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tv   Mad Money  CNBC  February 24, 2016 6:00pm-7:01pm EST

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jamie dimon also. >> pete? >> looking at retail, target. brian cornell, this company, minneapolis-based, absolutely crushing it. they crushed it once again. buyers in there today. i think it's going higher. giddy-up to 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'm just trying to save you some money. my job isn't just to entertain but to educate and teach you. and put it in perspective. call me at 1-800-743-cnbc. or tweet me @jimcramer. on a good day for the averages, i look at the other side of the trade. in fact, i think this might be the perfect time to discuss a dire issue facing the market. everywhere i go, i hear the same
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question. are we going into a recession? i get it from people who want to buy real estate, from people who come to the bar. i get it from people debating starting new businesses. it's in the air everywhere. believe me, we would have been discussing recession yet again today if oil hadn't reversed course and roared back which caused the dow to rebound from down 265 to up 53 points. s&p advanced .44%. nasdaq gained .87%. when you look at the link to the price of oil, the idea we could be headed into a recession has become a powerful fiend. a whispered under current in this environment that services when oil take as dive. when oil goes up we stop worrying. when oil goes lower, the story is back on the table.
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then i get a second whisper. it goes like this. if we are talking about going into recession, why the heck does the fed feel the need to raise interest rates. and how can it be a march rate hike? how can that be on the table? why are people so worried? so many like to grab a mike and tell us how great things are now. these conversations should be combined to sound like this. you mean to tell me we are going to have a recession and the fed will raise rates or just an out and out declaration. we'll have a recession because of the fed. like this morning there was a piece of research from morgan stanley telling you to sell general motors. general motors! why? because the profits are more at risk than people reallize in a recession. i guess we are going into a recession. maybe we're in a recession or the research analysts wouldn't
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have spent most of the piece talking about how general motors will get hurt in a recession. i started thinking about the conversation with ford's ceo in san francisco where he basically said he felt we could talk ourselves into a recession. that's his big fear. now given the stock sells at five times earnings, yields 6% with the special dividend. pretty obvious they are not the only ones who fear a recession. the people who sell ford err day think so. if oil is peaking that's a major drive in the economy. it could be a reason we might have a recession. then there is housing. the new housing purchases for january announced this morning, i thought it was an aberration. it was downright shocking, awful. welle below expectations, especially out west. home sales felle to 494,000. 525,000 is a big delta. home building stocks have been horrendous since the december rate hike. some of them lost 25, 35% of the value. those are the good ones. like the auto stocks.
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what are they saying? they're screaming recession. not the time i would say to raise mortgage rates more than i would say raise auto rates but that's what happens in march. we know oil has been in a bear market for ages. august 14. it can bounce as it did today slightly. but the companies that labor in the oil service and exploration production companies can't make money unless crude is over $35 a barrel. that's more than $2.50 from here and that's the best of the operators. there aren't many people who work in the oil business. it really only impacts nine states negatively. recessions are about confidence. when you read storieses about the woes of the oil companies and those that lend to them you don't feel much confidence being inspired. today until oil went up we were talking about how bad the bank stocks are doing. let's not forget the political landscape. republicans are trying to outdo each other about how poorly we are doing as a nation. you have to.
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they are running against a democrat and the democrat is in the white house. you hear them talk because there is a racehorse, even for second place. watch donald trump and it's like listening to reagan talk about how bad is t country is under carter. half the people believe unless trump get s in america will sink into recession and the others think if he wins the world might be coming to an end. they just buried bernie sanders last week and he's still raising money. if you are wealthy you could be nervous because of studies showing what some call the robin hood effect. so many people love him but they are not typically the people who own stocks. i get it. when i was in college i would have loved to have voted for a socialist. while i look like lenin it is harder to believe in communism as you get older and start paying taxes. also let's make one thing clear. i am not the great grandson or
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great, great grandson or great, great nephew of vladimir lenin. had to make it clear. now, layer that on top of the fed speaker this is week who seem anxious to raise rates in march because things are good. we have a little bit of an unsettling moment developing like when the dow was down 250. we'd feel better if something positive was happening over seas. maybe japan, europe, china, korea, canada, brazil, argentina. but there isn't. we know it's only getting worse the more the fed hiked rates because it sends the dollar higher causing companies with u.s. dollar debt. none of this is happen helping in the european union. the decline in interest rates we have witnessed lately is also signalling a recession. how can the ten-year treasury be down at 1.7%? against all this -- i mean all of it -- is the chatter from fed governor who is are so chipper.
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obviously oblivious to all the discussions i know i hear people have. i almost wonder if we live in a vacuum. who are they talking to? maybe each other. don't they have some pals concerned about a recession? pals, some chums pulling back? maybe they live in a positive bubble where all they can think is it is a good sign when they raise rates because it shows the economy must be better off. no one -- not one seems to be articulating the obvious which is wow with so many people thinking of recession maybe the fedle should say we are tone talking rate hikes. is that so hard? honestly. as long as the fed governors remain this upbeat about the fabulous notion of being able to be in a position to raise rates, we are going to have a lot more days where the market goes down, not up. particularly if oil peaks and we go back to 25, 26. now that there is no saud-russian deal. i don't want to blame the fed. there is more to it. maybe cars aren't selling because we all have one.
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maybe homes aren't selling because we don't need them. maybe we are back in 1939 where a number of smart people thought the problems overseas had nothing to do with us or maybe, just maybe, those who are bullish on this economy who labor at the federal reserve are just plain wrong. my bottom line -- i think the fed is making a mistake and the fed officials so pumped up about how the fed economy is ripe for a rate hike ought to take a hike. if you want to get undiplomatic about it. unless their friends decided not to use the word recession they aren't in touch with what seems to be on everybody else's mind that i talk to. rob in california. rob. go ahead, rob. rob? >> caller: yes! >> you're up, rob. >> caller: sunny san diego boo-yah to you, jimmy cramer. consumer reports came out with
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the best and worst list and fiat was number 30 at the bottom. fiat shareholders were supposed to benefit from the splitting of ferrari and giving the shares. >> i thought that sale was the top of the market. that was awful. [ sell, sell, sell ] >> i'm not a fan of fiat. i like gm because of the yield. the morgan stanley piece. let's go to ed in florida. ed . >> boo-yah from tampa, florida. >> nice! >> thanks for the great advice over the years. you have been great. >> thank you. >> caller: my question is with all the market turmoil over the last few months what's your take on utility stocks. in particular duke energy. >> i like them. duke isn't my favorite. i'm not crazy about the growth. the one my charitable trust owns is nick aikens. i recommend the stock here. the only thing that was rallying
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today was indeed the american powers of the world. that needs to get out more. maybe have a beer with me or something. they have to get more in touch with what everybody else is talking about underneath which is a recession. on "mad money" tonight, popeyes louisiana kitchen could be hitting earnings. should we snack on this name at a discount? and what's cooking at williams sonoma? and you're going to want to stick around for this. mark bentioc talks earnings and competition. i will ask him what we should be focused on between apple and the fbi. why don't you stick with cramer? >> 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 or give us a
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what on earth just happened to popeyes louisiana kitchen? here's a well run fried chicken chain with 2500 locations mostly in the u.s. but with a growing overseas presence. they have been one of the biggest stories in the space. they renovated stores for new customers. we love the stock and the company. now the story is stalling. popeyes reported after the close yesterday on one cent earnings bead slightly weaker than expected revenues. 2.8% increase in same store sales. the real issue was the guidance. imagine what giving weaker than expected earnings forecast for 2016. 2 to 3% same store sales growth. the stock tumbled and couldn't keep up with the rally. stock market over react ing? popeyes potentially lost its way? let's check in with the ceo of popeyes louisiana kitchen to find out more about the quarter and the company's prospects. welcome back to "mad money." good to see you.
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>> thanks, jim. >> first congratulations on your contract. >> thank you. >> you have done an amazing job. we looked at the market kaptzation. it's been all up. you did strike a more conservative tone on this conference call and admitted the guidance had to be lower for spend and also competition. not the conference call that i'm used to. >> you know, we have a longer view on the market, i think, than the people we talked to today. we announced new bold goals for popeyes for the next seven to ten years and a plan to step up the performance of the company. that's really what i think we need to be focused on. we did see con temporary competitive pressures. when beef comes down the burger chains are active and that's where the customer shops as well. we have to be sharp and competitive. we saw a slow down in sales in the fourth quarter. we'll get after innovation and sharp price points and be back. >> steve easterbrook is a remarkable ceo from mcdonald's
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and has been back and forth with me. cand candidly, hurt jack in the box sales. the premium buttermilk crispy chicken deluxe, $4.39 you say the burger chains really did play a role. is it that competition or the fact that they have lower prices? >> i think it's pricing. we are seeing four for $4 and two for $2 and we are again back in the value game. the consumer is attracted to that now with uncertainty in the economic situation. i think we are just in a temporary value marketplace. great innovation and sharp value pricing is how we'll compete in that environment. >> beef prices have come down but chicken prices are coming down. you could get in that if you want to. >> we do expect stable to slightly better chicken prices which is better than a year ago. that will allow us to be competitive. we have the normal pipeline of exciting new products coming this rear. >> let's talk about technology. this sounds like the technology's great idea and you will be offering it.
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will the franchisees want to buy into it? >> they are very excited about the investment and what we call one technology. we have never had one technology platform for our restaurants. today it is a real asset, as you have noted in domino's and other companies invest ing in technology. >> yes . >> we have a chance to leapfrog to contemporary technologile for restaurant managers, guests and for our employees. we don't have any legacy systems to worry about. so the franchisees are excited to move to a new system. >> so for some people like howard schultz's starbucks mean more throughput. for others it means you can keep financial controls. is it all of the things for you? >> i call it a triangle. back of the house and keeping sharp about controls in the restaurant on costs, labor and food. for the employees there are new technologies about how to set schedules and communicate with your manager. then for the guests, payment technology, rewards, gift cards. >> you have to get in that.
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>> we have to get in the game and we are excited to do that. >> you have taken so much share in chicken. are you maxed? you have done a remarkable job. how much can you take? >> our market share has moved from 14% to 25% of chicken qsr. combination of the incredible sales track record and our new units taking share. so i think there is more room to go in chicken. we are focused on the total sector on growing share of qsi. >> sounds like excess cash flow you will use to buy as the stock gets hammered today. it's been a remarkable performer. given what you think of temporary factors involved in the value meals, this is a good opportunity for the company to bring in more stuff. >> we have told the marketplace that the board has authorized $200 millionle in repurchases. we have refinanced the company to have flexibility for organic growth and share buybacks. we have told the story on capital structure and you will see the benefits. >> it's important to point out when you took over you were
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buying back almost the full amount the company was worth. >> you are so right. >> am i right? >> thank you, jim. >> i buy what you're selling. i love eating it. that's cheryl bale which he woulder. "mad money" is back after the break. >> announcer: coming up -- apple of my wry? with the fbi hot on their heels, and certain politicians calling for their head. >> boycott apple. >> announcer: don't miss cramer's take ahead.
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even though the averages have been pulling back but a nice rally today february has been a positive month for the stock market. it's safe now to search for survivors among the are you able of growth stocks that have fallen out of favor. that's why we are charting the rise and the fall of some former market darlings so we can understand what works and what doesn't. what's damaged merchandise and what's a damaged stocklele which brings me to williams sonoma. you may recognize them as west elm, pottery barn and other brands. after rallying up to $89 at its peak in august, more than quadruple in five and a half years they have gone into a free fall down to 56 as of today down
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36% from the highs in just six months. it is too hot to hold. williams-sonoma was a beloved stock you could buy and hold for ages. this company was such a well run purveyor of high end home furnishings. year after year you couldn't go wrong. now it seems they can't do anything right. what happened? first you have to understand what made it a juggernaut for years to begin with. the company dominate it is fragmented home furnishings category. since the great recession ended they were on a quest to take market share. once housing came back they roared back along with it. in addition this is one of the few retailers that seemed to have gotten the internet right. given that 50% of their sales come from various e-commerce platforms. they have a huge database of high income consumers and run the best in class web marketing and data analytics team so they are good at targeting advertising. they are. they probably targeted you and
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you know how right they seem to be. beyond that they have been a fabulous at incubating new brands like west elm where we do too much shopping. huge driver of the outperformance back when it was beloved by the market and it has a presence overseas where they have been successful in the uk and australia. many investors believe it could double in size thanks to the international growth story. what went wrong? if you asked me to pick out a best of breed williams son os ma would have been near the top of the list. now it wouldn't make the list. the wheels came off the in august when they had a positive quarter with in line earning and better than expected sales. management's guidance was the rest of 2015 was like a punch to the gut. with the sales and earnings forecast well below what analysts were expecting it took people by surprise. the stock plunged nearly 9% over the next two trading days as
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many analysts rushed to defend the company claiming a buyback opportunity because they were used to loving the stock. to mid november when they had a solid quarter but far from great. that was a real problem when people were hoping for a return to form of the old halceon days. they beat the headline numbers but same store sales were light. you know how important that is. wall street was looking for 5%. they had 80 basis points gross margin miss making less money per fum than they used to. management narrowed the earnings forecast. not what we expected from the great williams-sonoma. this is when many analysts started to give up on the name. goldman sachs decided to remove it from the buy list citing the weakening gross margins and a slow down at pottery barn. a decell radiation in e-commerce and a 12.5% increase in inventory that is significantly outpaced the sales growth. remember, inventory is the bane
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of all retail. when you have too much product on hand you have to discount it aggressively before you can bring in new merchandise. a number of firms cut price targets over the winter williams sonoma had downgrades from a small boutique firm and also web bush being critical. one of the points is wayfair, the big online home goods vendor has similar products at prices that are 50% lower. they have had trouble itself. they could ruin the business for everyone else by creating a vicious online price war. home goods from the well performing tjx and it isn't where you would find a williams sonoma shopper that's changing. i love my home goods. if you believe the fed will continue to raise interest rates in the future like they are talking about that causes mortgage rates to spike and puts pressure on housing which hurts
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companies like williams sonoma. the company reports again in mid march. wall street's earnings estimates have come down since the last time they reported. stocks trading at 15 times earnings. that's a bargain. historically that's cheap for williams sonoma. i worry about housing after the homes figure we got despite what home depot said. i worry specifically about williams sonoma. why? despite the success they are a mall-based retailer. when you know the traffic to the shopping malls has been in free fall i'm not ready to say the mall is dead. it is on life support. second, tonight, wow, restoration hardware. another high end provider of home furnishings preannounced a huge earnings miss. they are not analogous but there is enough overlap to make me concerned there will be a spill over. let me give you the bottom line. williams sonoma has gone from a dynamo in home furnishings that was a sure fire way to play the housing market rebound to a
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malle based retailer increasingly under attack in an arethat it used to dominate. it is possible it could come back. i suggest you stay away until we hear from the company again on march 1. if the results are strong, i will revise my opinion. for now, if you want a retail play on housing why not stick with the dependable home depot which has been producing tremendous numbers nonstop including the most recent spectacular quarter yesterday. you should always own best of breed and now that's home depot or, he can, even tjx for the home goods division. what a quarter today. just as long as you avoid williams sonom arka until it is clear management has a plan to reignite business. let's go to tom in new york. tom. >> caller: boo-yah, jim. how you doing? >> all right, man. how about you, partner? >> caller: doing great. great show, thanks for having me . >> you're welcome. >> caller: my question is with the price to earns ratio of 130,
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a forward price earns of a hundred and ali ba ba buying shares last week is group dons over valued? >> no. as i said to david faber the other day it is no longer too early to own groupon. as it came in, i would be a buyer. there is a turn there. i think that investment is a sign of confidence. they just need better management. they do have decent brands. sure, williams sonoma could make a comeback. i wouldn't touch it until it reports. if you're looking for a play on housing stick with home depot. much more ahead including i'm talking to the king of the cloud. salesforce. and will apple stock feel a bite from the fbi in the political candidates calling for a boycott? find out what i think is in store for the stock. and your calls rapid fire in tonight's edition of the lightning round. so stick with cramer!
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get live race stats right on your tv. change the way you experience nascar with xfinity x1. ever since 2016 began we have seen a beat town of all things growth, especially enterprise software stocks like the king of cloud computing. this stock plunged from $78 at the end of 2015 down to $62 as of today on no real fund mental news whatsoever. just a rotation away from richly valued growth stocks. maybe people are too negative because after the close salesforce scored a spectacular quarter not to mention raising fiscal year rev new guidance which caused the stock to roar in after hours trading. let's go to the brilliant chairman and ceo of salesforce
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to hear about the results and where the company is headed. welcome back to "mad money." >> jim, great to be with you from san francisco. >> all right, mark. i'm trying to focus on the best. i have quarterly revenue up 27%. i have the full year revenue up 27%. the operating cash flow is the highest i can recall up 38% year over year. tell our viewers what operating cash flow means. >> operating cash flow, jim, means the amount of cash that we are receiving from our customers and at levels. you can see this is the best quarter we have ever had. le. >> nongap operating margins up 177 basis points. all time high in large transactions. so let's figure out what it means in terms of who you want and what big business you've got. >> well, what business did we not win? this quarter every deal we wanted to take down we did including two of the largest
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deal s in the company history which were massive nine digit transactions. be had a phenomenal end to the fiscal year. >> if you are mentioning $9 billion you have to drop the names. who did you win those? >> all i can say is one of the world's largest insurance companies and one of the world's largest consulting companies. >> let's talk about two i am familiar with that i think the viewers know. what are you doing for sharls schwab and unilever, two big fourth quarter wins. >> there are so many customers like these who have existing oracle and sap systems. they need to modernize, move to the cloud. they need to connect to customers in new ways and rip those old systems out. they need to put in new systems. charles schwab is a great example. we were converting them from oracle to sales force and other customers as well. with unilever that's our most exciting mobile story ever. over 85,000 users are going to
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be on our mobile product. really exciting. >> so unilever salesperson. trying to make a call on a supermarket chain in brazil. what do i need from sales force? >> all you need is this, your phone. every company wants to do their business on their phone and run their business from their phone. paul pullman at unilever is committed to transforming the company using sales force. what he wants to do is empower and enable every one of his employees around the world to have instant access to all of their customer information. they are going to do it from their phone using salesforce. we have an incredible new platform called salesforce one. we have an incredible new integration with the e mail system called salesforce inbox and a new analytics system called salesforce wave. they are using all of the capabilities to deliver a brand new system for their employees. >> we sat down with john stumpf
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of wells fargo. he was talking about millennials and how they love to bank on their cell phone and how important it is to be mobile, global, cloud and he mentioned salesforce. that's your win. right? >> i'll tell you. we have an incredible relationship with many banks including wells fargo. of course we have a great relationship with bank of america. we have inkreebl credible relationship with deutsche bank. there isn't a bank on the planet we are not doing incredible new business with. look, these customers need to do four things, jim. one, they are trying to connect to customers in new ways which is the point you are making. two, they need to run the business from their phone which is the point i made. three, they are trying to build one on one relationships with customers to help them through the journey of being a customer. and how they can onboard as a customer and retain and regain customers or renew customers that left. four, they are trying to get
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smarter about customers, be more predictive. those things are driving the business forward. >> that's a good point to branch off from. there was tremendous turmoil in the sector. a company tableau which is not a cloud company came down and it brought your stock down. saying, listen, there is finally the slow down in software or the cloud. is it time to recognize that sales force is not of the same ilk as tableau and linkedin? >> i think, jim, you have to recognize that. there's been a great cloud washing where every company says they are the cloud. but beware of the false cloud, jim. that's my point. there are many false clouds out there. you and i know a real cloud company is a company that has a deferred revenue model with a subscription service that's delivered in multi ten nen si with a customer model built on
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customer success and is focused on the things we have talked about an this show for almost a decade like the very core aspects of the cloud like the scaleability and elasticity, mobility, social integration and data science and the internet of things. these companies aren't focussed in the area. they are not able to deliver the great results you see today. >> i know on oracle's calls they spend a lot of time talking about salesforce. you don't spend as much time talking about oracle as they do on salesforce. what would they say about why they lost charles schwab to you? >> oracle is a great company of the past. this is a legacy company that has delivered great software to companies in the past, in history. they are trying to bring the hrk forward without a new architecture. they are declining. look at oracle, microsoft. they are negative.
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companies like charles schwab, uni lever, wells fargo or many of the great companies around the world are turning to sales force. we are able to help them, connect with the customer in the new ways and do it rapidly at a low cost using the cloud model. that's what we want to do for everyone. >> you came on and said that the unicorns ought to come public and they didn't. frankly they have been quietly getting shorn. i thought of you when chuck robbins a mutual acquaintance was able to buy a unicorn for a low valuation for cisco. are you finding it easier to get talent than when they were offering wampam and are there companies that aren't going to make it that would fit in with salesforce? >> i think we have had now a number of really important conversations about that on your
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show. here in silicon valley it is an explosion of innovation. we have never seen so many great ideas and great new companies n. the same breath also we are seeing a tremendous acceleration of the valuations. maybe excessively so. especially in the higher rounds like in the c, d and e round where is you see huge valuations. i think you can see we have public companies now. with great valuations. with higher revenue levels than these private companies. so why wouldn't you go into the public markets which i think have to be the measure of where these private companies have to be valued. i mean, we eve got great companies in the public markets i think are on sale. you have seen them. you just talked about that. you know, this is a time to rationalize between the private and public markets. >> interesting you mention that. fitbit which i know you have a big public position in talked to
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james park. he's been running the company like a private company there. you deliver quarter of quarter and there are few surprises oh than upside. that's not what james delivered. >> i love fitbit. i thought he had a great quarter. this morning i opened my mail and look what i got -- my new fitbit blaze which i'm excited to be wearing. i am a huge fan of fitbit. i have been for five years. i also am a huge part of the fitbit community. i compete with my friends on my phone. that's a huge part. i have 20 fitbits. every time he has a new fitbit i can put that one on but i'm still in the same fitbit community. i love fitbit. that's why i am an investor and a bull on fitbit. >> your fitbit analysis made me look at my apple watch. i like that my apple watch is secure and private. where do you come down on the difficult issue -- rock and a
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hard place between wanting to get the bad guys versus also guaranteeing security on our iphones? >> well, jim, as your apple watch currently charged? i think the last time i saw it, it had a big red dot on it. >> i was up for 28 hours straight. i chose not to go to sleep that day. you know i pulled an all-nighter. that was an all-nighter. >> five days with no charge, jim. that's exciting. you never need one of the big red screens again on your watch. >> how about the privacy? the privacy is paramount. what are you thinking there? >> what i'm thinking is it's a new world and privacy and security, there is no finish line when it comes to these areas. we are in the fourth industrial revolution. we are seeing rev elusion and information technologies and bioinformat ticks in the biological sciences themselves. things you are bringing up we'll talk about for decades to come.
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this is the world we are in. we are in a world today that's gripped by this technology revolution. you know, we are going to also be gripped with things like privacy but also issues like in equality and issues like sustainability. this is also part of the fourth industrial revolution. we need to have these conversations so everyone is aware of what's going on in the world today. it's a big change. >> should tim cook cave to the fbi? >> i think what tim cook should be doing is getting down right now to the state of georgia and going down to talk to the leaders about house bill 757. we are worried about what's happening to our employees down there with more discrimination like what we fought back and that's what tim cook should be focused on. >> i'm focused on the fact that you are quarter is moving the stock up. people thought you would miss
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for some reason. thank you gin. congratulations on a remarkable quarter. the best that i have seen you have in all the years we have been working together. good to see you, sir. >> jim, great to see you. >> all right. there you go. the quarter everyone told me was supposed to be not good. it was blow away. the stock is not done going higher. "mad money" is back after the break.
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i moved to boston when i was two. there was 14 of us in a four bedroom apartment in the projects in boston. to be the first, actually, kid to buy a house in my family... ...i just realized that, i'm the first kid to buy a house...'s a very proud moment. whatever home means to you,
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we'll help you find it. zillow. >> 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? time for the lightning round on cramer's "mad money." start with amir in michigan. >> caller: boo-yah to you from the motor city, jim. how are you? >> doing fine. thank you, sir. how are you? >> caller: good. citigroup. i have a position at 46. should i buy, sell or hold. >> you have to hold that. right now the banks are in a world of hurt. we can't make a decision to buy these until we get more clarity on oil and gas. chris in new york. chris. >> caller: jim. >> how are you?
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>> caller: trying to pick up income, a blil growth. senior housing properties trust. >> i am worried about the seen senior housing properties until we hear from benas. they have been in a world -- [ house of pain ] gordon in georgia. gordon. >> caller: hey, jim. b-b-boo-yah! >> stutter boo-yah. what's going on? >> caller: everything's great here in georgia. how about you? >> not bad. thank you for asking. home depot is looking up. what's happening? le well, go ahead. i guess just a general chat about georgia. that's fine. okay. josh in connecticut. josh. >> caller: boo-yah, jim bo. coming at you from quinnipiac university. want your thoughts on corvo. >> no, no. i want san miguel. we like skyworks solutions. alan in california.
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alan. >> caller: yes, hi. boo-yah, cramer. >> boo-yah. this is alan from north hollywood. my question, sir, is on ebix. >> you know, i like these service companies to give in companies. i say that's an okay stock. i think it's okay. i was thinking about equifax is a better opportunity but this is good. serge in new york. serge. >> caller: hey, jim, serge from new york city. boo-yah. >> boo-yah. >> caller: i doughnuts. >> keep eating the doughnuts but don't own the stock. take dunkin donuts and swap into starbucks. nicholas in new jersey. nicholas. >> caller: love the show, jim. >> thank you very much. >> caller: i want your thoughts on goaler lng limited. >> i don't trust 10% yield.
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we'll be sending that natural gas off. look at that. i don't want to be in the stock. i say -- [ sell, sell, sell ] . that, ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. you. okay. our thinkorswim trading platform aggregates all the options data you need in one place and lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim. td ameritrade. aflac. ohh ah ah aflac! aaaaf-lac! ta-daa!
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he's not a very good magician. he paid my claim in just one day. one day?! shh! how does he do it? in just one day, we process, approve and pay. one day pay, only from aflac.
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have you noticed they have thrown everything at am but the
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kitchen sink and the darn thing won't come down including today when it rallied at $96.10. fist apple's refew sal to give up the code to the fbi something donald trump is calling for a boycott of the company as the campaign uses some of them for the tweets. hate him or love him trump has more air time than anybody on earth and he hammers apple every day it won't be positive for the company's sales and we know that. second if apple gives up the codes what happens to sales in china? won't the chinese want the codes? they are in big growth market for the company. it would be natural to join trump in the boycott but this would be more effective given that they are a totalitarian state. third, lately we have been getting more of the channel check study where is brokers trip over one another to say apple's sales will be horrendous. [ house of pain ] >> and cell phones peaked.
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they try to outdo each other. this is the most recent one i read said iphone demand will drop 18% year over year and there is excess inventory. [ sell, sell, sell ] >> i know there could be excess inventory because apple will launch the iphone 7 in the fall. if you are at this stage of the year and you don't have a 6 or don't want too change carriers and upgrades hold off to see how exciting the new one might be. plus, there are report that is apple will have a march event where a new iteration of the apple watch might come out. tim cook said he didn't want to subject the watch to the fda process. that doesn't mean there won't be apps from others to turn it into a cool device that tells you periodically to stand up and walk around. maybe at the meeting the company will take the time out to talk about the expanding service revenue stream from a billion devices sold bringing in $30 billion. ile wouldn't bet on a negative
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surprise from the march meeting. perhaps more important is that apple has a buyback of immense proportions. raised money to be back more and it's possible the company is standing there buying stock knowing the next time they report it will be the last bad quarter so to speak before the new iphone iteration. apple knows more about what's a good quarter or a bad quarter than anyone. considering that lowell mcadam of verizon and t-mobile told me personally the 7 will be a big deal for them the stock with even aware apple will have a weak quarter counterintuitive. when things are negative it is baked into the stock. at ten times earnings maybe the bad news is already in the stock. but the good news? let's say i don't know ale soul who is looking for any. that makes you think apple could have upside later in the year which is why i reiterate my view that you want to own apple and not trade the stock. stick with cramer.
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a couple of positive things happened today. we had a reversal in oil which wiped out the negative scenario that was going to happen because the banks are going down. the second thing was on our show. marc beniof and salesforce. i like to say there is always a bull market somewhere. i promise to find it for you on "mad money." i'm jim cramer. see you tomorrow.
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[dramatic music] ♪ >> male narrator: tonight, on "restaurant startup..." they're done being employees, and are determined to be entrepreneurs. two chefs looking to make their name with a taste of spain. >> both: bocadillo! >> narrator: two friends hoping to boogie their way to their own business. >> we'll cater to the brunch and dinner crowds, and also become a hip-hop dance spot after midnight. >> narrator: with hundreds of thousands of dollars on the line, will one of them earn an investment from joe or tim? joe bastianich owns a portfolio of 30 acclaimed restaurants, along with eataly, a high-end italian market. tim love is a celebrity chef with eight award-winning restaurants, and a retail empire. they're on a hunt for the next food visiona,


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