Transcripts For CNBC Mad Money 20171102

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for the next leg of the market, up or down on days like today, dow advanced, s&p inched out gain and nasdaq declined, i have to ask how bullish are people adding money into the stock market pulling money out? the case for years and years interest rekindled by the snorting bull? let me start out saying that sentiment is incredibly important. you don't want overexuberance, froth, people to be too excited. that means everyone would be in the pool already and you're late to the rally however sentiment is extremely hard to gauge. there's some ways that people try to cut and dry it. services that tell you how bullish or bearish news lr writers are every week but there are fewer and fewer newsletter writers enthusiasm or lack thereof no longer means much to me. used to mean a great deal. material, stock inflows. dismal, more going out than coming in, isn't that counterintuitive many weeks produce good outlays from stocks. call that negative sentiment certain, no sign of the dreaded froth there. anecdotal, i did a round table with among others liz ann saunders, chief investment strategist for schwab. she hits the road every week going around the country to speak to thousands of investors. just now detected new people interested in the stock market again, many aren't committing, just warming up to it. given how self-selective her audience must be to hear her speak about the market or sectors, still tepid enthusiasm if you ask me. i like that, lack of warm, love or notty acceptance of stocks as something that can make you money is wonderful for the bulls. if investors were all in, i would have to be very concerned. when everybody already loves stocks, you got no tinder to start the fire as fox sage springsteen teaches us, can't start a fire without a spark and that could be for the next leg higher. finally the ultra anecdotal. meaning me something has changed. strange, i remember different days old days, everyone in the market and excited, i was lightning rod for stocks i couldn't go five feet down wall street without being asked by stocks. guys shower me with names, shouting them out. virtual lightning round every time i walked. these days once a week i get asked about stock. people want to say hi, incredibly nice, take picture with me, that's fine might have to politely decline when iphone x comes out because of the fabulous resolution going to drive me to botox, although i might be oath one, al allergan got -- people say they like "mad money" or they don't, my cousin's mother likes "mad money" or grandfather. heaven forbid say they watch it. but everyone likes to take pictures and post them on instagram. i ask what do you like i might be asking about program or sports team or sandwich, almost no one gives me name of a stock. i do get asked a lot about bitcoin. for more than ever asked about any stock. usually people are vociferous backers of the crypt ocurrency i used to shrug, my nvidia, they make the chips to mine the stuff. but now i refer to episode of t"the good wife," known as bitcoin for dummies. cross examined by bob gal van in court about bitcoin. i was expert financial whiz and said it was totally legitimate and great buy where it was july, 2011 one bitcoin traded at $150 now it's 7,000 people enthralled when i said i liked them at 250. you can go to the video tape i made that call as actor, not jim cramer i should do more cameos. how did you know but i'm asked why don't you like the market why don't you buy stocks 1929, shoeshine boys i always ask, what stocks they're buying, most look at me as if i'm lunatic, one man with defendant use of polish told me he took a loss ford miller so does everyone else. but terrific answers that help us build mosaic. third say not interested because dangerous, too many crashes. follow-up produces a soulful sigh about losing everything in the great recession or dot-com crash. risk aversion is tremendous. second group is waiting for pull-back forever and pretty much given up because of the rally. i missed the rally i've heard since the rally began. third group, craziness in washington, asking why i don't invest i want to engage but i know better, way too dangerous to talk politics. fourth grurnoup, don't have mon to invest, not rich enough i tell them i started with little, nine shares this and work up, but idea that market is rigged against the little guy is pretty constant refrain. i end by looking at their phone, clicking pictures constantly do you like your apple phone i love it, can't live without it well why don't you buy some shares of apple? they typically screw up their faces, i don't know, i have no idea let me tell you something, company that is apple reported tonight, one of the greatest blowouts i have ever seen, just spectacular revenue growth, amazing earnings, reacceleration in china, bountiful services stream, and you just try getting an apple x, there's already lines in australia, japan, other places right now just started why can't i get this no one got apple right except for us ooh, i said it regina, i just said it, violated the rules. i did because i'm proud. >> that's all right. >> i'm proud i knew that tim cook was great so many people are oblivious to the stock of the maker of the machine they can't live without and gladly pay up for. what a shame, this company with a market gap approaching what could be a million dollars could have made fortunes for people if they understood you can own, not trade but own, a piece of this amazing company. why does all of that matter? bottom line, while i know this rally has been amazing, i know we're in a huge bull market with periodic exceptions like drug stocks this week, food last week, retailers all the time, i believe as long as people are incredulous or disdainful for scared of the market, including ideas they hold so tightly in their hands each day and can't live without, there's trillions of dollars of tinder on the sidelines that can come in and take stocks higher self-fulfilling. old members of bad times disappear, new ones created. and realize that stock market and even the most obvious companies as plain as nose on my face can make you a heck of a lot of money bud in ohio. >> caller: boo-yah skee-daddy, from beautiful akron, ohio >> i often tell our staff akron is pretty much it. >> caller: cawanted to thank yo again and again for teaching about single stocks but also teaching us how stock market works. so valuable. thank you so much. because of the huge spread between this year's winners and losers, as well as maybe possible tax cuts, i think will probably be much larger than normal tax sellings the next two months, especially as institutions prune their losers before the year-end statements if you agree with that, firstly, at what time are we likely to soo the crescendo of the large-scale sellers? and secondarily, in what sectors or industries do you suggest we look to find broken stocks as opposed to broken companies. >> most of the broken stocks will be in retail, don't trust them because of amazon, second is restaurants too many restaurant chains third group is drug stocks in generics, but i disagree with the thesis about selling i'll tell you why. people don't know what the tax code is going to be. not going to presume necessarily it's going up, not with president donald trump i think that people will hold on they can't make up their mind, that's good for the bulls, not bad. harley in arizona. >> caller: boo-yah from sunny arizona where pickle ball rocks? >> what? >> caller: pickle ball vlasic clouson? >> caller: pickle ball >> of course pickle ball what i was thinking? >> caller: are you playing it? the game >> i don't really know what it is but go ahead. let's get to work. >> caller: what should i do with nxb stock? >> don't tender, tone. i'm telling club members to please, please hold off, do not sell this stock. all right. with some exceptions we're in the midst of a huge bull market. but there are still people scared, that's a good thing. lot of money on the sidelines that can light the fire and takes stocks ever higher on "mad money," just been hit with clearance rack but should you be browsing lesser known play on the space. taking you inside what is working with operator. financial tech space revolutionized how world drops coin i'm eyeing global payments and even in a year with depressed energy prices and multiple interest rates, dominion found a way to head higher sitting down with the ceo. stick with cramer. >> announcer: don't miss a second of "mad money," follow @jimcramer on twitter have a question? tweet cramer, use the hashtag #madtweets send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something? head to madmoney.cnbc.com. 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given that the company itself is doing so well closer look at don wood, president and ceo of federal realti what people think of retail, real estate and investment trust. >> world is changing quickly out there. s&l crisis in early '90s the industry group a little bit. wall street said just retail, residential, office. that's cool but makes it hard to be real estate person and puts you in narrow lane that maybe should be wider, broader >> idea is that you want, successful people who positioned themselves to this point for assets to be real estate of choice, not rejecting people who want to live near retail >> not at all. end of the day people want experience, don't need to shop they have to want to shop. you want to put effectively as many of the uses together. didn't have to be mixed use, can be in the right neighborhoods that have that happen. we're not retailer, we're the real estate, got to be flexible enough great locations to go up, out and create 2025 environments, not 1995 environments >> i look at lists, new floor plan, fabulous small target. broad soft, cloud company, and amazon are the customers you talked about this quarter. >> that's right. if you could see the real estate in the places those companies and others like that are choosing, makes sense to me, not rocket science what we're doing here they're choosing places where the environment for their employees, customers and shoppers have the amenities necessary in 2018, '20 and '25 >> everybody knows i like you don and written about you and talked about you. >> i like you too, jim. >> if condominiums were halved, would be don't work next to real estate but your demonstration empirical evidence that it does. >> first be clear, condominiums, for sale real estate don't do a lot of for sale but a lot of for rent and apartments in there but when you're creating a community, needs to be for sale product too. we do a small amount and so far, certainly up in boston, hit a home run >> people say, he's always transparent about the clients, stock of bed, bath & beyond, low, all 52-week lows, what don doesn't realize, i think so top ten clients, stock market doesn't think are good >> first diversification is certainly in your business, in ours critical. when you look at income streams from federal, you absolutely see no one tenant that makes up more than 3% of the earnings base office, retail, rez, different types of lifestyle. >> i could have cherry picked good tenants >> idea is no one tenant can throw us off our game. needs to be collusion of a whole lot. >> is this the inflection quarter where people realize this >> i don't know from my perspective, if i'm real estate guy look at difference between private and public values. bottom line is, if you liquidate this company asset by asset, do a heck of a lot better than what it's trading at even after today. says something to me. >> it really does. >> real estate, not retail and broad brush has taken us all out. >> you explained a lot to people over the years, this is the best i've heard you do. >> time is passing, i guess that's good. >> that's what you do. don wood, long been my favorite -- now know why stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and. when you find a powerful long-term secular theme in this market, you have to keep circling back to it and back to it remember we don't need to invent new ideas every day, if we have a good theme, stick with it. bring it up because huge bull market in area you're not familiar with but use every day. payment processing place companies that transition from paper to plastic, cash to credit cards, making fortunes here. every day billions of debit and credit card transactions growing as cash becomes thing of the past not touching on the explosion of digital and mobile payments. swiping card and signing name might seem simple, whole lot goes on behind the curtains to get the transactions authorized, processed and settled. very difficult, just seem simple when you swipe or use the chip all the businesses are booming, which is why so long i've pounded table on mastercard, visa and maybe best of all paypal why i recommended vanity world pay, a british payments company. but tonight want to talk another company, one with stock totally en fuego called global payments and mentioned it only in passing. that's been wrong. gpn, george pam nancy for home gamers they recently made a big acquisition with purchase of heartland, and so good, and stock of global payments has rocketed up. so good i'm kicking myself, i wish i had highlighted it earlier. some things are better late than never though this is one of them. where does this fit within the broader payments bull market and can the stock keep running maybe we missed it start with what these guys do, merchant acquirer is term of art, sign up to enable merchants to accept payments they're the ones who set pricing. e-commerce cross border gambling solutions too. when you pay with credit card sets off complicated process that seems straightforward because it happens so quickly. retailer you're buying something from sends transaction information to the merchant acquirer like global payments. who passes it to credit card network like visa or mastercard. then sends to bank who pays the money. then takes cut and splits with the merchant acquirer. then paying the retailer would think most of the money goes to credit card company, but in reality visa or mastercard are tiny pieces, from each transaction 15 to 18 basis point. english jim, less than 1/5 of 1% global payments take 2% to 3% cut from each transaction, it's before the money is. more compelling in december 2015, global payments planned to take over heartland payment systems in deal. dramatically expanded base of small or medium sized clients where the base is. giving access to restaurants analysts went nuts mergers completed in april of last year and after treading water it's caught fire but could say the same thing about paypal, visa, mastercard, all good companies how good has this been for this company? added 1,400 sales people across north america, expected to drive additional revenues, cost savings and bolster revenue growth and looking to expand internationally. lot of business to do there and more cash and credit used, more cash than plastic. rest of the world accounts for quarter of the company sales asia, europe, latin america, middle east is where the growth is what should we expect from reporting next week? gun to my head take it away, but look, last time company reported in august, delivered a nice bottom line beat, huge top line beat, on the conference call talked about plans to acquire active network, a cloud-based payment company. $1.2 billion acquisition i expect this to pay out perfectly. and announced strategic partnership with visa equity partners vista, not visa. 40 portfolio companies in enterprise software space. that's vista and heartland acquisition is going well, expanding overseas with plans to move to spain and hong kong, huge market, in the future and e-commerce is growing at double digit clip from last time they reported earnings what is my reluctance? i don't like to game the earnings reports if global payments delivers another good quarter next week and stock gets dinged anyway, wouldn't be surprised if you're getting another buying opportunity and yes it's worth buying trades as less than 22 times next year's earning estimates, more expensive than vantage but better than visa or mastercard global payments deserves to trade at premium advantage heartland deal given them terrific earnings and growth acceleration should trade closer to visa and mastercard in valuation. first data, not acting well but inexpensive has best value but if you want a little-known company essential to the payments food chain, could do worse than global payments only concern is stock's run a lot this year. wait for pull-back, half before, half after mike in north carolina >> caller: hey dr. cramer, i'm calling about square, stock has rallied and just introduced a square register, company reports earnings on the eighth, should take profits >> i've liked square since 12, and i know to some degree i'm pressing my luck when i continue to like a stock in the mid-30s i would take some off ahead of the quarter and let the rest run. terrific company but don't like to press my luck like that what's up ron in texas >> caller: big texas boo-yah professor cramer >> houston, fantastic, astros, love the story and texans quarterback. so much good, i left out of cowboys. >> caller: special shoutout to the world series champs. thanks for the mez cal at my favorite bar san miguel and all you do for home gamers >> going to have own mezcal shortly. diet coke versus coke. smoky. >> caller: cramer mezcal, i like it with the winning streak of houston astros locked in, do you see nsp continuing to hit home runs >> we did a great piece on that, best little company you have never heard of, when it was $1.5 billion and now $2 billion, want to stay with that. there's a huge bull market in the payment processing space and global payment is part of that some now and wait for pull-back to buy the rest. more "mad money" ahead including dominion energy, could it offer electric opportunity? check in with ceo. and facebook and tesla lost power? and tonight's edition of the lightning round. stick with cramer. this is electricity. ♪ this is a power plant. this is tim barckholtz. that's me! this is something he is researching at exxonmobil: using fuel cells to capture carbon emissions at power plants. this is the potential. reducing co2 emissions by up to 90%... while also producing more power. this could be big. energy lives here. one of the crazy things about this market, utilities keep marching higher, even though typically at this point in the business cycle, investors want nothing to do with them i think economy is so strong, these companies are doing well, why the stocks continue to move higher dominion energy, one of the largest producers and transporters of energy in the united states, hit a high earlier this week. even though expected to go lower in economic acceleration, global synchronized rally and rising interest rates but they're doing well management talked about growth projects in the works. new power generation in virginia, liquefied natural gas. and natural gas pipeline to virginia and north carolina. liquefied gas terminal is especially exciting. built on time. and within budget. can dominion hang in there check in with tom farrell, chairman and ceo welcome back to "mad money." >> great to be with you, i hope you're well. >> thank you i hope the same. never thought of utilities as exciting but your utility, first thing is this facebook deal, so exciting, i want people to know about it go ahead >> we did a deal with facebook, going to open a large data center in central virginia we constructed a special rate to provide them and other customers for data centers in particular to power them completely from e renewable energy solar, wonderful deal. >> this tells me old line utility company is using new technology to drive passes down and get best customer in america, other than maybe amazon's second headquarters is this something you worked on? >> i approved it i did direct we create a new tariff as we call it to serve these kind of customers. different kind of deal but also creative for microsoft about a year ago to bring them here as well more than half the internet traffic in the united states runs through our -- 11 new ones this year. >> you're too humble i will say because of your reliability and incredibly low cost of energy to your customers, that's why you get these right? >> exactly why >> you have a couple of projects putting people to work atlantic coast pipeline, the lickification terminal it's about ready to go on budget and on time. >> it's our -- our projects, it's mantra around dominion energy that things are done on time and on budget copoint is about a $4 billion project, under construction for three years, essentially complete doing commissioning and start-up work will make l&g this month and expect to be serving customers by end of the year we have all the permits necessary to liquefy the natural gas, looking forward to providing that service. >> confident of customers right? >> we have two customers signed up for 20 years each, capacity >> you're going to make money from the day it opens. >> that's right. absolutely. >> incredible. doing greensfield country power station, saves $2 billion in costs because most up-to-date facility >> largest most efficient natural gas power plant in the united states when it's finished another project on time and on budget, super efficient gas turbines. >> and atlanta coast pipeline, supposed to be notoriously difficult to build this is on time too. >> people think of us as electrical utility, which we are, been in pipeline business almost 100 years as well know how to do it. we are expecting last of the permits in the next few weeks and will be under construction late this year >> look the reason i always recommend you guys is not just because i think you've done a fantastic job, but it's well-run, on time, and huge projects are not easy to do. fantastic stock and great run. we're sticking with you tom farrell, president and ceo of dominion energy. >> thank you very much. >> this is the kind of company that i love, growth utility. if you're nervous about everything else, go with dominion "mad money" is back after the break. she's nationally recognized for her compassion and care. he spent decades fighting to give families a second 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how's it going >> well, back at you i like apple here. what is going on? >> caller: first say thank you so much, passed student loans this year thanks to your advice and go astros. stock i want to mention, hsbc, grew - >> no, no, no. too complicated, difficult and hard to understand when we have jerry penacoli morgan or citi that's where we're going monty in arizona. >> caller: how's it going. shout out to wife and want your opinion on tjx. >> it's caught up with the etfs on retail. chart is awful, business is good i'm going to say wait until it goes back to 68, and then -- jake in colorado >> caller: boo-yah from denver, jim. >> big game this weekend what's up? >> caller: talking about jim west financial. >> stay away balance sheet issues me no like balance sheet issues. john in illinois >> caller: boo-yah, i've a fair weather fan. kwan tan that, wifi provider. >> we looked and looked and passed too many other guys in the segment and broad come is better until apple reported good number, heresy that the stock was down linda in florida >> caller: boo-yah, i love your show, it's great i bought your book, very informative. also a member of action alert price. >> yes, a club member. >> caller: yes and my question is, stock would be metlife, buy, sell or hold? >> i would prefer a little bit of pull-back but good company justin in indiana. >> caller: boo-yah, thoughts on btsh earnings but lost 3%. >> i think it's terrific story, we like very much and one i tell club members is worth buying is dxc, down 81 cents today come on one more lee in wisconsin, got a chance in big 10. lee. >> caller: thank you information on what you think about exact sciences >> everybody noknows same thing sales unbelievable for kohl orectal product. and product is saving lives. two thumbs up. can i take another would like to go to william in michigan go ahead >> caller: stair cycle after they bought credit. >> i went over with herb greenberg a long time ago, too many acquisitions, not working, not my style unh if you want to be in that segment. that's it for the lightning round. >> announcer: the lightning round is sponsored by td ameritrade >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade. without pg&e's assistance, without their training our collaboration with pg&e is centered around public safety. we could not do our mission to keep our community safe. anytime we are responding to a structure fire, one of the first calls you make is for pg&e for gas and electric safety. it's my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. it's hands-on training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our community safe and our firefighters safe. together, we're building a better california. so tesla and facebook are suddenly no good >> sell sell sell sell sell. >> tesla spending more time on the car and has production problems facebook hiring expenses ramping like mad to fight the bad guys why their stock is down. but you know what, i think the stocks of these two companies could reverse and go higher after a couple of days of selling. tell you why, way they handle conference calls after they report earnings and approach investor bases and make promises elon musk has a history of bold claims that overshadow anything that could bring the stock down until the actual numbers invariably quite poor. insane musk says having huge production problems costing fortune and delaying plans for profitability but in the same breath says once the problems are fixed, has the possibility of producing most cars of any auto company in the world with the highest level of profitability. profess alz listening to the call want to sell because nothing makes you feel kfd that musk can fix it. goes down. on the other hand, retail adviser cohort cares about different things more than any other upstart, you have george michael thing going, faith. individual investors have that with tesla they believe so they'll come in to buy because they love the car. don't care about profit or gross margins or earnings per share. musk underdelivers and overpromises but because he's elon musk, somehow he gets away with it his promises may fall on deaf ears among the analyst community on wall street but good on his followers. you got to have faith. facebook is totally different. has a history of totally underpromising on conference call and overdelivering on the actual numbers remember last year's admonition expected growth rate to come down days then proceeded to blow the numbers away in the stock rally. right into this quarter. this time the talk on the call was underpromise because of the increased expenses spent to combat bad actors like the russians zuckerburg wants you to cut numbers. i always tell you to listen to the conference call before you trade. was up before he said that added protecting community is more important than profits. heresy on wall street and then stock was slammed. i think it's just like ad slowdown from last year, done to temper expectations and make it clear to congress that facebook is good actors, good people. don't need to legislate against them, sue them, whatever, they take care of their issues, venom from russia and crypt onazis i bet they overdeliver again like last year business as usual. things get sorted out, i bet the expenses don't ramp more than ads slowed down last year, slowly climbs out of the self-styled abyss. i'm looking at 2019 already, almost 2018. goes higher, price targets raised and beat. tesla's stock up 50%, facebook up 58%, neither call inspires confidence in near term but both have narratives. one hopelessly upbeat, other ridiculously downbeat. two different strategies, same stock results later as they climb right back up again. stick with cramer. ♪ [vo] progress is an unstoppable force. the season of audi sales event is here. audi will cover your first month's lease payment on select models during the season of audi sales event. show of hands. let's get started. who wants customizable options chains? ones that make it fast and easy to analyze and take action? how about some of the lowest options fees? are you raising your hand? good then it's time for power e*trade the platform, price and service that gives you the edge you need. alright one quick game of rock, paper, scissors. 1, 2, 3, go. e*trade. the original place to invest online. ray's always been different. last year, he said he was going to dig a hole to china. at&t is working with farmers to improve irrigation techniques. remote moisture sensors use a reliable network to tell them when and where to water. so that farmers like ray can compete in big ways. china. oh ... he got there. that's the power of and. sometimes things are as plain as the apple on your face, a week ago stories from the southeast saying that apple was going to miss the quarter and didn't have a lot of demand. didn't have lot of demand for 8 and x. stories completely and utterly inaccurate they love to trade apple they love to sell high no sorry, buy high and sell low. so many people don't get apple right. on "mad money" we say own it, don't trade it always a bull market somewhere, i try to find it just for you. here on "mad money," i'm jim cramer, see you tomorrow >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ with a product she believes will help expecting moms feel 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