Crisis, or fear of rate hikes, or fear of inflation, or deflation for that matter. It may seem odd to talk about fear on a day when the average is basically me and erg higher for most of the day. Nasdaq edging up thats because the market is in fear of one thing, it lives in fear of amazon specifically the power of amazon over the whole industries. We saw Health Care Stocks rally again today. Every stock in the group of the drugs, biotechs, medical devices and especially insurers and hospitals, which makes me think that they rallied because the bill is written. Looks like it might be too draconian to pass. Theres no universe for the hospitals to make more money under a plan that slashes medicaid and causes millions to lose their insurance still, though, i think the undercurrent, or i should say the undertow of amazon is such a dominant threat to so many consumer related sectors, in a consumerdriven economy, that its sinking whole swaths of stock once again if your companys in the crosshairs of amazon, even if it might only be in the tentative crosshairs, your stock gets taken down does the company have amazon exposure, and how much thats the question analysts are asking on so many Conference Calls. Its become the major core of the moment will you beat amazon is the verb of the day, how badly will be hurt by Amazons Web Services or consumer interface the fear is logical. Just this evening, bed, bath beyond reported a miserable quarter. Im saying its the proximate cause of the misery. Somethings happening now. Small places, no one seems to be noticing thats the characterization seeping in, that amazon, loved by consumers, might end up being viewed as the evil empire. Ever since the announcement that the whole foods is letting clothes be tried on without being paid for, theres a queasy feeling that amazon is overstepping its bounds. Its becoming too big, too powerful we all know consumers who chatted about how they arent sure if they like the new allpowerful amazon. As if its some sort of government entity. Or maybe its more like skynet, a powerful Artificial Intelligence system that knows your thoughts and can predict it before you articulate. Im not buying that backlash amazon has created an irresistible bargain im sure that when whole foods foods gets consolidated, thelgs make deals too compelling to avoid. Free eggs, discounted milk amazon stock is impacted by the gross margin declines. Investors have become immune to it they only care about Revenue Growth bye, bye, bye, bye, bye consumers may adore amazon, but companies are another story. Plenty of businesses are being threatened by competition from the online titan even amazon suppliers get a raw deal because its got so much Bargaining Power so who at last, who at last is standing up to amazon. Why dont we start with walmart, the giant, the largest grocer in the country. Its not taking amazon sitting down anymore sure, they bought jet. Com which compete on gs, thats not what im not talking about. They dont want suppliers to use Amazons Web Service system. It wants it to switch to other web services, namely, alphabet you might know it as google. Mic microsoft, or maybe ibm. Now, oracle, last nights conference, brilliant quarter, told us it will have a better offering than amazon and they can compete with amazon on price no one has really competed on price with amazon. Now ellisons doing it then there are the investors who are saying that amazons power is being overestimated in the marketplace. Last night we heard that staples might be taken private by sycamore, a very private equity firm long been considered amazon road kill nordstrom is very much pursuing its own private transaction. I think buying that stock here makes sense. It will most likely be sold at a higher price both deals are based on the idea that amazon isnt going to wreck their business perhaps all that selling in the marketplace, including, of course, the bed bath selling tonight, is overdone meanwhile, there are other companies that are taking advantage of amazon. Yesterday, nike stock went up because of talk it might partner with amazon. Amazon, biggest customer in terms of clothes, is the biggest customer of clothes for pbh. Thats right, pbh has amazon as a terrific partner a potential deal for nike is good, its great for pbh the stock rallied almost 4 today. Huge disconnect in the market when it comes to amazon fear the biggest winner in the destruction of them all is by far tjx. They mark up for a lower price than amazon can charge and they still make a boatload of money no one cares, though no one cares right now seems to make a new low every day. Again, no one cared about home depot showing it beat amazon, and the stock went up. Upon further review, lets say ultimately home depot has had a good rally heres the bottom line not everything can be crushed by amazon and the empire is striking back. So am a son better not get too cocky. The force may at last be with its competitors, if it does. Lets take some questions. Right here hi, jim given that Interest Rates are rising, and theres plenty of uncertainty in the price of oil, what do you think of Pipeline Companies and tall grass in particular first, i have to tell you, i love the thesis, but the thesis has not been working tall grass is a very good entity its got a nice yield. The fact is all those stocks trade together and theyve all been going down as if theyre just Oil Companies and trading specifically with the price of oil. So even though youve got the great yield, its not protecting it thats what ive got most concern about with that group. The yield will not stomp you out. Im questioning an investment in tall grass right now yes. Maam . Hi, jim gina from jersey with the ups and downs in oil, where do you see oil in the next 12 months . Particularly Royal Dutch Shell im not a big fun of Royal Dutch Shell. I know theyre trying to trim things heres the problem i think oil is trying to make a stand here at 42 we dont have enough buyers. The reason its trying to make a stand, is because at 42 a lot of people think the u. S. Will stop pumping. They sold a lot of oil in the futures market i think it will bounce between 38 and 42. But dont get sucked in. Its not sustainable yes . Hey, jim, i would like to give a first but yeah to the Police Department that i work with. Absolutely. Thank you id like to ask you about my tech systems since theyre pretty mobile company, and theyre about deposits and capture, do you think they are a takeover target or do you think that it just went up gigantically. That stock has had a huge move kind of invideolike move. It sells at 30 times earnings, up 40 this Year Technology is hot, though. We dont recommend stocks on the basis of stb buying them i think its too hot its too hot right now for someone to buy thank you. Yes, sir hi, jim, im paul from the jersey shore. All right. I wanted to ask you a question i own some alibaba, and i wonder what the impact of the deal with china unicom no, youre in good shape. I think youve got a winner. And i would own it and some other stocks in the group went down but didnt get hit that badly i like alibaba a lot all right. Listen up, amazon, hubris can lead to a new. Ill tell you if the competition in the liquor space is heating up looking for something to snack on im sitting down with the ceo behind brands like or owes, some of my faves, see if we can doublestuff your portfolio profits. Oracles flying high today after earnings ill tell you why conference is key when it comes to the stocks latest moves so stick with cramer will you be ready when the moment turns romantic . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas® for pulmonary hypertension, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have a sudden decrease or loss of hearing or vision, or an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis. Not very often i get to talk about one of my favorite subjects on air. Tequila. Just yesterday George Clooney sold a business, to the britishbased liquor titan, with a possible of 300 million in performance. You can understand why theyre willing to shell out a fortune for this brand most categories of liquor are pretty much stagnant right now tequilas on fire. With total buying growing at a 7. 1 clip just last year tequila volumes more than doubled from 2002 through 2015 and theyre still rising dramatically but even more empressive, Super Premium tequilas, costa amig os, 650 over the same period. J b whiskey, hennessey, captain morgan, among many others, sweet tequila action its so incredibly popular, that we cant keep it in stock at a mexican place in brooklyn. Clooney founded this company back in 2013 by last year they had sold 120,000 cases. This year expected to grow 170,000 cases. Amazing growth but the idea here is that it will keep the company, it will help the company take share in the Super Premium category also giving them a perfect platform to grow its tequila business overseas. Diageio has distribution channels, this could really take off outside of the western hemisphere the thing that blows me away about this deal is just how much they had to pay to get the hands on his company why dont we do something here lets compare this transaction to the last big tequila deal when Constellation Brands bought for 30 million for casanobla. Granted, it was smaller at the time selling about 120,000 cases a year but its doubled in the first year after the deal, and more. According to constellation if casanabla had been im not saying they overpaid theyre just later to the party than constellation the liquor business is about premiumization theyve got a bunch of line extensions that the acquisition wont take long. With what diaogo is paying, it could be three years for it to be added to the companys earnings i dont like that. The endorsement of the coolest man in the room never hurts. What i come back to is how smart Constellation Brands is. That they remain the best Liquor Company on earth they fought casa noble for next to nothing and the beer brands we know so well corona, pacifica, they could load them up you take this one, youll take this and it is a premium tequila. Get this, we charge 16 for a nice glass of casa noble we charge 14 for casa nebles. I like this stock very much. But for another reason its a british exporter, which means it will benefit enormously because of the weak pound because of brexit. Prime minister theresa mays government balancing on a knife edge historically they sold highend liquor in china. Chinas government started cracking down on corruption a few years ago. Finally theyre letting up again. Reese just reported great numbers last night another perfect bribe another perfect gift if youre trying to do business in the peoples republic faster growth, and a faster operator by far. They got in tequila early, they got in wine at the right price purchased highend whiskey at the right moment all thanks to the perfect leadership of the ceo rob stance crazy to me. Constellation remains one of the best companies out there the Fastest Growing in all the business lines it deserves to trade at a higher left than diagio they report their earnings next week at the end of the day i cant help but like them both. Alcohol is the only product on earth that you can charge more for your merchandise than you could not too long ago there are no real beer price wars these days anymore like there used to be and premiumization means people pay up for an aging product. Heres the bottom line i love them all. I go back and forth, for myself. At bar san miguel. The bottles are right next to each other in the middle of the bar. Based on what diagio just paid, i have toinclude the constellation is by far the better buy here. They got casa noble for so much less and their stock made a huge run. It remains nicely undervalued. Lets take some questions. Yes . Hi, jim raquel from new jersey i have questions about scots miracle grow, being used by marijuana growers. Is cmg a buy its interesting, they reported on a quarter that people thought was weaker. The markets a little shaky here down 10 for the year. That is the hydroponic use of one of the divisions of scots is being benefited greatly by marijuana growing. I think the stock is fine. I want to be careful its had a big move. Because of that, yes im elliott from tenefly. I love your show. Thank you. Last summer on my honeymoon with my wife, we were looking around for some buys so there are 235 mcdonalds in hong kong. I said, im going to buy some. It went up, then it west down. Now its at 150 and i dont own it anymore 158. What do you think . This is one man, hes turned it around. I think 154, it is still a buy buy some here. Buy some lower thats the best way to approach it one tequila, two tequila, three tequila, profits constellation great Liquor Company. If the spirit moves you to buy one, i say stick with constellation. Much more mad money, and my exclusive as more consumers buy food outside grocery stores. Oracle is going through a met metamorphos metamorphosis, and it could help you make money ill tell you whats behind the change it works with marriott, and Berkshire Hathaway stick with cramer could the stock of the stack food giant that has been in the 40s for the last few years ready to break out from this range youve all chowed down on their wares here nabisco, oreos, cadbury, so many other great ones stock has been trading sideways. Theyre trying to come up with terrific new Growth Strategies its starting to work. Costs have come down mightily. I think its being ignored since the last Quarterly Report which was quite good there could be consolidation in the industry that might boost things further nestle announced its putting up the u. S. Confectionary business for sale is it finally time for this Company Stock to take off . Lets check in with the chairman and ceo of the company, how her company is doing welcome to mad money. Great to see you you have put it together over the last five years. Youve cut costs remarkably. Top line growth. Are people going to start recognizing the breakout of the pack which does not have that kind of growth i hope so i think weve delivered about 500 basis points over the last couple of years, doubledigit eps growth, and dividends and buybacks weve got a really strong story. The challenge has been the top line growth, has been a little more muted as you said, its still distinguished weve distinguished ourselves relative to the beer companies. Emerging Growth Markets are fabulous for you can they grow faster than they are now . Absolutely. When we formed the company in 2012 and split off from the north American Grocery business, that was the thesis, about 40 of our revenue is from the emerging markets they were growing at healthy high singledigit, doubledigit rates. You brought much better return than the s p. Thats really important to point out. One of the things that people might say, wait a second, its snack foods. How much are people still eating snack foods . Are they good for you, or just treats how are you dealing with the healthier consumer we love snacks. The reason is, because its a 1. 2 trillion set of categories globally its growing everywhere. If you look at the demographics of the consumers around the world, you have more women in the work force you have people commuting longer distances to work. So theyre not eating traditional meals. Theyre eating snacks. Right. So we like the margins. The margins theres private label penetration much lower in snacks than you would see in other food categories. We feel terrific about our portfolio and we feel it is poised to break out. Youre doing terrific social media, probably one of the most advanced companies recognizing where people are how are you allocating your marketing dollars . Well, weve got 14 million facebook fans. Were in the top five food brands we have an incredibly loyal following. In todays digital world, thats really important as we think about how do we continue to build the equity of the brand. Dont challenge kind of thing. Dont challenge kind of thing. People serve oreos at their wedding. Theres a whole site to give you different ideas of what you can do with or owes at your wedding. Theres a lot of leverage in these brands and we are taking every action we can to shift our spending from traditional media into digital. Theres going to be about 30 of our spending by next year in markets like here in the u. S. , about 50 . You won back donald trump i love or owes he said, nabisco closes a plant, announced in chicago, have you resolved that . Does he understand what was going on in fairness, i think there was a lot of misstatements in some of those early statements the fact of the matter is, the United States is a major manufacturing and business hub for us. Good for you. Weve got 17,000 employees here in the u. S. We absolutely continue to manufacture all of our products here in the u. S. We just happen to have located four lines in mexico weve invested over 500 million in our manufacturing facilities here in the u. S. You do Something Else that i think younger people now follow. And make decisions about where to work and also where to eat. Sustainability development goals. Talk about your cocoa products. Obviously cocoa is a very important input ingredient for us were the largest chocolate manufacturer in the world. And we care a lot about the future of our supply and so we have invested over 400 million in a program we call cocoa life. The intent is to help improve the livelihood of cocoa producing farmers. Many of these are familys owned businesses many of them are small leasehold farms owned by women the opportunity to help these farmers earn a more attractive livelihood to learn how to use modern state of the art farming methods, all of that is good for them,