we had so many bad quarters from the industrials that i think it won't deter him. should powell be worried that he'll be being perceived as browbeaten by the president into cutting rates when a bunch of economic indicators and reports from companies are doing well? is the thing, if i were jake powell i would be thinking quote, you know what, if i don't cut trump will slap tariffs on
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the last $320 billion in goods from china and cause an instant recession. in fact, i can draft the perfect script for powell right now. here is what he should say i know he probably doesn't want it from me but he's also watching close watcher. he should say quote, we would like the economy to stay strong but because of the possibility to experience a shock at the system and jay, stay with me the surveys indicate the tariffs while necessary in part to create a level playing field for the chinese are leading to a slowdown in some sectors and it's important the fed stay vigilant in the face of weakness we'll be depending on data to see including data that might be a sign of faltering economy because of tariffs and the carry on effect to the consumer. your job is done, say that
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think of it as the perfect way for powell to get diplomatic jobs without resorting to trump-style funny name calling that your or my mom wouldn't like make no mistake, if the trade war escalates, we need the rate cuts here is the bottom line. taunting does not trade policy make but it sounds like we're about to get another round of tariffs. thank heavens powell has our back because the president is too busy see stabbing his own securery secretary in the back to accomplish anything positive. yes? >> hi, jim, what do you think on the capital one data breach and how do you think it will affect the stock? >> i'm sorry >> the capital one data breach. >> this is one that a lot of big credit card companies, the data breach we're focused on, they are wrong. we just had this equifax settlement and nobody got hurt as soon as someone has to get really hurt for this to occur,
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it doesn't matter. i'm not recommending capital one but i would buy apple with the best part of all thank you so much for a very consid considerate question. >> i came all the way from dallas, texas. >> dallas, texas what's the team there? the football team -- >> dallas cowboys. >> go ahead, go ahead, go ahead. >> yes, you mentioned before your daughter used shopify as a platform. >> absolutely. >> how far do you see shopify going? >> 36, $37 billion i have to tell you something, it's shocking to me adobe or sales force hasn't bought it but they don't want to sell. it's the engine and empowerment to small and medium-sized businesses i love them. not a cowboy fan i'll never draft a cowboy, ever, in fantasy ever sometimes you have to get passionate, yes, sir >> hey, jim, a big boston belichick boo-yah to ya. >> why does everyone have to hurt me?
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where is philadelphia? my executive producer has not picked a single philadelphian for as long as i've done these outside shows. your assignment. >> considering the trade dispute, the potential listing on the hong kong stock exchange and the future 8 for 1 split, what are your long and short term views on alibaba? >> the large's company that trades is a chinese company alibaba and happens to be the only chinese company i'm recommending because when you look at financials, it looks like an american company you seem like a smart fellow but the belichick thing leaves me cold my take is you should buy alibaba. this is it trump has mastered the art of taunting, 15 yards which isn't much of an economic policy but good in football. it does indicate more tariffs
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could be coming. let's hope chair powell takes us on the straight and narrow on "mad money" tonight, it's summer on the street i'm coming to you straight from the new york stock exchange and is brown and musk, yeah, the elon musk of meat. i'll tell you how the ceo is a visionary despite today eavesdrop and i'm tahanking my president and i'll talk about the action just ahead so stay with cramer. >> announce >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an email to or give us a call at 1-800-743-cnbc
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with levi straon the public market, should they get the portfolio? >> investors get too excited about ipos you might have great gains but then something goes wrong and the stock comes crashing down. that is not the company's fault often. i want to take levis they came public in march. they have a stock too expensive trading around $22 and change and said maybe wait for a pull back below 20. levis reported an okay quarter management didn't warn of moderate growth in the second half thanks to weakness in the whole sale business and department store customers are struggling and the stock got hit and continued to drift lower to the point where ten and change
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where we said it might be pretty good has levis come down enough let's check in with a terrific guy, chip burg, the president and ceo of levi and get a better sense of what is new with the 166-year-old company welcome back to "mad money". >> great to be here in sunny downtown, new york. >> you got the right outfit. >> of course. >> the last quarter was tough because everyone expected you're the only real growth apparel company that people are looking at and you've done so well for so many years in terms of what is going on but there is a problem with the let's say the end, not the consumer but the end consumer of your product, the department stores. should we feel better now than when you had the conference call >> well, let's first get the ta facts right. we had a great quarter we grew 8% on a global basis excludeing foreign return scurry
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we grew men's, women's, tops, bottoms, whole sale grew 6%, our business grew double digit for the 13th straight quarter in a row. u.s. whole sale is down 2%. >> right. >> however, if you back out the impact of sears and less revenue to lose, tjmaxx, if you back those out, our u.s. whole sale business is up 2% and up 2% on top of comping high single digit growth the prior year. on a two year stock basis we're up single digits >> do you think the analyst may not have gotten it right the notion is guidance was more tepid than you reported. you could argue better than okay but it did feel like you were saying whoa, maybe people are ahead of themselves with this stock, not that we're not doing a good job. >> yeah, we've been guiding mid single digits, top line growth for the full year and we said
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that we only guide on an annual basis because we're running this business for the long term but been saying all year, mid single digits up 10% for the first half and said on the call at the high end of mid single digits, which the analyst can do their math and that implies a three-year, 4% second half off of 10% in the first half and it's driven largely by some softness in u.s. whole sale and we have some high things in the base, as well. so but it is mostly, you know, some caution i guess around u.s. whole sale however, having said that, i am a big believer in winners and losers i think this world is coming down to winners and losers the levi's brand is incredibly strong and so we're in a position with all of our customers to be asking for more, to be asking for more floor space, more open to buy budget, they need us, they need strong brands today and levi's is a brand that can drive traffic for them. >> so speak to me about some
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issues involving some new products that we need in the pipe, some adjustments maybe, resets because i want to again just focus on the fact of the quarter, the stock went down and i at 18 want to hear three bullet points why things are right between here and the holiday season, new products, direct to consumer. >> our fall, winter season just hit the stores literally this week we've got some really strong collaborations happening and that brings a lot of heat to the business, so you'll like this one. we've got a clollaboration with hello kitty. hello kitty hits 45 years old that will make you feel old. we have a successful collaboration right now with stranger things, the hit netflix show so all of that is on floor now we've also introduced this laser technology where consumers can customize their own jeans
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online so a consumer can go online, literally design their own jeans and it will be finished by a laser. i'm wearing a pair of camouflage jeans, which is probably hard to see on tv right now but this was finished by a laser and we can finish a pair of jeans for the consumer and ship it to them in less than a week. >> personalization. >> custizatiomization. >> now you're doing it. >> it's a huge part of what we're doing. in fact, in all of our main line doors around the world, we have taylor shops really catering to the consumer. we're letting consumers personalize and customize their t-shirts our t-shirt business is on fire. i'm very of 'tis hptimistic abo future here in the u.s. >> we have a lot of millennials that watch, as long as i've known you, you've been the most socially conscious ceo i've come across talk to us about what you're doing. your clothes tend not to be landfill clothes. >> that's right.
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sustainability is really important. we're a company that really is all about our values we talk about value and values one of the things when we did the ipo, i said we won't change how we run this company. we'll continue to stand for things that are important. this company has a track record of not being afraid to take a stand on important issues of the day. sustainability is really important for us we use it as a constraint and invasion in fact, this laser technology is one example we developed this technology primarily to eliminate a lot of the chemicals that are in the supply chain finishing a pair of jeans requires dozens and dozens of chemicals. we eliminated over 1,000 chemicals by being able to finish the jeans with a laser. this shirt i'm wearing, i wore it just for you, jim, it is a combination of cotton and hemp now hemp historically is like burlap it's a tough fiber we've worked with a supplier that creates cotton iized hemp o
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this feels like cotton but woven with hemp. hemp is a lot more sustainable and takes less water to grow than cotton. you can grow a lot more per acre it's a lot more sustainable as a fiber and cheaper as a fiber, too. >> one last question, i've always felt that when i've mentioned textiles and workers, people say they don't treat their workers well and i hate that because you've been extraordinary in what you've done. >> thank you we got a program called worker well being we worked with ngos and most of our factories around the world, we've touched over 200,000 workers in our supply chain focused on making their life better and more productive as an employee in the factories that make clothes. >> i know you live this, just talk it, you live it that's the ceo of levi strauss and company. "mad money" is back after the break.
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even in the dog days of summer he's focussed and fired up to help make you money. now cramer rolls up his sleeves and goes back to his wall street roots because where bet tore find a bull market than the heart of the world's financial capital. ♪ ♪ [ applause ] we need to talk about beyond meat, the maker of faux h hamburg hamburger. they had much stronger earnings and better sales the company's ceo ethan brown is
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the elon musk of meat. he's a believer that there are healthier bert wer ways to conse protein. why eat a cow when you can eat a plant that tastes just like a cow? a pioneer that seems brash, they are both very in your face about their views. beyond meat is a cold stock like tesla however there is one big difference elon musk doesn't want to hear anything you have to say, he dismisses anyone that disagrees with him as a moron or commuter simulation musk doesn't offer anyone gladly brown, he's exact opposite he wants to hear what you have to say he wants to hear your objections so he can be better informed and produce a superior product i grabbed a bugger wirger with beyond meat taco and beyond meat
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sausa sausage. he told me it's one gigantic work in progress great line no arrogance there ethan is trying to make the best taking meatless burger imaginable he wants all the flavor with any of the sigma of eating a dead cow. he's doing a terrific job we but there is a reason there is no arguing or accounting for taste. when i rate it on my column, critics who seem to outweigh supporters because they don't like the taste another cohort prefers their competition and some believe nestle will steam roll when they roll out their burger. some say plant-based are worse than red meat. taste is subjective. numbers are 20% year over year that tells me there are a lot of repeat eaters. maybe you don't like the taste but somebody does. next i happen to love the
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impossible burger but made with genetically modified ingredie s ingredients. how about nestle as a competitor aren't they gigantic and report a terrific kwaurquarter? yes, i tried the meatless burger taste is subjective. i think this category is big enough for multiple competitors and the health issue this one is real these things have a lot of sodium, more sodium than i'd like this is not the healthy hamburger alternative so many people want but comes closer than anything else i've tried, which brings me to the point it always gets lost in h cthis conversation there is a product called beyond meat these are not the same we can fight over the product, hey, listen, i grilled one down
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the block. smelled good there are so many people betting against it it pushed up. as much as it hurt the stock, i think the secondary is actually a good thing you know that? the action in beyond meat stock is distorted by tight supply more stock trading, you might end with a realistic valuation i say that because as much as i like the company and product, beyond meat is valued at 12 billion, which is absurd for an unprofitable business that generated $67 million in sales that's a lot the value is just way too rich for me and i like the product very much. i'm just trying to point out while beyond meat doesn't belong up here, it certainly belongs somewhere which is something many of the critics struggle to accept they felt the same way about elon musk and tesla once and if that's any example, the stock will never be low enough for haters the stock just needs to deflate
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a bit before maybe a lot before i can count but the burger, i'm ready for it now danny from new jersey, danny >> boo-yah, jim. thank you for taking my question my question is about yeti. i've been following your rules for earning very carefully and i'm calling today to inquire about whether it will be better to buy a small position now prior to thursday's earnings or keep my bat on the shoulder. >> remember what happened. when the stocks shot up, we didn't like it and got back to 18 and it's doubled. after the last quart e it was very soggy there was misinterpretation about insider selling. the same thing could happen again but we stand behind yetty and like it. thank you for the question yes, ma'am >> i'm sarah i'm a college student from california my question is how would you
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compare uber's ipo to lyft and were they over valued? >> i was wrong about lyft. as soon as it became public 15 points, i think uber is an ecosystem, not just a cab company, it's worth half not my favorite stocks but uber is better than lyft and thank you for the question with beyond meat, it's all about trying to find the right stock level. i think the company, though, is the real deal and management is too and ethan brown is terrific even if the stock is hurting much more "mad money" and the journey with the stock exchange, the one-time intern and the dow breakup was years in the making but how is one of the spin offs making now that the split is complete all your calls, rapid fire in tonight's edition of "the lightening round" so stay with cramer
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causing uncontrollable tremors. now, abbott technology can target those exact neurons. restoring control and harmony, once thought to belost forever. the most personal technology is technology with the power to change your life. i'm always trying to take the pulse of the stock market. since we're here at the new york stock exchange, did you notice the beating heart of capitalism.
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i'm thrilled to check in with stacy cunningham the first ever female president of the new york stock exchange group which is a subsidiary of i.c.e. fantastic stock. welcome to "mad money" and thank you for having us. >> thanks for having me. we're excited to have "mad money" here. >> thank you so much this is what i love to do. stacy, this is an exciting year. there is lots of listening and unicorns coming public why should i list here and not on the other guy >> i'm jim, you're right. the first half of this year is busy since 2007. it's really been off to a strong start and when we talk to companies about how we can help them be a public company, it comes down to four things, one, how we trade their stock with less volatility every day that saves investors money and saves them money, two, we'll put them among the world's greatest community of companies that exist anywhere and we're going to give opportunities to leverage that network.
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three, we're going to use our brand and visibility platform to amplify there to get their message to the stroeet, and fou we're going to give them services to give them a better company. that's the role that the new york stock exchange will play but for companies to come to the public market, investors get access to them so that's an area of focus to me, personally. >> we hear that and also when i'm in my morning show, we see the floor. where does the floor fit in those? >> so that comes to that first part when i talked about the model and how we trade their stock. our model is purpose built to make sure we can provide the best outcomes to the companies listed on the nyc and investors or any time the company is trading their stock. as we know, the power of the combination of people and technology is so much more than either one of them on their own, and so putting those things together in a meaningful way where we automate the part of
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the job that could be automated but leave room for human judgment, means stocks change with volatility. when it picked up in the fourth quarter, spreads on nyc companies widened out by 40% less just in the s&p 100. >> great selling point the one you had mentioned that's all part of a piece, when i meet people who have listed, the most exciting thing that happens is the bell they talk about the bell forever. i mean, it is a treasured element of capitalism. >> it is becoming a public company is a milestone on a journey for so many leaders, and the bell really reflects that moment in time it's a moment in time, though. it's exciting for me when we get to welcome them back to celebrate anniversaries, 40th anniversaries, 50th and, you know, in part when i talked about the brand and visibility of our platform, that's the way we can use that to help amp fliy their story or message along the way. >> we're in a moment now with
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trade talks that are okay. largest stock on the new york stock exchange, alibaba is one i recommend because it's a fantastic company. what would happen if this came down to the president saying we don't want any more chinese companies listing in america why would that be bad for capitalism >> i think when you look at the conversations around the trade negotiations, they are impacting businesses on a number of different fronts so we're optimistic as that will come to a conclusion, that is, you know, a positive outcome for all companies, but when you -- the u.s. capital markets are the deepest in the world so investors from around the globe are looking to tap into them and alibaba was one. >> you got a deep background in governance if you had your way, would you not have any companies with two classes of stock to some degree it disinfranchises the regular people that watch "mad money". >> would they be disenfranchised
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to invest in the first place that's what you need to ask yourself if they have access to capital outside of the march debt and th -- market and that's their alternative. my driving principle is investors should have the right to choose where they want to invest money and if we keep them private, they lose that right. >> great answer. that's a great answer. thoughtful one last thing, i looked at your accomplishments and i think look, i was down the floor in 1982 it tended to be a bit of a boys' club you started from the bottom and worked your way up and i have a lot of people out there, i need to hear your story just tell me how it came what's the story >> i followed my passion i loved the markets. i loved the business, and i went to do it and never stopped to think about whether or not i ought to. >> you started as an intern. >> yeah, when i was in college, i was studying engineering and started on the trading floor and fell in love with the floor in about 15 minutes, so the rest is history.
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>> that's a fantastic story. i want other people to realize, everybody can move up. >> yes. >> you're a fantastic example. i want to thank stacy cunningham, president of the new york stock exchange group who is like me an optimist. >> "mad money" is back after the break. "mad money" is back after break.
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it is time, it is time for the new york stock exchange lightning round. ask a question, buy, buy, buy, sell, sell, sell and then the lightning round is over are you ready ski daddy? >> hi, jim, i'm robert from new jersey today is my birthday, i came all the way here to ask you about tiffany and co. >> which one >> tiffany and co. >> tiffany and co. i didn't like that last quarter but happy birthday i gave my daughter a tennis bracelet for her graduation. i think management is good but not coming around so far i think the strong dollar is hurting them thank you. >> boo-yah, jim.
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mike from new york thanks for all the hard work you and your staff put in for action alerts. >> thank you. >> canape growth, now or wait? >> i'm waiting on a longer takeout about a scandal in the cannabis area. that's hurting the stock i do like that but the one i like, i like the new management but understand, it's bringing it down but i want to keep you. i want you to buy it, not sell it. >> hi, jim, my name is brian and i'm a college student here at new york i'm wondering what you're thinking about ttm technologies. >> ttm. >> ttm i don't know that. i'm sorry. i'll have to come back. >> i'm jolina from boston college. how much more of a business for upstreaming. >> they will gloss over and not say that much about it i think this streaming service
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will be a big hit because expectations brought it down the stock at 146 will i blame anybody no i still like it very much. thank you. >> hey, jim, i'm jason from new york apr apriha. >> what are your thoughts on ally bank, the online consumer bank. >> i'm sorry, can't -- >> alibaba >> ally bank. >> it's a good bank. very good. i think i still like jp morgan a lot more thank you. yes? >> boo-yah jim fred from the jersey shore, how are you? >> all right i wish i were at the jersey shore right now. ocean grove. >> big question about navida it took a bad year and bounced back well. do you see it coming to claim? >> i like it people sold the stock down
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they will say the same thing about invidia. it wasn't bad. it's got another quarter report that takes off but it's great. i want you to own it or else i wouldn't name my dog nvidia. >> kevin from virginia i want to take advantage of the emerging trends in cloud computing. what are your thoughts on cisco? >> terrific. talking about the cycle maybe turning down chuck robins is a doing a wonderful job. inexpensive stock. i like the dividend and management i say buy, buy, buy. that ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightening round is sponsored by t.d. round is sponsored by t.d. ameritrade yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely.
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do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪
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i'm gonna smash him here'sright in the face.. kill thirteen guys in three seconds. i'm gonna drop kick him. him, and him. that's face smash guy. that's drop kick guy. such a diva. for years, literally years we have been waiting for dupont to merge and break up in three seb r separate parts breaking up is fun to do and usually pretty darn bullish on wall street. long ago we reached a point where they stopped getting scale and diverse ificatidiversificat. they love scale and live for it
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when it's concentrated in a particular industry. that's behind the merger breakup. this is a world where they are penalized for having too many and force perform to come pea kne -- companies with fewer moving parts. that's the way they say, all right, i'll get this right their stories are easier to understand make it easier to know what you own and deliver better results once they are free from the shackles of their parent company now that the dow dupont spin sufficient a complete, you think the newly created stocks would be worth owning so why go through this hassle? first of all, sometimes the company will spin off a division because it's garbage and management wants to cut it loose. i don't think that's the case here it's one reason you should always approach new spin offs
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with caution sometimes the parent doesn't want to be with the child. now, see the problem of the children of dow dupont, it's different. unfortunately, each of these businesses is tied to a particular business cycle which means typ timing is everything you are thinking about buying stocks at the moment times stinks for these companies although some have it worse than others. just a reminder, you've got the now dow that combines the commodity from both parents. we used to own dow inc for the travel trust but after the quarter they reported, we finally had to cut bait. this is a rough time for the - commodity space and if you want to hold on to it, a big dividend doesn't protect you if your stock keeps getting slammed. we are tired of waiting giving that we've owned the stock for years and didn't want to just be in it for the dividend you have the new dupont like the new dow except for specialty
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chemicals. don't i want to focus on the third one, the one that seemed exciting initially to me corteva. that's a pure play on the agricultural business made up of dupont pioneer and agro sciences it spun off into the wild at the beginning of june and while the stock is hanging in there, it's the best performer of the three, it hasn't been a big winner. the stock opened at 26.50 and now trading at 29 and change i think corteva is a terrific company, maybe the best you can own in the ag cycle. it was a brilliant idea but this might not be the best time to own an ag play we had bumper crops over the past couple years driving down prices american farmers have been hard hit by the trade war with the chinese. even though the government is helping them, that doesn't change the fundamentals of the industry throw in horrific flooding in
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the midwest this year and you can understand why so much of the ag is having such a difficult time here is the question should you buy corteva in the hope the ag cycle that so many like will ultimately turn or make more sense to be patient and wait until the stock gives you a better entry point let's consider how this works. this is the nitty gritty of how stock picking works. corteva, it owns some of the best brands in agriculture they make g ga -- genetically modified seeds and produce higher crop yields corteva is the second largest in the crap space this industry is slap happy dominated by four come opinion knees. they account for 60% of u.s. seed sells i love that concentration. they have the best portfolio of crop protection products on
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earth, pesticides, herbicides, millennials, close your ears, i know you hate those. that stinks if you're trying to run a farm but terrific for a shareholder. this point of the dow dupont merger, rather than be rivals, they join forces to dominate those markets. then they split into three companies that each have more concentration than either of their parents had on their own such a clever plan but it took ages and ages to pull off the initial deal was announced in 2015 and by the time they finally finished getting the parts out, terrible. now they have been spun off and the ag cycle is doing terrible that's why management forecasts flat sales for 2019, maybe 4% growth in of rayti tivof raytiv. the first quarter results were down right ugly.
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organic crop protection sales up 1% organic seed sells declined by 10% weakness, north apmerica down 2 2% thanks to the trade wore and awful weather. this stock, corteva reports again on thursday morning and while there is not a lot of enthusia enthusiasm, management is bullish as they prepare for a spin off, they told us the first half would be ugly but the second half would make up for that more so and a little over a month ago, they announced a $1 billion buy back equal to 4.6% and declared a dividend, 1.8% yield. investors got so skeptical, the bull case seemed obvious they will be able to grow faster than the underlying end markets, maybe 100 or 200 basis points faster since the merger, they cut $1.2 billion in cost from the business that became this company, they think they can cut out another $500 million put it together, you know what i like it. unfortunately, those numbers
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aren't supposed to come together until next year. after the spin, a bunch of analyst rolled out bullish but all about next year. over the past month it's clear 2019 could be brutal for this industry so if you want to stick around for 2020, you might end up being glut tent for punishment one of them is basf, german chemical company hit us with a negative preannouncement and since then it's harder to focus on a potential turn in 2020. so we got to ask, does 2019 weakness baked in? that's the question. this thing trades at 20 times earnings, reasonable for a company that could generate 16% earnings growth assuming they can meet the estimates but could be cheaper the bottom line on a stock i liked for a long time but because the cycle has been tough, i hope they will deliver a better than feared quarter when reports on thursday but hope should never be part of the equation as much as i do like the company
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and it is extremely well run, the sector is having a rough time so if you want to buy it, i think you should wait. i sure as heck wished i never heard of the whole dow dupont merger stick with cramer. so are you feeling? on a scale of one to five? one to five? it's more like five million. there's everything from happy to extremely happy. there's also angry. i'm really angry clive! actually, really angry. thank you. but what if your business could understand what your customers are feeling... and then do something about it. turn problems into opportunities. thanks drone. customers into fanatics change the whole experience. alright who wants to go again? i do! i do! i have a really good feeling about this.
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your but as you get older,hing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain
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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. prevagen. healthier brain. better life. so people like the apple call, they like the service revenue stream you have to add in something to be able to understand ho quickly it really is growing they also like the fact that the watch, the wearables are doing much better than people expect but there are always those who think tim cook hasn't accomplished anything. what are they thinking i like to say there is always a bull market somewhere and i promise to help you find it here on "mad money. i'm jim cramer and i will 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." ♪ a guilt-free version of a favorite treat. ♪ hi, sharks. my name is gabe wolff. i'm ani blinova, and we're from stamford, connecticut. our company is wink frozen desserts, and we're seeking $300,000 in exchange for 15% equity in our company.


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