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tv   Fast Money  CNBC  November 4, 2021 5:00pm-6:00pm EDT

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>> blustery -- >> could you get $8 for popcorn? >> movie theater popcorn is delicious. on jobs we expect a good numbe for america. >> we all hope for that. it has been a noisy number though a lot of moving parts. >> we are out of time on closing bell time to get the popcorn out. "fast money" starts now. this is "fast money. tonight's lineup -- tonight on fast, it's an earnings paloo zoeza after the . we have peter curran
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these just reported -- terry duffy will join us exclusively. he would start off with an earnings alert on peloton shares, plunging, 25% after the fitness platform reported its latest quarter >> shares down 25% this after quarterly results failed to impress across the board. 805.2 million when the street was expecting 810. the company did manage to eke out some new fitness subscribers which you are seeing on the screen at 2.5 million, but it only partially impacts the tread
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recalls. the bikes are $400 cheaper than months ago are appealing to younger and less affluent customers. in other word they are sacrificing margins to increase market share this is household acquisition over mere profitability. peloton points out it's challenging. the company expects sales of 4.4 billion to 4.8 billion for 2022, they were expecting 5 billion. guy, is this fair, down 25%? make sense to go for more customers or is this raises and
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razor blades >> how can we start this show without doing the obvious? what is today's date, melissa lee? >> november 4. >> what does that mean to you? >> thursday. >> it's your birthday and on behalf of the entire "fast money" team, happiest of birthday back in may pete was on the show when we talked about peloton and dan was on as well 80 looked like a good entry point, but second time down it typically never holds. the guy was often. the bell should have went off for me a week ago when an ad came on and said peloton was slashing prices much you are
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looking for a 70 million share day for capitulation maybe you get that tomorrow, but i don't think so >> tim seymour, what would you need to hear to think this dip could be a buy >> that they have visibility, which is difficult in this environment for a number of macroreasons i need to understand more what is going on. i understand they are going for a slightly demographic, but are they playing defense or offense. they are recalibrating is the term and i put quotes around that it's not a term i hear in terms of recalibrating on a fiscal call this is a stock that is not terribly cheap even after this
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pullback it is still be probably four to five times and a company he would know where they sat a year ago in the sweet spot of where we were with covid and stay at home that is not what is punishing the company right now, not the way it is now. we knew that we knew the comps were tough this is different than the street was expecting >> lower income customers. that's why they are slashing prices, piece. offense or defense, how are they approaching this >> this is 100% defense. this is absolutely defense and it's incredible because this is a company struggling when we look at what they gave us in terms of the guidance that was terrible full year guidance it is nearly a billion light. a lot of people didn't
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understand this company and any of us over the age of 50, when you see these items, eventually they become expensive hangers that hang on to your clothes as you try to dry them. they have cut the price by $400 and they still don't have what they are looking for if you are not selling, you are losing on the subscription model. people like to be socialand go into clubs some of the numbers are extraordinary they are slashing. they are bleeding money. last quarter about 400 million i can only imagine this quarter by i would imagine it is about the same >> the pandemic a year or so ago, the number of workouts each member did per week. it showed a highly engaged base.
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i wonder how that is turning out now that will are more options people can go to a gym instead of staying in your house steve grasso, what do you want to hear from this call >> i don't think you could hear anything that could make me think they are coming from a position of strength when you lower prices that's a sign of weakness less user engagement, total sign of weakness. the biggest sign was that planet fitness was up 11% it is not just the apple app or other fitness subscriptions, it is the real world opening up it is a social event to go to a gym. no longer will they be able to charge that they havebeen able to charge for a treadmill or a bicycle when you can join a gym for multiple years and still it
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be cheaper this is a shot across their bow and i don't think they are going to be able to recover from this, quite frankly. i think this is the beginning of the end, and the end is coming for peloton. >> hold on, the beginning of the end? wow. >> i don't think they are going to be able to survive. they would have to pivot very strongly with some other product that engages usage the way this did during the pandemic. unless they can do that, and i don't see them doing that effectively, i think the writing is on the wall economy is opening up, gyms are opening up people want to be social again and not in a basement with a treadmill piled with clothes, as
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pete said. >> they have some buffer here. shares of uber the call is just getting under way. let's get the latest >> still running through the introductory comments after a fire alarm investors would like to hear it would p would pare back on incentives. they were about a penny below the price, but now they are just above it the adjustment was positive, but compared to lyft which was more than double the quarter before
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they seem to be benefiting on ride sharing uber, its global footprint has a more lumpy footprint the $2.4 billion is from the stake in chinese company ride sharing drivers were up nearly 60% in the third quarter year over year but investors may want them to go a step further and say driver incentives can be pareed back. we will be listening for that. >> the stock, as you speak is up 2.6% in the past couple minutes.
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don't miss the interview with the ceo tomorrow on squawk box pete >> my biggest issue is the same as it has been since day one when will they make money? i would like them to make money at some point. they are a mature company and they have stumbling block after stumbling block. they continue to lose money and have a cash burn that's why i think it was down about 5% and now up about 2%, but this stock is up where it was when it ipo'd. i think there are other places i would rather be. i am waiting for the day when they follow through and make money. i know they have labor excuses, but at some point in time they have to show us they are able to make money and they haven't been
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able to do that yet. >> lyft and uber are different in their size and scope. at this phase of the economic recovery, which one would you rather be in now >> so you are playing a game of would you rather on your birthday i will play it correctly and it's lyft. you look at lyft and you look at record revenue with active rider, they are profitable in terms of the chart, you have something to trade against, absolutely it would be lyft. >> tim, i played this game with you in the recent past and you went with uber i am wondering how you feel about that now given what you have heard so far about the quarter? >> i am going to play in this
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new disguised game of would you rather, i am going to say it's uber everything people don't like about this company, the complexity is what i love. i love the dynamic i think uber will be doing more than moving people around. transitory, a lot of these are transitory the labor costs may cost more, but it is coming back. those are things that are bullish. on a trade we probably talked about yesterday or yesteryear, i think you have great opportunity to put this trade on in each direction, but i think the dynamics -- what i don't like
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around the profitability, it's not profitable there are reasons they can make claims and what not, but remember, a lot of people report just an ebida and i am not that fired up about it. this company does have leverage and all of the things negative for peloton are positive for uber in terms of where the world is now >> more earnings coming your way. shares of pintrest up. terry duffy will join us to break down his billion dollar deal with google built for small business. high thryv! help me with scheduling? sure thing. up top. high thryv! payments? high thryv! promotions? high thryv! email marketing? almost there, hold on. wait for it. high thryv! manage my customer list? can do. will do. high thryv! post on social media?
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welcome back to "fast money. we have another earnings alert pintrest shares are jumping. julia? >> they are bouncing off a 52-week low is now up 6% after hours on earnings that beat expectations instead of gaining 6 million
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analysts expected, it lost 10 million active users the company did reassure that things are starting to turn around as of november 2, they had gained 3 million from the end of the quarter. and the current expectation is that fourth quarter will gain in the teens and will grow in the low teens quarter over quarter they remained anchored in content, advertiser's success and shopping the company did say they plan to provide more detail on the earnings call which starts in about 45 minutes we are listening for any mention of their failed deal talks with papal. if they are exploring other deals or way to grow shopping.
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that is something that papal would have enabled >> thanks, julia the 52-week low heading into this release grasso, what do you make of the stock here >> i think it has more to do with the 52-week low the market participants paid more attention to the revenues being up, average revenue peruser being up they should have paid more attention to the monthly active users falling, a spin the company could put on this. it upset and took the street by surprise you could see a rally in this for a number of days before it starts to get back to the declining trend we have seen >> as the sole member who has a pintrest page -- guy, that's
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you -- but should investors hope there is a takeout target? >> i think the monthly average user is a distraction. earnings growth is there i get the valuation is rich, but dan nathan says this all of the time and i happen to agree i believe it would be a great tuck in play you saw what happened in the back of the papal news and then subsequently coldwater thrown on that. if it's not papal, it's somebody else i think this stock will rally more than people think you start getting close to 55, s which is not unreasonable. >> for who >> i thought you said who has a pintrest page. >> you do.
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>> i think apple would be pretty interesting. i think there are a number of sites that could use pintrest. >> walmart >> that would make sense >> that was tim seymour with the walmart comment. the earnings call is underway kate >> shares dipping after a slowdown in growth profit from the prior quarter. they are watching cash gross profit for the cashout, sales from the previous quarter coming in at $512 million. it did grow 33%, but they didn't publish revenue peruser or
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number of active users she pointed to consumer spending power as government stimulus check ended. that was a big driver as well. seller business, picked up from the prior quarter, roughly 48% growth year over year, but not growing as fast as the prior quarter. we talked about the inperson spending volume as the u.s. economy continues to reopen and recover. finally, bitcoin revenue was lower than expected and dropped from the prior quarter some prices dropped for bitcoin and less quality did dampen activity they said as bitcoin hit a new all time high, that has recovered and bitcoin has picked up
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i asked about new crypto currency being added she said no plan for now they are focused on bitcoin. and so is jack dorsey. he said he will publish a white paper on the new bitcoin business still being called tbd. >> clever. pete, your thoughts? >> i am looking at this as an opportunity. i think bitcoin is one of the p peas pieces of the puzzle that makes memore bullish i look at this as a possibility -- it has already pulled back back substantially from the highs some of the numbers year over year, some of the percentage growth is extraordinary. but a lot of the time what we
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were supposed to look. i am looking at year over year those are very strong. i would be looking at square and jack dorsey as the potential of starting to buy and nibble as this stock continues to sell off tomorrow >> tim >> i do think some of the sexiness about crypto and jack dorsey i think this is a driver they say you are still up 45% on the revenue side it is the sticky place to draw in the consumers they continue to do that to me the stock is not cheap i think it is a function of the market we are in that this stock will continue to levitate higher the minute we have a problem with stocks, this stock will
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suffer but where we are going and multiples of players and folks part of the digital economy, i think this company is very much near the front of the line >> we are just getting started on "fast money." next -- >> sending its system to the cloud. moving trading sky high. terry duffy joins us with the details. plus earnings from shake shack.
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welcome back cme moving to the google cloud google also making a $1 billion investment into the cme. terry, the chairman and friend of "fast money." >> i want to wish you a very happy birthday i would sing to you but my throat is sore after talking to my board for the past several days about this deal >> i will look forward to another one. you do that. >> when i see this, i think of cost savings what is the cost savings in
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this >> you can point to cost savings, but it's growth and expansion of the business. when you look at where the world is going, revenue streams come and go every one is associated with technology when you have a new idea about an application or new procedure you want to bring into your organization, you have to have the technology associated with it sometimes those technology inputs could take years. if you are second, you are last. this is another way for us to capture revenues on a real time basis, getting under the google umbrella which is so large and fast and allowing usto grow ou business exponentially i am excited about the growth perspectives of this there are cost savings, but the real story here is about the growth >> terry, i am a big fan of pink and one of her songs was "raise
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your glass." i am raising it to you since you took over cme, what the stock has done has been remarkable how does something like this take place do you reach out to them or they reach out to you it's a fascinating deal. >> without getting into too much of the propriety details, i reached out to them during the pandemic i was thinking what will the world look like in the next five years. you have a lot of opportunities to reflect once you know your family is safe i reached out to a few participants and had the chance to get close with some folks at google about how we could transform the industry and how a strategic partner could make it happen google understood that concept and that this was not a cloud
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services agreement, but a partnership. they shared that vision and so did my board and so did their board. that's how it happened i am extremely excited to bring this to my company and shareholders and clients >> the preferred investment they are taking in cm efre, can you about the investment to capital market, what the technology element could mean when i saw the headline, as you said this is a partnership, is part of that investment in something specific you could talk about >> the billion dollar investment is google's commitment to a
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strategic investment that this is not just a cloud deal we will use the money in certain different ways, but it wasn't about the dollars from cme we are a aa-plus rated company it was about investment in the idea of how we could distribute these and trade these markets going forward for every single individual, about creating efficiencies for the open positions worth trillions of dollars, risk everything from mortgages to everything else how do we make that business more cost effective for those participants and then allow me to run the business and not so much worry about running the technology that goes with it so i can bring in new ideas and
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not worry if my tech department can do it or not guy said it, we have grown so much, and when you grow like that you need to get under a bigger umbrella in technology or these ideas will go someplace else i won'tlet it happen and that' a big part of it >> you mentioned latency issues and settlement, under this partnership, does settlement go way down what are you foreseeing? >> melissa, in our world we are all real time settlement in the derivatives it is real time settlement so we don't have those issues i think when you look at the artificial intelligence and other machine learning that google has today, with our infrastructure going into that and how we expand that into
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other businesses, that's where the excitement comes from. on google's cybersecurity is something that is a superior cyber offering and is another benefit to myself and client there are so many benefits, but it has nothing to do with settlements as far as time of settlement because today we are already a real time settlement >> terry, great to speak with you. terry duffy of cme it is the most valuable market exchange in the world, $79 billion. steve grasso, what do you think? >> cme has been doing a great job and terry has as well. i was interested in what he said as far as cybersecurity. i wonder if there is more outside risk that's why financial service companies don't go to the cloud
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and haven't used this. i would have liked to have seen how he gets over this hump mentally and why he's so secure about going with google. he didn't say that about the cybersecurity. if this is the trend for financial services going forward, then the financials service community can be a huge tail wind to amazon, microsoft and others this is another way to build out their cloud businesses if all of a sudden all of the financial community is going to go full in >> they have been jockeying in the financial services it's difficult because of the government but like minicontract to cater to retail investors, and the new
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market >> he has been ahead of the curve every step of the way since he took over at cme. the chart proves it. look at the chart. this is a stock, that in my opinion will continue to go higher you mentioned an all-time high it did pull back a little bit. the other name we talk about in the same space is nasdaq which is remarkable. they had a bit of a sell-off and are back at all time high again. >> shake shack and expedia on the move we are digging into the details.
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welcome back to "fast money. we have an earnings alert on shake shack with stocks popping higher after hours kate >> it was a mixed quarter for shake shack reporting a smaller loss than expected, but despite
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that, its highest revenue quarter ever digital continues to be important for the business making up 42% of sales in q3 even as diners starts to return to stores, the company says it has retained nearly 80% of digital sales. growth is driven by new york, l.a. and boston as people travel suburban shacks were up 2% in the quarter. overall sales were down 1% and suburban shake shacks up 7%. the company is pressured for margins and this will likely persist for the foreseeable future he said these prices were up from the second quarter to third quarter and the company took 3 to 3.5% in price he said he thinks they have
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additional pricing power in the future the stock has been all over the place. back to you. >> weaker, but still up 5% what do you make of this, pete >> i am surprised to see where the stock is from what you were just talking about you get that kind of guidance you see the stock go to the downside and it is to the upside up 5%. i am concerned about margins going forward. and a labor issue, something that will be hanging around for quite a while, but they are doing a lot of things right. it's 48% year over year. so that's impressive even if it disappointed in what they were looking for. there is a lot going right for the company, but margins will be an issue for a while because i
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see a lot of those pressures not going away for a while >> they say they can continue to raise prices which probably won't be transitory. >> if anyone can raise prices, it's shake shack the suburban centers are in very dense populated, high wallet areas and they can pass that along. the loyalty factor is so strong. a lot of the food costs. easy comps year over year. it is more compressed by the continued growth and ability to roll this out. this was a company that was extraordinary, but in five locations. i think they have put their heads down it is a growth story and still is i think you priced in a lot of bad news on the stock.
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two weeks of that, down 40% from the high i think you stay in this >> guy mcdonald's new high today. mcdonald's or shake shack? >> you know i worked at the shake shack and was employee of the month as i mentioned a number of times. but the answer is mcdonald's you are right, they will raise their prices and that won't be transitory, but you have to sell a lot of burgers a miss on restaurant margins is no bueno >> josh not even here to defend himself. >> you won't want to miss the interview.
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welcome back expedia shares jumping after hours. >> expedia turning a third quarter profit, allowing shares to an extended trade up to over 11%. peter kern will be joining us
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about the strength where half of the customers are new customers which suggests that is brand marketing. all of the money spending on brand marketing to strengthen the verbal brand is paying off air bnb hasn't had to spend as much you are looking at expedia high by 11% and air bnb basically trading flat home rentals are trading higher than hotels. he said going into next summer, bookings are up for next summer compared to the same time last year which suggests that demand is looking good. now with international re-stricks setto ease on monday, november 8
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we are expecting to see a surge in international tourism we have been waiting for those concrete bookings numbers. but he mentioned that will bring demand back to cities with foreign travel back to you. >> thank you we will try to get the expedia ceo. we have had a problem with the shot steve grasso, what do you think? pointing up in terms of vaccination especially during younger set children which will enable families to travel? >> i can't think of anything negative to say about expedia. they are in a great spot because they have traditional vacations coming back and have the home rentals that they have an angle to benefit from as well. this is a reopening trade. this has been one of the names that people favor, investors
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favor in the space technically just afew more percentage points. we are at recent highs technically it looks good. fun fundamentally, it looks like it's performing. i would still be a buyer >> tim >> they blew away adjusted net the margins of this company are extraordinary. the rbo taking market share in the space from air bnb and other competitors also very aggressive the tail winds with where we are in reopening and international travel are exciting things it is the profile of this business that is a breakout of this stock that had done nothing for bm a year. >> do you agree it's a breakout, pete >> i would agree with that
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when you look at all of the different things people are looking at talk about pricing power, return to travel, vaccinations at lower age levels that will open things up that much more. it gives travel restrictionsingn
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throughout we have done a greatjob of making sure that everybody knows about it and knows what the great experience is like more than half our customers this year are new customers to the platform we are seeing great response to the market and people having great experiences. we think that will keep happening. >> with air bnb at $112 billion, you are at a quarter of that is that how you view the opportunity vrbo going forward >> we don't spend time worrying about what air bnb is about. i think vrbo is a great business, not exactly the same
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as air bnb we focus on a different product, whole home rather than what they focus on but we focus on hotels and air rides. we offer everything to everybody. that's why we are bringing our loyalty programs together, why we are going to make it easier for customers to make it better for customers. i will be happy when our value is the same as theirs. >> is there some concern about demand for hotels at a time when there is a labor shortage? so many hotel owners tell me they don't have the staff they need to allow for 100% occupancy. >> first of all, we have t commend our hotel partners, air
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partners they are doing amazing work in a difficult time for labor and with other issues and other things i think they are up against a tough battle they have been able to open. we have seen demand come back, as i mentioned on the call we are seeing city demand come back as we open up travel to europe and singapore we will see demand and those are areas where hotels are preferred. you are seeing a mixed effects of where people are wanting to travel and able to travel and when they can. we have seen it time and again you can't get a hotel in hawaii this christmas just like you can't get a vrbo in hawaii this christmas. >> you are painting a picture that the appetite is largefor travel this holiday season with
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trade up more than 12% after hours. back to you. >> we do want to check out shares of merck gaining a new all-time high after new approval in the united kingdom. one trader took advantage of profits. mike has the information >> the most active option was a december 90s call. some weretaking advantage of the stock being higher we saw an institutionalseller of 3,000 of those. that will give them a yield of about 3.8% between now and december when that would expire.
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>> this on the same day, guy, that we see moderna cut its vaccine guidance for 2021 and after we have seen pfizer raise its. >> not surprising. we are seeing eli lilly as well. amgen can't get out of its own way. but merck is too cheap at these levels up next, final trade a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning. see how you can become a smarter investor with a personalized education from td ameritrade. visit ♪ your record label is taking off.
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welcome back to "fast money. one last check, peloton shares are down 28% after hours the lowest levels we are seeing since july of 2020 time for the final trade tim seymour? >> i think shake shack gets out of the 80st. they have power mcdonald's do not? >> clear secure, you will do
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better looking for an increase of say 30%, ballpark. >> steve >> i have to give you tjx. i saw a lot of call buying i think it's going higher. >> guy >> happy birthday. coming up five mcdonald's cheeseburgers in your honor. >> make that mcribs. jim cramer starts now.


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