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tv   Mad Money  CNBC  June 3, 2015 6:00pm-7:01pm EDT

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geniuses are back in the control room of ec the "fast money" room. with one of them has a birthday max meyers. >> giddy up. >> happy birthday max. i'm melissa lee. thank you for watching. mad happy birthday, maxi. i'm melissa lee. see you tomorrow at 5:00 p.m. "mad money" with jim cramer starts right now. my mission is simple -- to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. lately we have been hearing a lot of buzz about something called single stock risk. meaning what happens if you buy the wrong stock for your portfolio?
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as one that gets clobbered for whatever reason. on a day where we have seen some strong individual stock performances during the otherwise tranquil session, the dow gaining 64 points, nasdaq up 4.5%. still on tear there. i think it's worth addressing this fear of single stock risk. which has become kind of -- i have to say all the rage among the professionals. first, if you think that i scoff at single stock risk, you're wrong. it's why i endlessly say that your first $10,000 worth of savings must be invested in an index fund. okay? i want you to capture the progress of american industry in a way that's diversified, via a fund that mimics the standard & park's 500. i know some don't have the ability to make decisions about stocks but you shouldn't be denied exposure to stocks ba u.s. of the handicaps.
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so the index fund is a very good proxy. $10,000, you know, wealthier, you can figure out the ratio. first $10,000 for everybody, i have $1,000 -- index fund. at the same time though, i do not want you home gamers to be frustrated in your desire to learn about the stock market with an eye toward making your open individual stock decision about individual stocks after you put that $10,000 away. i know there's luck involved in investing and maybe you have the ill fortune to pick the wrong stocks. burr who am i to -- but who i am to tell you you're do dumb or easily defeat by the big boys with the short term trading edge to pick up a stock or two or more after you put away the requisite $10,000 in the index fund. i listen to your calls, i read your e-mails constantly. i often learn as much from you as you might from me. so i'm not going to tell you you don't know what you're doing.
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knowledge is power in this business. most of you seem to have it. in fact i'll go a step further. there's one element of single stock risk that i abhor and that's the shame of missing out on the amazing performance of a terrific stock because you were buffaloed into thinking it was too dangerous to buy that one stock and decide if you like it enough to own a piece of it. in other words, you were scared out of your own good idea. the people who warn you against owning individual stocks often make this whole business sound like it is just way too hard. hey, take this morning. i had the privilege of attending my old friend yale professor's unbelievable enthralling chief executive leadership conference at the new york stock exchange. while it's definitively off the record, i couldn't help but scoff at the notion of single stock risk. why? because a few feet away i saw steve miller now on the board of
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dow chemical. the ceo of snap on tools. along with stewart miller, ceo of home building lennar. i can't repeat what they said but i can tell you what i said. i marvel at the love of index funds and sector funds is so great now, while the widespread fear that the market so rigged against you has caused the public to miss out on owning pieces of the terrific companies that the ceos lead. the single stock risk proselytizers would have you believe that owning a big stock of lennar is a big stock. quinlan is working like a dog to consolidate the industry so you can profit from it. at the end of the day he's branching out the all kinds of printing. my father, he opened colgate? he said everyone in the world has to brush their teeth. he would chant the jingle brush
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your teeth with colgate, colgate dental cream. so when i got to goldman sachs i did the research and i saw that colgate was transforming into the worldwide power house. that it was worth participating in. how risky was it to own the single stock of one of the great brands of all time as it travelled from $1.30 -- that's $1.30 cents to $66 and change. that's right. a basis of $1.30. hey, come on, jim, that's all hindsight, mr. single risk pro stock guy. but for heaven's sake it happened and you probably use one of colgate's products if not two or three or four of five. we saw many home builders were annihilated but not lennar. what did ceo miller do, how about taking advantage of the crash and pick up the cheap land. next when dow chemical welcomed steve miller to the board of
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directors i rejoiced. i own the stock from my charitable trust and before that i owned oig. so one of the most turn around roles in the career. more single stock risk, how about single stock reward. what can i say about pinchuk that i haven't said many times since he's come on the show. how about the fact that his stock was at $41 and now it's $156.08 years later. how about he transformed snap on into one of the greatest staelt technology tool enterprises. could i have been more bullish on snap on? no. there were tons of ceos at this eye opening conference. i'm only talking about the ones in the line of sight that i could throw a spit ball at if it was a classroom. it tells me that it's as hidden as poe's purloined letter. i wish the promoters of the endless etfs would own up occasionally to the fact that a techy etf would have -- own don't trade apple and a druggie
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e tf would have kept you from making a killing in regeneron. regeneron at five when the ceo came on. speaking of keeping your eyes open, there are terrific easily accessible stories out that you might miss if you take the risk fears too dangerously, too seriously. my daughter was using instagram last night at a terrific new york restaurant i first went to in the original philadelphia iteration with the late mark haines. i read today that facebook going to monetize instagram with advertising. i'm confident they won't interfere with the experience like zuckerberg said that makes facebook more investable. as my daughter was posting all the instagram pictures of the cool carrot vegetarian things. vegetarian is not so bad. it was tasty. now, we have been worried about the competition facing gopro. last night we heard from the semiconductor company that makes the gopro.
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i'm still a believer. it has a ton of commercial drone work going. after today it was up 3.7% up 88% for the year. amazing quarter. it's not done. i think it sees par. now we can make mistakes, absolutely. later tonight i'm profiling a major mistake i made that's painful to own up to. but own up to it i must. that's why i scream diversification almost in sin kron anization with the stock ownership. you can turn your nose up at individual stocks and owning the next enron or a marijuana stock that's going to zero when you should have owned gw pharma. but if you buy the stocks you like and pay attention to them buy and homework i think you'll be far better rewarded than if you own some sector basket etf that includes the good the bad and the ugly even to the naked eye. larry in massachusetts, larry? >> caller: jim, how's the newest
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rembrandt of the philadelphia phillies? nice curveball. >> i thought it was more of a roth coe, but i appreciate that old dutch master relationship. >> caller: congratulations on marrying a woman of valor. lisa sounds like a wonderful human being. >> see that picture in "people" magazine? i've done good. >> caller: yeah. let me keep going. since your last interview with harmon on april 30th where the stock was down 15% on 4 x and the ceo described big orders from daimler, it's down another 6%. why didn't the blowout may sales boost harmon and where if at all -- >> first of all, those compliments are too kind for me. i'm actually -- i actually asked lisa to watch the show which she's watched one time in 11 years. the apple car play that's killing it. people think apple will take over the infotainment brain
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center of cars. they're wrong. that's why i'm urging you to stick with harmon. while those comments were so great, i feel like i'm better than i think. that'll last for about 30 seconds before i get back into the throes of depression. and there's a danger in the notion of single stock risk which is why i say you should do the homework of the companies you like and keep them as companions to the index fund. on "mad money" tonight, the next sizzling edition to the health care hot list. up more than 30% this year. i'll unveil just ahead. it acquired a big business for geeks but should you nerd out for gamestop? don't miss my take and my mea culpa. plus, does dominion resources have the potential to rise or more panic for the utility? what a show this is. i'm a great guy -- well not really. i'm a bad guy. stay with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question?
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tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.
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doesn't it seem like we're in a lose lose environment, even our economy gets stronger or the economy tends to slow like in the first quarter and maintains the status quo because the economy isn't doing so so well. we're looking at an environment where earnings growth could be increasingly hard to come by. while that's generally why it's not good news, the stock market will produce plenty of winners in the low growth world. when the economy slows it gravitates toward those writing themes. meaning they can meet or beat the earnings estimates. like i said on monday one of the hottest secular growth stories is cost containment for health care. when you consider that the baby
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boom generation is reaching the point when they need more medical care, the affordable care act has caused more people to be insured we need those who can help contain hundred away health care costs and making a fortune doing so. this will keep working even during a slow down. health care is immune to the vicissitudes of the economy. i am highlighting a dozen of my favorite health care cost containment, although they're just treading water right now. that's a okay. other than that i talked about walgreens, world's largest drugstore chain. and not to mention a stock i own in the charitable trust. it's not doing anything right now, that's okay. walgreens isn't the only pharmacy name i like though. i'm also a huge fan of cvs health. not just the drugstore. a pharmacy benefit benefit, meaning that they design formularies and uses the bargaining power to help hmos and regular companies save money. not bad.
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it bought caremark back in 2006, a head puzzler then. but then last year they stopped selling tobacco products in the stores and changed their name to cvs health. they want to be more of a health care provider and it is pulling it off. by the way i'm not the only one to notice the stock is up 74%, but it's stalled right now. i say we suss it out and see if we do some buying. first, you need to understand what cvs health care does before you buy it. for starters there's the pharmacy benefit management side that i mentioned. cvs has become the second largest player in the group thanks to the all-stock acquisition of caremark nine years ago. why do i say brilliant? because combining a drugstore chain with a benefit manager was a genius move. it gives them more visibility and a level of demand for particular drugs. on the other hand, having a pbn gives them much higher margin.
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the business is firing on all cylinders and it has 71 million members holy cow, roughly 29% of the market. and the sales grew at an incredible 18.2% clip. i think the rapid growth is likely to continue. they general rated 7.5% in the 2015 selling season. and that means they didn't go to another pbn. cvs health runs a specialty pharmacy which deals with the on going treatment of rare or chronic diseases. their division is expected to bring in $37 million with sales this year. a terrific 19% increase versus 2014. cvs is well positioned to take this space. then that's the drugstore side of things. what you traditionally imagine when you think of cvs which includes that front end of the store. the pharmacy at the back. the clinic business. the food they sell. cvs has more than 7800 locations and the number one or number two
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player in 88 of this country's top 100 markets. 21% market share in the u.s. cvs health not just a health store. they have the largest clinic business, operating nearly 1,000 stores going to grow to 1,500 and a terrific way to build a captive business. when cvs last reported they knocked at out of the park even though the retail side suffered from not selling the tobacco products. but still, the same-store sales increased. the front of the store -- decline in tobacco. 16.1% decline. you have to back out tobacco and then you would have seen the 2% increase. plus let's not forget it's a consolidator. two weeks ago it bought omnicare. 12.7% -- $12.7 billion deal. stock jumped $2 in the news. i think the market's reaction was right.
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cvs expects to achieve revenue synergies with the transactions to add 20 cents to the company's earnings next year. how about the stock? even though cvs health is a well-run company, it's actually the cheapest of the big three. 17.3 times next year's earnings estimates. walgreens 19.6. rite aid at 4. and they're trading at 18.5. you know, i think that walgreens deserves a trade in a major premium. rite aid, it's a turn around story. i bet cvs will get a substantially higher multiple as people become more worried about a possible fed indiced slow down and they want to hide back in cvs. right now they're in the interest rate acceptcensus. few stocks are more attractive than the health care containment place. they're a pharmacy benefit manager and a health care
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provider and to keep propelling this stock higher when the fed takes the inevitable plunge that will cause a plunge for all stocks right along with it. much more "mad" ahead. can gamestop help you hit a new high score or game over? and can dominion resources break out of this funk? i have the ceo. plus everyone on wall street is sweating over greece. get my take, please. stick with cramer.
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♪ ♪ oh, i'm sorry. can you -- can you believe this amazing turn around in gamestop? a company that had been pretty much written off and left for dead just six months ago? for most of last year, gamestop reported one miserable quarter after another. and the stock consistently got crushed almost like clock work.
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the wise assumption including here on this show is that the huge bricks and mortar retailer had gone into long term decline. with the rise of direct digital downloads where you can buy games via the internet making a stop like gamestop obsolete. a year ago people seemed to wash their hands of gamestop not to mention chee-tos. and the stock was viewed as a short seller's paradise, but you know what? fast forward to today. and gamestop has rallied almost 30%. it's year to date it's better than an expected quarter last thursday. we have to ask ourselves what the heck happened here how did a company that looked like road kill become one of the best performers in retail? we know the companies can change their stripes, that's exactly
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what occurred here at gamestop. as the stock was getting viciously beaten to a pulp last year, management realized they have to take action in order to stay relevant. gamestop has remade itself so dramatically that the new company might be unrecognizable to many of the hater out there who have been betting against this stock. >> sell sell sell. >> gamestop is no longer a chain of brick and mortar retail stores now it's consumer electronics and with multiple concepts some of which are growing like crazy. in short, gamestop has gotten diversified. the big growth initiative here is gamestop's technology brands business. over the past few years they have been quietly amassing a network of apple and wireless related retail stores. in november of 2013, gamestop fully acquired simply mac, an apple authorized retail chain
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with a similar look to the apple store. you may not know this, but the fact is there aren't many apple stores which leaves a major opening for apple authorized retailers like simply mac. that try to bring the same experience to smaller markets around the country. with eknow that apple's -- we know that apple's products sell better than anything else on earth so gamestop has been growing the simply mac brand rapidly. under our noses. i couldn't grasp it. when they bought the company over 2 1/2 years ago it had roughly 20 locations. do you know that gamestop has brought that up to 70 stores as of this past april and they plan to add 50 new locations in 2015 alone. then there's the wireless business. also in november of 2013, i told you gamestop understood this stuff better than the short sellers. they acquired spring mobile. that's an authorized at&t retailer. back then spring mobile had 150
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stores. since then they've been growing like a weed thanks in part to a number of acquisitions in the same space. gamestop expanded the relationship with at&t which includes opening more than 400 of the spring mobile locations over time. then last september we learned gamestop would begin to offer at&t's quick branded prepaid phone and service offerings at over 2800 of the stores and gamestop acquired the right to take over 163 former radio shack leases. brilliant. and they did it on the cheap. in order to build out this spring mobile retail business. i bet the soon to close deal between at&t and directv owner of the nfl football package will give you another boost to gamestop's spring mobile division. overall, these tech brands simply mac, simply mobile they have more than doubled the store count the year before and the segment is growing at a 70% clip. right now it only accounts for 6.6% of the total sales but think of at that growth and what kind of opportunity a massive new growth opportunity for
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gamestop. company plans to open another 200 new tech brands locations this summer. 450 to 550 new stores over the full 2015 fiscal year. and gamestop's being smart about this. they're not just opening new stores willy-nilly. because we know that existing simply mack and spring mobile stores are experiencing strong gains. this is a fabulous growth business that has the power to transport gamestop into more than a retailer. this ever a loyalty program called power up rewards. this has the staggering 40 million members. that's like a whole country or like maybe like five countries or something depending on the country. like an 8 million person -- well, you get it. gamestop gives the reward program members aggressive rebates and discount offers along with exclusive entries into the sweepstakes. especially what gamestop calls
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high spend gamers like me right here, right, i'm a high spend gamer. look at this all. i have out the accoutrements. they love video games. they spend three times more on games as attracting the video game addicts is hugely important and the high spend gamers account for 78% of the company's u.s. sales. thanks in part to the loyalty program. so what about the idea that direct video game downloads would be the death of gamestop? currently 42% of gamestop shorts -- shares are sold short. an a large one. and now that people can download games directly into the playstation or xbox, but based on the numbers from the latest quarter that thesis doesn't seem to hold water. which means it's ripe for a serious, yes, short squeeze. gamestop's core video game business blew away the
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estimates. company's total market share for playstation software grew up to 54%. gamestop's market share for next generation hardware increased by 260 basis points. that's what happens when you're pretty much the only bricks and mortar game in town. digital downloads may be a rapidly growing part of the video game business and we know that, but according to gamestop they still only account for 3% of the total software market. it may seem more convenient to directly download games, if you have a super soft broadband connection. it could take a whole day. it's more convenient to drive to the gamestop and buy the whole darn thing. and don't forget gamestop has its own download business so it's not like they're missing out here. yet after an atrocious performance, gamestop is now on fire. given that the playstation 4 and
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xbox 1 only came out more than a year and a half ago, more people have new consoles that gamestop is able to deliver the rick numbers. i bet there are more quarters to come. gamestop isn't finished transforming itself either. they're expanding into the collectibles business. they're basically selling tv, movie and video game related toys as, you know, kind of like accoutrements. it's called loot. that's what they refer to as loot. as you might imagine they're insanely popular with the gamer cadre. who does not want -- i mean, speak to me on this, who does not want an r2-d2 shaped trash can or "star trek" sushi set? that's why just yesterday gamestop announced it was acquiring geek net. and geek net is currently unprofitable.
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even more high margin coming at you and i believe them. not only is gamestop reinvented themselves, but the stock has gone up. and now i would be remiss not to say that i was just plain wrong about this one. i had an inkling when long time friend and almost full-time philanthropist ken langone told me i was too negative about paul raines and the transformation. i want you and mr. raines to know that i underestimated this man and his team. mea culpa and apologies all around. so here's the bottom line. rumors of gamestop's demise have been greatly exaggerated. i think this stock has a lot more room to run thanks to the multipronged turn around strategy that others are still loathe to admit is happening right before their very eyes. but i think i got the humility to say it's happening. don in virginia don. >> caller: hey, jim, how you doing?
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i think chesapeake -- a big chesapeake bay booyah to you. hey, look, i have a question for you. king digital. back in -- i guess it was february they had a special -- on the dividend. then they released earnings again in may. since then the stock has been pretty flat. what kind of -- >> i'm not a fan of king. i have some other things that i like so much more. i'm going take 2. i don't need -- take 2. that's the bun to own. it's cheapest. i have to tell you i think that ea is real good too. let's go to bruce in iowa. bruce. >> caller: hey, jimbo. bruce from iowa but i'm up in minneapolis to see the rolling stones tonight and we are giving you a gimme shelter booyah. >> i'll take that -- the last them 42 times i caught them. what's going on? >> caller: given that, i was wondering -- given the high price that at&t is paying for directv, how will that affect at&t's dividend and also is it
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advisable to buy some directv since they're giving you two shares for -- two shares of at&t per each share of direct tv plus $28.50 -- >> you raised good questions. we saw that at&t's dividend is not in general arjeopardy and it's excellent. i want to own at&t and not sell at&t. gamestop's still got game. don't let the haters cheat you from potential profits including what was once me. i believe now in the turn around. there's much more "mad money" ahead including a power play you need to know about. i'll see if the prize is in the pipes when i talk to the ceo of dominion resources and then go to a small country with 11 million people one-fourth of gamestop has like loyally has. bring down a continent of over
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7 1/2 million people. don't miss the greek tragedy. plus all your calls on a wonderful wednesday edition of the lightning round. why don't you stick with cramer!
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at a time when interest rates are climbing and everybody with a microphone feels the need to call for a fed rate hike maybe friday after the number, you know what i mean, i think it's a serious mistake to raise rates, but what the heck do we do the bond yields that go down when we chatter about it? the utilities, they have gotten slammed of late. look at dominion resources, one of the largest gas and electric electricelectric utilities in the country. not to mention a major export -- it should be up and running in a couple of years. how about an mlp dominion midstream partners. they delivered a 3 cents earnings beat and management is raising the guidance not cutting. putting it through the 8% boost. that gave you a boost and how is the stock fared?
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trading $71 and change when and it just broke down to $63 and rising interest rates have made them much less attractive. dominion has been punished as as they transform themselves into a high growth. so let's check in with tom farrell, the chairman, president and ceo of dominion resources to find out where his company is headed. welcome back to "mad money." >> jim, great to be with you. >> tom, i have a chart i'm looking at right now. projected growth rates of the 25 utilities. the national average is 1.2 and you're best. the fastest growing. and yet your stock goes down. what's going on? >> your introduction i think, jim, as it usually does was right on the mark. it's a cyclical thing going on. it's a sector rotation. the fund flows into the utility sector are quite low right now. i think people are waiting out the interest rate environment.
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utilities traditionally underperform going into the potential rate increase and always outperform after the fed actually does something. so i think that we're seeing a classic cycle -- cyclical event with utilities sector that hopefully will be over soon. >> i think for the projects, i'm talk about the atlantic coast pipeline and dominion gas transmission, 80% plus complete you're not stopping. you're accelerating your growth i would think at this point. >> jim, we announced just a couple of months ago a $20 billion growth capital investment plan over the next six years. project by project. it's not an aspirational thing. we named the project, what they'll be, when they're going to start. when they'll finish. and we have very good track record with that we announced the compound annual growth rate is going to be a 7 to 9% over later in the period in 5% to 6%.
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our expectation is 8% a year annual dividend growth rate. part of which is going to come from the benefits of the mlp we created. >> now, you also have one of the fastest growing areas of the country because of your low power cost. you have the data center everyone talks about. you're probably one of the few companies making money off of data centers, aren't you? >> we're over half of the internet traffic in the united states flows through our service territories in virginia. it's largely because we have very reliable electric service and we're well below the national regional averages for electric rates. for residential customers and industrial customers and commercial customers. that's a very large tech community in virginia so all those things together combine to bring a lot of data centers here. >> yesterday i was talking to my partner on "squawk on the street," and he said there's a war on coal in the country. you have gotten nine coal
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plants. you're protected for a certain time. could the government come out tomorrow and say, tom farrell, you know what? we're done with coal, we want them shuttered. what's the rules here? >> i wouldn't adopt the statement of a war on coal from my part. but there have been a lot of new regulations that affect coal. we have the climate rule that's -- the carbon rule that's going to be out in the next several months. some time over the course of the summer and that's going to tell the tale a lot on what happens to coal over the next 15 years. we have shut down coal plants in virginia and we will -- we have the significant danger of more shutdowns depending on how the carbon rule comes out. i think the epa, they have listened carefully to the concerns of our industry on reliability. we hope to see some modifications to the rule that will allow us to keep the plants operating longer and some for significant amount of time but
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not all of them will survive. >> okay. and your export, every time we talk i want an update. i know they're notoriously difficult to build. yours is on time and on schedule. >> ours is on time, and on budget. >> wow. i mean, you're just delivering. you're right. but i want what people to do hear what you said after the after rate hike. they're petrified. after they'll be thrilled. tom farrell, great to see you, sir. >> great to be with you, jim. thanks for having me. >> number one utility company in america. this is the one to watch when they raise rates. you heard tom. it has been the greatest the greatest growth utility of our time. it's the one you want to be in. "mad money" is back after this break.
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>> announcer: lightning round is sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round. start with charles in new
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jersey. >> caller: this is charles. have utility stocks -- for income. duke energy and coned are down 16 and $12 apiece? >> they're both the same stock. they're part of the utility etf. i like them both but it will take that before they start rolling. ben in new york, ben? >> caller: hey, how are you? i'm looking at a company that handles the management of utilities. opower. they seem -- >> i remember when it became public. i don't like these -- i don't like these narrow focus cloud based plays. i like zachary in north carolina. zachary? >> caller: yes, mr. cramer, this is zachary and i like to get your opinion -- i'd like to give a shout-out to all my acquaintances and friends that are listening to your broadcast and diligently listening. i want to get your opinion on the upside of a company real
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industries formerly traded at signature group. r.e.l.y. >> your friends won't like this, but i don't know the stock. i don't know real industry versus fake industry. they changed the name. i have to do some work on that. never -- i don't know that one. wow. okay. let's go to garrett in texas. garrett? >> caller: big old university of texas booyah to you. >> we have a lot of fans at the university of texas. what's going on? >> caller: i'm asking about juneau. yesterday they bought x body and astrazeneca. >> yeah. i think that's good. by the way i like astrazeneca too. it looks like the cancer lineup is much better than i thought at one time. pfizer should have bought them. juneau is -- juneau is a good one. we know -- remember, we focus on
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immew immunotherapy. this is one of the better ones. blue bird is down tonight. ali in california. >> caller: hello, cramer. booyah. >> nice. >> caller: i want to say thank you for helping educate those of us investing and learning from home and the stock that i want to get your short and long term perspective on is cpei -- >> that one is a good one. it's come down a lot. i think that it shouldn't be down as much as it is. but remember, really, really speculative speculative. not unlike juneau. let's go to john. >> caller: booyah. how are you? i was wondering what you think of the black stone group? >> i have liked it, not just because the guy who runs black stone went to about bington high but i like the yield. my hat is off, we dug out a double. how about jason in new york. >> caller: hey i'm a big fan of
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yours. >> thank you. >> caller: i was thinking of what you think of activision. >> ea is fantastic, activision is fabulous. you're winning with all three and don't forgot gamestop and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this.
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did we spend too much time
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focusing on greece? does the media overplay the performance? can it bring down all of europe, with a population of 472 million? pay attention to the international finance the weight of the evidence is absolutely good. greece is incredibly important we keep hearing. in fact, if you listen closely enough you think might that the talks going on right now could be just as important as of course more important as toxic to europe as the fall of lehman brothers was to the u.s. in other words, we're hearing that there's tremendous systemic risk if greece defaults on the obligations. there could be hugely negative repercussions if it's stripped of the status as a member of the european union and forced to substitute the ad hoc currency for the euro. it's the chief reason why last night i kind of had enough. i interviewed pierre andre de chalendar, the 350-year-old person strong worldwide materials company that does business with a big concentration in europe. he has a perspective. he's not an economist or a
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politician. he's a business man. with the unique perspective that comes from running a dominant european company. one that's closely intertwined with all things construction. that's why his answer to my question about whether the media focuses too much on greece i thought was so revealing. do we talk too much in this country about the problems with greece? given how small it is? >> i think so. >> you do? >> i think so. i think that to put greece in perspective, i think three years ago it was a threat for europe. the eurozone has changed. i think we could leave. i hope it's not going to happen. but i think it's much less of a problem than three years ago. >> in other words the systemic risk has been minimized because they put mechanisms in place to deal with the greece default without it spreading through the eurozone. i think there's a lot at stake in the greek negotiations but more from a world perspective
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than economic one. unlike spain and ireland where austerity as ugly as it was clearly succeeded as the growth is very solid, even if not rewarding to many people as it should be. in greece, austerity has failed. some of that is because greece has been bad at restoring austerity. while failing to stop rampant tax evasion or privatize assets that could have brought in a lot of money. in some ways the europeans who are on the hook for a bailout gone wrong have paid more of a price per person for what greece refuses to do than the greeks themselves to the man on the street it seems selfish that greece elected this government to repudiate previous reforms. but that's also a sense that chief greek antagonist germany which is the biggest winner thanks to the bountiful exports both to other countries with stronger currencies has more than enough money to look the other way on greece while it tries to come back from the abyss. more important though is the
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fact that all of the attention on this issue is paralyzed the world. at least the financial work. yes, there will be dislocations and they will be caused by hedge funds who are on the wrong side of the trade than by actual economic losses. that's why we need a conclusion so we can think of other important issues. need to end this miserable standoff where a small country is taking all of europe hostage. and that's why i'm saying we're overdoing it. we're wondering what the heck we're so worried about. i think it would be terrific for international companies. so i say thanks to mr. de chalendar for putting everything in perspective. it was sorely needed. stick with cramer. he's right. sign up, and you could earn plenti points just for being a wireless customer. in the meantime, i just kick back and watch the points roll in. where did you get those noodles? at&t cafeteria.
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you mean the break room... at&t - the only wireless carrier to be a part of plenti now when you add a new phone line to your wireless plan you get 5,000 plenti points to use in lots of places. you wouldn't take medicine without checking the side effects. hey honey. huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck.
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for the millions of americans suffering
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from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid. all right. the heat is on twitter. you know that we from the comments, a very important venture capitalist out west. we know that from suntrust. here you get it from me. i think the numbers are going to be lousy. my charitable trust owns it. i think that the numbers will be so bad it will hurt the stock but maybe we finally get the catalyst and some change. we need change. changes by the way wouldn't be a bad idea. there's a bull market somewhere. i promise to find it right here on "mad money." i'm jim cramer. i will see you tomorrow!
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lemonis: tonight on "the profit"... sammy: this is where the magic is. lemonis: ...a burger business in new york city... tranchina: don't be shy with the sauce. lemonis: ...built by four best friends... sammy: we had a dream. we had a [bleep] passion. i don't know where the [bleep] it went. lemonis: ...who now can't get along. sammy: so, why the [bleep] wouldn't you open up the restaurant on time? -that's [bleep] -tranchina: hey! that's enough! lemonis: it's a dire situation... sammy: i build it for my brother, for my family. [ voice breaking ] i feel i failed them. i really do. [ sniffles ] lemonis: ...compounded by lagging sales and mounting debt. how much are you losing? covello: $5,000, $6,000 a month. lemonis: if these guys can't get on the same page it's just a matter of weeks before this business goes belly up. todd: if we don't fix the problem, we're gonna have to close the doors. lemonis: new york city has a ton of energy, and it's always been a place fo


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