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tv   Mad Money  CNBC  April 3, 2012 6:00pm-7:00pm EDT

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>> i'm melissa lee. see you later for squawk on the street. from annie's organic with "fast" and "mad money" starts right now. i'm jim cramer, and welcome to my world. you noticed to geed to get in t. he's nuts, they're nuts, they know nothing! i always like to say there is a bull market somewhere. "mad money, " you can't afford to miss it hey, i'm kraimt cram welcome to mad money. other people want to make friends, i want to make you money. my job isn't just to entertain, but to make you money. call me. i didn't want to hear it, but i knew someone would say that apple, a $629 stock, going to the magical $1,000 mark. i knew someone would predict that this company would be the first trillion dollar stock and then kaboom! it happened today.
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when the dow sinking 65 points, s & p, dipping .4% and nasdaq sliding .2%. my first reaction? history. is this a case of irrational exuberance. the kiss of death, the phrase uttered by alan greenspan. investors shuttered, market too red hot to handle. so i said to myself, the apple analyst at piper jaffray, is he unrightfully exuberant? he came out with it on a day when many people feel like the market has run out of steam. the federal reserve feels like things may have gotten good. good enough it doesn't need to boost the market with more money. is this the irony of the exuberant pronouncement, or the day when they say they are taking away the punch bowl.
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another admonition chicaliche? i sure disliked the timing of this report. this market got yanked from its bullish morning and federal reserve statement. and saying basically we aren't going to print more money. i was suspicious more time about the fed boosting the economy. as i said last night, our nation is in the driver's seat and i don't want to say that the fed says things. and at a certain point, we say we need to get back to normal. the huge rally may not be justified. you can't bank on the fed's help forever. that has never been their away. they throw lighter fluid on the kingsfords until they catch and then they walk away, and didn't like that after they closed, sandisk blew up. it announced disapoingt orders for their flash drive and it will certainly impact apple tomorrow. you know? i have a hard time decliring
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this is irrationally exuberant. $1,000 handle as we call it in the business seems highly unusual. we have accepted it with berkshire hathaway. and i think call comes out to be perfectly racitional. let me walk you through why. this is about fruit arithmetic, about making apple juice and selling it, and then comparing apples to apples, to set the ground work for some simple, plain english exclamations for what the piper jaffray analyst expects to happen. the fundamental security analysis to figure out what underlying earnings are going to be. the "e" in the price to earnings multiple and then figure out what people will pay, the "m" in the equation. let's use the apple juice stand. a childish twist on the lemonade
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stand because it's my show and not yours. you buy apples or your mom buys them, smash them up, add a little sugar, okay? we're making apple juice here that are you going to sell. put a little water in, you water it down like when we used to drink tang and then you sell the finished product. juice. what's the difference between these costs and the money people give you? that's your earnings what do we pay for those earnings? you want to buy my juice stand? what would you pay for it? tough, right? gene, the analyst with the trillion dollar company call, says apple can earn $61 with its juice stand and as much as $81 in 2015, that's what's left of the profit pot. and analysts will be paying $1,000 per share by 2014, given what it might make next year and 2015. what would you pay for the earnings? it's something that can't be done in a vacuum.
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we have to compare apple to -- how about other stocks. apple to apples. now, here is where the apple juice gets sticky. first you have to pay something for these earnings and figure out how good this company, how fast it's growing and how fast the energy, how much market power and how big the market is really are. and you are looking at a company that truly crushes the competition. much of the growth is coming from apple and to totally belabor the analogy, it looks like an apple pie, with huge losses and share coming from research in motion, nokia, sun, hewlett-packard, microsoft and google. they up the market caps and comes with $959 billion in cap. if apple grows at 18% clip it will slice away $400 billion in market cap from the other guys and hence the trillion dollar apple valuation. here is the difficulty of
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arriving at the multiple of price to earnings, p.e. multiple. the companies that always -- all the companies that they are competing with, they have a price to earnings multiple similar to amy's or larger than apple's, they are struggling with the apple versus apple comparison, illogical that people should pay a similar amount or similar multiples, and here is why i can't call this representation irrational or even to some degree exuberant. as they talk about the annihilation of the competition, they aren't saying we'll pay more for apple's earnings. he is saying if apple earnings $80 per share and the stock goes to $1,000, we divide earnings into price targets to get the multiple. appear level be trading an astounding low 12 times earnings. to the lower level of apple's soon to be des natured competitors. paying did 1 2 times earnings is nonexunrabt. who would pay the same amount for apple's future earning for
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the other guys? apple is by far the superior company. we know that. and the higher multiple. things can go wrong, somebody could come with up with a better tablet, better cell phone and maybe invasinovation slows downh the passing of steve jobs. bottom line, as much as i blanched when i heard apple with the price tag of a "g" and the market cap of a trill, the math makes sense. projections totally rational, totally sober, total believable. the fed may be about to take away the punch bowl, but muncher is drinking knot nothing but apple juice in his well-thought out report. let's go to jeer in new york. what's up? >> caller: what's your take on ford, considering fact that it just reported very good figures?
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>> i got to tell you, ford is an international company and when people hear spain is bad, and worried about itsly and thinking about germany, have to be thinking about ford, and that's why it's such a stuck in the mud situation. there are lots of situations that don't have a lot of europe in it, ford does. kefin in new york, please. kevin. >> caller: a big booyah all the way from harlem. i got two questions for you. seym. a big project, and they are going up and down lately. tell me when you think about that. and a good stock for this quarter coming up. >> boy, i got to tell you, i saw that stock, like a rocket today and it says to me, kevin, we got to let it cool off. the good news is out. let the stock cool off. and it won't be reiterated tomorrow, comes back to $15, $16. back to $15. up a buck 72 today. then it might be right to buy. margaret from the show-me state.
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margaret. >> caller: hi, jim. >> hi, margaret. >> caller: what's the scoop on netflix? i know it was downgraded today and lots of competition. >> right. >> caller: and i'm short the stock, so what is your prognosis? >> well, margaret, i got to tell you, i would be leaning more toward your side than the other side. only reason why, the excellent barclays report that took it to a whole, indicated there is a lot of competition. look, i'm still netflix, i'm a dvd guy, but when i stream, i do what a lot of other people do. we go to amazon, or if that's the case -- or go to apple. if that's the case, too many people shooting against netflix. apple the first trillion dollar company? irrational exuberance? nah. no, just a terrific story taking over a big piece of the pie. "mad money" right back.
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coming up, wrath of the tech titans, nasdaq outperformed in 2012, twice nearly 20%. can the tech dominated exchange continue to power higher, or is it running out of juice? cramer heads off the charts to look at the titans of the tech center for answers. and later, jersey score? the nfl unveiled its new look today. will this gear improve your portfol portfolio's performance? cramer tries an investment in the gridiron on for size. find out if it could be a big hit. plus, warehouse of profits? this stock has paid out dividends for more than 30 years, right through the recent recession. now with the american economy coming back, could it have you packing away profits? cramer's exclusive with the ceo of east group properties is just ahead. all coming up on "mad money."
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miss out on ahead mad money" get text alerts today. mm to 26221 to get cramer right on your phone. for more info, visit madmoney.cnbc.com or give us a call at 1-800-743-cnbc. [ artis brown ] america is facing some tough challenges right now. two of the most important are energy security and economic growth. north america actually has one of the largest oil reserves in the world. a large part of that is oil sands. this resource has the ability to create hundreds of thousands of jobs. at our kearl project in canada, we'll be able to produce these oil sands with the same emissions as many other oils and that's a huge breakthrough. that's good for our country's energy security and our economy.
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after a not so hot day like this one, like to circle the wagons around the sectors we know are working. for 2012, few groups hotter than tech, including the big o-line tech companies that nobody thinks of as sexy anymore, talking about microsoft, intel, ibm. now that the first quarter of 1998 is behind us, we'll look forward with with l.a. little to compare microsoft, cisco, intel, and oracle. when we talk about momentum, always useful to consult the technicals. how do these tech giants stack up? to evaluate them, first, we need to take a look at a novel kind
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of a chart, one we haven't talked about or seen on a mad money" before. i am always trying to introduce new concepts. the cube shows all four stocks and let's you compare from short-term, intermediate-term and long-term stocks. those are all important periods. think about advocating the charts into one single picture, looking for the rubik's cube. based on the trading cube, microsoft a microsoft is pristine and clean. three in a row, or the slot machine we notice in a sec. oracle and cisco, indented. the reason? microsoft and intel have bullish trends in all three frames. whether are you looking at the short-term, long-term or somewhere in the middle.
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pattern, little "c"s. oracle and cisco, a lot of people own these stocks. and by the way, it's negative as stocks for positive for humans, cisco is a bearish long-term chart. even the short term and medium term ones, somebody asked me, jim, suddenly you like cisco? short term, momentum is there. oracle is the opposite. bullish long term. but bearish everywhere else. and using this kind of trading cube is like playing the slots. only have a winner with all three time frames give you the same bullish result. which is why little prefers microsoft and intel and says let's not be in those other guys. and these two have outperformed the others over the last 12 months and since the beginning of the year. that matters plenty, because from the perspective of chartists, it sure make sense to stick with the strongest stocks in the strong market.
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now we have a two-man race between intel and mr. softy, the titans of old-school tech. intel versus microsoft, like hopping in the way-back machine, taking a trip to the late '80s, early ' 90s. which one is better? the stock is trading $24, only two points of a solid ceiling of resistance at 30, and that's intel's nemesis for over a decade. can you imagine? little believe that intel can overcome the ceiling, and if you get one of those train day sell-offs that you have today, keep an eye on this at 27. if intel breaks through the 30 level, keeping it down since the tech bubble burst, how high can it go, for that, we need to take a look at a more long-term chart. in 2007. we'll use this as a measured move technique to figure out the size of the future rally.
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that means he calculates the size of the last rally, point "a" to point "b," he extrapolates, assuming the next move up will be similar in scale. most when they do a measured move analysis, they take the last move of the rally and protect that. the next will be the same size. and they take the last move of the same size in percentage move and moves it forward. and that's the way to move more money. intel, the last generation from 2009, point "a," and 2010, point "b" and they expect intel will move up the same percentage from point "c" to point "d," that means he thinks intel is headed to $35. a 25% gain from current levels and a great dividend, beautiful balance sheet, nice buyback. let's take a look at mr. softy. first, here is a chart going back two years. little thinks the ideal time to
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buy microsoft would be on a pullback to 31 or 31.50, or even better, 29.50 to 30. the technician doesn't mind a stock going down to get a better price. those areas would give you the best risk reward, given that microsoft stuck under the ceiling at 34 again, ever since the tech bubble burst more than a decade ago. these are very similar charts, microsoft can break through the key level, take a gander at this chart of mr. softy going back to 2007. find out how high is can go. using the same measured move technique we saw with intel, little gets a price target of $47 for microsoft. that's a much larger gain of 45%. and that makes microsoft the clear chart winner. little things that microsoft wants, a tech steep play. it can get back to its highs from 1999 to 2000, over the next year or two, a huge move to make
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it a buy. makes me think i have to do fundamental analysis, i can't get it there. this is his work. the bottom line when it comes to the old-school tech titans, microsoft and intel the best charts. at least as interpreted by l.a. little who writes with me thestreet.com. mr. softy's got it's groove back. we'll talk about this later in the week about why that might be the case, based on the fundamentals. after the break, i'll try to save you more money. coming up, jersey score? the nfl unveiled its new look today. will this gear improve your portfolio performance? cramer tries an investment in the gridiron on for size. find out if it could be a big hit. ♪ whenever i want you, all i have to do is... ♪ [ female announcer ] introducing xfinity streampix. stream your favorite movies and full seasons of shows instantly on any screen.
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time to take make take nike penalty box. i know it's hard to talk about it about being in the penalty box when it's just three points off its 52-week high. see, about ten days ago, back on march 2 27bd, nike reported a
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quarter that some investors viewed, quite frankly, i'll use the word, disappointing. and the stock got slammed. falling from $1 $110.99 and sin then, it's inched back up, a little less than two points, i think it deserves to be higher. the reason? nike's last quarter wasn't so much disappointing as i think it was misunderstood. the stock has been penalized enough for so-called bad quarter, which is, in fact, quite good. i think can be bought. the worst is over for nike. and i'm not just saying because it's the wildcats won it wearing nike uniforms. nike has a ton of positive catalyst. catalyst you want to be ahead of. why did so many view this latest
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quarter as disappointment? i think people are looking at the wrong measures. they reported a 3 cents earnings, slightly higher than anticipated revenues, that rose 15.1% year over year some of far so good, right? several things under the surface that scared the heck out of people. people were actually petrified, hence, why they dumped the stock. >> sell, sell, sell. >> nike experienced weaker than expected apparel sales. and second, nike's gross margin, after the cost of sales, climbed by a whopping 200 basis points, and input costs, margin erosion, not a good thing. and nike's inventories, bold, surge, whatever you want to say, rising 32%, and high inventories they always freak investors out, because when companies have too much merchandise, they need to radically discount the products to get them off the books. to make matters worse, the company talked about continuing
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global challenges from the economy. courtesy of unpmt, debt, caused by political uncertainty. they also said higher in put costs would continue. continue to be a problem in 2012. i would hope they would moderate. scary stuff? why am i not more concerned? why am i not shaking like everyone else? let's start with the margin issue nike, across the board price increases of 8%, and, look, nike is king. they had the pricing power to make price increases stick. that should be a huge boom for the gross margin going forward. 32% inventory surge, 28 points came from higher in put costs and changes in the product mix. and in other words, only 12 percentage points is from having more stuff. some would say too much stuff. the 12% increase doesn't worry me. and especially when athletic apparel competition. like lululemon.
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and more than anything else, i'm not worried, buzz as important as the inventories are, none of the things are the key metric for nike them are a one of a kind company to provide a unique way to look into the system. they can order merchandise five to six months in advance. and a crystal clear ideas if someone would say a genuine crystal ball idea of what the business will be like going forward. the results of the system are called future orders and key metric that matters above all others when you analyze nike's results. and futures orders 15% worldwide and 18% when you account for fluctuations in exchange rates. that's a terrific number. it tells you nike's business in great shape. if more people knew to look at futures orders, the shock would rally instead of getting pounded. if people would have looked that prism right, they would say, buy, buy, buy, not sell, sell,
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sell. and there is no reason to stay away from this consistently excellent company. nike is the top dog when it comes to foot wear and athletic apparel. and the company is 2$2.5 billio annual -- the budge set larger than most competitor's revenues. best of all, catalyst. catalyst in 2012. coming right down the pike. and i bet will make a big difference. today, the company rolled out its much anticipated businessline, unveiling the 32 uniforms in brooklyn. nike makes sideline apparel for the nfl. and a concept which they stole away from reebok. ni nike's contract will last five years. new jersey goes on sale april 26th, the day of the nfl draft. the summer olympics in london,
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and nike tends to outperform the s & p dramatically and the world cup in brazil. a lot of smelly feet that need shoes on them. and they are rapidly expanding in emerging markets, like china, talk about a lot of feet and domestic business is so robust, they talked about how the u.s. is like an emerging market for them. i thought it was fun funny and they are rolling out direct to consumer retail stores, keeping a larger percentage of profit. and don't think nike is just a maker of sneakers. i think it's a technology company. they are rolling out high-tech products. like the soldout fuel band. i want one of these. this is a wristband that uses an accident sell romter to track your movement and then sends it to the fuel lab which tracked
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the amount of calories you burn. my trainer recommends this thing. this summer, the hyper dunk plus will be out. which digitally tracks your speed, as well as the height and quickness of vertical jump when you play basketball. share, compare, all info with your friends with the nike plus online community. 6 million registered users and they are going social and mobile on us. nike cloud. a real tech company. you back out, $6 per share in cash. and nike trades at 17 times earnings of 13% long-term growth rate. i think it deserves to go higher. bottom line. stop punishing nike for a so-called disappointing quarter. it was quite good. futures orders are a key metric and they were fabulous. given the positive catalyst, i say stop penalizing nike and get started buying some when the market goes down.
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joyce in texas, please. >> caller: jim, i got to talk to you real fast. under a tornado watch down here. >> hope everybody is okay. hope everybody is okay down there. >> caller: the stock is fossil. fosl. i want to know if it's a buy. i would like to buy 50 shares. i bought it one time and would like to get back into it. i know thheard they are going t make more chanel. >> here is the problem. and this is really difficult for people to understand. the stock is flying, and that's the problem. this stock gets hit on down days, you get a break in the stock not related to fossil but related to the market, then pull the trigger. why not now? the stock just doubled and coming in at double, not prudent. let's go to ed in my home state of new jersey, please. ed. >> caller: booyah, jim. >> back to you.
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>> caller: thank you. sparta, new jersey. >> a lot of bears there, man. the wrong kind of bears. i'm a bull guy, not a bear. >> caller: i got to get those bulls up there. i'm talking about skull candy. good fundamentals, the sports illustrated models advertising them in many countries. i am wondering if it's a buy or not? >> i blew this one. i thought when they had some shakeups at the top that people would sell the stock. they sold it for a second and then right back up. i don't feel myself qualified to opine. others did a better job than i did. i was negative on it, i should have been positive. better to own the mistakes and just come out there and say it. all right. time to take nike out of the penalty box. so many catalysts ahead. wait a section. a problem here. oh, yeah. now i've got it figured out. stay with cramer. coming up, jim goes fast and furious, as he faces a nonstop barrage of calls.
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giving stock after stock their final verdict on the lightning round. and later, warehouse of profits? this stock has paid out dividends for more than 30 years, right through the recent recession. now with the american economy coming back, can it have you packing away profits? cramer's exclusive with the ceo of east group properties is just ahead. all coming up on "mad money."
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it is time. time for the lightning round. buy, buy, buy, sell, sell, sell, sell. my staff, by this sound, the lightning round is over. are you ready, skedaddy? starting with steven in new york. >> caller: a big booyah to up. >> nice, what's going on? >> caller: you drive my wife nuts. love your show, made a lot of money following your advice. srz, i don't like the stock is trading recentl lly wrr the ceo
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helped recruit me many years ago. need a month robust housing market. i do think he's money. chris in massachusetts. >> caller: hey, jim, big booyah moose sandwich. my question is mcmoran exploration. >> a very disappointing stock. a very coherent piece at realmoney.com, pace on the street, talk about oil stocks look like they are rolling over, particularly the most aggressive independents, i don't want to sell the stock at this lechl a nasty decline. let's go to kuram in california. >> caller: hey, jim. listen, first of all, thank you. love you, man. >> got that richlt jim white hurst, a good guy. what do you think, molycorp? will it die on the vine?
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what do you think? >> i believe that stock is too speculative for most of our viewers. ed in new york. >> caller: booyah from long island, new york. following you for a while. south shore of long island, and an action lionsgate in february. where are we now? >> thank you for subscribing to action alerts plus.com. that's where i talk about my charitable trust, and we are in sync there. lionsgate, a great long-term buy. they have a franchise. i have my mocking jay from "squawk on the street" melissa lee. i think you're in good shape. jim in virginia. jim. >> caller: my stock is alj, along usa. >> refining, too dicey a business. i don't want to be there
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anymore. >> sell, sell, sell. >> too hard, not a play for me. matt in texas. >> caller: hey, jim. booyah from houston, texas. >> nice! >> caller: i got a question about, we said the financial report right around the corner. i would like to see what you think of bac? >> it's had a big run. no longer the cheapest in the group. however, up 70% year-to-date. like theory jonl banks. really pushing those. i think they are the best buys. this is a national bank. i can do without it. need to go to manesh in louisiana. manesh. >> caller: first of all, thank you for what you do. you are making me disciplined investors are thank you very much. that is my goal. so many people tell me that on the street, i feel good a lot of days. >> caller: i own wycom, should i
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sell or buy more? >> i like time warner more and discovery more. that last one, geez, fazlov is hitting it out of park. a lot of stuff i can watch with my kids like that. valentine in georgia. >> caller: a big booyah. >> i am worried about your rotation booyah. >> caller: i'm worried about newfield exploration. what can you tell me about it? >> newfield, no, way too dangerous. one of the stocks that is really coming down. >> sell, sell, sell. >> very worried about it. one of the worst charts. joined with that is zincana. ultra, a disastrous stock. be careful here. we don't want too much nat gas, and i think newfield has it. and that, ladies and gentlemen, is the conclusion of the lightning round! believe the , on december 21st polar shifts will reverse the earth's gravitational pull
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we spend a tremendous amount of time on "mad money," trying to assess the strength or weakness on the american economy. lots of ways that we can listen to the federal reserve as it's
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pronounced. focus on factory utilization. retail auto sales, labor department numbers and these are all what we call macro figures. bigging aregates that we can formulate a picture with. and we can do it in a way that i like more. building our own bottoms up microanalysis, talking to different companies in different industries. many of them that you never heard of, anything other than the piece of the puzzle. and if you want to know my absolute favorite way to get the pulse, by interviewing executives in the real estate investment trust industry. hotel execs on, apartment execs, shopping centers, shopping mall execs. not all one more key area, industrial properties. and you want to talk to one of the finest out there. and $2 billion company, focused largely in florida among other states. close observers have heard us
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talk about egp. up 37% when we first recommended it two years ago. i commented in the depths of previous real estate crashes, such as the s&l crisis, this group shined. this gives you less attractive 4% yield, i call that a-quality problem. i'm thrilled to welcome david hoster, president and ceo. egp, a high-quality pure play read, and in our view provides investors the best opportunity to invest in improving u.s. industrial market. you guys see it. is it really improving? and how correspond lated are you to the industrial market? >> we're in the distribution aspect of it, and our buildings are what we would call a mid-size warehouse, 100,000
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square feet, and multitenant. we tend to see smaller users, but many times, a small part of a bigger company is in our space, and we're seeing a tremendous pickup from an occupancy standpoint in the sun belt. right now, some of that is just a fight to quality trooe. where people are moving into the "a" assets. and i think you know, we're a firm believer in demographic shift in the united states of a population in the upper midwest and the northeast, across the mason dixon line. >> let's talk about that. a lot of people in the country, you know, you heard the hard-hit real estate market. the hard-hit real estate market in orlando. but those -- florida is getting better for you, and phoenix is really good, right? >> exactly. a turned around of the net migration in '09, '08, but
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really in '10, '11, a whole new move back to the sun belt. economists predict 200,000 net migration in '12. phoenix is experiencing a real resurgence. the housing industry is less than a four-month inventory. in texas, that goes without saying. if there is a boom state, it's texas. >> terrific for you guys. >> yes. >> a quote from your terrific conference call. we've had tremendous increase in occupancy. you go back two years, in the low 86% range. well above that now, aren't you. >> correct. we were hit a lot hard every than we thought we would be by the housing crisis. we had a lot of tile and granite providers, cabinetmakers, and they moved out. and we've been pleasantly surprised how we could pick up
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occupancy back up. over 400 basis points to 93.9%, and that's without a recovery in the housing industry. if we get a recovery, i think we'll really be beneficial for us. >> and also in resurgence, it's very clear the construction company has not come back. not like people are cad adding warehouses. >> no, and our buildings tend to be infill sites, where they are barriers to new entry, and that's become somewhat of a cliche in the real estate business, but it really does describe us. what makes us different, most of our customers, our tenants are distributing to the metropolitan area where a building is located, and as a result if there is a vibrancy in the metropolitan area, like there is in a lot of the sun belt markets today, we'll do well because our customers are going to do well. >> let's see what they can get away with from their end. i know you had a lot of deals made in the 2007 period.
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13% coming up in 2012, 2013, 2014. some analysts are concerned you won't be able to get rent increases because the economy is softer than it was in 2007. is that a correct characterizations? >> it is. about a year ago i would have said or i did say that rents were going to continue to roll down, probably through the end of '12. they have not moved as much as i thought they would. so they are probably going to roll down until we are in the middle of '13. >> okay. that leads me to the last question. i recommend your stock, because of the yield. i think you are well covered for the distribution, even if you get that rolloff. is that a correct -- >> absolutely. in the last couple of years, we made up for the rolldown in rents by an increase in occupancy and now that we've been able to acquire good properties and get back into the development business, a true value creator for us, we'll make
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up for rents still rolling down, particularly in arizona and florida. >> have you been a great survivor, a great thriver, congratulate you for all you are able to do. not the only guy left and you thrived this time around. david hoster, east group properties. do like the 4% yield? given you what get in treasuries, i sure do. stay with "cramer." thank you. when the going gets tough, cramer gets going. >> thank you for teaching me and putting me in charge of my own future. >> time to take charge of yours. >> "mad money" with jim cramer. [ nadine ] buzzzz, bzzzz, bzzzz, bzzzz,
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you know, typical alarm clock. i am so glad to get rid of it. just to be able to wake up in the morning on your own. that's a big accomplishment to me. i don't know how much money i need. but i know that whatever i have that's what i'm going to live within. ♪ ♪
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when you are picking stocks, a few things are more important than price. too o commentators say price doesn't matter and keep recommending the same merchandise at wildly different prices. they say it's the same, but it's not. i say all of this, because on last night's show, i recommended annie's newly minted organic ipo. a play with potential upside. i say wait a few days before about buying anything i talk about on the show. especially a small cap. but maybe i should have thrown in additional caveats. the stock ran up a staggering 11.8%. you cannot chase a stock after that kind of move. annie's was a good buy when it was trading at 34 bucks.
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now, at $38.75, it's become too hot to handle. to be clear, i'm not saying it's a sell. but you have to wait until this one pulls back before you buy it. after this kind of spike, it's simply not the same stock it was yesterday. over the last 24 hours, annie's has become a lot more expensive. over the last 24 hours, the risk reward hasn't changed. you aren't to chase stocks. any stock goes higher, it becomes less attractive. i was extremely positive about the company and the stock yesterday. i apologize for not throwing in more caveats to make sure a spike like we saw today doesn't happen. my opinion of the company hasn't changed. the price of the stock changed dramatically. and we practice homework on "mad money," and prices change, got to become more flexible. it would be recollectless to like it as much as 39 as 34. so, please, i'm begging. don't pay upannie's.
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there will be a vacuum for some time. i suspect this one will give up today's gansz. take this as an object lesson as why you have to be patient when you buy a stock. when you are patient, you use limit orders and you almost always get a better price over time. jump in over the day is not responsible. i think annie's is a good business, and i love the organic food business. the stock has simply moved too far, too fast since i recommended it. now i have to put the darn thing on the back burner until it cools. one more thing that i am moving toward a more cautious stance here. last night, i recommendedan a annie's and used aggressive earnings. i was trying to promote the wall street machine. and even if you use the adjusted figures, i think the underlying these is sound because annie's has so much growth potential.
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why was i so aggressive? in 35 days, the quiet period will end and all of those who took it public will initiate research coverage of the stock. typically when this happens, the analysts tend to be extremely aggressive themselves catch a big movement in the stock. i was trying to help you get ahead of the wall street promotion machine. looks like the stock got ahead. i believe the stock will spike as it did today. it will like from the lower level. be patient, wait for bull pullback and only then should do you buying as the overvaluation of the most bullish potential analys analysts protections makes it a stretch. don't forget price matters which is why limit matters order, which by being too aggressive by me or you doesn't help the cause and at times, it can hurt it. stick with cramer. zap technology.
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departure. hertz gold plus rewards also offers ereturn-- our fastest way to return your car. just note your mileage and zap ! you're outta there ! we'll e-mail your receipt in a flash, too. it's just another way you'll be traveling at the speed of hertz. second as way on "the kudlow report," president viciously attacks paul ryan's budget. we have rye on coming own the show to respond. and the market kind like the fed's minutes, but i did. i think it's actually bullish. and we see another $20 rise in oil prices from boone pickens. we'll tell you why.

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