tv Mad Money CNBC June 26, 2015 6:00pm-7:01pm EDT
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really punishing disappointing names. i think intel sets up that way into the july q2 report. i think you -- >> that's our time. i'm sara eisen. melissa lee back next week. for >> 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 just want to make you some money. my job is not just to entertain but educate and teach you. call or tweet me. another day of hope about the talks in greece based on absolutely nothing. not a shred of reality which is
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why we gave up gains at the echbd with the dow closing 56 points and nasdaq plunging 0.62%. nike almost single handily pulled the dow higher with its flawless execution they over came a slow down in china, sinking europe so-so market in u.s. to put up amazing markets everywhere. nike delivered a clinic on the top and bottom line. the ladder helped by their amazing director consumer business not only that but its ceo mark parker the leader of this company refuses to take any real credit for what he's done. he's all team all the time. i sure hope this man gets his due one day. you know i think the world of kevin plank, under armor, but there's more than enough room
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for both of these two men in this fast growing category. the most important thing about nike quarter it has legs which is why stock didn't come in at all. one word bravo! we have a second day of love now that supreme court ended challenges to obamacare, these stocks remain on fire. that's where we start our game plan next week. he expect aetna to buy humana or anthem snaring cigna, we will know coming monday. despite what you hear about talks going well in greece and plan to extend negotiations i any it is all wrong. the greek government will only accept forgiveness on its loans, i think the talks continue because german chancellor keeps thinking the greek will see the
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down side to leaving the euro and rebooting the drop off. they want other countries to cut the debt load from $300 billion to $100 million if they don't get their forgiveness they will refault. they were voted in to repudiate more debt or go bust and it is going pretty good. apparently i have life lines from russian and china. why doesn't america walk away. knows they will rejoin the east. they can wrak it up as foreign aid. can you imagine russian troops in grease which is a nato member. right now merkl can, she blinks or greece is gone the other way, that's why the greeks own all the options.
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if greece defaults than the dollar sores and the bull case for equities will take a real hit. we will know if my scenario waits until monldday or tuesday. could mean a sell off unless merkl plays ball. this is stock up mightily conagra because of activist pressure. it's the pantry brands. -- it should have bought haines celestial. pinnacle foods and treehouse has been rallying. new ceo wasn't responsible for the post deal. entirely possible january activists may be the winner. let's hear from the unmanned
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aircraft company, aerovironment was the time to be the drone play but now is amerela. their video chips are used for more than just go-pro. if business is good go by some amberelo. all week they were blown out. they didn't know what they own. know what you own. wednesday my favorite beverage company barcelona brands, make me want to recommend stock. this is the fastest growing beer company in the world and i think will be another excellent quarter. while we talking spirits can i mention there's been now five upgreats of diageo in last two weeks. five down. five points down.
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25 points up. it's guinness at the acquired one. i can't blame them. beer is good business. i like a beginguinness now and again. also general mills have a commitment to its shareholder that's is unparalleled. use its strong balance sheet for milks and cereal offers, i expect if the stock gets hit you have to buy like clock work the next day. -- paychex will be optimistic this quarter. with the fed rate hike on the agenda shortly you want to own paychex which benefits from short-term interest rates.
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finally, number one pay roll thursday if there's been any positive action in greece i don't think there will be but i just pointed out, and we also get a strong jobs number and then we'll hear from fed members that a fed rate hike will be in september no matter what will you hear about it that afternoon. most people are not set up for rate hike that suggests you have to be careful going into the number because it will be the one thing that triggers certainty about fed tighting if greece is in the rearview mirror. bottom line. we are book ended by greece and pay roll numbers they will determine everything next week. i come in proconsolation brands and paychex but am a realist, it is all about the larger forces turning stocks into play things for the big boys. steven in florida. steven! >> caller: hi booyah mr. cramer
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thanks for taking my call. what's your opinion on hess. >> i like hess. it's trading same time it was when oil was down. i want to buy hes. buy, buy, buy. how about michael. >> caller: ba-ba-ba-booyah happy friday. >> excellent stuttering booyah. >> should i be concerned about blackstone selling off. >> yes i think it will sell off. that's precisely the kind of stock that does sell off. you got to wait for the first rate hike. i like the stock but it will have turbulence ahead. how about tom in florida.
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>> caller: it's tom in the pan handle. >> i miss the golden great 98 road i used to live on. what's up. >> caller: my question is ventas it's had a tough time of late due to pending interest rate hike. i like the 4.8% dividend in yield but what do you think by a long term? are you still ventful. >> yes i am. earlier this week we had a health care week similar with a lot of exposure over seas particularly the united kingdom and they do business in the uk and that spilled over when rates go higher people buy, i am a buyer of vtr not a seller. sure i like console lags and paychex but greece and labor department is holding all of us hostage. i got company top brass.
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as we approach the end of the second quarter i want to take a closer look at what is going on with one of the most forward thinking technology companies out there, red hat, rht, number one purveyor of the linux based system where they give away the software for free and then get maintenance and customer service fees.
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rht does the same and has been focused on creating solutions that harness mobile and cloutd,the cloud to help its customers to improve efficiencies and cut cost. helps development mtments stream line. combining devices. top of all that. last month red hat rolled out cloud sweep for applications giving companies faster way to create and manage cloud based amount indications on a larng scale. they had large quarter with earnings in sales coming in higher than expected and the stocks rally around 40% in last 12 month giving double digit gain since december. can it keep climbing? let's dig deeper we have ceo and
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cfo of red hat. welcome to "mad money". >> nice to be here jim. >> all right we always try to give examples of how great. ones and our buyers -- >> corporate stock exchange run on red hat because it is the fastest system available. vast majority of banks use red hat to communicate to the exchange which is then using red hat so that whole system is built on red hat's central structure. >> none of these organizations would do is it if they didn't think security was paramount. >> the reason all of the strok exchanges use it is the technology to run really fast was developed with us working with the navy to develop anti-ship missile defense
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systems. you have a missile coming at you you need to react quickly. and also concludes absolutely security which now runs the majority of the world's equity exchanges. >> that's great. and i revered you at cisco, i'm thrilled that you are here. cisco and red hat always have had a good relationship. >> yes very good. >> that's a giant company. this is a smaller company. what's it like to work in transition. >> well it's only been a couple of days but as you said cisco and red hat have had a great partnership for a long time. if you look at what cisco is doing with the cloud over the last two years it goes well with what red hat does. so working with the customers on the kiss sewcisco side and what they are doing with the cloud, 90% of enter prices are looking to set up clouds and 70% are looking at red hat to leverage that
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technology and work through that. so for me as i was thinking about my next opportunity what best to look at red hat and pursue that especially with the financial model and so forth and it's an excellent management team. >> glad to have you there because sometimes twe struggling with what metrics people should use. a lot of times they get it wrong. they have an unbelievable quarter and at first look don't understand what we're supposed to look at. >> absolutely. one thing with the model is it is very, very steady on the revenue line keith that drives the business going forward is the subscription revenue model and people will want to get caught up on the short-term number versus how we are taking share and our customers are 126%
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quarter over quarter of their previous value. that's what we are looking at. >> sure. frank you've been in the business a long time. you see 100% clients reup at red hat that's amazing. >> it shows the innovation and model. most companies looking at cloud applications and when you think about red hat it's one of two company that's have a complete software stack, the operating system, management layer, looking at store age as well as middle ware. it is a fantastic opportunity for enter price customers to look at thatsolution. >> are there customers debating red hat or is it you send them a bill a little bit more because they're getting more and they don't think about migrating to anyone else. >> we don't often have customers looking to switch off. it's possible someone might shut
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down the division using the product, that might go away other than that we have a very, very high rate. we are a subscription model and want to add more value. when people renew at 120% year value it is net year growth because they like what we are doing and we take share play in a $60 billion addressable market we can continue to take share like that for years. >> geographically there's no area that's weak. >> no we've had consistent strength across the board, really, we pivot between a low-cost model but also very very fast. the new york stock exchange bought it because of equality so we talk about saving money and carving out costs and we can ping pong that in areas of the world to allow consistent growth rate. >> the other thing i want to add
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is if you think about the portfolio, the emerging products there's amount of opportunity when you think of subscription to expand the amount customers are signing up for with red hat. >> i urge people the website is great, if you still don't understand it it's who everybody is going to and really the wave of the future. when the stock goesdown think about it listen and you will know it's just know buying opportunity. it's red hat. thank you so much to ceo of red hat and cfo old friend from cisco, new friend from red hat. thank you for coming on. "mad money" will be right back. coming up start investing. the finish line roared on the heels of a huge quarter, could this stock keep sprinting on the street or can you take your money and run? cramer has the exclusives with
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it's time to speak of sneakers and semi conductors. one company is a proprietiry business with expensive technology and massive investment and equipment and r & d to stay on top. the other is pure commodity play that could lose share at any time. esearch almost nil. believe it or not, the former is the sneaker company. and the latter is the semi conductor company. specifically i'm talking about the quarters we got from nike and micron. people always seem to confuse the value of technology to some industries like peril and value of others like personal computers, you could argue more research and development goes into more form of apparel or new sneaker at nike then goes into a
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personal computer. at this point i might champion that theory no that's not anywhere to nike i would definitely champion they are distancing themselves from the flukt sheer innovation not just marketing. micron after all that good spending on flash technology is still a maker of d-rams and there's nothing about a d-ram these days that is as special as a tech-loaded sneaker. disagree? then how is it potential the average price of a sneaker is going higher and the personal computer going lower. worse the world is gluted with personal computers. gluted with d-rams. if you listen to nike last night i would say the world is shortage of jordans, even though both have been around the same amount of time. i think nike made it certain their next certain will look amazing, no matter how greece shakes out or even how brazil
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grows, and that is important because of the world cup hang over from last year. micron i've been hoping it is 3d business could save the day to keep the stock from burying itself further into the new low but i know the orders for nan capital equipment is picking up which could only mean micron down the road will be down. nike, i can't believe how good they were. if not for kevin you would think nike has no competition. they are just dominant. if not listen to stephen curry for endorseing under armor you would think it was sneakers.
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the bottom line for micron no room for anyone in the sad pc business. in the future, it grows dimmer not brighter. micron stock fell 18% for the day 40% for the year. nike rallies 4% for the day, 14% for the year and hit a all-time high and you know what the market correct on both counts. for certain. dwight in new york. dwight. >> king cramer. >> yo yo. >> caller: booyah from buffalo. >> from buffalo holy cow. >> >>. >> caller: if you weren't married or if you were a woman i would marry you myself. i got a question on emc store age hard wear integrated with vm ware and i guess microsoft to my knowledge, they are dealing with the surveillance of the crowd it is hovered around $25 to $28,
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and is down again today. i guess they're using the flash what do you say buy, sell, hold. >> i say sell. i would rather eat my nike than buy some emc. i would definitely. matt in new york. matt! >> caller: booyah cramer. >> booyah matt. >> caller: i'm 24 years old, as a buy and hold investor over the long term what are your thoughts on lululemon. >> i like it. i think it goes higher. we had a real big gain. thought it would come down and buy more doesn't look like it will. 64 to 65 very good entry point. how about auchbdndre in delaware. >> caller: i wanted to know
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should i buy more or hold semi conductor company ixys as it just passed it's 52-week high. >> i know. that is a hot one. that is a hot one. you know what this is where corvo plays, it's a sky works play, it's one of the good ones i think you should hold on to it. i like it. okay. call the tale of two cities. yeah it was the best of times and it was a not so hot time. plenty of room for nike to run. micron, it's running out of gas. maybe even fumes. much more mad money ahead including my stock that roared solidly on a great quarter. i got the ceo. then you better believe i will have answers to some of your toughest questions. one of the stocks i think is terrific. and another up 40% what do we
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one of its main suppliesersrs was shooting it's lights out. this morning finished with fantastic results like i predicted last week they would deliver. earned 30 cents per share. revenue up 9% year over year and 5.5% sales growth thanks in part of sales of running shoes. finish line has a number of stores within stores. and they are doing spectacular. sales up 30% year over year. it also has 76 specialty running stores. it's amazing. no wonder finish line rallied today. can it keep running, let's check
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in with the chairman and ceo of finish line welcome back to mad money. >> hey, jim how are. >> last time we spoke you made it clear that weak quarter was an ab oration and many things were clicking boy were you ever right. >> i will be really technical with you, we got more of the good stuff and less of the bad stuff. we got rid of inventory, we made some faux pas a year or so ago and now we've cleared that invent invent ory and clicking strong. >> if in other words, nike is . >> in other words, nike is a fabulous company, there are times you want certain kind of nikes and not others. do you think you just didn't have the right nike in the store at the moment.
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>> yeah this happens in the business, our people are pros we've done this for a while, we make bets eight or nine bets in advance, especially when running, which is a key factor to our business when things don't work out as plan wed hit a bit of a skid and that's what we did but now we're back and moving in the right direction with nike's support, especially but with a lot of other things going on in our inventory as well. >> you really high lighted under armors you mentioned stephen curry on the conference call it made a difference didn't it. >> yeah you know we've had a great relationship with the jordan brand for year it's been the longest run i've ever seen and we hit a bump in the road but we're back doing well jordan but some of the new comers are really great, kyrie irving fantastic, new young man on the scene, a lost excitement around
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him. and then under armor with stephen curry, same thing, so innovation is always important but new icons, also a lot of excitement for the finish line. >> i thought this quarter you spoke more about technology than i ever heard, more about customer relations management improving service levels to transform supply chain. much of your business had to go this way. it's no longer just a good eye. hope they come. hope they like the stores. >> yeah it's much more complex as time goes on but that's why we developed a program we call omni schanel which gives the customer ability to buy from us wherever however they want 24/7. so it is credit to us and the investments in technology to enable us to deliver that and be true to the customer is critical to the success today and is
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getting more and more so. >> are you taking some mind share within macys, i was astonished how well this store is working for you guys. >> yeah it's been great. couple of years now we've been involved with these folks. it's been great for them and great for us. and when partnerships work that way, you keep moving forward. we just relooked at about 25% of the stores increase the space, gave it better locations, and we're looking for some really big things to come here in the back half of the year at macy's again. >> i know a lot of people are worried about the strong dollar tourism, whether people still come to new york but you said that harold square store is doing terrific. >> yeah harold square is just an incredible incredible place. gow there any evening or any saturdayyou go there any evening or any saturday and there's shoulder to
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what do you got to offer us today? ♪balance transfer that's my game♪ bank you never heard of, that's my name♪ haa! thank you. uh, next. watch me make your interest rate... disappear. there's gotta be a better way to find the right card. whatever kind you're searching for, creditcards.com lets you compare hundreds of cards to find the one that's right for you. just search, compare, and apply at creditcards.com. ♪a one, a two, a three percent cash back♪ it is time! it's time for the lightning round. i play this sound and then the lightning round is over.
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are you rtd? are you ready? darren in california. >> caller: hey this is darren coming at you live from the san francisco bay area thanks for having me on the show. >> tell mark benny hoff we said hi. >> caller: you got it. want to thank for your passion and generosity and knowledge and wisdom we love you brother. >> thank you. >> caller: two of my children own this stock and are down 30% should we hang tough, the stock is h & e, hees. >> my advice is take your lumps. that one is not coming back any time soon. >> i need to go to ed in florida. >> caller: jim, big booyah in florida. >> man i wish i was there. what's going on? >> caller: i'm concerned about a stock. i want to buy more i want your opinion, it was raised price target from $80 to $82.
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my stock is lowes. >> i think you should be a buyer. i do prefer home depot but lowes is real good. robert from california. >> caller: big booyah. love your show. want to have your baby. my stock is agen. >> okay. that's gare arm company i think it's fine. i don't want a baby with it. but it's fine. it's good. it's good. william in michigan. >> caller: big booyah from grand lake michigan. >> yeah. >> caller: just a quick question on the idti bought it love it wonder if i should hang in. >> oh, my god, yes, it's terrific. it got a little fired up but it's good. that whole group is rolling over last couple of days wonderful worry, let them settle in they
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are hot stocks that happens periodically. john. >> how you doing? >> couldn't be better how are you. >> caller: beautiful day. question is on kkr, i'm backing up the truck, i'm going to give you blk and bx have been crazy backing up the truck. >> i n don't want any trucks backing up because the fed is about to raise rates and high yielding stocks come in. these stocks come down. that's just the way it will always be. gary in new york. >> caller: good evening jim, i thank you for your time and i value your opinions highly. i travel on the northeast corridor on the am track and see cfs freight trains moving past me or standing still at the station. the volume is incredible 75 to
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100 cars at one time. >> right. problem is coal. these guys -- the coal numbers are bad, they are not getting better. i want you to be careful. rail uz have to see their quarters. have their numbers cut. that's on union pacific, and only then can you put the trigger. charles in new jersey. >> caller: this is chuck. 45 from spring lake new jersey and i'd like to ask you about plum creek lumber pcl, price earnings ratio, 34% dividend and lumber is a big inflation. >> yes but i got to tell you this is the level where 4%ers are going to yield 5% because feds are raising rates. that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by tdameritrade.
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more retail investors and fewer hedge funds -- >> bless you. >> no one else sneezes on tv except for me. >> no more greek drama. could soar off this potential break through. plus maaa. >> we apologize for the verbal -- er i mean technical difficulties, we'll be back in a moment. i was criticized on twitter where i am vying for world's most hated man. as i play whack control beginning at 3:45 every single morning. i want this to say whackatroll. it's a moving target. take that. tonight, we're stepping into uncle jimmy's pizza. >> my staff makes me look every
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day, although they bhaent to wear they bhaentwant me to wear a silly pizza hat. stick with cramer. doug. you've been staring at that for a while, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo. looks like it is time to upgrade your phone, douglas. for all the confidence you need. td ameritrade. you got this.
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carolina asked me about rely industry. a tiny company that was named signature group holding until this month, hence why i didn't think i knew it and was only available in late april is known as a special purpose acquisition company also known as spac. it starts with a pile of money and plans to make a bunch of acquisitions, in particular well-run businesses. right now they have rely alloy and a cosmetics maker. -- sub prime mortgage play went bankrupt in 2008. with all that they will have a
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low tax bill for years to come. when you look at a story like this the question is whether you believe in management. in the case of rely industry they have bulk of their business in metals play with totally unrelated bull-run businesses, it is extremely speculative. consider the real industry was slammed 8% after filing 1.7 share stock offering, too risky for this time. next up june 17th joe in florida called about spark therapeutic, once. they were founded less than two years ago and came public close to $22 and more than doubled close to $50 and rallied up to
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$80 and sold off to the rest of the biotech group which is why it sold off at $60 still a great deal. it is all about one time treatments for people with degenerative diseases, most advanced product cures rare blindness caused by genes, genius. could peak sales on top of $776. it has enough cash to fund operations through 2018 and the company has an impressive leadership team chalk full of gene therapy pie on ears i think this spark could very well be worth speculating on especially since the stock pulled back $20 since the end of may giving you a nice entry point. be aware it will be a volatiles
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name so you will be aware you will take some pain or you will get blown out. up and down. don't put it all in at once. here's another one. last friday egrx hi to do homework. this one up 430% year to date. it is a company trying to make improvements on fda-improved injectable drugs, currently they have three drugs on the market treatment for blood clots, and -- a delayed release tablet for arthritis symptoms and a particular sub set of patients taking pain killers. -- they made a major licensing agreement with teva which is
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what started running the stocks to the stratosphere expected to grow from $19 million to $71 million this year and more than $300 million in 2017 that explains the massive rally in next six months. where does eagle go from here? while this company has hey lot going for it when you consider it has more than quadrupled for 2015 you got to believe the positives are baked in. eagle feels too rich for me but i wouldn't be surprised if it catches a take over bid some time in the next year. that's how much good it has. finally glen in kentucky asked about lbio. that's a very tiny biotech, $8 and change stock. recently been trading between 5 and 15 and plunged since
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mid-march. what the heck is going on. they are another biotech. focus on cancer. ton of those. super hot area. specifically they are using special immune cells known as tumor infiltrating lmphocytes to attack tumors the approach is unproven. they have never generating revenue and races equity to fupd operations, i'm calling it a lottery ticket if it's treatment works it will be a home run, if it doesn't, stock will strike out, and we won't know the answer for a long time so that's why the stock is too risky for my taste. there's safer ways to speculate. excuse me when i say i got to do homework on these biotech companies, i can't just say that ones good. i want you to keep the questions
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coming and keep the questions coming. attention investors! vectorvest mobile is here and it's free! make faster, smarter better trading decisions with ctorvest mobile. the most powerful app or managing your portfolio from the palm of your hand. only vectorvest mobile analyzes ranks and graphs... ...over 16,000 stocks worldwide, everyday,... ...and gives you clear buy, sell, hold recommendations... ...on every stock; anytime, anywhere. vectorvest mobile comes free with your vectorvest trial. get it now! visit vectorvest.com/mobile to get started moderate to severe crohn's disease is tough but i've managed. except that managing my symptoms was all i was doing. and when i finally told my doctor,
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he said humira is for adults like me who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. and that in clinical studies the majority of patients on humira saw significant symptom relief. and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain fungal infections are common and if you've had tb hepatitis b, are prone to infections or have flu-like symptoms or sores. don't start humira if you have an infection. ask your gastroenterologist about humira. with humira, remission is possible. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records
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for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. there's still too many people who are optimistic that there will be an agreement between the greeks and the rest of europe. until more people realize that these talks could actually collapse i think i do not like the set up. and we are far more at risk than you may think. i like to say there's always a bull market somewhere and i promise to try to find it just for you. this is mad money and i'm jim
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cramer. see you monday! >> narrator: in this episode of "american greed"... everything about miami businessman claudio osorio says "trust me." with jeb bush on his board of directors, hillary clinton at his home, and nba basketball players at his side, osorio hustles his way to the top. >> here i am with the president-to-be. what other seal of approval do you need to show the world "i'm legitimate"? >> narrator: cleverly playing to charitable instincts in people he sets up his victims to unwittingly sell his lies. claudio osorio pretends to be a humanitarian entrepreneur. but he is not nearly as good as
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