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tv   Mad Money  CNBC  November 11, 2019 6:00pm-7:00pm EST

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final trade, dan. >> shoutout to my dad, favorite vet, seller for amazon. >> buyer of all state. >> karen. >> yes, buyer of american . . ines >> happy veterans day. "mad money" is up next i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey! i'm cramer welcome to mad money i'm trying to make money my job is to entertain, educate, teach. call me. or tweet me after a day where the averages got crushed in the morning, then bounced right back, dow closing up ten points, s&p 500 declining .12% nasdaq sliding .13%.
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wisdom turned bearish. all morning. we keep hearing the same thing from the so-called experts why won't this darn market stay down where's all this money coming from don't people realize the earnings will be down this year versus last? that's a negative litany i hear everywhere i go, even colorado even with that u.s. air force academy. people still betting on recession. they think this is merely a fed mandated bubble and the buyers are going to get crushed and that i am way too positive the but every day something happens that contradicts the bari bearish narrative. i get it it's hard. i admit it the pessimists are looking at all the wrong things i have to let you know where they're going wrong so you don't make the same mistake. i'll walk you through individual stocks that i got wrong. okay exhibit a.
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hpa. they reported an okay number just okay. and it's beloved ceo stepped down for family health reasons bad. and lore enrique loris took his place. before the plan was announced, the stock of hp had a tough summer it was at 21 and sank to 16. i couldn't think of a reason why you would buy a company like this with a floundering printing business and they have to lay off all the people and dionne is not rung it. xerox had had more imagination than i did they decided to make a bid for hp even though hp is three times the size they can't afford to buy hp. hp has the money to buy xerox. the most important thing is that hp is going from ugly duckling to beautiful swan. in other words, you made a fortune if you believe in hp
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when you vushouldn't have beliee in hp. now the stock is at 19 and change deal or no deal, hp stock got the groove back. exhibit b, walgreens boots of lions. last week we started hearing rumors the drugstore chain may be a leverage buyout target. come on. this morning bloomberg reported that kkr didn't take them private. the stock surged 5%. now to me this idea seems absurd walgreens has a bloated balance sheet. 16 in debt its been doing poorly versus amazon which is really the front of the store and the death star against walgreens and that used would be the bread and butter. it is declining same-store sales worry me walgreens has been a terrible stock because there is nothing special. not cheaper drugs, not health insurance business like cvs, not terrific merchandising that flies off the shelves. in other words, here's what i think of when i think of
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walgreens. [ dog barking i couldn't think of a reason in heck to own this darn thing. but apparently kkr really sees things differently unlike me, kkr is a gigantic multibillion dollar leverage buyout firm. at this point it doesn't matter. it doesn't matter what i think about how crummy the business is there is a potential acquirer who believes in it so bears it doesn't matter. exhibit c, apple at least i got this one right. the new iphone 11 is place holder something between the 10 and the 5k hardly anyone expects this to be a big seller why would anyone upgrade with 5g right around the corner? was i stupid i dropped my phone i have to fix this thing so i wept to get a new one at
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that brant new store at 59th street and i had to weight for agents to get a sales person the line was too long. all i wanted to do, as i said to the sales person, i like to give you $1,000 i mean, you know can i give you $1,000 how about you? i'd like to give you $1,000? i needed a phone and i got glass splinters. okay turns out no one wanted my $1,000 unbelievable hey, why don't -- $1,000 hey? but someone finally wanted my $1,000 mast, as a matter of fact, they wanted $1200 because i got that apple cares thing. i guess i care i bought it. anyway, it's worth every penny first the battery never runs out. i mean i had the flashlight on all last night what is that it was battery was not even dead i mean i don't think about the battery. remember i used to think about the battery all the time i don't think about the battery anymore. i never -- doesn't happen.
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second, i thought i would not need the three camera feature. what i didn't realize is that there are a lot of pictures that i never even bothered to say because they sucked. i'm allowed to say that because elizabeth warren said that and my buddy mark zuckerberg not. guess what happens they all look at everybody's phone. cramer has the 11! i want the pictures taken by cramer $1,000 phone yeah third, i love the easy -- no more button at the bottom. i never got that it looked like this this is something i really like flashlight on i never understood swiping up and you no he what i mean? the iphone 11 is a massive worldwide hit. massive! they are hunkering down wait are for 5g are going into overdrive waiting for the demand it's a bonanza broadcom, sky works, this whole semiconductor complex is now
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thriving they're all trying to catch up because they didn't see this coming either. they didn't see it coming. exhibit d, boeing. i mean come oshgs. out of time line today are'return of the 737 max. i don't know people believe that they believed it. it is enough to spark a huge rally. i saw this and said okay nope market loved it. stock is up 14% for the year boeing now given all the negative headlines, you expect it to be down 14% nope, up 14% see? this guy doesn't know what he's doing. last week i hurt my hand hitting him. woint do that again. are there too many believers in boeing it is unfair the stock is so high i keep hearing unfair. that's laughable fairness is nothing to do with business the stock is up because there are for buyers than sellers. end of so story. regardless of the headlines, the buyers believe in boeing
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give one more. i have tons of them. general electric they were a black hole and hit the balance sheet. when the stock hit 7 back in august, i kept thinking here we go again it's going to test the $6 mark from last year it won't hold. the person i trust most in ge is steve morgan the stock didn't get there they raised guidance last quarter. the black shohole is clearly no march. it is $11 do you wish i caught the 7 to 11 move for you of course. did i? no too bearish. will ge have a big year in 2020 don't see how. could i be that wrong? but then again, i didn't see how hp would do it or walgreens would do it or maybe i saw apple but boeing i mean, here's the bottom line this market keeps surprising us with companies that are doing better than anyone would have imagined or the stocks were cheaper than we thought. that's the biggest reason why the bulls are running circles
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around this guy. ed in new york ed >> just a minute, good afternoon. thank you for taking my call on veterans day i appreciate you spending a part of my holiday with me. >> those guys are real vets. me, i'm a pencil pusher. of what's up >> this vet is happy to touk tauk talk to you from vet vans day. i've been riding fc and now in 40 i listen to the last conference call everything sounded good except the behavior of the stock. >> i'm with you, ed. you know, look, i went over that -- was the conference call perfect? no were there issues? i think the stock should be bought i will is falling on hard times with a lot of others i think it's a mistake i'm with etsy and with you for serving, thank you randy in new jersey. >> hi, jim, thank you for taking
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my call. >> no problem. >> i wanted to call and ask you about chipotle i did exactly what you said no the to do. i bought on the earnings right after they reported the earnings when it was skyrocketing before the end of the conference call, before they were talking about their risks. so my cost base sis about $835 i'm down thousands of dollars today and closed at $743 i want to know if i should sell. >> no. no randy, you're fine you're absolutely fine as a matter of fact, we had chipotle for dylan's birthday. happy birthday dylan here's the thing the stock went up on a spike the whole group came down because some confusion involving delivery and what really matters right here, right now is that it is a buy. and i think you should be a buyer, not a holder, not a seller, but a buyer of cmg
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and that burrito, i don't know who ordered that that was dynamite. dylan, happy birthday. companies are doing better than anybody thought they could or the stocks are these aren't supposed to be going higher all right. well that's what i'm trying to explain to you about how the bears wind has come out of the sails. one of the few people said the market is poised to go higher. you have to hear what edge lend airy trader larry williams predicts about the future. instead of regulating ceo salaries like senator war sren s proposing. you won't want to miss my take but first i'm setting sail >> coming to you from the brand new more wenorwegian cruise line where we're sitting did with the ceo frank del rio. ♪
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electronic music hey, i've been too negative on the cruise lines this group has been hammered top dog carnival down 9% for the year some of the stocks are holding up abouter than others look at norwegian cruise line. the fastest growth rate. they're still up 23% for 2019. not too shabby last thursday, they reported an impressive quarter a lot of uncontrollable things it didn't matter the forecast is robust the bookings are amazing how do they do it? earlier today we had a chance to speak with frank del rio he is the president and ceo of
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norwegian cruise line holding on the newest ship the encore which arrived in new york yesterday for the first time take a look. frank, done it again this may be the most gorgeous ship i've been on. tell me about it. >> welcome aboard. this is the new norwegian encore fresh out of the factory alifd in new york last night all 170,000 tons of her. 4,000 packs xpast. she is filled to the brim with happy customers. and we're excited to be here with you to day in beautiful new york city. >> i want to tell you that we met earlier last year and you made a series of predictions you said that there will be no recession. you said consumer spending will be good. you said people will be happy and have a lot of bookings even though everyone is talking about overcapacity every one of those things came true how did you know >> the numbers you know, i've said -- i think i told you this several times, jim. the economists, the government, the investor group should take a look at the cruise industry as a
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leading economic indicator customers today are buying cruises eight, nine, ten months into the future. the we know it's going to happen and we also know that those who book eight or nine months ago and are onboard today, they're spending money like there is no tomorrow so the customers -- especially the north american consumer is alive and well and spending money and there is no end in sight. >> you talk about the trifecta of what occurred kif me the numbers >> well, the highest revenue in our history in the third quarter, the highest net yield in our history, we broke $300 first time any of the major cruise lines broke $300 and our booking window is further out than ever before it expand bid 10% over the same quarter last year. >> even though there is an 8.7% increase in capacity, much more than people thought, and it turned out to not be the relevant metric just as you told me it wouldn't be. >> it's such an underpenetrated
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industry 2% of the world's vacationers have ever taken a cruise there are more hotel rooms in las vegas and orlando than cabins in the world fleet of ships. so we're underpenetrated we need more capacity. that's why i'm so glad that we're able to take the delivery of the beautiful new ship. >> some of the things that distinguish you from the others, you are very much distinguished in terms of just the stock not just the stock price but the cash flow. exotic destinations. you do a lot of planning to places nobody else goes. >> well, i think a lot of other cruise lines go where we go. but we perhaps market them better than others our past guests are very engaged with our brands. we have some brands that over 60% of the folks onboard are past cruisers on this ves he will for the first three or four months, 40% are repeaters. so they like the brand they like our services onboard they want us to take them to places all around the world. >> one thing i like about you is the way you report your numbers.
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you are the most transparent we were all going over them just marveling. you take them down before you got to the good part. you had cuba when it hit you had norwegian pearl, a technical issue, cuba, 22 cents. then you took dorian you broke all these down the one that really stuck out for me was this very quick shift in policy about cuba >> yeah. it came sudden we had all of 14 hours to get out of cuba. i had a ship in havana the day the ruling came down and we had to hustle out of there by midnight or else we would be in violation. but that was a big deal. if you recall, several quarters ago when i was on your show, we talked about how cuba was a big money maker. americans are willing to pay double to go on a cruise that included havana versus one that didn't include havana. and 4% of our capacity was dedicated to cuba. so when it happened, it was a blow but we were able to hustle and overcome those challenges.
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and it's one of the reasons why our numbers were as good as the were. >> you blew me away. i would think you couldn't do these numbers. you're also doing some things that don't get enough credit for. you got in your hand a -- something that could make a national difference to the environment. it is not green wash the numbers are quite incredible what you're going to do versus plastic. >> we just announced a partnership with just goods that replaces over six million plastic water bottles across the norwegian brand. we're doing it on the ocean and region brands. so, yes, we're taking the issue of the environment seriously we apply the oceans waters we do everything we possibly can through technology, policy procedure to prevent any pollution in the water or air. >> and you also don't get enough credit you actually fix ports and create jobs in the west, seattle, alaska. this is something that you just
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do it's good investment for you good return on investment? >> it s yis the cruise industry, the wars are always fought on ships it's not extending to land as we build more and more ships. we have to go somewhere. and sometimes the local governments don't build the infrastructure as quickly as we need so now the cruise lines are taking that responsibility we're investing in three different projects in alaska in juneau and seattle you know, alaska now has become a six month high yielding product. it used to be a specialty two or three months a year. it's no the thatanymore with the big vessels going there. the season now starts in april and ends in october. and we're taking a leadership role in that area. >> let's talk about the amount of cash flow that you generate i know that the trips all return the you're a very pro shareholder. you have in delivering, you
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bought back a huge amount of stock. i think that may be instrumental in why the company is outperforming the industry >> we generate a lot of cash we have the highest net yield in the industry by a wide margin. we generate more per capacity than our competitors by even a wider margin so all of that cash is something that we have to deal with. and so, yes, we bought over a billion dollars worth of our own shares in the last 12 months 9% of the float. we delevered down to the low threes and mid to high twos by the end of '20 and so it continues. cash generation is one of the feathers in our cap. >> all right last question. this ship will be, i presume, filled up maiden voyage but actually probably even six months from now you may know it's filled up >> i will tell you that this vessel six months from now 60%, 70% sold you talk about predictions, i
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know the numbers >> right >> and we see them and they're great. >> well, you're great. congratulations on making the exceeding every promise that you made to us at a time when people were very doubtful you believed >> i still do. >> okay. thank you to frank del rio, president and ceo of norwegian cruise holdings. what a stock i got to tell you, i am just in awe of what you have done versus the rest of the leaders. >> thank you, jim.
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the yield curve meant to be had to have a recession, therefore, the afrnl has to go lower. of turns out, they were dead wrong. the yield curve uninverted and the stock market was higher. they don't talk about that much anymore, do they i told you not to take the bears too seriously. they were ignoring everything that is going right with the economy. it is hard to make the jud judgementes when people tell you to be afraid check your emotion tez door. when that gets difficult, when the sense of doom and gloom is just too palpable, fall on something more objective or take a quantitative approach. i myself as you know, i'm not a huge believer in the charts. i think that they are very important and they're wall street speak for looking at the action to bring, of course, security might be headed i prefer stick with the fundamentals on how businesses are doing and figure out what that means for the stocks. the analysis requires a lot of judgement calls. when you're constantly bombarded by big picture worries as we are
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every day. the fed, trade war it messes with your judgement. doesn't it the charts, they don't have any of that stuff. we run them off the chart segment every week during the big selloff, we checked in with larry williams he is a legendary technician he is in an industry leej end. he wrote almost a dozen books. he has his own website and he has created a legion of technical indicators like the williams percentage or oscillator of we use that all the time. that's him and late august, he made a bold call he told us we need to stop worrying and learn to love the stock market because the negativity had run its course and the averages were ready to roar. the s&p 500 rallied since then a great call by larry. so where do we go next well, larry checked in with us take a look at this. let's start with two tools in
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august first check out this chart of the cbo index. that is the vix for short. that is known as the fear gauge. it reflects the level of panic in the market. that's why the vix and s&p 500 tend to move in opposite directions williams said there a cycle to volatility he tries to predict that cycle based on the vix's past behavior can you see the forecast in red on the chart, okay and remember, he nailed it with this forecast last time out. based on the cycle, williams expecting a sustained upturn in the volatility index right around the end of the year here, okay but until then, he thinks it will head lower. the stock market should continue to climb that's what he is saying should happen now there is an advance decline line that he also cares about. and that measures the next side of advancing stocks minus the declining stocks the number that goes up versus
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the number that goes down. williams has been following this indicator, get this, since 1962. because the stock -- it is a rational price gives you a view of the market's breath smooth things over so you don't have outliars. when it rises, that means you have a healthy market with lots of winners when it faelz ails and goes dowu have a lot of losers, just like with the vix williams looks at the past action and comes up with a forecast to figure out where it's headed n case of the advance-decline line they predict a major uptick start right about now. just like we saw in late august. this very, very bullish. the decline line, cycle forecast move it up okay now i want you to take a look at the daily chart of the mini s&p 500 futures. the which closely track the underlying index even though the s&p 500 has been on a terror and technically in
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overbought territory, williams sees the psych that will is going to turn more bullish these are forecasts don't tell you the magnitude of a given move right now the s&p 500 is screaming that we're about to go higher still this is really -- this dove tails with what i said at the top of the show. right? pretty fascinating now talk about individual stocks this also is good. check out a stock that my trust has. home depot williams like the action here. first, the stock benefits from a bullish seasonal pattern the blue line. this is how it is looking before typically causes retailers to rally going into christmas he says that home home depot is outperforming the seasonal expectation which suggests the stock will really go into gear once the pattern turns extra positive there is a thing he developed to find out what professionals are doing. it is called the williams cotsi
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it helps determine if they're buying or selling. lately they've been buying home depot and they've been buying it hand over fist that's a very good sign. he thinks it's exactly the stock that can work for the end of the year you know i'm a big fan of home depot long term. i was thinking do we have to sell some home depot for my trust? i trust what larry williams says, the answer is going to be no next up, there is walmart. this stock is excellent performer here the investors started buying a few weeks ago. i'm with him although i didn't -- here we go. okay professional buying. i didn't think this was as strong as home depot i'm not going to go against him. finally, how about this one? a lot of people feel this is so simple to do and yet it's been wrong for so long. i don't think it's going to be this time. united parcel. somebody has to deliver all the
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packages that you have on line when they have a strong christmas, that spills over into the ancillary place like this one. this could be big. that's why the seasonal pattern of ups is so strong. based ond this pattern, he wlefz there is more room to run. the stock got hit, okay, when it reported i came down here and said that was wrong. it slunt got hit it should be going higher much that's what it's doing i think it goes higher still bottom line, in late august when so many commentators are freaking out coming on air and telling you how scary it, is the legendary people said the negativity is peaking and the stock market is poised to go higher guess what he nailed it he tells us the averages keep running through the end of the year, home depot, walmart and ups, you better take him seriously. nick in florida? nick >> boo-yah >> rite aid had a big runup.
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now they're thinking of going private. is git to buy rite aid in hopes it will get approached too >> no. no while the balance sheet for walgreens is subopt mall, $16 billion in debt, the balance sheet is horrendous. i'm going to say you shouldn't be in that stock do not be in that stock. okay let's go to jim in new york. jim? oh, darn it. we're out of time. all right. our charters think the averages can keep running through the end of the year along with home depot, walmart and ups i recommend taking them seriously. more "mad money. i'll tell who you to take it up with then onest biggest games in biotech. but can charles river lapse give you the boost in an uncertain market and all your calls, rapid fire in tonight's edition of "the lightning round. so stay with cramer. make fitness routine with pure protein.
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sofi thank you, we love you. ♪ the board, the board, the board. every time a ceo is asked about a pay package, they say they're getting paid take it up with the board.
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the last we heard from jamie diamond was on 60 minutes. we heard from boeing's ceo you never know how it works. you know how the sausage gets made, it's egregious considering the $31 million jam jamie dimon made last year, having been on a public board, i understand the board it's filled with well meaning people they don't want the ceo leaving or retiring especially when they have jamie dimon who is the best in the industry. they ensure they get the best salary versus the peers. that's how you get the pay back positions. why is this such an important issue? income inequality keeps getting worse in this country. that's why elizabeth warren wants to turn back the clock to a time when executives didn't
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have such huge pay packages. her plan is to create an office of united states korngss and the congress department to enforce any business with more than a billion sales to on taken a federal charter of corporate citizenship and if you want one of the charters, 40% of the board of directors is composed of workers would warren's plan work the pay package, sure. i think you can get the job done that heavy handed regulation seems wrong headed to this guy why? the ceo works for the shareholders if you want to judge whether the ceo's pay package is excessive, look at what they've done. when it comes to j.p. morgan jamie dimon crushed it the way i see it, you have to look the a ceos like the boss f you're a free agent, you make a lot more than he's making now. how about dennis mull enberg at boeing very different first when he was asked about how long how you would take the
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package giving the catastrophe, he also said it was up to the board. then after soul searching, he asked the board to waive the bonus. that was the right thing to do when you look at their strong performance this year, i'm talking about the stock, i think he's doing a good job all things considered especially when he gets the planes in the air safely and the time line disclosed today. don't get me wrong, income inequality is a real problem in this country there is a reason that elizabeth warren is the front-runner the problem is not ceo pay i think it is everybody else's pay. we should consider higher tax on the rich or higher minimum wablg wa wage i don't know the right answer. i think there are better approaches that up end our system of free end prize than i this i is better than every other country. stick with cramer. tom steyer: wall street banks took advantage
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of millions of americans during the recession. so, my wife kat and i took action. we started a non-profit community bank with a simple theory - give people a fair deal and real economic power. invest in the community, in businesses owned by women and people of color, in affordable housing. the difference between words and actions matters. that's a lesson politicians in washington could use right now. i'm tom steyer, and i approve this message.
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welcome to the united states air force academy.
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>> i'm from pennsylvania. >> i'm a huge fan of the show. i just love it >> jim, big fan. >> thank you to you and cnbc and thanks to the air force academy for hosting us today >> we salute the brave men and women in the arms force who's protect our country. armed forces who protect our country. >> still on a high from that great show thank you to all our team. it was just extraordinary to go to u.s. air force academy. and now it is time for "the lightning round! are you ready? lightning round. >> boo-yah, jim. what is going on since the netflix special. crsp >> everybody likes them. find it to be very risky i'm going say as long as you
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recognize it's a fierce bet, i'm okay otherwise, no. let's go to jerry in michigan. jerry? >> hi, jim really enjoy your show >> thank you >> i'm interested in your thoughts on new turn growth on bt. >> my trust owns it. i'm going to talk about it i'm bfr very disappointed in all fossil fuels even when they're doing well, it doesn't matter bp is doing very well. i'm not going to let anybody get into that chamber of the house of pain. stay away. let's not put it n i have to deal with myself charity in georgia charity? >> hi, jim how are you? >> i'm good. how about you? >> i'm well. first time stock buyer ogi a buy or not >> no. we're not doing any cannabis until we see canopy bottom this group is just -- it's like a venus fly trap i'm not letting you in it.
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kathy in pennsylvania. kathy? >> boo-yah, jim. >> boo-yah the. >> grocery outlets, when they went public in june close to $28 i waited and didn't buy. but when it hit $47 in august, i was kicking myself i know it has a high pe, i thought that because bunch of the initial offering money was being used to buy property for more stores and investment in current stores >> but -- kathy, i've been watching this stock trade up for the last hour. i think it's terrific. i like grocery i like it before this quarter. i like it again. kirk in maryland kirk >> boo-yah >> wow >> boo-yah my boys love the animal toubuttn on your show give me a bill our bear. >> there you go.
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>> thank you >> all right go ahead hello? state street oh, my no, i want it on regular i like j.p. morgan call me old fashioned. i think jamie is doing a good job. dino in connecticut. >> big boo-yah to you, jim big boo-yah to our veterans, military men and women and especially my son that just got back from his deployment my question to you, jim, is involve group, buy, hold, sell >> this stock keeps going down i don't think it's that good of a company. as that new crop of ipos that everybody hates. i think they're throwing the good away with the bad i'm not alone. remember, more pain. let's go to jeremy in utah jeremy >> boys in the bullpen >> okay. >> i'm just calling about
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european on dish network >> very, very smart management they go up isn't that difficult at the top of the show i talked about how them going up. i can't recommend it i don't like the balance sheet >> hey, jim. should i start buying zbhen. >> i like that stock very much it's a great stock mktx we've been behind it forever and we're not budging. we still like it we're not done one more william from fargo william? >> jim, how's it going >> not bad, william. how about you? >> good. good good thanks for your help out here, man. you have no idea but i've been looking at infrastructure. >> yeah. i think you should hold off. they had a real big move a lot of the other stocks, that's where they peaked out and that, ladies and gentlemen,
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last month was the stock market caught fire, we have seen unlikely strength. we get the bioteches and the industrials. and the financials maybe they should never have been in doubt so much in the first place. the biotech stocks are exploding
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higher what does that mean for the other plays? something like laboratories. university ands pharma companies that discover new drugs and conduct clinical trials right down to lab rats use in safety studies. they've been on the long term, doubling over the last five years, the stock has come of pressure of late it has fallen to 132 today so what does the stock need to do to get back on track? let's get a closer look with charles river laboratories he knows the business. he gets a better sense of what the company is doing welcome back to mad money. >> nice to be here, jim. >> okay. so jim, you and i boenl know the industry is strong i need to get people in the
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stock while it is down and the business is great. there is no disconnect there is a disconnect between the forecast you gave and what we thought you were going to do. so maybe you can just throw some meat on the bones and then deal with how well things are >> sure. you know, our business is not linear people don't start studies and stop studies with our fiscal quarters but we're really thrilled with our long term growth rates we've been growing at high single digits. we grew the at high single digits in the third 8% we were pleased with that we're quite pleased with our guidance in fact, with he said for the next couple of years two to five years we'll grow the business at high single digits and we'll get our upgrade margins in the over 20%. so we're pleased with the demand curve. we're pleased with the performance of all three of our
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segments i think the forecast is slightly optimistic but for the year, we'll be in great shape. >> okay. let's talk about what people then, some of the more critical analysts indicate that perhaps there are indications of a slowdown biotech stocks, biotech funding peaks. that it's down from here you got many years worth of biotech dollars in the system that need to get to charles river in order to get something in the market. don't we >> you know, the better the funding is, the more concerned people are about it for some reason this year the funding is up dramatically it will be comparable to last year which was the second highest year in biotech funding history. we figure this is three to four years of cash available to them from the capital markets, probably the same amount of money flowing into bioteches from the pharmaceutical companies. they have become the discovery engines. we have never seen a better
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demand curve that is why we work on # 85% of the drugs that were approved last year. we continue to be a more expansive solution for our clients. so biotech is strong the majority of our revenue now is coming from biotech both large and small. >> you have to -- it seems like expand pretty much wrefr yeverye you are. i didn't think you need that that quickly is that just to meet demand? >> yeah. demand very good so we've been adding capacity across most of our businesses. slightly ahead of when we need it we don't want to have too much capacity by the same token, we want to have capacity to take on work when we get it we will do that at multiple sites. we'll continue to da that in the future as well. >> there is an mazing moment in your conference call where people are talking about the competition in china
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i think that is 30% chair. that is fun i y most people don't have 30% of anything but then you say the quality of the product and the competition is inferior. so that is better than they are at everything. we are a second class giant. and the chinese know more about it >> the small business is comparable for 70 years. people trivialize -- they think it's easy to produce this. it's an extraordinary amount of know how, genetic oversight. so we've been able to apply our almost eight decades of know how and really set the world standard if you want to do high quality research anywhere in the world and have care review success, you really want to use animals
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to discover and develop that drug so the mostly government companies have tried to chase and have just been simply unable to do it from a biological point of view. and lots of them have gone belly up so we're going to continue to build new facilities and grow geographically throughout china which is a huge market and pretty much set the standard of excellence in that country. so that new biotech companies and growing pharma companies will utilize those services. >> one last question from right at the opening, you were talking about remarkable drugs that are to comeenter a n. where it sounds like there is going to be a lot ofllness >> i think this is one of the most extraordinary inflection points in the history of drug development.
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and there are therapy that's are the latest and greatest anti-body whys and we have both treating and curing diseases which used to be often fatal and often very -- it's a wonderful time to service the industry with such high groenl we have a whole host of clients that are utilizing charles river. >> well, thank you so much, jim. always great to hear from you. also give me a lot of hope that things are better than we think. that is jim foster, chairman and president of charles river labs. you rarely get a stock when it's down this it is stay with cramer pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. have you ever worked with dr. francis? oh yeah, he's ok. just ok? guess who just got reinstated! well, not officially.
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