Transcripts For CNBC Mad Money 20160603

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weak month. but frankly, that's downright terrible. >> the house of pain! >> the dow shed 32 points. at one point it was much, much worse. as i always tell you. this year is all about constantly finding the roving bear markets and the ramping bull markets. in response to the interest rates plummeted. the bank rally. all the u.s. based international company, the bottom market dividend yield of 3% or hire. it will be longer than anyone thought. specially fed nums keep telling us the economy is getting too hot. if anything, these numbers are too cool. way too cool. as i like to say at the end. show, there is always a bull market somewhere and today, it was did i have tend players like you. the high yielding companies. i think that rally will continue so why don't we get right to our game plan for next week. at this moment i am fixed on that game. we get germ an factory orders on monday. if they are as strong as i think, you can expect the euro to continue. fabulous news for the stocks of so many american xoims do business in europe. we also heard from united national foods. united building definals the trading action, the food business market reports, which is too bad. it is a very sub optimal company. you might want to buy some white wave. they've been having excellent quarters. and because the deal magazine mentioned that actives may be buying the stock. never buy a takeover room or. but if the fundamentals are as good as white waves, it makes sens sense. if it doesn't represent value, it gets hit. dave is that buster's. i think michael's which came from private equity steam transcend price given its arts and crafts or yemtation. and dave and buster's, i thought they can a good job. i'm hoping that the uber controversial reports on tuesday. we had joe papa the new ceo on. he was on not that long ago and he talked about rolling back some prices. and raising some money. if he needed to in order to pay down a substantial debt by selling noncore pictures. maybe a case worth buying the money. something i've described pretty indepth. if it doesn't pop, pull the stock on the call immediately. one of the most exciting company throughout, ralph lauren. rl. the high end clothing coil i can't. wait to hear from the new ceo stefan larson on tuesday. we know the gap store has been a poor performer. it bounced a bit. what is more important is that the lone bright spot for gap had been, and for a while had been old navy. and that had been run by raffle lauren's larsen. a two-fer here. ralph himself who fortunately stayed on as chairman is that chief creative officer. it they will tell us a pretty compelling story what will go right for the rest 2016 that beyond. i think the stock in the 90s is good. essentially, derisked meaning the possible upside has been given up on. i like those stories. benefits by the way from a weak dollar. remember when rest oration hardware used the put tim best numbers ever? it has been delivering sub par numbers. you have to ask if it is bottoming going to the corner next wednesday. i'm a fastball. when money calls, we don't want that to go down big. a stock replacement strategic. i'm a huge believer in the will vice stocks. i expect decent money from the company that brings you jack daniels. i'm still waiting go. how do continuing numbers are good? we'll hear from lu lu lemon on wems. a lot of the upside was stolen when the founder came on and blasted the current management. the stock rallied any way recall, betting that a suitor won't merge. i say if lu lu keeps going, maybe pull the trigger. after that weak employment number, i like companies that don't need a strong economy to prosper. coffee, pet food, jams, peanut butter. we'll get the results on thursday. remember, dogs eat pick bones whether unemployment is 3 or 13%. i'm concerned about mattress firm. yeah. it's reports thursday. the companies are a roll-up of mattress retailers. i think business might be soft. i can say it is overextented. you have to go to. lowe's. go labor costs are higher, food costs are lower, tech costs, maybe jobs once held by humans. you most likely know it as chilies. and they are forthcoming. we have to listen to the trend and see if mcdonald's had been the big disruptor, the stocks are not going to well. it is no longer that. of a factor. get cpi numbers. remember my not that i remember vana scenario. europe gets stronger and the european central bank says it has to go hire. that will cause a huge run against the dollar and for the euro. and we get plenty of upside. remember, we need germany to do better in order for europe to do better so that the dollar goes lower against the euro. so here's the bottom line. the market took today's weak employment number largely in stride because the fed will now of a very hard time justifying a rate hike which will not extend dollar spiking. at the same time, bond yields of fallen so low, that they led the market on the back half of the session. we finally got the market wide pull back. did you use it or run from it? maybe you'll get a chance to put money to work with high quality stocks and a discount. the theme of "mad money." michael in new york. michael? >> hey, jimmy, how are you feeling? >> couldn't be better. how about you? >> caller: good. we all love you and your staff. god bless. a pleasure to see you. my question is, i'll keep it short and brief. my question is i bought the rcl put options two weeks out at the 75 strike price. it has been going sideways for a few weeks. i wanted to ask you if you think i should roll them up and out or if i should hold on to them? >> if i'm, i don't recommend shorts. go out five, six months. don't do it short term and you don't do the outs. bob in montana. bob. >> caller: hello. this is bob calling from the big sky country of montana. i'm a long term listener, first time caller. about a month ago you had the ceo of rubikon on. his reputation was good. i was the the stock and now i'm down about 23%. my question is, is it a time to hold for a few more earnings cycle? >> pitted the quarter will be okay. remember, we had demand ware. this is more advertising oriented but people do like it. i don't know. let's have howard in michigan. >> caller: yeah, you're the man! >> thank you. try to be. >> caller: bp for over 20 years and it was doing great. paying great different denlds and then the spill. >> i'm not recommending a lot of fossil fuels. you never know these days in fossil world. make sure you get your eye on these reports next week. if you get chance to buy a high quality stock, be ready for the opportunity. on "mad money" tonight. it seemed like sprouts farmers market was hot on its tail two orphanic grocers. which should you put in your cart? i'm eyeing the duopoly in the dollar stores. and ulta faced go it this year. so where should you stand on the stock? i'm investigating. so why don't you stick with cramer! >> announcer: don't miss a second of "mad money." follow@jim cramer. have a question? tweet cramer. send jim an e-mail at mad money at cnbc.com. miss something? head to madmoney.cnbc.com. map atand that horrible smellstee are really good at hiding.vice, oh, boy. there it is. ♪ ohh. ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. get started today at angie's list, because your home is where our heart is. ♪ keeping the power lines clear,my job to protect public safety, while also protecting the environment. the natural world is a beautiful thing, the work that we do helps us protect it. public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. we want to keep the power on for our customers. we want to keep our community safe. this is our community, this is where we live. we need to make sure that we have a beautiful place for our children to live. together, we're building a better california. a few weeks ago i called something important to your attention. the moves of the natural or ban theics earnings stocks. it was change. whole foods and the former leader, sprouts farmers market. whole foods had been slowed by slowing traffic. the company reported results that weren't nearly as pad as people feared. sprouts on the other hand wrapped up a history as a fast growing company. delivering impressive numbers. so it reported an imperfect quarter including the decelerating sale. whoa! the stock to the taken to the wood shed. i told you, whole foods was the one. that it was worth buying for the long term. the company's long awaited turn-around seemed to be at hand and i said you might want to stay on the side lines for sprouts. in retrospect i should have been a lot more emphatic. whole foods has rallied nearly 20%. sprouts has declined by more than 12%. just in the three weeks since i last talked about these two companies, things have gotten a whole lot better for go whole foods. i think sprouts is flailing. three weeks ago i was hesitant to write them off after one quarter. it didn't seem fair. the problem is sprouts isn't stumbling because of a one-time stumble. it is up fence a problem and it is competition. the lackluster results were merely the first sign i believe of the new competitive dynamic eating into their numbers. we know all sorts of regular assume markets and stores have been rolling out merchandise and lately have gotten gref on pricing. so why would you go to sprouts if you can get the same stuff for less money and a traditional assume market or places hike walmart, willing to bring fresh food, as they discussed today. or to your car when you pull up. or seemingly anywhere you want it. that's the new walmart way. plus even the or ban theic change have become more focused on value. i know that sprouts does have specialty stuff. in short, it has gotten very competitive. that makes it a lot more difficult for sprouts to generate the kind of explosive growth that made the stock such a strong performer in the second half of 20 final and the first half of 2016. this is an environment where fairway has gone bankrupt. that doesn't bode well for other company in the same space like sprouts. i think sprouts made a very tags decision. they partnered one amazon. people in certain xharkts access the products and you can get them delivered free of charge to your door with amazon prime. but the ceo of sprouts said he's been pleasantly surprised by the partnership and would like the deepen his company's relationship with amazon by spinning into additional markets. right now you can orderston to order from sprouts in three cities. l.a., steg and san jose. and san diego. i've been thinking about this. i say in retail, partnering up with amazon is like making a dwoo he will the devil. this puts sprouts into direct competition with amazon itself which is a place no one ever wants to be. amazon has their own line of products, generally at lower price points. in many parts of the country, amazon customers can lower it with an app. when you log on to your account, you can see the same things being sold by various retailers. while you have products from sprouts on your computer, you can also directly compare the items of similar items. some are unique to sprouts but others are similar. and you never want to be competing with amazon in price. whatever money sprouts makes up, they may will end up losing. which is why i think this is a bargain. i bet whole foods would never take that deal. it they're too smart. sprouts has been making some questionable decisions, whole sfoods getting its groove back. the stock has gone up. after the company's latest quarter, it was clear that whole foods has gotten ruthless about cost cutting. even as they report the mediocre same store sales. i told we needed to look for the whole foods, new value concept. 365. all about offering less expensive foods with more trans parent pricing. last week they launched the first 365 location in l.a. while the market's reaction was a bit muted, i think we're going to see a comeback. that's because 365 looks really good. they also come, go they were described as a melting pot of could not cements from whole foods, trader joe's, fresh and easy and sprouts. combining more value oriented pricing, and heightened focus. it is the private able focus that has me excite. i think 365 is a fantastic pranld, a fantastic brand. know the merchandise isn't so marked down that the company will have trouble making money. the whole idea with 365 to bring in new customers who might not be willing to spend a fortune at a traditional whole foods, which a lot of people feel is expensive. from here, whole foods only mans to launch three more of these stores this year. and another ten next year. so it is not exactly yaet big needle mover. dpichb they have 40 or 50 regular locations. however, they can get some. needed growth. they're not just going to open it up and see if it works. they want to make it better as it goes along. know a very bullish upgrade this week. they offer better value, including increasing the penetration of their own private label markets. and rolling out a loyalty program for more markets. they've invested in new technology and making it easier to check out the darn store. that was the most difficult part. they're getting more in touch with their customers. whole foods has to then its act together and i think the comeback is for real. i would guy stock even after it's run. especially since whole foods remains cheaper than sprouts. which seems to have lost its way including the partnership with that devil that's amazon. dollar stores are known for luring customers with discounts are. the stocks values themselves? and be how to become unamazonable. i'll tell you which company is sitting real pretty. and only 38,000 jobs in may? what should have outraged you is coming up. so stick with cramer. will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us. a loan would take too long. we needed money, now. my amex card helped me buy the ingredients to fill the orders. opportunities don't wait around, so you have to be ready for them. find out how american express cards and services can help prepare you for growth at open.com. only thing better than monopoly is a duopoly. and you can tell by just two players, you can compete like gentlemen rather than engaging in unsportsman like conduct. even an industry with only two players can change. which is why we've been running our of the guard series. tonight i want to high height a different of the guard i'm talking about the emerging duopoly in the dollar store space that was created when dollar tree acquired, they are only two big dollar store chains left in the firm. we now of a dollar store duopoly and both countries are thriving. stinls deal closed, dollar tree stock has rallied 14%. there are a general is up 17%. versus a puny 1.5% gain in the s&p 500 in the same period. how is it they've been so strong lately sf who are they taking business from? and most important, can these two ultra low end merchants continue their upward trajectory? it is worth noting even though they've been strong for 2016, dollar tree and dollar general have been raking it in. consumers have become a lot more frugal. hence why the form is up 196%. in short, they are already good for the dollar stores. it has improved even more since the number two and number three players decided to tie the knot. the dollar store chains started to try to create a two-player industry when they got into bading war. at the time dhar tree made its first bid, family dollar was larger in terms of the store county and revenue. but the company was poorly managed for years. even though family dollar had twice as many locations, over 8200 stores. dollar tree tried to get in on the action. the number one dollar store acquiring number two would have faced too many regulatory issues. so family dollar second the offer. as soon as the deal closed, the combined company surpassed dollar general to become the largest player. almost immediately after the merger closed, they sold their stocks on get hammered. they continued to get lower for months why. ? will first, they were baked sow the stocks. when it was announced and when it was closed. then they got swem lower in that market wide sell-off. the quarters were viewed as quite the teal. investors were looking to raise the full year guidance. so when the forecast stayed the same, the stocks, they got obliterated. dollar tree got hit especially hard. it was around this time that dollar tree got downgraded to underperform by credit sweeps based on the exec risk from the family dollar deal. it was not living up to expectations. that was fast. ever simpson then, the two major dollar stores have surged higher. dhar tree stumbled a bit in the fourth quarter. on the other hand, dollar general blew in the numbers when it reported in early march. however, if you were still waiting for the duopoly, you got it last week. when dollar tree and dollar general both exploded higher after reporting spectacular go quarters on thursday. there are a tree seems to be getting into the post merger groove. it, inline revenues. 3.4%. more important, dollar tree raised its full-year earnings guidance with the mid point raising from 350 all the way to $39. they are cutting the numbers. the stock rocketed from $78 up to $88 in response. in the week cynic then, it continued to rally. it led to 1.03 earnings per share. dollar general same store sales increased 2.2% but they saw march strength in consumables, seasonal items. balloons.re i got my memoria plus, management said they were very confident in the full-year guidance. dollar general jumped from 84 to 88. continued to rally climbing, just like dollar tree. i would think the move would be even bigger. except remember, dollar general had 10% higher. the fact is, there are a couple of variables where they are skewing market share. both company have increased their food offerings. dollar tree has it all the way in the back. ice cold areas. a lot of ice cream. i think consumers want value. they're taking a share from big box stores like target. they can compete with amazon. dollar stores don't play that game. they can focus on bringing new customers into the stores and expanding the margins. everyone thinks their stuff is dramatically cheaper. i do too. even though both stocks traded $91, dollar tree is cheaper. it is about the price. and there's is 17.5. which one should you buy? dollar general a play for same store sales growth. and new stores should generate earnings growth. dollar tree. i bought five pairs of sun classes at my dollar tree last weekend. there is a new duopoly in the dollar tree space. and while both stocks are higher, i still like them up here. do i. and they're much better than any other retailer. how far, if you put a fun to my head -- as you can tell it is a heck of a lot more fun to shop at my there are a tree. can i have kathy in new york, please. >> caller: i'm actually in north carolina. >> i had my shades on. i couldn't tell. >> caller: i have a question about bed, bath and beyond. my investment club bought it for. 38 a share. bits 3% of our portfolio. we're seeing our profits tea client. should we sell, cut our losses? fold? >> i got my bed bath coupons in the mail hike e tmpbl 10 off coupon and i thu it away. i always used to keep it. we're all being amazon primed now. the answer in north carolina, sell, sell, sell. >> judge me if you will. but a day of shopping for candy at the dollar tree sounds pretty if. despite my love of the tree, there are a general is my bet. kim kardashian is the undisputed queen of the selfies. but how about her stock? you won't want to miss this. then temperature barsing truth about today's disappointing jobs report. it reveals a hot about our country. the worst was buried. and a friday edition of the lightning round. ♪ ♪ (charge music) you wouldn't hire an organist without hearing them first. charge! so why would you invest without checking brokercheck? check your broker with brokercheck. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. another blowout quarter last week. 9% in a single session to new all time highs. how does she do it in how does she continue to deliver such extraordinary performance? even in the face of a very difficult back drop. how is she made the best in the bricks and mortar retail in this country? before we get into the amazing execution story, you need some back ground on what ulta salon actually does. it is fairly unique. it has 866 stores. it sells cosmetic, perfume, hair and skin care products, and most important, salon services. yet you go to ulta to get your hair styled. maybe you want some recall hair extensions, your brows done, whatever that means. in short it is not just a a retailer. then they get you inner for products. of course some in the audience may think of cosmetics as let's say discretionary items. not that necessary. wait a second. that couldn't be further from the truthful cosmetics are a necessity. especially at a time when everybody's cell phone contains a high definition camera. this is why you need to go to ulta. you can't go outside without make-up for fear someone might roam you into an ugly looking selfie. and that makes ulta a necessity. a prestige necessity. i've been an ulta fan for inches a. the stocks gave a 28% gain. not to 73% over the past two years. s&p 500 over the same period? 9%. the reason for this tremendous outperformance is that ulta salon keeps putting up tremendous numbers. and the most recent quarter last thursday at the close, a picture perfect example. revenue higher than expected. 20% year over year. made all the more impressive in that the growth is nearly accelerating. they have arg. accelerating revenue growth. the earnings yue at a 39.4% clip. the fastest in more than three years. best number in ulta's history. they're getting in and they're spending more. expand by 150 basis points year over year. the 36.4%. that's the company's harmingest quarterly gross margin increase in at least four years. the operating market, the percentage of the revenue, except the interest payments and taxes came in at 13.7%. the largest increase in 14 quarters. to top it off, when it was getting crushed, talking roughly a million shares over the course of the quarter. pretty impressive. best of all, they raised the four-year revenue earnings and they did so dramatically often nitpick. possibly, i don't know. it was a little light. management being conservative. given the long history of practicing under promising and over delivering. upod. even someone like me who has been bullish on this stock for ages was surprised by how terrific these numbers were. how did she do it? well, this is why you listen to the conference call. mary dillon explained why it is going so well. she said the largest contributor was cosmetics. prestige meaning both low end and high end. the revenue was solid even though they reduced the promotions. that tells you how it bombeded dramatically. the past earnings season we've heard so many retailers talk about the promotional environment. this quarter where everybody is cutting prices to bring in customers. not ulta. they cut the number of promotions and they can just fine. meanwhile they have their own brand. ulta beauty. they call out the loyalty program. the rewards program now, this is astounding. 19.4 million members. that's an amazing 25% year over year. and the more people who are in, the more personal the campaigns can be. i loved the mother's day campaign. over 80% of the company's numbers grom the members and that's so crucial continual crease participation. what else? the services part of the business continues to perform well. and the mobile business is growing rapidly. more than 60% of the traffic is coming from mobile. plus they wrote out new apps. hey, speaking of the ecommerce side of the business. the best customers are the general buyers who start buying from them online and begin going to the actual stores. that's what it is supposed to be about. finally, she made a point of thanking the smi chain and i.t. based technology teams. still managing to improve the amount of products in stock at ulta stocks at any given time. it doesn't matter. that's what it is like the run a well oiled machine. distribution centers. getting it from here to there. been doing it better than anyone. she made a great point and i quote. it we're pretty darn good at understanding consumer segments. understanding where the nanld might go in the future and using to it figure out what we had the category growth will be. remember, knowing your customer is what this show has been about all week. companies and can follow consumer tend to thrive in the environment. the stock speexpensive. but not most stocks in the market, nobody does. mary dylan has turned her company into a powerhouse because she understands the consumer and she knows what it takes to keep them coming into the stores. ideally, sure, i would like to wait for the next pull back before i pull the trigger. if ulta comes down, the market wide pull back. maybe you pout a small position even up here. dylan and ulta are really that good. and i add my congratulations to the ten others that were given on the call. it is time! time for the lightning round! and then lightning round is over. are you ready, skee-daddy! donna in iowa. >> caller: yes, hi. can you tell me on bsc to buy, sell or hold? >> i like it. i think, they're to go a if job. put up the numbers. perry in illinois. >> caller: boo-ya! what's your opinion -- >> it's not working here. i do like southwest. the only one in town. how that scott in south carolina? >> caller: hey, what do you think? >> not recommending any chinese stocks. too tarn hard. don't need aggravation. how that mike in new york? >> caller: jim, what is your opinion regarding the fast track received and going forward? >> for what? of what stock? all right. we have that. my problem here is that this is speculative. we've been saying the speculative bioteches, they are not working. don't buy. what can i say? greg in virginia? >> caller: hey, thanks. been watching your show about three years. what is going on? >> you're going to get smacked. how about richard in texas? >> caller: i would like to ask about kellogg. >> normally 3%. i'm not going to endorse it. i have a lot of others i like including general mills. john? >> caller: the investment conference, the caterpillar stock will likely be half the current value in 2018th. would you sell it? >> that's called hyperbole and i think although it is not gas as it used to be, it is a great company. if the dollar continues to weaken, they will be wrong about the prognosis. we're not done. frank? >> caller: what's your take on vca? >> we love the animals. we love the buffalo. wets that segment is terrific. one more. chris? >> caller: hi, jim. my question about bank of america. i bought it at 15 and i'm feeling like i'll in the house of pain right now. >> my friend, my friend. recalling $14.42. that's not the house. pain. we know the address well. i tonight care for bank of america though. what can i say? and that hat and that ladies and gentlemen is the conclusion. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade. i don't like being baffled. i don't like looking at a nonforeign pay roll. not having any idea how the disappointing figure actually came that. sure, we can piece it together. let's see what they gave you on the dow sheet. the labor department tells us miami has lost 10,000 jobs. that makes 207,000 since the industry peaked. that's what happens when coal gives up the foeft. we know in manufacturing, durable goods. 7,000 lost their jobs in machinery and 3,000 in furniture and related products. moment in what's known as information declined by 34,000. about 35,000 were striking verizon workers. er many transportation and government with little change except for health care. where costs continue to rise. 24,000 people were add to the rolls. 5,000 in nursing care facilities. that makes 487,000 people hired in the health care industry in the last year? that information along with comments like, and i quote, the number persons employed part time for economic reasons increased by 468,000 to 6.4 million in may after showing little movement since november. the number that represents individuals who would have preferred full time employment but had their hours cut back or were unable to find a full-time job. what does that mean? were these hours cut back? like so many of the restaurant ceos tell us, that it was about minimum wage? were the jobs lost in fast food where fewer people touch a hamburger? or massive migration to mobile banking. were these jobs lost because of sales force.com that let you connect directly to the customer. often without a sector clerical interneed areay. we have no idea. we have these maddening number. it was revised from 208,000 to 184,000. wasn't i am a supposed to be good? that are could mean they needed to raise rates versus an economy that is doing just fine where nothing needs to be done. how are these, revisions made possible in 2016? the labor department said it is because it inkormts additional information that was not available testimony was available. er make economic decisions are being made on all these numbers. huge decisions. recall it is impossible that amazon can track a pair of shoes all along the way and the government can't. the number of goods sgaut which ones are in demand. we have supply chains for billions of pilots are almost never wrong. just ask ibm's watson, for heaven's sake. the precision in industry, in private industry, it is fantastic. the precision in government, in this the most important tally in the world, i'm calling it naunl existent. this labor report is just plain maddening. it is time for the labor department to come into the 21st century is that outsource. we can't have it be this lacking in demented or action ras yiflt it is not me being go caught up. whoever wins the presidency in the fall, this process must change. it is an outrage. it is stupid and embarrassing for a great country like ours to have knuckle headed data. it is a approximate that everybody knows about but no one will change. and the firms who are doing a better job are listening. this mickey mouse project must end. heaven knows anything is better than what we have now. will your business be ready when growth presents itself? our new cocktail bitters were doing well, but after one tradeshow, we took off. all i could think about was our deadlines racing towards us. a loan would take too long. we needed money, now. my amex card helped me buy the ingredients to fill the orders. opportunities don't wait around, so you have to be ready for them. find out how american express cards and services can help prepare you for growth at open.com. i'm spending too muchs for time hiringnter. find out how american express cards and services and not enough time in my kitchen. 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(announcer) over 400,000 businesses have already used ziprecruiter. and now you can use ziprecruiter for free. go to ziprecruiter.com/offer6 down at the beginning and then people look for the barring ans. usually it takes three today's, sometime two. today it took one. that's because interest rates went so, so low that immediately you wanted to look for yield. that's why the utilities went up and the consumer packaged goods that i told you i hiked so much really shine today. i like to say there's always bull market somewhere i promise to find it just for you. i'm jim cramer and i will see you monday. lemonis: tonight on "the profit"... sam: come on up and have a sample. man: mmm. lemonis: ...a gourmet marshmallow business operates like one big family... -sam: we're married. -alexa: and this is my father. lemonis: ...and that's exactly the problem. sam: you're coming off like you're saying "[bleep] you" to your daughter, and i'm gonna lay it out. max: i'm not saying that. lemonis: the father of one of the owners has commandeered the kitchen... they're paying more than half the rent and they have 10% of the space. max: they're trying to hustle me! lemonis: ...contaminating their sweets. but they're making marshmallows with onions and garlic in the air? -woman: [ clears throat ] whoa. -lemonis: don't like it? girl: not necessarily. lemonis: ...and poisoning their relationship. sam: it's your dad and you love him, but i need you to be on my side. lemonis: if i can't fix their process... man #2: eight [bleep] pounds! it's not a gallon! lemonis: what just happened? ...and put an end to the drama...

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