tv Mad Money CNBC May 1, 2014 6:00pm-7:01pm EDT
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it. >> i ain't eating there but burger king. >> really? even without a tomato? >> no tomatoes ever. >> i'm melissa lee. see you back here. don't go anywhere. 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 friend, i'm trying to save you mono pep my aim is not just to entertain, but to teach. tweet me @jimcramer. what happens if safety is no longer safe? what happens when sellers stop pummeling the momentum stocks? well, then you get a day like
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today, dow falling 22 points. nasdaq declining only fractionally and s&p advancing 1.3%, but the average is again masking genuine market turmoil underneath. you know what? let's lift the hood, see what's underneath it. see what really happened today. first, understand that the big money managers who collectively decide the direction of our market with the buying and their selli selling. >> sell, sell, sell. >> have sold only one thing in the last two month, seen the earnings growth at a reasonable price and they wanted this combination with the help of a dividend and buyback because they lost faith in the high-growth momentum stocks. these highfliers which have been so good for so long allow portfolio managers who own them to handle the outperform their benchmark, the s&p 500 and what's the point of giving your money to an active money manager with an index fund if the manager can't beat the index? >> these expensive equity stocks
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like work day sales force.com and amazon, netflix and facebook were beloved because they handily crushed the average stock performance as expressed by the s&p 500. so they became the only game in town especially for the most go-go of managers, it is real gun slingers who swing from stock to stock every day, but when the momentum stocks stalled and then crashed -- something started at the end of february when sales force.com made a dramatic u-turn after reporting a picture-perfect quarter and continued down for the last two months. these institutional investors flooded and headed for the safety stock hills. >> sell, sell, sell, sell! >> their headlong flight changed the coloration of the market, the hottest areas turned cold. ♪ >> the outperformers disappeared and then worked into monumental losses. at the same time the stocks
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fulfilled their purpose along with tidy buybacks and sweet dividends and they move up in the stocks and a 3% dividend and a move up isn't much versus the kind of 30% the capital game and momentum stocks have been consistently and it's a heck of a lot better than the 30% declines that so many of the momentum stocks have recently experienced. today the momentum stocks came roaring back right out of the gate while safety was abandoned. the flaw funds from slow growth to hypergrowth persisted right against the bell. what changed here? at least for now? first, when yelp reported earnings we finally broke the pattern i've been talking about here, the pattern where a growth stock reports really great sales and pops in the after-hours trading on the turndown swiftly the next day. and it started with salesforce.com and continued right through with amazon and the company, and facebook which reported a dynamite quarter with real earnings per share rose huge in after hours and then got
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slaughtered anyway. yelp, instead traded down last night and rallied from the opening bell, finishing up $5.70 or almost 10% up. that's the exact opposite of sales force. why didn't yelp break down like the rest of them? because it halready had, you knw it sky dived without a parachute to 55 bucks. it was cut in half already and we know the momentum stocks was in part, caused by simple overvaluation. many managers have lost the statistics on the prices they're willing ing ting to using a ho metrics and whatever it takes to compare stocks on an apples to apples basics. >> the moves in the momentum stocks have become all too real, obvious, even. and the more prudent managers were never crazy about being in
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the stocks anyway, they wanted to beat the benchmarks and as i told you, this part of the market became inundated with supply. >> sell, sell, sell! >> many with dubious financials and very little hope of a profit, we had various insiders. >> house of pain! house of pain! >> stocks are like any other price of merchandise. think sweaters and department store. when there's too much supply it gets marked down, marked down, marked down until it reaches a level in which all available merchandise can be sold and it would be sent to filene's basement. so you can argue that the overvaluation had been cured, cured by lower prices at least for the moment and that's what stunts the selling. be mi behind the scenes another nefarious selling and companies want yet public, but waiting in the wings started getting out of hand. when did facebook pay $19 million and how about three companies with no real history of paying money.
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along with box and drop box, two computer storage space and each raising capital at $10 billion valuations, all three, hey, why not? wouldn't facebook buy them anyway? and if facebook didn't, worse comes to worse we would dump it into the red-hot ipos and restrict you on much stocks have the offering and suckers are born every minute and the public markets aren't they? >> with the public collapse of the stocks and the box and drop box realized the jig was up. do you know in the last 48 hours all three decided to postpone their deals to a better time. duh! that eliminates the potential decline, for each one it could have been $30 billion that got side lined. it looks like the deluge is over. the portfolio stocks suddenly didn't seem so safe this
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vacation. safety did take a vacation. clorox, church and dwight, two consumer products companies failed to meet their expectations in the last 24 hours and hershey had slower earnings and they reported weaker sign-ups as upstart t-mobile, the uncarrier raided clients and they can't make up for a 10% decline in capital. exxon today reported no production growth at all hence the there are decline. two solid growers and cardinal health were hammered. the money managers who exited the highfliers want growth at a reasonable price and hey, you have to give them a growth or they're not appeased unless you're the slow growing companies you stop making money all together. so all of the money parked in safety stocks were itching to rent a new home with momentum to it. now they've collapsed and selling has dried up. think about this, as i mentioned last night as the ceo of concur technologies, dominance offer play in travel and entertainment. if he had reported two months
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ago, the stock would have popped in the quarter instead of being crushed and he gets his mojo back up $3 or 3.42% and that was a backdrop change. let's be clear, though, this market's become amazingly fickle. >> buy, buy, buy! >> sell, sell, sell! >> what's lovered today could be hated tomorrow. >> house of pleasure. >> house of pain! >> i'm not running for safety and not running from momentum and i believe in diversification and my charitable trust owns a smartering of both. the sellers of growth collectively seem to have a bit of a remorse liquidating stocks down 30, 40, and even 50% below prices from just ten months ago without a change it the fundamentals. here's the bottom line, the pain of the momentum losses are very much with these portfolio managers. they got burned once and now i think they'll be twice shy and hit the exits if the highfliers rally above these levels. >> sell, sell, sell! >> brandon in wash issue whwash.
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>> boo-yah, mr. cramer. how are you? >> what's shake for you, my friend? >> i'm doing very well. my question is regarding conn's. i bought it at $38, $39 and the huge sell-off in february and the company reported they might not hit their earnings. >> that was a hideous shortfall. i got shares thinking it was affordable and cheap and the quarter look report comes out and it looks good. i'm wondering do you think it will run up to the 60, 70 levels? >> no. no, i don't. i think frankly, once they're broken they can rally, they don't get back to where they were. that was a hideous quarter and i just don't see that thing snapping back. you know what i would say? >> let's go to robert in georgia, please. robert? >> hi, jim, how are you doing? >> i'm good. how are you, partner? >> i'm doing really good. i'm interested in wwe stock, world wrestling entertainment
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and i understand they reported this quarter and i'm thinking about buy five or ten shares. >> i did not -- i mean, i saw the quarter and i, frankly, was not crazy about it. i know they beat the estimates but there are statistics that tell me that that stock has peaked. i don't think i want you in there. i think there are a lot of blue chips that have come down that have seen a lot better. listen, we're seeing a fickle market and that's why diversification between safety and moment up stocks, in this market? yes, only free lunch and it is all the rage, but can can the stocks live up to the hype, my two cents on one of the big guys just ahead. it ain't pretty. how about this? domino's delivered another piping hot quarter, but its stock was scorched today. should you grab a slice? i'll sit down with the ceo when "mad money" returns. >> coming up, getting distorted? high-end audiomaker harmon
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reported a stellar quarter, but the response on wall street has been muted. is it the time to buy or is the street rightfully spooked. he has an exclusive with the ceo. >> don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. we needed 30 new hires for our call center.
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and sleep train's 100-day low price guarantee. but hurry! sleep train's interest free for 3 event, ends sunday. ♪ sleep train ♪ ♪ your ticket to a better night's sleep ♪ reports a good quarter and the stock goes down anyway. take domino's pizza. we've been there before dpz terrific chain with over 10,500 stores in over 70 countries and not to mention it's been on a fabulous multi-year run and after speaking to patrick doyle and 670% return since then. this morning domino's reported a solid quarter meeting wall street estimates and beating revenue number increased by 4.9% yet the stock dropped $2.58.
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people were expecting an even bigger beat and many were concerned about higher raw costs that the company made sure was talked about. still domino's has a tremendous international growth opportunity and not to mention the mobile ordering platform that i've ever seen in any industry. maybe starbucks and even after rallying so hard in the last four years, they traded at 22 times growth rate. let's check in with patrick doyle. mr. doyle, welcome back to "mad money". >> good to see you. i always view you as a new product story and i'll let you review the new products before we get to the numbers. >> we have the new specialty chicken and it's terrific and we're taking boneless chicken and putting pizza toppings and it's specialty chicken with the domino's twist. >> is it coming out hot? >> we're feeling good about it. we're feeling good about it. absolutely. >> when i listen to the quarter i hear a bunch of terrific things. the growth is good. india's even better. india is biggest?
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>> india is doing terrific. >> with the toppings, necessarily? >> right. >> and then i hear you point out, because this is the way you are, point-blank, listen, we've got the commodity basket wrong and it was rather tough because you predicted it down two and instead it's plus 4-6 and you took my breath away and i've always felt that the model is such that i don't have to worry that much, but that's a huge amount. >> it sure is. it sure is. >> what happened? you couldn't see it coming. >> no. we couldn't see this one coming. it was a couple of things. it was the weather -- >> the weather was good for you. for your ordering and not for commodities, right? >> not for commodities. it actually stressed the cows and the cows were not producing as much dairy because the weather was cold and the export market on dairy has been really strong and so that, we just didn't see that coming so dairy was a lot higher than we thought. pork as well. >> to $2.16. >> that's right. it peaked at about $2.40
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all-time high. it's backed off now. i think it closed today at $2.10 and this is -- that's pork and you know, what's been going on with pork and we didn't see that coming with the problem with the pigments. >> people say wait a second, it's a franchise and how does it hurt your quarter? >> we still own almost 400 stores and you're right. we're mostly franchise. >> so we don't feel it as much, but it's still important. >> and the company stores, two straight quarters this you -- that's not like you. that's going to change, right? >> we're going to get it fixed. >> okay. just management. >> we just have to execute better. >> let's talkec technology. you now are talking about an ipad app that gives high-definition -- why do i want that? >> it's amazing. it is absolutely right now. it's the best experience for ordering domino's. it's this amazing 3d builder and the photography is beautiful. >> so i don't have to -- i can do a much cooler-looking pizza when i build my pizza?
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>> it looks beautiful. you to see this thing. it is just amazing. customers love it with the ratings that we're getting on the itunes store is fantastic. apple has it up as one of the best new apps right now. >> and a lot of people dismiss this stuff, but you're talking about 50% some weeks, ordering via their device? >> that's right. >> versus digital. >> you mentioned both facebook and -- you did, on your site you talked about facebook and twitter. i see you only have 527,000 on twitter. i think it's facebook driving this traffic. >> facebook is much bigger. i think we're at 9 million likes right now there and it's big, but really, we're spending 25, 30 million now on digital media. so banner ads and paid search and all of those things. it does a terrific job of driving volume for us. >> okay. now things are -- we've been talking a lot about how i know small business people -- a huge percent worked at domino's.
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i know the cash is freed up now a little bit better. i was surprised that you only opened five new net stores this quarter. if cash is better why aren't more people opening franchises for domino's in america? >> the first quarter is always the slowest opening and frankly, the weather is a little worse so we tend to be seasonally higher. our franchise owners are busy. they're making pizza, selling pizza and delivering pizza and we tend to open more in the second half of the year. that actually is a nice improvement what we did in the previous year first quarter and the international number on openings was just fantastic. >> okay. yeah. definitely was. it was great to see that and compensation, and i have to go there, i'm not trying to sneak it in. i am all in ceos who make our shareholders a lot of money. you have, we just gave the percentage. suki, i hear the most overpaid man sat where you are and said my stock is at eight bucks and he made money and you made money
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if the ceo is on the same page as the stock goes up, to me philosophically is that's okay. >> the goal is to get it aligned and our franchisees are doing well and everyone is doing well. >> the stock went down a lot. >> the ceo there, three years, 2006 to 2008 there was no bonus and no nothing. >> to me, i don't know. i want to make money and the ceo doesn't make money and if the ceo doesn't make money for me i don't want it to make money for him. to me the story is just as good as ever. >> thanks. >> that's patrick doyle, president and ceo of domino's pizza. check out the financials and a lot of people knew where things were going. >> check out the payizza. i eat it. it's good. after the break i'll try to make you more money. coming up, printing profits? investors searching for the next big thing have set their sights on the 3d printing industry. can it add another dimension to your portfolio or will it fall flat? don't miss cramer's take on one
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♪ aflac, aflac, aflac! ♪ [ both sigh ] ♪ ugh! ♪ you told me he was good, dude. yeah he stinks at golf. but he was great at getting my claim paid fast. how fast? mine got paid in 4 days. wow. that's awesome. is that legal? big fat no. [ male announcer ] find out how fast aflac can pay you at aflac.com. >> hey, today we saw a massive rally in the hated momentum names. and the three-dimensional printing stocks which have been total dogs for months now. >> there are reasons to believe that many of the momentum
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players could be done going down at least for the moment although that could turn on a dime again and more on this later and when it comes to the 3d printing stocks which are the poster child for the jilted love affair for all things momentum. i think you're given right now a terrific opportunity to calmly sell them. >> sell, sell, sell! >> into strength. >> take 3d symptoms, 3d d which has long been considered the creme de la creme of, 3d printing. from last december, it got bid up to $97, but after the momentum onslaught of the last few months the stock has given back -- all of those games falling back to $50 where it is now and that's about a 50% decline and after being nearly cut in half, i think 3d systems still belongs in the sell block. i was never a fan of the printing stocks on the way up. i thought it was cult like in behavior and the moves were parabolic and the whole sector
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was going to get slammed and which is exactly what happened and i think the meltdown isn't finished that many of you are still hanging on to these stocks for dear life. >> so what's wrong where the 3d printing cohort in general and the 3d systems stock in particular? >> these companies are in a fast-growing industry. no question about that and they have rapid revenue growth and some of them like 3d symptoms are profitable, and a lot of represents why they rallied so hard before had to do with hype. i get it. 3d printing is really cool. the idea that you have a machine that can make any kind of object, that's awesome. no other word for it, however, many investors who bid up the stock bought into the idea that the 3d dimensional printing would somehow revolutionize industrial production where they would become household items and they've watched 3d printers come alive in 3d videos and they've seen 3d objects come before their eyes and on the videos.
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wow wow wowza! a matter of time, not any time soon. not in time for the stocks. the fact is, if you want to make really complicated things using a 3d printer and you need a super expensive one that uses resins and lasers and the the kind of cheap, low-end, 3d printers that are affordable and they're more limited and they don't deliver anything that you saw in the videos. it is starting to feel the bite of serious competition. something we heard when 3d systems reported earlier this week and we heard the company had to sacrifice near-term margin expansion in order to fuel its revenue growth. let me translate this from wall street gibberish to plain english and the onslaught of new competiti competition, 3d printing companies have been competing pretty much with each other. stratuses, versus oxy jet and we
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started hearing from old line tech players with ibm, mitsubishi, epson, trying to grab a piece of the 3d market. meg wittman, ceo of hewlett-packard, big company, said they're coming back in a big way and that's a month away and you also have a number of chinese players eager to crack into this market. you have numerous comparable printers coming from asia than 3d systems. very, very bad which brings me to why i think 3d systems in particular needs to be sold here. even though the stock has been cut in half, it's darn expensive. 7.4 times this year's sales and even with the 23% growth rate that valuation is far from being cheap. i have to worry that the earnings estimates for 3d systems is too high which would make the stock pricier. let me put this in perspective for you, despite the decline, 3d systems is worth 5.2 billion. four years from now in 20 aerngs the entire global 3d printing
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industry is expected to have roughly 6.5 billion in annual sales and no way the whole company should be worth more than the 3d printing. you should be buying something that's incredibly high quality. i don't think 3d systems missed that bill and that's a track record of disappointment. beyond that, 3d systems will be growing faster than the industry. these guys have mada i slew of acquisitions, nearly 50 since the middle 2009. that strategy is not viable am any. 3d symptoms cannot keep it up without deals. the company's organic growth without the deal's decline from 34% in the prior quarter down to 28%. they need deals. they need deals to fuel growth. 3d systems has used a huge part of the cash hoard, i find it hard to believe that these deals were careful and considered when management was doing one takeover per month. here's the rub. if you believed in 3d systems
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strategy of aggressive deal making, right now the company's run out of, i think, of viable takeover targets because there's no one left worth buying and you can tell on the latest acquisitions including gentle giant studios and the 3d collectives and the sugar lab which is a husband and wife team working out of their apartment orovilleage plastics and the maker of plastic filament which is a highly commoditized and they can realize they have a much higher valuation and they spiked up to 70 has fallen to 18 three weeks ago before issuing a 3 million share secondary, and the definition of selling at any price and that's where the stock remains. >> and inventory levels are rising dramatically over the past few quarters, bad sign again, in short, there is a lot that can go wrong with 3d systems. insider selling, 1.84 million shares last six months, buying
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none? the bigg institutions are bannig the stock in droves. the whole 3d printing space is looking more and more like a flash in the pan. these stocks and 3d systems in particular are tumbling back to where they used to trade and i think they've got further to fall. they've had a terrific multi-year run and i don't expect them to return to the uber lofty valuations and it's time to scale out into the rare strength that this market is giving you. carmen in connecticut? carmen? >> hi, jim. thank you for taking my call. it's carmen in connecticut and my question is on pacar, and i was concerned i had missed a poor earnings report. what are your thoughts? >> i was surprised, too. the reaction wasn't what i thought it should be. i think paccar. i would not abandon paccar. it is one of the finest companies out there. let's go to dave in florida. dave? >> jim, i want to get your thoughts on staple, spls?
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>> i think staples -- i think staples is not making a big comeback. i know that it looks like it's gotten its act together, but even with the act together i think it's one up, one down. that's not what i want from a good growth stock. don't put yourself in a paper jam, people. i think it's time to use recent strength to scale out of the 3d printing system stories and just ahead, the street had a muted response to harm an's report, listen up! more "mad money" is next. ♪ ♪ tomorrow, kick off the trading day with "squawk on the street" live from post 9 at the nyse. >> is there anyone better than sinatra for chairman of the board? >> do, be, do, be, do. >> >> [ man #1 ] we're now in the approach phase,
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right now i think you're getting a rare bargain in harman industries and that's hmr for you home gamers. you might know the company of high-end car speakers and the harman brand sound systems to carster yos to top-notch, professional grade equipment and it's supposed to be a keen maker of info thainment systems and that i create everything from
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navigation, to media, safety solutions and smartphone connectivity. harman is the number one player in every business where they compete and that's because their technology is truly proprietary backed by thousands of patents in great software and not just hardware. harman reported this morning and they delivered a 12-cent earnings beat off of a $1 bases went dramatically higher than expected revenues and they rose 30% year over year and the stock traded erratically today and opened at 114 and that was $5 from the close and diving to 102 before finishing at $107.47 and it was down more than two bucks and frankly, that's a rare moment of weakness that's given me a 33% return and even at that run, harman trades at less than 20 times earnings despite having a 22% growth rate. let's get a closer look with denesh, he's the chairman and ceo of harman industries and the
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company's prospects and welcome back to "mad money," good to see you, sir. >> good to see you. >> i've heard of big orders in my time, but this system data had a big, big order this quarter, didn't it? >> it sure did. we were very fortunate to ship 1.5 million units in this past quarter. and the full auto was for 1.9 million units and the largest order in the industry. >> here we've got the phone that everybody want, right? >> jim, this is most exciting to me because this solves one big problem. all of the music we consume these days in the convenience of mobility and ease of use or we lose 90% of the data and during compression digitization and the fast phone, it is a smartphone with full audio restoration. so you listen to cd quality when listening to music from that and we have brought in several patented algorithm software in this phone. >> where do i get this? >> you can get that in all sprint outlets starting on may 8th. >> i know you guys have a great
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partnership and dan told me that, too. >> this box? >> this is another application of the spectrum called clarify. so this is called authentics and this brings back the memory of 40 years so you can listen to your dij tased files using just the bluetooth technology so you don't have to connect anything and listen to the cd level and more like a 7.1 surround sound system at home. >> the reason i wanted to start this is because you have taken the industry by storm, not every one of them and there are still holding back that i think want to come in, but it's because you have the best, but not all cars are the best. you have -- if i buy a less expensive car i'm not going same the right harman system as the other. >> that's right. car companies want differentiation. bmw want the systems and we do all of the cars in porsche and their systems are so unique. all of these beautiful things coming from apple, from google, from samsung and blackberry,
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they're all unique, smart aarps like apple car play, but these have to fit in a much larger, complex system which differentiates bmw. we're also going to be doing the gm systems so system allows today being modular and software driven that you can do the feature set combination and be the low-cost at the same time and you can get what basic users can afford. so price points for harman info thainment systems are comfortable to the phones and it's $600, $700. our system cover thes as much, but it gives you more punch and totally embedded in the car. >> this is important because on the conference call there are people who are worried that you've won high quality, so many systems and have so many launches that the gross margins can be affected and we know that happened in florida. the retiring allen mulally said we have to get this done in order to make more money in the back end.
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i didn't hear anything in the back end that told me you were hurt by one of the launches, but that seemed to be the subtext of the conversation going on by the analysts. >> i think the industry sometimes gets ahead of itself and sometimes some analysts, perhaps, but in our case, i've been very clear ever since i came to the company that we will always pick the business we want because profitability is very important to me personally and that's the company. we have lifted the market to 2% or 3% lower level and all of the backlog of $19 billion are double digits and all their deliveries will do is come out from the factories in mexico hungary. so market expansion is coming for the last years. >> that answers the question that drove the analysts to think there was something wrong. one of your principles, i didn't see anything wrong, one of your principles disrupting from theed on. cultivate healthy paranoia. your conference call started at
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11:00. the stock opens at $1.14 and it goes down to $1.04 at 10:00, no one knows anything. why does the stock dive ten points? you didn't have the conference call yet. what did they know that didn't happen? >> frankly, i was not paying attention at that time. my team told me you have a call coming up. >> right. >> the swings can go back and forth, and actually automotive industries is cyclical and our stock has been volatile, but i think we're starting to gain ground and some traction and stability and i think the call today, the clarification that the robust revenue industry hopefully this will continue to go in the right way, slow and steady, but in the right direction. >> if you're going to view it month to month, it's not going to work and you know we benefited with your stock in a positive way baz we're not looking at the dailies. >> one last thing i need you to explain to people. it isn't like ford. >> strip out those speakers and
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it's not the speaker. >> jim, i'm glad you asked because entry barrier in our business is very high. once car companies make a decision to have harman cardon or bmk they'w, they're promotin harman kardon. so therefore if you look at we are in the fourth generation bmw, unless you mess it up you're not going to ruin an iconic brand with a leading technology and we are the true bridge between silicon valley and oems with 9 to 12 months and car cycles in nine to 12 years. we've reached that gap and that's something most people understand and that's why they're starting to see that harman is going to lead the space going forward. >> excellent because i know people look at the stock and say that's too volatile for me and you have a chance to buy it. when it comes down, you buy more. that's just the way this stock has been the whole way and the whole run on "mad money." i'm not changing my view one
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bit. the chairman, president, and ceo of harman, and they attract so many companies that like the product and that's why we like the stock. don't move, lightning round is next. next. beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right? you see the thing is geico, well, could help them save on boat insurance too. hey! okay...i'm ready to come in now. hello? i'm trying my best.
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it is time, it is time for the lightning round on kramary mad money. that's rapid-fire calls -- [ indiscernible ] and them the lightning round is over and are you ready, skee-daddy, it's time for the lightning round on cramer's mad money. start with steve in missouri. steve? >> boo-yah, jim. >> boo-yah! >> you have educated me and i certainly have to say entertained me. >> that's what i'm trying to do every night. i really appreciate it. what's happening? >> the stock i'm interested in has been raising their dividend steadily and i want to know if you think ensco will keep it up or whether or not it's a buy or sell? >> stephanie link, co-portfolio manager with me on charitable trust.com, i was on an ensco rig when i went to louisiana recently and the answer is while the dividend is safe, the stock is -- >> don't buy! don't buy!
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>> they can't necessarily go up because of brazil and the day rates. they're just not high enough. let's go to michael in ohio. michael? >> hi, jim. >> yo, yo, what's happening? >> not a whole lot. kind of rainy. i wanted to get your thoughts on the biotech company quidel. >> i have unbelievable companies going down left and right. >> don't buy! don't buy! >> too high for me. joe? joe? >> hi, jim. how are you? i'm jim from new york. i'm calling about the the stock gogo. it recently took a dip to about 13 after the news came out that at&t was joining the show in the internet on the airplane. >> yeah, well, i've got to tell you, joe, i read through the different risk factors for gogo and right in there, someone builds an extremely better mousetrap they can lose the contract so i would be wary of
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gogo even right here. let's go to jeannie in my home state of pennsylvania. >> hi, jim. always fun talking to you. >> same. >> can you tell me anything good about bed bath & beyond. >> i like to go there with my daughter and if i take the coupon i can save $5. oh, the stock! no, i can't. they can't keep this in the quarter. they buy back a lot of stock. i think they have a lot of explaining to do. i also like harman. can i go to frank in new york? >> how are you doing, boo-yah? >> boo-yah back. >> boeing, people are freaking out and why isn't boeing higher? the stock had a good run and it reported a good quarter and think jimcnerney is bankable. i need to go to gala in nevada. >> reporter: hi, jim. this is gala from las vegas. thank you so much for taking my call. i'm a big fan of your show. >> thank you! >> reporter: iri, i bought the
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stock when it started going down, but the problem is it's continued to go down since i bought it. should i hold it? >> i have to tell you, i mean, candidly, i have not been that big a fan, but the stock has now retraced all of gains. it's a pretty good company and should it be a 5.9 billion company and i think that the pain has been taken here. i don't know. it's a good cyber security company. let's go to frank in florida, please, frank? >> jim, thanks for taking my call. you have a great show. >> thank you. >> blackstone group. >> we like blackstone group for a very, very long time, but you know what? i hate to say i'm tired of the stock because the stocks are a good company. we've really caught a big move here and i kind of want to move on. >> let's go to bill in minnesota. >> boo-yah, professor cramer. >> how are you? >> real good. >> thank you for your -- for your tutelage and especially the
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importance of doing a research. >> well, we love that. >> the stock is shenear energy, symbol lng. >> i have said and i've defended the guy and i said he's terrific and i've said it's time to go into the partnership to get a 5% yield. that's safer. i say hallelujah. ♪ hallelujah sfoet. >> i'm going to greg in my home state of new jersey. greg? >> boo-yah, jim, from summit, new jersey. >> yes! my hometown, what's up, greg? >> my stock is gilead sciences, gilz. >> it's one of the best stocks out there and they have a great hep-c pill and this stock is going up from 78 to 79 and that, ladies and gentlemen, is the conclusion of the lightning round! the lightning round is sponsored by td ameritrade. [ male announcer ] once, there was a man
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who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell.
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>> welcome to term nart 3, rise of the machines. this market may as well have been taken over by skynet and this is about a computer program and i'm talking about the group moving the internets and it all ignited it at once after yelp which reported last night didn't get crushed at the opening. that's right. yelp announced its quarter and the stock traded down, not up, break the pattern we've seen over and over again with the sales force.com in february. sales force, king of the cloud laid out this pattern with the ill-fated pirouette and it's been repeating ever since and the sales force delivered earnings that were pretty much picture perfect and it traded up after hours and that's been the pattern and only to reverse and reverse hard the next day. that broke the old positive
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bullish to bearish. since then the stock's been on a long decline from the all-time high to 49 earlier this week and given the salesforce.com is the umbrella for the stocks meaning it's the leader in the space and the action has been absolutely nightmarish, virtually every single highflier followed crm's pattern, like, just perfectly. however, you have to remember that the epic run-up going into earnings for sales force.com was down pretty incredible which explains why the bellwether has been down 5% for the year even though it feels like the losses were much larger. ever since then we're seeing the highfliers jump higher after reporting terrific quarters after hours that looked to the momentum lovers and gave them exactly what they wanted and then they crashed down right at the opening and this pirouette was visible and amazon which rallied hard after the release of its last quarter as the bulls seemed to get everything they wanted and then the stock
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plunged from 337 to 303 the next day and that was the move that shook the world. however it shouldn't have been such a surprise, as all of these internet-related stocks have been following the same pattern posting earnings sales force.com after the jump-up. facebook was no different. if you take a look at the action with these stocks you'll see what i was talking about. the stock climbing after hours and trading because every metric was bested and then there is a reversal the next morning and they use the pot to liquidate. yelp seems to have broken the spell as soon as the quarter was reported within seconds. the stock plummeted in after-hours trading and only then did it reverse upward hard and the machine known as the algorithms have been programmed to react to the old pattern and when the pattern got broken by yelp they immediately switched directions and it suddenly flew up and these high-flying stocks are together because they treat them like it was one big group and there was a time when we
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could think about the stocks and we discern among different stocks. people would have a shopping list and put it to action. now the machines are programmed and we're getting them instantly hence the action you see on the screen. it's ridiculous. they're nothing like yelp. they're all different and they trade together in the basket and for the machine which is have a ton of firepower, that is going from sell to buy, based on this move although it's no telling how long that will last and not only do the machines turbo charge the linkages and they also feed off of technical analysis and the charts which have been so horrendous for the momentum stocks are momentarily positive which encourages more program buying and just remember in these markets, these names can turn on a dime and betting on a dime is a terrible investment. stick with cramer. k with cramer.
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in the meantime, domino's pizza is getting cheap again. harman, the wild trading probably put some of you off, with buy, buy, buy. i like to say it's their's always a bull market somewhere. i'm jim cramer. see you tomorrow! e you tomo >> imagine a store with no signs in the aisles, a store that doesn't bag your purchases, one that never advertises, where you have to pay a fee just to walk in the door. who in the world would shop here? as it turns out, about 3 million fanatically loyal customers every day. it's callecostco... >> i love costco. >> i bought ground beef. >> lawn furniture. >> a television. >> i bought my engagement ring here. >> ...a chain of stripped-down warehouses that's become a sensation at home and abroad. >> [ speaking chinese ] >> but its crowning
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