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tv   Mad Money  CNBC  February 26, 2018 6:00pm-7:00pm EST

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one final trade tonight pete. >> cl. >> that does it for us. great to be back, guys. >> come my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. holy cow, i come back from vacation and the magic catches fire this time the dow surged
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399 points nasdaq pulled 1.15%. nice to feel appreciated it is going to be back in cram america. things have gotten a little bit crazy. that's what we need is to get right back in sync immediately not with this morning's news yes, we had a terrific session today no doubt about that starting out with warren buffett's calming words about owning stocks. apple being exhibit a. we know he likes the market enough to be looking for big buys he's got the cash. he has more than 100 billion sitting idle maybe my game plan can help him. i will even waive my commission.
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let's get started. tomorrow morning, we'll here from two retailers with wild expectations macy'sand auto zone. no one believes the new ceo can change macy's fate reinventing macy's as a cooler, hipper department store. meanwhile, if macy's has any spare real estate and i think they do it is going to be monetized. auto zone is the reversed. lots of people have gotten behind this one which is always a bit worry some for me. even though i like the name. the zone is a long time cramer favorite, but we have been giving chings a chance to cool
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up these cloud names are unstoppable. this is one of the best softwares service company around put it with service now, adobe and sales force.com. the cloud stocks remain the hottest of the hot in technology let's go oil we hear from eog resources and it has become one of the two sanest oils left to own here there is a sea change going on against the group. i think eog's extraordinarily well run they were one of the few weak areas in today's incredibly strong session jpmorgan mahas an analyst meetig
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tomorrow i hope they will explain how u.s. companies are using this em to borrow moneys abroad. because our new tax code makes deductions more difficult. particularly jpmorgan and the stocks leading the group the big story tuesday of course is not an individual stock at all. it is j spokewell on the hill. wednesday morning we get results from lowe's one of my favorite places to shop all i can say is please give me a break. we think low's is one of the best retailers on earth if not competing with home depot. here is a controversial one,
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tjx. we have seen so many disappointi disappointing stories from this company. low expectations might work magic. salesforce.com has been telling good stories all over the country and i see it having a strong quarter maybe this time, the profit taking which has been so climb maktic new ceo for honeywell will spell out his vision of what they should do. has been in front of this one, because we admire him for his willingness to explore all his options for unlocking value.
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when it comes to acquisition, climate controls and elevators these are my kinds of ceo, let's throw in from dow dupont thursday is retail fireworks day. best buy will tell a good story. everything from the printer products to the actual pcs like the one i have which i like so much kohl's reports when you get a turn around which is definite the case here. remember we spoke to them not long ago never just one-quarter turn around, there is more than that. i like the stock any buy on a dip going into thursday is going to be well
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reward i don't know what to make with anheuser-busch this could be the last truly weak quarter from bud. so a trade may be in the offing. thursday we hear from one of my favorite tech names from the era vmware there is all sorts of clutter and chatter of what dell will do and i don't think anyone in this hierarchy is out to hurt them. i would buy the stock. i don't know what to say about nordstrom. we told actiual owners plus.com last week. i expect decent numbers.
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given how well their apparel and footwear have been selling i bet it does take itself private. and let's talk shoes step into foot locker which has been a rocket ship of late i think it will maintain its altitude on friday is it my favorite? no declining inventory from under armour, that stock hasn't come down i think he is turning it around. i think foot locker is likely to be a win is jcpenney the odd man out? it is that kohl's or burlington or target is just outright better the bottom line, there is a lot to like this week.
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pay attention to j pal's chief to the hill. i think he will set a positive tone let's go to james in virginia. >> caller: nice to talk to you with aerospace doing so good as it is and boeing having new orders i have a stock, allegheny technology which produces lightweight metals and tige tainium and steel. >> you know what i have to say, i'm not a derivative player, i think that stock with a $400 target and having spoken with the ceo, i feel that's the real
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way to invest in aerospace steve in missouri. >> caller: hey, jim, welcome back from italy. >> thank you very much i love being back in the office. what's up? >> caller: a stock you have mentioned before is apple hospitality, they went public almost three years ago and traded in a tight range between $17 and $22. the price right now is at the bottom of the trading range. and the dividend is above six% do you think that dividend is safe and would you buy, sell or hold apple hospitality. >> under a lot of pressure and i don't want to be the guy who tries to call the bottom why? because there are so many things that are working here, i don't need to try to figure out what hasn't been working and bet that is about to change so that is my stance
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welcome back cramamerica there is a lot to like including what i think jay powell has to say. i have got to ask this, is general mills barking up the right tree when it comes to its acquisition. and a biotech company with a new and novel way to treat cancer. up 6% just today wait until you hear innovative ways it is attacking tumors. i am talking to the ceo. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc
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miss something head to madmoney.cnbc.com.
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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter. morgan stanley
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curling has nothing on the stock market when i was on an olympic induced vacation, but then, again, we did well this market has gone from tricky to triumphant. first allow me to set the scene. i like to return to the tote ems of my youth. well, you know, we know earnings can be ephemeral bonds can be fickle and the fed can be down right enigmatic. we need something that is solid as bedrock which is why i subscribe to a product called an s and p short range oscillator
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i have been following it every single day of my life since 1987 two weeks ago, when everyone on wall street was freaking out and i am talking about the people who thought the end was high honestly, it wasn't the worst i have seen in ages. the last time it came down to that level 2 years ago when the dow hit 16,000 after several thousand point pull back one of the single greatest rallies in history as the dow surged to 26,000 the oscillator is the single best way to detect capitulation. the extreme negativity from all of the overselling is why this market bottomed.
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you may have your thesis and that is what happened. that was the only signal that got you to buy your greatest foe as an investor all bottoms are marked by that kind of capitulation and you know something, when we come off these bottoms, everyone says it is short covering rally, sometimes it is the real deal. in these situations you need to buy something. maybe buy anything before the foreselling comes to an end. in this, that has occurred too late now to back up the truck. the snap back happened so fast it made our head spin. up 60% 70% and now, it did it again but it is too late we have to wait. still, i think it is worth
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looking at what happened despite what you heard from experts at the time, this time, largely the work of hidden forces lurking in the shadows. i am not talking about the illuminati or the house. the culprits were these poor fools who traded vol sounds so obscure and clever when those instruments broke down, we got margin calls. basically, they made big bets that the market would remain calm rather than gyrating wildly when the smoke cleared, many of these players were margined out. and the markets returned to semblance of sanity.
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the action divorced from reality. couldn't see it in the midst of all of this carnage. in any given market, plenty of skirmishes sometimes the bulls win. and sometimes the bears win. and sometimes you get a protracted struggle. this time it was very different. remember going to the break down we had been having one of the greatest bull runs when donald trump came, he sees the market as the political equivalence as his nealson love him or hate him, this man doesn't like to lose under this administration, we have seen roll backs of
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regulations and whatever your political believes, it is clear that these companies are having effect they no longer need to fear the regulators cheaper to manufacture in america, while the president's meat ax approach to trading partners has encouraged them to build factories here and you have a lot of positives. both the emerging market and the established markets are on fire. in terms of the stock market here in this country, these changes expand the shear number of companies that can be considered investable. discount retailers, health care stocks and bond markets. the ones that have 3% yield.
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post trump, the cyclicals suddenly came back in style. not enough of those stocks to go around companies like caterpillar and boeing benefit from shortage and demand just two metaphors for much larger groups. a combination leading to rising earning benefits especially not when we have a weak dollar and a booming global econ a econ -- economy. electric cars, the way retails work, the shear number of companies caught up in this web. yes, absolutely, facebook, apple, netflix
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more often lately, well, those particularly stocks are taking a back seat to other kinds of tech, cloud based tech later on the huge tax cuts you end up with tax cuts sharp earnings remember, he goes to the hill tomorrow i expect good things now here is the tricky part. all of these, different factors were true before the break down but started one month ago. they were also true at the bottom and still true now. any bull markets have none believers who think it is too high the newfound volatility is taking a toll on the psyche of many investors the vix begins to spike, and i don't think we have heard the
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last of that trade wags the dog with that flea bitten tale. that is why we know longer seem to have one session. today was different. most of the days last week, you have one, two, or even three sessions in the given day which is why it pays to maintain a higher cash disposition and even out here and go into ones that give you growth in a good solid economic expansion. there are a lot more buys then sells in this market although timing has become more important. the false demons will play havoc with the angels. you have to be careful, the oscillator that i mentioned before it is now plus .46. you may get your chance to buy
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into weakness sooner than you think. is it too late to buy, let's say you need to be more selective. if that happens, please, be ready to pounce. we have so much more "mad money" ahead. the makers of cheerios wants to fill dog bowls does that make sense general mills acquisition with blue buffalo 150% and we have liked it. is it time to go back? i am going to speaking with the executive chairman and i am revealing the lessons learned from the recent selloffs stick with the rejuvenated cramer
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in a moment when so many
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stocks have rebounded so far so fast it pays to look for laggards names that have been left behind most of the time i don't want to touch a stock that can't rally every now and again you find one that has been held back. consider the case of general mills. we all know brands cheerios, fiber one. pillsbury. we found out that general mills is about to get buff buff as in they are buying blue buffalo pet product. for aes staggering $8 billion in cash, had been the day before. and what happens the stock of general mills goes
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into a true tail spin. down to 51 and change today. after two brutal punishing sessions normally the buyer stock tends to go down in a take-over session. still, we've had a lot of deals in recent months where that wasn't the case. they acquired rally on the news. hershey stock has been a stinker. in december, campbell soup hasn't done better company makes some pretzels the same day among other things and i know the food group isn't beloved at the moment. it is despised nobody is enthused about pantry plays. even with the yield that is going to become less attractive
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as interest rates rise i think the blue buffalo deal is a brilliant move this makes this pull back in general mills a general buying opportunity. gis tumbled from 60. now it is 51 call me a buyer at these levels. what makes me feel so confident, look at how my dogs good customers we are talking about everest and bud chow down on this stuff >> nvidia. behave take out your eye. ready? on york mark, get set, go!
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>> they are so darn happy. it is still dog food this is purely anecdotal and mostly an excuse to show a cute dog video. these days, americans treat their companion animals like family or better than family we spend fortunes on our cats or dogs the best dog walkers and of course the best food what kind of monster eats only organic food and then feeds their dog junk filled with chemicals. these days pet lovers want to buy brand names they can trust ideally natural food that is made in america with old glory on the bag i have to tell you, anyone who reaches for the bag at the store they see that flag they like it.
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i know people hate this deal the stock of general mills is under severe pressure since it was announced. but the humanization of pets is not a story i am pulling out of thin air in 2001 americans spent 2 billion. that number grew to $66 billion. even when you adjust for inflation. consider the consistently excellent growth from idexx. it has been doing very well as pet owners spend more and more to each visit to the pet humanization pets theory, real and investable and with the blue buffalo deal general mills will become the number one player overnight. there has been a dogfight in the dog food aisle first day back, not take advantage of that one?
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i can't exist. blue buffalo has been coming out on top hey, you know, also, we have been waiting, but jm shmucker is a big one too. the two big trends on the industry are on the rise people are spending more and more money on fancier pet foods with healthier ingredients blue buffalo is at the forefront of trends. yet at the moment only 3% of pets in the u.s. actually eat their food that leaves them with a opportunity to expand their leadership three and a half years ago, the company bought annie's for $350 million
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getting that organic business has been a good move general mills is shelling out 8 million for this okay, so we got to wait a little bit, i hate that jeff hammer ding who took over as ceo and has worked wonders explains they will do the same thing with blue buffalo as they did with annie's bolstering the brand an analyst were less than enthusiastic about it. relatively high price they paid and that i admit they did pay. society generale downgraded it as a whole based on execution and the billion dollar equity.
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personally i think a lot of the risk has been taken out of the stock with general mills trading at 51 and change more importantly the blue buffalo deal is the tip of the iceberg. i like general mills because it is a turn around story disappointing quart. ceo managed to double down on natural organic. it is already seemed to be working when reporting the latest quarter and the company delivered solid numbers. here is the bottom line. general mills unjustly punished at this point for its delicious blue buffalo acquisition go home to buy here. the stock has become simply too cheap to ignore.
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let's go to rich in michigan. >> caller: booyah mr. cramer >> what's up >> caller: welcome back from the olympic break. i want to let you know i am a first time caller. i have been on a five-day cruise and have done nothing but relax and reading your book. >> how can i help? >> caller: so the stock is starbucks. last reported an acceleration in china and deacceleration in americas on the heels of the d dr. pepper/snapple who would be a -- increase domestic sales and target the millennials. >> i think they target the millennials and i don't expect them to make any acquisition
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they are in a long slog in the united states but doing so well in china i find it is kind of neither here nor there right now a tough stock to own but not one that i think you can give away it sometimes pays to look for laggards general mills has become a tasty buy because come down too much i am calling it too cheap to ignore
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and i am a senior public safety my namspecialist for pg&e. my job is to help educate our first responders on how to deal with natural gas and electric emergencies. everyday when we go to work we want everyone to work safely and come home safely. i live right here in auburn, i absolutely love this community. once i moved here i didn't want to live anywhere else. i love that people in this community are willing to come together to make a difference for other people's lives. together, we're building a better california.
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you know what feels better than making a lot of money in a stock of a company that you believe in when that company happens to be doing something generally amazing for humanity every now and then you can do well and do good take novo care a company pioneering a way to fight cancer critic critical molecules found with cancer cells compared to traditional cancer treatments the side effects are down right gentle. this company is extending
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peoples' lives revenue grew 77% clip. this is just the beginning all sorts of solid tumors, lung cancer, cervical cancer, pancreatic cancer. can be a game changer. this stock has been giving a monst monster 77% high let's check in with bill doyle welcome back to "mad money." >> good to see you, jim. >> on twitter today we have a guest on and we had an outpouring the outpouring are from people who are thrilled they are
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getting more chance to live with your device. a 5k in orlando, everyone is rooting for this gentleman who is using your product. >> you know, jim, i brought you brought up the human side of what we are doing. we often talk about science and the numbers. i get these e-mails every day and we presented data, where we showed not only the average if you will of all patients who use the data but showed it by the dedication or the time per day and for the patients who use it 90% of the time because with this therapy when it is on, it is killing cancer cells. and when it is not, it's not
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we are giving patients hope. and we are giving them a much greater chance for a very long-term survival. >> one of the things i like about you and i have seen this product shrink in size and become more useable. you have never said it is a cure you have said it is an opportunity. giving people hope to live longer in the meantime, we do want survival rates to increase and want it to increase with a quality of life this gives you. >> that is an important almost of the novocure story. you may see a device like this and think gee, i need to carry this all the time and put the transducer arrays around my cancer but we published data that showed the quality of life of patients on this therapy is
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maintained for a longer period of time than patients that don't use it the disease itself as it progresses, the quality of life deteriorates counter intuitive, but the quality of life is better on therapy than not on therapy. >> maybe the best ally right now for growth is international. other countries are embracing this with great alack krity. >> we have a simple two-prong tonight. opportunity number one as you mentioned is to grow the existing business in glioblastoma number one, as you mentioned our international expansion and in fact in december we received approval from the japanese government for reimbursement that is a major opportunity for us number two, as the bulk of our
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patients move from using it as a second line therapy to first line therapy 66% of new paperwortients are ui at the time of diagnosis finally, early days in terms of penetration. we think in the u.s., about 25% of the patients are getting it this is very new to doctors as well as patients so we continue to work with the clinical community with the existing business there is multiple avenues for continued growth the second part of the strategy is to use it in other tumors in that regard, gbm is the smallest we are focused on the next one is mesothelioma we will have a data readout in
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the second half of the year. and we have additional phase three trials underway. lung cancer and the one that i am optimistic of is pancreatic cancer it is growing and it will be number two soon. and ovarian cancer which will start later this year. >> i don't want to give anybody false hopes but i saw your machine in action. i am so glad you came on the show this is bill doyle, there is many decks and research. i want you to get familiar with it before you buy it plenty of cash and a lot of opportunity. "mad money" is back after the break.
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kohlerwalkinbath.com for more info. >> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money."
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we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." starting with bill. >> caller: stm. >> good spending i like the group tina in tennessee. >> caller: jim, my husband and i watch you every night. boy have we missed you speaking of pets, what is your take on pet med express. >> i prefer. a more consistency. >> caller: what about lite. >> take a pass on that i love a good tech how about neal in colorado.
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>> caller: jimbo everyone tells you booyah. but i want to give you a special all the way from denver, colorado insider buying lately by matt walsh. >> i am neither here nor there on it. frankly, what we are worried about is a down year in 2018 no way a drug company can have a down year unless they split the company up >> announcer: lightning round is sponsored by td ameritrade i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches
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>> it's been a great day but we have got to get serious about something that i am not happy about. don't belief the jokers who tell you this move made sense given the strength of the earning season we just got through, it is looking like a bogus argument less than a month ago the labor department showed slightly higher wage growth
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even this real wage growth was stagnant for those who bothered to look under the hood we well know the climb was well out of proportion with the numbers itself you know what, they are not that strong in short there was nothing in these numbers to make you believe that the federal reserve was suddenly going to get super aggressive when it comes to raising interest rates it is still the 3-4 on the table. u.s. treasuries are still attractive so only so high the rates can go that additional bond buying pushes rates back down or at least keeps a little in despite what is happening right now. so what did cause the brutal decline? as i have said repeatedly it was about the spike and the volatility index and the unanticipated consequences of
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betting against volatility ever increasing amounts of leverage in short, the blame is with the products designed to bet on or short the vix. i have spent years railing against these obtuse products. even many professionals don't understand them and they have far too much power under the underlying security so you do end up with the tail wagging the dog scenario i led the charge against them i came on here constantly saying we could one day see leverage hedge funds manipulating the entire market. key industry participants held sway they will fight tooth and nail keeping the businesses alive of course not all of it is
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manipulation, it is failed, bad trading. the clients want a lot of things that may be good, public policy. but if the clients want you to jump off a bridge, would you do it what we saw last month is a natural consequence of these things they created what actually amounted to systemic risk, unbelievable or at least thei impression of systemic risk. i am calling for the fcc enforcement arm to look into cull pa built. the fcc needs to recognize that a small am of capital could have
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recked our capital i will keep doing this if you don't believe me that bad things did happen, go listen to warren buffett today what would really be lost, okay fees maybe a few strategies that fail what will be gained? how about this how about a restoration of the integrity of the system. a system that has been challenged yet again by instruments that should never have been created. stick with cramer. we came with big appetites. with expedia one click gives you access to discounts on thousands of hotels, cars and things to do. like the bicycle hotel & casino for 30% off. everything you need to go.
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when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. don't miss tonight's season premiere of american greed it is shady accounting and internet trolling. don't miss it. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow
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