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tv   Mad Money  NBC  March 16, 2016 3:00am-4:00am EDT

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that is resilience. i'm going to tick off how much bad news this market takes on a given day after very big run the last four weeks and the darn thing just keeps fighting. it can take a jab. it can absorb multiple upper cuts and simply won't stay down. lay flat on the campus. first, former market darling. aggressive pharmaceutical company punching back for months now, share price got cut in half today. here is the stock that had come down from $263 seven months ago to $69 yesterday but it still managed to plunge another $35 in this one session. a sound is worth 1,000 words. valeant including hedge fund billionaire bill ackman.
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best performing of all time but an astonishing tail spin since last august. you would think that valeant could shake up the whole market with the gigantic stunning decline, but hillary's wrath against the company hasn't resonated beyond this one poster child. don't ever believe, by the way, anyone that says you can't make money from this election, if you listen to hillary, she could have gotten you out of valent at $86 when she was a serial raiser of drug prices. she shaved to $53. the pin action here so minor that it's astounding. another area, the spin off of this one or coming off hitting the one or front pin so to speak is a strike against the entire group or even the whole market.
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one pin into the gutter. it left the rest of the field unscathed. sure, not everything was spared. sorry, i couldn't resist that. but there is truly wasn't much collateral damage in the sector. you know what is incredible? by this time tomorrow we could know who the two candidates are for president, for president of the united states for heaven sake and clinton, the front runner for the democrats wants to cut the prices for drugs dramatically and the front runner in the republican party, trump, wants to save $300 billion by having medicare negotiate with big pharma over the choice. it eludes the people buying the drug stocks but maybe they are assuming neither candidate will get that, the second hit this market shrugged off has horrendous, scary retail sales
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february retail sales fell .1% but january retail sells which have been surprisingly strong at .2% were revised down to negative .4%. i cannot stress enough just how horrible this news is. first we're beginning to see a big inventory throughout the retail system because of the weaker sales that will lead to something not positive. second, and more important, we got a sizable rally the day the original january retail sales, that plus two came out was a sign the economy wasn't as weak as many people feared. there was genuine joy, elation when that number came out. now it turns out the joy should have been sorrow and that rally shouldn't have occurred but was the point gain repealed for today? no. i was so concern that people would freak out, especially because the numbers are a sure shine oil sales slowed down and these are crucial for the economy but no one seemed to care.
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you go up big on false news and blasted out of the way but a cold, hard reality negative and the fact is, it's ignored. that is a sign of strength. third, just when we become conditioned that every tick down in oil takes a big chunk out of the bull, we get a nasty declining crude and the market doesn't care. we were threatening $40 a barrel the other day. people were clapping. many oil companies can survive, perhaps thrive given lower break evens with the ability to raise endless amount of equity. now crude is slouching toward 45 on top of yesterday's big decline, yet, the pain. >> the house of pain. >> limited to some more indebted drillers, the partnership. do you know exxon was hired today.
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what else? europe was hammered. average losing almost a full percent. we've traded almost in lock step with europe of late even though that makes sense because their central bank is easy and ours is tightening. their central bank is determined to send the eros lower and get banks lending like mad. our fed is doing the opposite, which brings us to the last of the negative lit knee, the parade of horrible. we're on the verge of a fed meeting. it's almost impossible. if janet yellen and company believe the economy is too strong, we'll get a rate hike as early as june. who knows, they can do a little shock treatment give us one tomorrow. that would be disastrous. a hard-line fed statement saying inflation is coming back because oil rebounded would be horrendous for the stock market. how about if they think as a group that the economy is getting weaker, though?
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they aren't going to take back the last hike and there will be hawks saying we need to tighten regardless. i heard people talking in the last few days about how a rate hike would be good for the stock market. where were these people when we got the last rate hike? did they forget the tsunami of selling? it came in the december tightening. did they forget the horrendous january, the one people predicted a miserable next 11 months on the basis of as goes january so goes 2016? how quickly they forget. i'm sorry, ill advised individuals. oh, let's be sure, if the federal reserve doesn't talk about the necessity of raising rates, financials, one of the largest group in the s&p 500 could be crushed with numbers coming down across the board but no one seemed to care about that. the financials acted great today.
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how can buyers be so fearless? first, every time you really start worrying about the darn market, something new pops up that's positive. yesterday, a great example, a chinese buyer comes in like the communist party and busts up a huge hotel deal paying guy january tickly and deserving. you get situations like the fresh market. that's a weak supermarket chain that got a bid from equity because there is so much money sloshing around choicing a few companies that could be bought. this firm is willing to purchase wounded properties. apollo is paying $10 more than where it was more than a month ago. people stopped going there ages ago. third, there is always something going right. this morning morgan stanley said apple's iphone sales are running ahead of plan. that's a shocker. every other say they run behind. so many companies are to the
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hue for all of tech, especially the semi pesky guys. oracle could ensure a good day of tech news. there are many doing well you could overlook the number. today was children's place reporting a monster good number. that was fabulous. can you believe it? last week it was dollar general. the week before j.c. penney, target. the overall numbers may be disappointing but hard to stay negative when good ones pop up and surprise you. don't sell that tjx. i still like ross stores. as buyers should be cautious, every time it looks like the fighting stock market is about to go down for the count, it shakes off punches and comes back at you. sure, today was a draw but should have been a knockout and the fact that it wasn't a is huge victory for the continued raging bull. i say we take questions and go to bubba in texas, bubba.
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i made an investment a couple weeks ago, some stock, chesapeake energy and just want to see your opinion. i notice the last few days it's been kind of decreasing as opposed to increase. >> this is a tough one for me. even though management is doing everything it can to clean up the balance sheet, it needs higher natural gas and higher oil, and without it, it can't take the measures it needs to do a better job. so i'm not a fan of chesapeake. take a look at a stock like exxon up today when oil was down. you got to go with quality. jeff in new york, jeff? >> caller: hi, jim. jeff here watching your great show. i'm buying -- >> i looked at sunny today because i thought it was interesting, that collection was so good. you need to see the yen be debased and i don't think they can take the yen down much more. i am not a buyer of sony. today, listen, i'm calling in a
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i don't know what else to say. it was. we should have gotten killed. we didn't. this market doesn't know how to stay down, i guess. i mean, really. it should be down big or at least some. on "mad money" tonight, this company puts people on literal roller coasters but with the gas prices at lows, can cedar fair be worth buying? does today's massive drop confirm it? the most important lesson and if you have the most sensational breakup in 2012 involving tom cruz and katy holms, you're wrong. i'm taking a closer look at the breakup to see if it's time to retool. my suggestion, i think you should stick with cramer. >> don't miss a second of "mad money."
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geico motorcycle, great rates for great rides. i take pictures of sunrises, but with my back pain i couldn't sleep and get up in time. then i found aleve pm. aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. i'm back. aleve pm for a better am. the hunt for stocks that benefit for cheaper gasoline is tougher than many of us imagined but the search continues and cedar fair fits the bill.
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operators and with convenience stores, people tend to spend a little more money once they realize how much they saved on fuel after a long drive but frankly, while that is top of mind, only one of the many reasons why i like cedar fair that runs 14 amusement parks and water parks across north america. when cedar fair reported, they had a strong quarter. up 5%. 24.4 million guests go here. the winter is the off season but i expect a good summer this year which is part of the reason the stock is on a tear since it reported mid february. plus management has a bunch of smart growth initiatives including investments. it's incredibly shareholder friendly. the yield coming in at 5.8%. this is the yield i want you to have. let's talk to the ceo of cedar fair. welcome back to "mad money". >> thanks, jim. >> you said something recently at a conference -- >> ut oh.
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i've been in the industry for a little over 25 years, you're a seasoned vet. i've never seen a situation so positive for all the players in the industry. how many things are going right for you? >> i think that comment is in fact credible. i will tell you disney, universal everybody is pumping out record results. what we think it's attributable to, consumers of all ages are prioritizing experiences over possessions. >> thank you for saying this. this is -- you're the first person on air -- >> really? >> yes, a couple people off air but said it, that's it. love this, go ahead. >> we are fundamental to society and that we create great memories, right? >> right. >> if you think about your family and friend connections, where you went with them and what you did. the consumer today, we originally said millennials but broader than that. the millennials, their friends, their families want to have a little fun in the complicated world. >> that's why i thought it was cool with the wi-fi.
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that's what people do, share the pictures immediately. >> we're putting wi-fi in the park to do a couple things, like basic infrastructure but you can get ride photos instantly put on your phone and share with social media and we like the market message. >> i've been asked, when are you going to do theme parks with your characters and your games. electronic cards. this sounds great. what you're doing. >> yeah, so plants versus zombies, think about the amusement park history. at the same time, the growth and the electronic gaming industry was superseding the size. so you're seeing people adopt us with electronic arts and others, ten years from now it's going to be a fundamental part of the experience. >> in the meantime, you go on and said no new theme park, when was the last time one was built -- >> 40 years ago. >> who has the land to be able
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>> nobody. >> except for you guys. 1300 acres adjacent. >> yeah, we have 1300 acres and it's a great market for us. we're building the largest water park in the carolinas and have more acres left over. the other thing in sandusky, armature sports tourism. if you have a son or daughter or niece or enough -- nephew, they are traveling. >> espn worldwide of sports. i was associated with that. we like the concept so we're building that park in association with erie county. right now in sandusky, ohio. the fun thing about it it's not just the players but players entourage. the brother tired of watching his sister watch softball is guaranteed to want to go to cedar park. >> there is no land there available except for you. how did that happen?
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the city that runs until 2074 so we're in good position. we filed a rezoning application, which will allow us to invest in that park in a way we've never done before. if you think about it, when you look out from apple's head quarters and see this plot of land in the middle of santa clara, special place. >> sales, working. >> so two things from the ad -- advanced sales, the other thing it does is spending elasticity. anything you buy ahead of time gives you more spending when you arrive at the park and the guys that did this with the cruz lines and so we're seeing the same thing. >> you know that. your experience is all -- everything is playing your way. >> we've been fortunate. the other thing is we try to make it fun. having fun should be fun. if it gets too complicated or too expensive, it becomes more stressful. our emphasis is put stuff in the park that's fun and make sure we do big steel, which we always will do. >> new rides.
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point and make sure everybody has fun. >> my favorite, knots berry farm. >> that exceeded attendance. it's in a competitive market. second to orlando. >> right. >> even though everybody else, the big players if you will are doing well, knots is an extraordinary story and it's not over. >> keeping the structure. we're going to keep the flow through and keep the yield. >> yeah, the dividend is a priority for investors. >> always has been. >> we have a great group of investors that tend to buy in whole. >> that's why we have you on. >> fair. >> we have people 11 years. >> we are what i would call and others call a growth bond. a little under 6% yield and yet, we'll continue to grow and grow the dividend as it grows. >> thank you for making so much fun. the cedar fair president and ceo.
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at a time when the stock market is consolidating gains after a epic move higher, you need to think about what stocks have upside at these levels. in my view, this is an
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those are the stocks of and beyond in order to unlock value. and one of the smartest methods is breaking up. break up your business into separate public companies easier for investors to understand, not to mention for potential acquirer to digest. i've been a man of these breakups where companies spin off a division for a separate entity for ages. talked about a whole chapter in get rich carefully but as i mentioned yesterday. a red a note from a brilliant chief u.s. equity strategist at my alma mater, goldman sachs where he examined dozens of spin offs and came to the conclusion that they tend to out perform averages, sometimes dramatically. even better, what characteristics to look for in the best. spins the trade at lower p.e. mull tips and tend to generate the best performance and same goes for spins that operate in a different industry than the
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granted, this all makes sense. and it's what you expect to happen if the market were behaving logically. we all know the market isn't always logic, is it? it's counter intuitive so helpful that costing came up with actual proof of the concept. yes, he's proven that the '60 is wrong. breaking up is still easy to do, as well as being credibly lucrative. so, every day this week, we're going to highlight a relatively recent spin off and i want you home gamers to understand this series would never have come to be if i hadn't read that piece of research who gave it to me on his way over when he was going to squawk on the street. i got to give credit where credit is due. as much as i'd like to steal it, all right. that was that. he can't. can't. it's not mine. so with that in mind, let me introduce you to a new one. it's called allegion.
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off on a diversified industrial. it was done at the urging of "mad money"'s activist nelson bells. why is he our favorite? if you bought stocks he got involved in even after you found out, you still beat the averages. at the time, it had been transitioning away from making heavy machinery and towards making commercial products like heating, ventilation and air conditioning systems, also known as h vac, power tools and golf carts. company had a special commercial and residential security business that sold locks, door opening devices and various electronic security products. beautiful business. and in december of 2012, i.r. announced they plan to spin off this part of the business that became a legion one year later. the rational was very simple. they had been engaged in what i consider to be a multi year
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why? the security industry is highly fragmented, which means it could have grown this division by leaps and bounds if they were willing to make a ton of security related acquisitions. however, this business was never a big part of it. only made up 15% of the company sales. as long as it was buried, the security division was never going to get the attention or perhaps the capital it needed to go on a takeover spree. however, a brett company, they could be able to do just that so they spun it off. this is a market leader in the mechanical facility. i love it. i'm sure it was encore rated and low corporate tax rates that means every type they buy a company in the u.s., they instantly make it more profitable by lowering the tax
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each acquisition. fast forward today, the stock trading at 43% and since then given a return of 48%, dramatically out performing the s&p. the stock got hit with some selling pressure right out of the gate, likely from the shareholders who had no interest in owning a spin off including induction funds, right, because the s&p 500, as soon as the newly formed quiet period ended, they came out positive siting long-term strength of the business and merger and acquisition opportunities that i just mentioned. going forward, a string of better than expected earnings reports propelled the stock higher up to $55 as they delivered stronger growth, higher margins in europe, you know how hard europe is to do business and robust top and
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then, last year, we finally got the wave of activity that the analyst were salivating over with the string of acquisitions to bolster the growth rate. in february of 2015 they snapped up zero international. that's the leader in door and window products. in april they bought a leading designer of sliding and folding door hardware and then acquired simon's voss, an electronic company with major presence and in july gobbled up the south korean lots and a european maker of bicycle locks along with security hardware like hinges and window stays. that was a real takeover bing and late august, they sold the well business. been a total black hole for any company trying to operate with a currency that's down right toxic. what a smart move. we know exposure can wreck any company's year. that's how bad it was.
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surged from an all-time high of $68 but since the beginning of 2016, stocks plunging from under 66 at the beginning of the year to 53 and change on february 8th thanks to the market wide sell off, the faux credit crunch and reported a strong quarter including a massive 15 cent earnings beat off of 74 cent basis in line four-year guidance that helped to reassure frightened investors. as of today the stock is up and down year to date but up 18% since february. what do we do now? 70% of the company sales are related to non-residential security, which means this is really a play on commercial and industrial recovery. remember, commercial and industrial buildings need security, too. these sectors are proved since the end of 2015. forecasting mid single digit growth this year.
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secular trends like the drive to make schools safer or an ageing population. that's an important business. they need locks. plus the company has a lot of exposure to europe that seems to be turning. we're looking for companies now because the dollar peaked. a healthy balance sheet and make acquisitions. the takeover spree is paused since last summer. i think because of the worldwide uncertainty but now things stabilized, i think they are in great shape to buy companies again. stock is not cheap. 17 times earnings, but it's not what i call expensive, either. consider allegiance 13% long-term growth rate. this is exciting. room to run. here is the bottom line, the spin off is a classic example how a smaller simpler company can deliver terrific out performance once you break away
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parent company, yes, i wish i picked up on this back when the spin happened at the end of 2013 but with the tremendous run in the stock, i bet it's got additional upside. i suggest putting alle on your shopping list in preparation for the biggest pull back of which you know we are certainly due. dave in new york, dave? >> caller: hey, jim. dave from new york -- >> how you been, man? >> caller: good. jim, glad you're feeling better from last week. >> making a come back but it's taken too long. it's because my executive producer is working me to the bone. >> caller: it's the cleanse, jim. >> the cleanse didn't help. >> caller: thank you for your investment help. i started buying from 13.5 and added to the position down to 6.5. my break even point is ten. which outlook for the company giving the pending spin off, the auto and aerospace unit and should i add to my position, get
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>> dave does homework because they announce that name today. as soon as i saw that, jack moore, director research director of action owners plus and me put out a note and said this is it. this is in our bullpen to buy. i think that the rise in aluminum price plus the aerospace exposure will make alcoa great. my i suggest buy, buy. thomas. >> caller: i worked there 40 years, got 40 years accumulation of stock i bought every month all in one place. so i hold it or sell it? >> i hate to hear. i'm of two minds. man with two brains. i don't want you to have all eggs in one basket but i like what greg hays is doing. stock up seven because of takeover talk. if it comes down, i would -- well for those who don't have any, i would pull the trigger.
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united technologies, when you have that speculative people in it, you got to expect to sell it a little. 92 if it gets back there. wow. turns outbreaking up is easy to do in wall street as we saw in the case of alegion could be possible. i want you to add alegion to the shop list. much more "mad money" ahead. america spends $39 billion a year on pizza. attempting to shake up the space and doing it. shock cratered after earnings. i'll tell you the most important lesson you can learn from the drop and all your calls, rapid fire in tonight's edition of the lightning round so stick with cramer. where are you? well the squirrels are back in the attic. mom? your dad won't call an extermininor... can i call you back, mom? he says it's personal this time... if you're a mom, you call at the worst time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico.
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this is show about stocks. if you want to know where an industry is headed, private companies are doing something amazing. here is a company doing for pizza what i think starbucks did for coffee or chipotle did for burritos.
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the point where they don't do delivery. they think their pizza tastes best straight out of the oven and pay employees well. you may think this business model wouldn't work but it's growing like a weed. today the company announced founding raising $32 million to double the store count this year. let's take a closer look with scott, the co-founder and chairman of mod pizza. welcome to "mad money." good to see you, sir. >> good to see you. >> i went to work and says this sounds like some of the guys at chipotle and starbucks and fitting that you spent a lot of time in starbucks. >> i did. the company i admire hugely. my wife and i built a coffee business in the u.k. and they ended up buying it from us so i got to work with howard and the team there for a couple years. great company. >> would this concept work for any food?
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do? >> for us, the unsight was when we started looking at this in 2007, we noticed that pizza, this huge industry, 38, $40 billion in revenue, second biggest category behind burgers had had a shocking lack of invasion over the last 30 years. and so for us, it was a simple combination of bringing the fast cause well lifestyle, the concept to a category people love, which is pizza. for us, that was the spark that led us to try bringing that concept to pizza in 2008. we opened our first store. >> now, you're paying people better. you're trying to built a team building atmosphere. >> yeah. >> use all fresh's ingredients. how can you make money in a thin-margin business like this. >> great question. at the end of the day we need to make sure we're delivering great value to the customers, really, really important but beauty is if you get the volumes right, which is a really important part of the equation, take care of
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as you do, the business tends to take care of itself and we generate great margins. >> you are a particular man of royalty. you give special second chances, which is something i teach for years. you're the first company to do this. tell me about it. >> what we found early on, when we started to build this. we wanted to decide was this a business capable of being grown and successful? after i opened the first four stores and realized this is a concept we can scale. we had the experience of scaling several others and can build a big business but sat down and asked ourselves a question, what would it take to make dedicating the next ten years of our life worth investing in building -- >> you can do anything. you had a successful starbucks and a lot of people on your board. everyone made a lot of money. everyone has done well. you want to do something different. >> my wife said the last thing the world needs is another pizza chain. i said what happens if we use this business to open restaurants in communities
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we could use it to make a positive social impact? that's when the spark really hit where we said this is something we can pour ourselves into for the next ten years and it came to be about the people, making a difference in their lives. as we started to grow we attracted people that had tough backgrounds where they wouldn't have necessarily had the opportunity to be employed at a place like mod. we brought them in and they became loyal, passionate and made a huge difference and culture carriers at mod and made us realize this is a category of employees if you get behind them and believe in them, they can make a huge difference. >> okay. now i don't know how you're incentiving if you became public, but is the goal, when you do financing like i heard. congratulations. >> thank you. >> my thinking is look, if i were another chain that was large and trying to be in another group, say mexican food, i would buy mod.
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do you want to be bought? >> we talked about whether or not being public in the future would make sense. this is the way we think about it. my wife and i had success with a couple other businesses. we're not into this to have a payday but to build a business. we have four boys. we want to build a business they can be proud of and turn around ten, 20 years from now and say i'm really proud of the fact my mom and dad were involved with mod. for us, it's whatever we do, how we fund it, and how we built it is very much about keeping that purpose alive and making sure we can really make a difference. >> when i read your background -- some of it is franchise and some owned by you. to hold to this standard? >> it's great. we've been really selective. 95 of them are company owned. >> okay. >> vast majority but we have went out and found fantastic operators when they sat down and heard about how we're doing, they got really excited because they have been around along time and understand if you take care
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care of the business and because they saw we were really dedicated to it, they have gotten behind it 100%. >> well, you're not public yet so i'll say it. you're a winner and i want to be -- i want to go to mod. i'm not allowed to invest in anything but this is what i want to do. pizza. thank you for coming on. only flonase is approved to relieve both itchy, watery eyes and congestion. no other nasal allergy spray can say that. when we breathe in allergens our bodies react by over producing six key inflammatory substances that cause our symptoms. most allergy pills only control one substance. flonase controls six. and six is greater than one. complete allergy relief or incomplete. let your eyes decide. flonase. 6>1 changes everything. look like this. feel like this. look like this. feel like this. with dreamwalk insoles, turn shoes that can be a pain
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you can look like this. and feel like this. dreamwalk. in our house, imagination runs wild. but at my table, i keep the food real. like country crock's recipe made with real simple ingredients. and no artificial flavors or preservatives. real country fresh taste from real ingredients.
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it is time, it's time for the lightening round. buy, buy, sell, sell, buy and then the lightning round is over. are you ready?
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mike in texas, mike? texas. i'm originally from philly. >> nice. good move. this oil we got going on, buy sell or hold on mmp? i know you highly disregard oil stocks -- >> yes, i don't like the oil stocks but i have to tell you that's run by mike meres, if you own one of these is a smart guy. what's the yield? for that it's almost 5%. mike meres knows what he's doing. >> buy, buy, buy. >> that is an oil company that acts better than most. let's go to dean in nebraska, dean? >> caller: hello. jim. my stock is ahs. >> ahf? i don't know an ahf. ahs. isn't that susan? we had her last week. that stock -- that's a staffing
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i'm going to westly in virginia. westly? >> caller: yeah, i'd like to know about nxt semi conductors. >> i thought that nxpi should have been up after we heard the news. nxpi, sky work solutions and best in show right now, broad com. they can be bought off the apple news. i'm not done. i'm just getting started. i'm going to colin. >> caller: big boo-yah! >> i like you fired up. >> caller: you're an animal and i love it. i got a stock for you. spooky to hold on to or room to run, that stock. >> wow, new mont mining. >> no, i like that little tight selection. let's go, i'm taking another.
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scott? >> caller: jim, hey, how are you? >> good. how about you, partner? >> caller: we're doing just fine down here in atlanta. i love railroads, what do you think of trinity? >> buy csx. why buy trinity that had a bad quarter. i'm pulling the trigger. i'll say norfolk southern is better than that and that, ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by t.d.amera trade. i think we should've taken a left at the river. tarzan know where tarzan go! tarzan does not know where tarzan go. hey, excuse me, do you know where the waterfall is? waterfall? no, me tarzan, why don't you want to just ask somebody? if you're a couple, you fight over directions. it's what you do. if you want to save
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after today you know why i say accounting regularities equal sell. the dissolution of the situation where we had been repeatedly assured that the company's cash flow is so strong, we didn't have to pay any attention to decline in the stock in the past, say, well, i mean, because it was all emotional. yeah, that's what we kept, emotional. after all, stock had fallen from $263, so it was way over done no matter how low it went. but today it closed at $33.51. down 51% in a single session. i heard this, it's way over done argument. every 25 points down from pretty much everyone i talked to, there
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somewhere like when walgreens gave the company the good housekeeping seal of approval, via the deal for cheaper drugs. yeah, we were assured that worry should be taken off the table. nothing ever to fear again because their partner is walgreens. the stock was at 118. sorry, i didn't believe the reassurance and subsequently backed away after thefa raised questions about the blood testing firm's methodology. when valiant was a beloved stock going higher as opposed to lower, drug company after drug company share that with you slashing the research and development raising prices wasn't for me. the stock hit my negative radar queen as one to avoid the time the ceo told us he didn't want his company to sure come to a bid because he feared his company would be gutted. saunders of the ceo actually
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bought it. i look like a chump. i watched as they gained another 100 points and felt like a jerk sitting it out but i was uncomfortable with the business model. it wasn't until "the new york times", the research firm came out and questioned the accounting. $150 in the stock slapped to sell admitting that it was short and it used to target prices of just $50. i think comparing any company to enron is kind of a stretch but nearly 50 points down from the call, valiant revealed it may have over stated. that should have been again another call to get out no matter what, accounting regularities equal sell. sell first and don't bother to ask questions if you don't want to. valiant breached the target on the way to $33 as they slashed
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forecast about the future. the left was on "fast money" talking about this and the controversy that continues to swirl. real checked in with the andrew left today to catch up with his view now that valiant hit the target. no longer short to stock, he said and i quote they bought all the drugs predicated on the fact they can raise prices and over paid on everything they acquired. you have a double whammy here where you have slower sales and can't raise prices. at what point does your debt choke you out? valiant has more than $15 million in debt. this is what you really have to take away. the hedge funds in it are left asking what do we own now? you don't know so you have to sell. end quote. that's why you can't touch a stock with accounting irregularities. one more tale of caution.
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conference call where he explained the real problem was simply the company couldn't tell the story right. as he put it and i'm quoting here, they need help on the p.r. side end quote. i've always begged you to do your own homework and never to follow the work of others. do now? today he did reiterate he valued. that's cold comfort. ackman can afford to take enormous losses. he's a billionaire. can you? which brings me to the original thesis, never forget that accounting irregularities equals sell. that caution will cost you at times but when the big disasters strike, the ones like valiant, you'll smile that you avoided a stock that destroyed so many allegedly smart people who should have known better. is that ice cream?
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okay. oracle after the bell, i like everything i hear. could be a good day for tech. there is always a bull market somewhere, i promise to find it for you here on "mad money." i'm jim cramer and i'll see you tomorrow. it's wednesday, march 16th, coming up, a clean sweep for hillary clinton, as 24 dawnthe donald gets one step closer and not so for marco rubio. >> america needs a vibrant conservative movemen but one that's built on principals and ideas, not on fear, not on anger, not on playing on people's frustrations. severe weather including historic flooding. for the first time in 40 year, the washington d.c. metro trains
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then a hero cop saves a life. ronda rousy's big announcement and much more on a biggie wednesday. "early today" starts right now. good morning everybody and thanks for joining us today. another primary tuesday, another big night for donald trump and an even bigger one for hillary clinton. trump dominated in florida, winning by nearly 20% and after getting crushed in his home state, marco rubio suspended hiscomehis campaign. >> it's clear that while we're on the right side, this year we will not be on the right side. while it's not god's plan that i be president in 2016 or ever and while today my campaign is suspended, the fact that i've even come this far is evidence of how special america truly is. >> governor john kasich taking his state of ohio include all the delegates.


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