tv Mad Money CNBC August 4, 2014 6:00pm-7:01pm EDT
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>> we had disney a long time. they've done a great job. it's flurting at an all time high. we are selling calls against it for earnings tomorrow. >> korsattorney. >> krntion ros. >> i'm melissa lee. "mad money" starts right now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to coach and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. after the total shelling of the stock market last week, one of the worst weeks in ages it was
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partially made up for today's bullish session. the dow gained 76. s&p jumped 0.72%. and the nasdaq too. we have to ask ourselves what could get us to make up the rest of the lost ground? i think first we need to analyze the proximate causes behind the decline. there are a lot of competing explanations out there. we have to get to the bottom of this. many people are blaming this sell-off on the fed. ♪ i need to disagree here. the fed stayed the course at this meeting they had, didn't do anything different from what anybody expected. a predictable event. that went off without a hitch. dozen cause a 2% decline. plus, it's not like the closely watched ten year treasury jumped on last week's fed meeting. it was basically wall street
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speak for unchanged. sure, you can argue that the employment number on friday was pretty strong. it doesn't help. it doesn't illuminate anything. so many hedge funds want rates to go higher so they can make more money off the short position. the betts against the markets. i can see how the media is fooled by the input. the fed wasn't the proximate cause of the decline at all. second we did hear some chatter that the failure of a portuguese bank caused some selling. but that got resolved this week painlessly. there was a big government default in argentina that was pretty big. i know many hedge funds thought there would be a resolution without a default. still though the stock should have been -- should have been hurt the most were the banks and they were barely dinged. i'm not buying that one either. that's proof positive that argentina wasn't the culprit. which brings me to russia. i believe everyone is still down playing russia. russia is the hidden dancing bear out there. it is. and it has been horrendous for
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the market ever since the malaysian plane crash we just don't talk about it enough. in retrospect i now believe the market failed to correctly disconnect the huge negative that was the downing of mh-17 over ukraine. that event on july 17th, i now think set into motion at lot of what caused the sell-off last week could cause more pain ahead. it didn't hit me though until i read through last week. the charismatic ceo of royal dutch, what he described in the conference call as an event that could be a bit of a game changer from the trade and investment perspective. that's the appropriate term for mh-17. first van buren made the game changer comment as a throw away. it was after the terrific earnings report and royal dutch went higher. that threw me off to the importance. if anyone cared about it, the
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stock wouldn't be going up. when i mentioned it to bob dudley the ceo of bp you know what he was matter of fact that the russian issue and the ratcheting up of tensions are big deals for the global deems. considering that bp pumps nearly a billion barrels of oil a day for russia, it seems far more than just a throw away line. in reality, it represented a change of sentiment. along so many measures of business and we've got to keep it in front of you. first because vladimir putin apologized for nothing. i think he seemed hardened by the incident. we wouldn't presume nothing to turn off the pipeline from the russian controlled gas pump. now, if your cadry might be willing to kill all aboard a civilian aircraft, i think you're willing to turn off the natural gas life line.
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plus, it's been done before. this precedent. it would be disastrous for business in europe, for many of the publicly traded stocks we follow. it's inconceivable to me that europe wouldn't be up through back into a recession if thanned. and the portuguese bank failure could be a preclude to a lot more of these. or at least stress test that measure up to the ones or formal treasury secretary tim geithner insisted on. do not minimize the potential impact of putin turning off the gas pump switch. it's one thing to be cold because of a lack of natural gas heat. you can put on a sweater, mom. it's another thing to have to shut down plants that use natural gas and given how it's the fuel for much of international industrial europe these days, a shutdown will be likely. it would have to -- it would either have to come to the peace table and say to russia, you have the ukraine, that in our president's eyes seems to have a parallel to the appeasement of
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germany or it would put through sanctions that would mean let's just say it, war. you have any other answers? i know i don't. but i doubt we get an actual east/west military collision. we more likely get a diplomatic resolution. it's just that right now it seems almost unthinkable until more economic damage is inflicted on both sides for the peace table to work. the tragic game changing plane crash had another impact that i didn't think of until i read a startling poll, on the street.com. i'm a director, i didn't read it until i got home this weekend. 36% of people are through afraid to fly internationally. united states, they're afraid to fly internationally. we have had the scares before since september 11th but in the past the airline stocks were so horrible that few bothered with them anyway. over the recent years, these stocks have gone from worst to first when it comes to leadership. problem is that the airlines got the impact of mh-17, their stocks got the impact of it
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wrong too. because they originally rallied. no doubt in conjunction with good earnings reports. now they're coming back to earth. i think this is because of the fear of flying however temporary it might be. i don't want to minimize the possible cost of insurance either. probably has to go up huge after this tragic incident. now, let's link it back to the stock market in general. it revolves around profits. i think the company's profits could be hurt severely, plus the turmoil has led to the large decline in the euro which has poured money into the dollar. another reason for stocks to decline because they need a lower dollar to do better. i had thought the ukraine/russian tensions were reversible. i now think that for the president of the united states, the downing of mh-17 was a rubicon crosser. i think the president is a student of history. and he doesn't want to go down as neville chamberlain, the british prime minister who appeased hitler. he knows that economic forces were proappeasement back then.
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in other words, the business interests wanted to appease hitler. he doesn't want to see the same thing happen again. now, although to be fair, putin is not a good guy. but he doesn't really it was to be analogized with hitler. so here's the bottom line. i think russia is the real proximate cause of the market's weakness. we can have decent rallies like today. did you see it anywhere on the front page? but it will be with us. knocking this market down every time it rears its bearish head. keep that in mind before you get too joyous about today's pretty bullish action and too complacent about geopolitical events. let's go to dinah in florida. dinah. >> caller: hey, jim, you taught me to diversify. >> i did good. >> caller: in my portfolio. i didn't have any food in there. so i bought cheese cake factory. what do you think? >> well, cheesecake factory is very well run.
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i'm part of this natural organic lower fat thing that makes me like chipotle more than i like a cheesecake. but you know what? a very well run restaurant chain i think it's fine. i noticed panera's cfo resigned tonight. but i think you're fine. i like it more than brinker and others. doing a lot of work. i said apoloco is going higher, enough already. let's walk away. michael in california? >> caller: hi, jim cramer, how you doing? >> i'm very good. how about you? >> caller: excellent, sir. i'm calming from apple valley, california, it's pleasure to talk to you. i would like to ask your expert opinion on synchrony financial. >> i like discover better. i think it's amazing that synchrony held that 23 level. so many different ipos out there. i want to be careful with synchrony. i think in the end this is only
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a sliver of how much synchrony there is ultimately and that's going to come out probably in the next 18 months. i don't want you in synchrony. wow. morgan in california. morgan? >> caller: dr. cramer, booyah. >> what's up? >> caller: i'm having a good time. the stock i have for you actually ties in to the emergence of the global middle class that crushed earnings last week. it's rubbermaid newell. >> they had the best single products number. i went over this black and forth with stephanie link. she was on at noon today for judge wapner's show. this is so one of the situations that is so strong, i can't recommend it up here, but stephanie and i both feel if it came down the charitable trust would be a natural buyer of the stock. last week we saw a the steep decline. i think it was because of russia not the fed that's the real proximate cause of the weakness. don't get carried away every time we see more green on the screen. there's more than sharks in the
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water all this week, i'm swimming with sharks to find stocks you can sink your fangs into. that's a hint. suit up, chart week is about to make a splash with a look at facebook, amazon, netflix and google. and then eaton fell off the charts after reporting. plus, i have a dublin based pharma player you never heard of until tonight. take notice. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. are you sure we should take this billboard down?
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hydraulic, truck transmissions and aerospace comcomponents. we own the stock in my charitable trust. but on july 18, after the close on a friday, eaton came down with the downside earnings preannouncement. then they reported a quarter that was widely thought of as a disappointment. while the revenues were in line, this was a case where the company had to deliver a clean quarter because the last couple of quarters were frankly pretty inconsistent. but cleanness was not with the margins in the big electrical systems business, following short of expectations for the second quarter in a row. at the same time, we heard that the company's not planning a spinoff of the vehicle business because of unfavorable tax implications. this something that a lot of people were counting on to unlock value. three bracket firms downgraded eaton.
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and does that represent the total ka pip youlation that can sing natural that the pain is coming to the end or has the stock continued to fall and there's more pain to come? let's check in with sandy cutler, the ceo of eaton and find out where it's headed. welcome back to "mad money." >> hi, jim. how are you tonight? >> okay. sandy, what i wanted to dig into, the earnings -- the entire earnings situation. there was a belief that things were going to happen at eaton including on july 14th, a morgan stanley note saying that the stars are aligning for a spinoff of the vehicle division that simply weren't in the cards. how did it get to the point there was a lot of chatter about something happens when you knew years ago this could never happen? >> well, jim, on the issue -- i'd like to address the two issues that were a concern for the investors in the second quarter. one was the clarification that we are not able to do a tax free spin of any significant business out of eaton until five years
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after the original close date of our acquisition of cooper. now, let me step back on this. in every public setting since may of 2012 when i announced the cooper transaction, we emphasized it was not our plan to divest our vehicle business. unfortunately, i think over the last couple of months, what i would call inversion mania, there have been a number of investors who have indicated they thought it would make sense to lay the ground for someone else to invert their business. that's not been our intent. although we did do the homework because we had a number of shareholders represent this point of view. after detailed homework using outside investors -- outside sources as well as inside the company, we have concluded that simply is not possible. but it was not our intent. and so obviously i'm disappointed that we had that reaction to that event because it's never been our intent to do that and we have been clear on multiple times. the second issue you mentioned was that out of earnings in one of the segments. i want to put it in perspective because the story on eaton hasn't changed. we hit our revenue right on the
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button. we exceeded our earnings by one cent. we concluded the very painful settlements for two ten-year legal piece of litigation the company has been involved in. we were able to sell two aerospace businesses successfully in the quarter. while still integrating the largest acquisition in the history of eaton which is another $30 million of savings in the second half. so i think the quarter on itself had these two issues that obviously have caused and i don't feel good about it. we take full responsibility for it. two sources of concern in the quarter. >> but sandy, you did that guide down friday after the close. which frankly is not your style. i have to say. and friday after the close is the type of thing that companies do when they don't want things known. and you also had hydraulic bookings that were disappointing. you had margins for electrical systems and services that were disappointing. this is the fifth quarter that i regard as being incredibly -- i
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read -- i have read many more quarters than you have, sir. and they're the hard to read. because your quarters are hard to read i can't even figure out myself what your company is worth. a i have been a huge backer of yours, sir. >> well, jim, let's take the individual pieces and in terms of the litigation, the two sources litigation i mentioned and the gain on the aerospace business, we had a number of investors asking us for how should we think of the after-tax impact of that. as soon as we had that after-tax impact. that's obviously a very complicated piece of work to complete, we released it. i agree with you, unfortunately that was a friday. would it have been better for us to wait for a monday? it does not ever be part of our program not to be transparent. we really work hard to be transparent so we got it out as quick as possible. we indicated what those would be worth because it would be hard for any investor outside to be able to calculate the after-tax impact of the three pieces. again, all three pieces of those were things that were done in the -- with the benefit of shareholders in mind.
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i don't disagree with you, jim, that we have had a number of quarters where we have had issues related to the finalization of the purchase price accounting that's a terribly opaque subject for people to understand. but i actually think the trends in the second quarter hold very good promise for the future. the reason the electrical services and systems business was weak was let's go back and look at the bookings the last four quarters. 1.8%, 1.9%, negative 3.5%. negative 7%. we were quite clear coming out of the first quarter that would set up a weaker quarter. it was still weaker and i take full accountability for that. then we thought it would be. however, i think the good news is after four quarters of disappointing bookings in that business, we had an outstanding quarter in the second quarter of 7%. 6% in the electrical products, 9% in the aerospace business. and i think that sets up the $500 million of additional revenue that we said we'd recognize in the second half of this year.
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>> but -- >> go ahead. >> but the problem is when you read the downgrades they don't -- they think that because you set up things like that, we're going to be in for another disappointment in the second half. and that i'm just quoting goldman, we have lost some ability to compute and a series of missteps over the last quarters and they like many others believe you have set the expectations too high for the second half and we'll be back doing the very difficult conversation when that happens. >> well, jim, i can't say anything that's going to convince you of a different point of view, except that we have looked hard at it. i think we understand both the nature of what we have laid out for the second half and i think we have very good reasons for why we believe it should be the center point of our guidance. all of that increased revenue will come in the electrical businesses. as i just mentioned we had quarters of 6% and 7% bookings in both of those quarters.
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we are very confident of the additional $30 million of synergies that we'll get, the cooper innovation is on pace. we are assuming in the fall we don't see what we have seen in the past two falls which is a government shutdown around government spending. we think that won't occur simply because we have a election. if we're wrong that will change the volume projections but we think we won't see another government financial crisis. having said that, we understand the importance of execution, jim. that's one of the reasons i obviously wanted to come on your show tonight. we take seriously our commitment to do so. >> well, that's very fair. thank you for coming on, sandy. very tough quarter, very, ve very -- very big decline and let's hope that the credibility can come back. i want to thank you so much for coming on the show. >> thanks, jim. good to talk with you. >> sandy cutler, ceo of eaton corporation. three downgrades. difficult to get your arms around. after the quarter i'll try to save you some money.
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all this week, cramer's diving in to find stocks you can sink your teeth into. and the predatory patterns you need to avoid. think you can swim with the sharks? tweet jim cramer and show us the profitable patterns you have found. don't move, chart week is just minutes away from hitting shores. don't just visit new york.
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tomorrow morning before the opening we get results from actavis. that's a generic drug maker that soared to nearly 216 as of today. [ applause ] and before we listen to that quarter, i want to make sure this company is on your radar screen. because actavis happens to be one of the stocks that was recommended by the great cooperman at the delivery alma conference a few weeks ago. we have been circling back to this idea and plus the market has come down. yes, he really highlighted a generic drug company, not a patent drug company. typically we try to avoid recommending generic drugs here on the show, because once it loses the patent protection the margins go way down. basically, a patented to generic becomes a commodity.
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because there's no protection. and in short, actavis is a much less profitable business than say gilead or celgene. but on the other side of the coin, making generic drugs is less risky than the biotech businesses. your stock doesn't live and die on the basis of the food and drug administration. it's a slow and steady business and cooperman likes act avis for a simple reason. this company has become a major consolidator, gobbling up competitors. after a host of big deals like the takeover of forest labs, actavis is now the third largest generic drug maker on earth. cooperman believes that the combined actavis forest labs is a terrific long term emphasis -- long term investment that's proven highly adept at creating value for share holders through
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clever acquisitions. i trust lee's judgment. he told me to get back behind berkshire hathaway ntss the '80s. it's now 193,000 dollar. the actual berkshire. it reported a terrific quarter this morning. when cooperman told me that actavis is one of his top ideas, i decided to do some digging on my own. i think he's dead right. that's why i want you to watch actavis after it reports tomorrow morning, especially if the stock gets hit for my reason. i think that would be a terrific buying opportunity. so what is so great about this maker of admittedly knock off prescription drugs? okay, it's the market leader in growing regions and gets a high proportion of the revenues from complex yesser -- generic drugd actavis may hit with a generic competitor but few others will. because the drugs in question are actually quite difficult to develop and synthesize.
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they're still not selling proprietary product, but many of the generic drugs are a less commodity than you'd think. plus, lee believes that the market is seriously underestimating the growth potential. as the stock is currently trading 13 times next year's earnings estimate, although it has a growth rate of 19%, you should be able to pay much more than that. one thing that cooperman's alpha ideas had in common, the stocks seemed too cheap and actavis is different. he likes them cheap. more important, cooperman believes in the rapidly consolidating pharmaceutical industry, actavis is in a terrific position to keep making acquisitions that are highly additive to the company's bottom line. over the past year we have seen a bunch of deals and the stock could be acquirers. been awarded with a higher share price. normally you don't expect the target to go higher, but the buyers have been roaring because everyone can see how the deals
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are good for business. i think this consolidation is still in the early stages. and actavis is in a terrific position to profit from it. i think my colleague david faber said we're early on would agree with me. first of all, the specialty pharma space is large, $850 billion in sales but it's highly fragmented. a lot of chances for consolidation. when you zoom down to generic drug space, the big players don't control much of the market. actavis, they have 12% market share. the same as teva. and meanwhile, we're seeing more and more old school big pharma companies divest themselves of smaller businesses. like the animal health division, it's starting to do better and the divestitures are a great takeover credit. and pfizer can be on the full-on breakup and novartis has a
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substantial business that i think actavis would love to gobble up. lots of targets. you can slash r&d as well as bloated sales, and the general and administrative expenses too. this is how they soared higher. remember, valiant is trying to do that too. last year, actavis bought warner chill coat, a drug company we've been recommending. it's been based in inversionville -- dublin, ireland. that allowed actavis to become irish too. then from the much lower corporate tax rates in ireland. so when they buy an american drug company, they can boost the earnings by subjecting it to the lower tax regime in ireland. cooperman believes they can each boost actavis by 20%. we do know that actavis has some serious merger mojo.
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as they have the strongest balance sheet of any consolidator in the drug business, so they can keep doing big deals. here's a major focus, tomorrow, actavis reports. all right. this is first quarter since the forest labs acquisition. and he believes the estimates are too low. he thinks they're capable of consistently beating the numbers and the analysts have been dragged kicking and screaming into recommending the stock. in fact, cooperman says actavis earning more than $20 a share in 2016. he thinks it can expand back to the historical average of 15 times earnings. that would be a 39% gain. the bottom line? actavis reports tomorrow morning. so i want you to read the earnings release, listen to the conference call, please. a lot of people made that mistake today when they did it on the coors, read the transcript if you can't listen to the transcript call. i want you to be patient and wait for a nice buying opportunity. this is the long term story. so you can afford to wait. i need to go to teamer in
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florida. teamer? >> caller: hi, jim. thanks for taking my call. big booyah to you from sunny florida. we honor the charitable work that you do. >> thank you very much. i most appreciate it. >> caller: i want to ask your thoughts about sell dex, one of the darlings of the value tech. had a run up to the upper 30s and now we're back to square one. hovering around 12 or 14. what do you see on it and also, secondly, would you see it as a takeover? >> no. when i do a trade and it works like that i recommend it on the show, that's it. we said take profits. we said ca-ching, ca-ching. we never look back. the stock has done nothing but go done since thin. i don't want to be in sell dex. linda in my home state of new jersey. >> caller: oh, my gosh it's jim cramer. since i'm talking to you i have
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a question. >> sure. >> caller: i bought regeneron a while ago, but what do i with biomarin? >> it's good. i'm surprised, i talked to my friend who writes with me at the street. you know, bio marin did a great quarter. the amazing thing about regeneron, it has other drugs that can be taken with other staten to get to the high cholesterol people that have been resistant, but it what as slow take over by sanofi. hold on to it. mary in arkansas. >> caller: hi, jim, booyah. >> booyah. >> caller: i had a really disappointing day today because i watched insmed sink 25%. >> people thought there would be fda approvals around the corner,
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but doesn't look like it. this is one of the stocks that i cannot recommend because they're so binary. you need the fda to give it a green light. i was going over with the researcher on this, no, be careful. when some investors speak it's worth listening. lee cooperman my old boss, he is behind actavis. you know what? i agree. do your homework when the company reports tomorrow and maybe it can be worth buying on weakness. there's still more "mad money" ahead. facebook, netflix, google, all big names but should you sink your fangs into them? i'm getting in the water to find out when chart week kicks off next. stay with cramer. where the reward was that what if tnew car smelledit card and the freedom of the open road?
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tonight we're kicking it off with bob lange from explosive options.net and being a three-man team on the trifecta letter. they're techs, it's facebook, amazon, netflix and google. a group of stocks that are 90% since lange recommended them 18 months to you. welcome to "mad money." >> great. thank you. >> i only do this for chartnado, i'm turning over the floor. show us what you've got. >> we have had interesting chart movements with the stock that we had profiled a year and half ago. we'll look at facebook. we had this nice little move up following earnings. we corrected back down a little bit over the last week and what of. we have a nice reversal from friday. we filled the gap over here. it looks like after today's
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action over here, you can see it's real re -- ready to pop back up again to the old highs again in the mid 70s. >> and this -- is there another chart with this? >> next chart, please. on the weekly chart let's look at facebook here. >> oh, man. >> beautiful trend here, especially since july of 2013 when it popped right up. i know you guys have been long on this stock forever. doing extremely well. it's persistent, really strong here. you can see the weekly chart showing a nice little flag pattern about ready to start. >> right. >> we have a nice little -- we talk about this a lot of times, when the crossover happens as a great looking buy signal on facebook. >> what a great looking chart. you know when -- one of my favorites. >> next chart. now, on amazon this is more troublesome. >> yes. >> obviously with the daily chart over here.
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now, we see a nice little reversal. the thing that caught my eye, we see a test of 307 matched it right there. we had a nice reversal today. a strong move on the stock today. >> right. >> it really worked well. we have a couple of gaps over here. looks like they have to be filled. back around the 328, 329 level. right over here. and then of course right over here. >> you think that can come back? >> absolutely. >> wow. that will be something. that's not been a horse of late. >> next chart. now, netflix, little bit different looking chart over here. this is one of the better looking plays from back in 2012, 2013. >> which you nailed. >> i want to say back in 2013, it was about 179 bucks. it peaked at 475, 480. 140% plus return on this stock. it came back after the earnings came out. it's struggling right over here, around the 50 day moving average. and it had a nice day today.
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and once it gets past this 50 day moving average over here, i think it's got some upside as well too. >> wow. okay. i'm not sure i'm with you on that one. but you know what? you were dead right last time. >> so let's see the next chart. >> maybe this will help me. >> this looks a little different. a little better over here. >> much better. >> definitely much better over here. what's nice over here, if you look at the williams percent over here, we have a retest level over here that is really a nice entry point especially on the long term charts on the weekly. this is where i want to get in here. every single time, you can see it every time it came back in here, it was able to -- to take off. >> let's take the last one. >> yep. >> i think best for last but let's see. >> obviously google this is a weekly chart for google. some people would say double top over here. >> yeah. i know. that's what i'm worried about. >> let's look at what happened the last time it was sort of double topping over here. it look -- it took off to the upside. i'm willing to wait and see if it actually materializes, but
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certainly the weekly chart is a little bit damaged over here. it's a market mover right? >> aren't you worried about that? >> the percent r, a nice little area, retesting. if it doesn't follow through to the downside and breaks this 50 -- 50 week moving average, this is actually the 200 day moving average over here. if it doesn't break that level then we've okay. >> my take is that google is my large position in the charitable trust. you made me feel a little less concerned. facebook is a huge position too. i feel great about that. amazon and netflix are hard for me to value. i liked your chart work though. i think i like the amazon more than netflix. bob lange, founder and senior strategist of explosive options.net and stay tuned all week as we dive into the chart infested waters. more of "mad money's" favorite technicians in our second annual chart week. #chartnado.
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sponsored by td ameritrade. >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round. let's start with william in michigan. william? >> greetings, jim. thank you for accepting my call and thank you for your guidance. i'm calling relating to vodafone, traded under the symbol vod -- >> yeah, it's okay. i prefer verizon. you get the good yield. and josh in florida, josh? >> caller: booyah, jim, how are you? >> i'm all right. how about you? >> caller: i'm doing well. my question today is on 21st century fox. i was curious if you thought that even though they're taking a hit recently with the time
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warner news if they'll rally here. >> i think they walk away the stock goes higher, the stock goes higher, i like it. susan in california. susan? >> caller: hi, jim. thanks for taking my call and for the books and for all the help -- >> oh, thank you. >> caller: i'll tell you, it's like getting around the table with the kids and the husband for money issues. no longer for food. just for money. >> i like that. >> caller: i'm interested in -- >> no, that's second rate. you have to go intel. we have to get something that's going to last for the ages. gary in virginia? >> caller: booyah. i have a lot of hog, it's gone down about ten bucks. >> take a longer term view on that. i prefer polaris, it's better than hog. hog is a long term player. i need diane in pennsylvania. >> caller: booyah, jim. i have been reading about burger king and getting a lot of
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positive press. >> it is. it's incredible it gets positive press. i know it's doing better right now than mcdonald's. but in the end always default to the fact that's the kind of food i don't want to eat and over time others will agree with me. kind of like the world. how about adrian in north dakota. >> caller: booyah, mr. cramer. thanks for all you do for us. i have a question for you on rake. two part question. what do you think of rig and the big dividend yield? do companies pay them quarterly or yearly? >> depends. usually quarterly. some pay monthly. some european companies pay twice a year. but here's the problem with rig. you're in north dakota. i would much rather see you own halliburton or anybody. rig is a company that was downgraded to sell today. i didn't like the downgrade but i recognize the stock could be in for rough sailing. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ]
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on "squawk on the street" he steers the country through the crisis. now he has a plan to boost jobs in california. that's tomorrow, 6:00 eastern. every weekend i go over the s&p 500's daily action charts hand delivered to my house saturday morning. all this week i invited some of the favorite charters for chartnado week where actual technicians go over the
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techniques. it's the only time i ever see it before the ceos. so i went through the charts this weekend with a special eye in mind. mainly which looks best on a 30-week moving average which is my favorite window. the charts frankly are mainly hideous. but you don't need me to tell you that. there's tons of damage out there. the winners are an odd bunch. first by far the biggest bullish contingent was health care and health care related. as i told you at the top, i think last week was about a slowing in business worldwide because of russia/ukraine tensions and hedge fund rescue caused by argentina defaulting. well argentina is not paying the bills. the endless suggestion that the fed caused last week's losses infuriates me. because these people are never doubted and they never shut up. what looked good? as always a handful of pharmacy benefit manager types which report terrific numbers. cardinal health and mckesson. you never hear them touted but they're total go to names when
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we get wind of a slow down. i see the cardinal was down this week. but the company has a history of giving weak guideness and snapping right back. i expect history to repeat itself. opportunity. some device stocks resonated, namely baxter and edwards life sciences. the first because of a breakup and the second because of a device i hailed as a life saver. gilead traded at ten times earnings even though it's the fastest growing pharmaceutical in the world. and regeneron which is new products, and sanofi. and it makes sense, they continue to have amazing numbers. cvs and walgreen, benefitting from activism and the tax inversion. and then tech. apple down today. hewlett-packard, microsoft, charitable trust owns that one. apple is a new product story. the iphone 6 and the pc bomb
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calls. latter augmented by possible weakness in prices from sandisk. three oil related stocks survived the oil crush, apache restrucking the takeout and national darko which some viewed it as a miss. oil has led the rebound today. i don't think they're done going higher. three retail names made the cut. even though we hear so much moaning. starbucks and under armour. and home depot which i think will be a full of hope story. i'm not sure if that will deliver. we had ppg and lionel basil. these are real outliers, but they're perceived as raw cost beneficiaries. and a couple of specialist situations and one was a victim of a stupid raid going wrong.
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and then snap-on a total cramer favorite, hardware technology, and brown foreman, a rare decline, all the rest of the charts were sickly as you can expect if you're 2% decline. if you believe the market stabilized based on a slower economy, then i think any and all of the stocks will work higher. they suggest that the economy isn't overheating despite the fed watchers who have the microphone. even as they should be booted off stage because they have overstayed their post recession welcome. stick with cramer. there's something in the water. and the only thing more dangerous than an encounter with these fierce fish is missing out on a meeting with our stock market stock. it's "mad money's" chart week, cramer's diving in to find stocks you can sink your teeth into. and the predatory patterns you need to avoid. think you can swim with the sharks? tweet @jimcramer and show us the
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bell, avis one of the favorites. don't forget i like hertz. aig. wow. what a blowout quarter. there's alwaysull market >> tonight on the profit, i go inside eco-me, an all-natural cleaning-products company run by two lifelong friends. this business is running on fumes, and it can close its doors any day. without me, this business doesn't make it. my goal is to turn eco-me into a $10 million company, and in that process, i have to teach these two that business isn't personal. >> you can't fire any of my employees. >> it's a business, robin. if they don't listen... i'm saying "no." this company will close its doors. my name is marcus lemonis, and i fix failing businesses. i'm willing to write a "half a million dollar" check. i make tough decisions. i'm not willing to do the deal if you're in charge of sales. back them up with my own cash. it's not always pretty. i'll take sh
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