tv Mad Money CNBC November 19, 2015 6:00pm-7:01pm EST
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newmont up 2.4% today. i think it's going to continue. >> all right. i'm melissa lee. see you back here tomorrow at 5:00. meantime, "mad money" with jim cramer starts right now. but to educate and teach. call me or tweet me. earnings surprises, news surprises, takeover surprises, political surprises and it keeps
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happening to the point where they are starting to find this market including today. nasdaq dropped 0.3% that masked all of the surprises. take green mountain, will you? yesterday before curing the stock had been pulled back down to 39 lows of the day. given it put out new products better than expected profit last
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night. and a 13% dividend boost along with a considerable buyback the stock soared 18%. 18. why not? here is a company that couldn't shoot straight but this time around they really did deliver the piping hot goods. and it is at a moment when we know people are going gagaover coffee. you should have been on the conference call.
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the whole thing turned out to be uneconomic. the rates to turn profit are way too high. mind you united health is the best of the best. not like this is problems that was really pertinent to just them. you can see it in the health care group. everything is broken here with the possibility of congressional revisions to the affordable care act practically nil this could be a house of pain for years to come. it is totally shocking given the roles these companies play regarding legislation and pushing it along. nasty surprises.
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some surprises are obvious. many are hidden like dramatic decline in the bonds of chesapeake energy become one of the biggest dogs of the era. sure the stock wants to go down to 72% for the year. some fell by a larger percentage which i had to tell you is astonishing. whenever the debt gets hit worse than the stock don't think of bottom fishing because the bonds always tell the truth. chesapeake leads the price and doubles before it is out of the woods. seems strong versus the worst performer of the hedgefund stable sun edison which has seen almost overnight. it is a renewable energy company that doesn't just need
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electricity. it needs paddles as in clear on the other end you have a monster upside move in the jam smuker. 7% rally because the company is taking acquisitions and put them through the middle to produce shockingly good earnings. many investors seem to be angry at smukers management of course, it wasn't up to management if they bought big hard pet foods. what can i say? the secondary turned out to be a great buy. and then salesforce.com which reported what should be a good looking surprise number at least by now given the company had astounding level of consistency ever since the dark days of the dark recession when they cross the $1 billion in revenue mark.
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it is and sales force and crossing the threshold. those are those like the analyst doubters who call it a solid quarter and raised the price target of the sell rating from 51 to $54. thanks for nothing. how could you not enjoy the rigorous entertaining conference call where chief competitors as cloud deniers who are paying a horrible price in single digit negative growth instead of big wins from sales force and yes s&p and oracle. i invite you to deny that you are cloud deniers which brings me to square. i said even though this is ample competition it could still be right to participate in the i.p.o. if the company were to give new shareholders a real
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bargain. when it hit the $11 to $13 range i told you to be all in on the deal because square would be priced to pop. square which is run by jack dorsey has his hands full for certain did you one better by pricing the deal at a real surprise, $9. that allows all of you willing to be opportunist and recognize a low enough price has value to make a killing for you. stocks instantly rocketed to a premium closing up 45%. i like that jack dorsey had his mom periscoping up there. i have to tell you i do a p periscope pregame. it is a game changer. surprises continue when nike announces $12 billion share buyback and a 14% boost in the quarterly dividend. what can i say? is that a great company or what?
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here is the model. not all surprises were the good kind even if bad ones were very bad as long as you recognize the down side is unfoundable. if you give it time surprisingly unlimited to say the least. brian in illinois. brian? >> caller: jim, how are you? >> i hear you. what is going on? >> caller: thanks for your help on this. ford motor company, good profit margin just unveiled the new ford escape. i'm concerned about the uaw contract. should i be at 15? >> you should be concerned but i think you should be more concerned because i think some international market support is not doing well. i'm not -- i'm worried about the negotiations, too. when you have a heavily unionized situation it is a guesswork there. let's go to ted in ohio. >> caller: hey, jim.
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i bought a lot of investment grade preferred stocks in late 2013 when prices were five, six and seven dollars below. right now the prices are above, at or just below at 25. i have a three part question with fed talk of raising rates in december, will this cause my investment rate preferred stocks to drop again? how far down do you think they will drop or do you think i should sell everything and start the process all over again? >> i think you should take some off the table. it's not going to be as good as it is now. you will be protected by the higher yields but i want you to ring the register. let's go to raj in new jersey. >> hello, jim. i'm raj. stha thanks for taking my call. i have been an admirer of your
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show and have been following closely. i appreciate everything you do. >> thank you. that's very nice. >> caller: the company posted earnings and look at the income statement posted. nothing stood out that negative. about a week ago and have been losing value. >> it's not proprietary enough. we are in an era where if you have compition it in anything in tech and you are not proprietary and not directly related to social mobile this has some component. it is not good enough. it's not going to give you what you need. i would take anyone of bang over rack. this market -- a company that has its hands in nearly every
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industry. another catalyst for -- i'll ask the ceo. then after knockout quarters from home depot and lows i'm revealing if other companies in the housing space can help build serious gains. a company using smart phones to change the lives of millions managing diabetes. why don't you stick with cramer? >> don't miss a second of "mad money." follow jim cramer on twitter. have a question tweet cramer. send jim an e-mail to madmoney at cnbc.com. miss someening? head to madmoney.cnbc.com. announcer: if you'd give thanks for a better night's sleep...
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outsource manufacturing go to flex. consumer technology, defense, smart phones, wearable gadgets including fit bit, printers. flex is not just an outsource manufacturer anymore. the company changed its name over the summer in order to stress a point. these days it is innovation factory and continues to provide expertise through every stage of the process from design to distribution. nike bought this company as a partner to help coinnovate old products. now, i have always liked flex because it is well run with inexpensive stock. $6.2 billion company. $2.2 billion worth of stock. lately the guys have been moving to the internet of things through series of acquisitions. got to find out more about that.
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they think it is more than making every device connected. we will find out about wink. let's check in with the ceo of flex and find out more about where his company is doing. welcome back to "mad money." you changed your name and are thinking about being embedded. i'm going to start with nike. nike is i think the great manufacturing marvel of our time, dominant in europe, china, here. what do you do in. >> nike picked us to be their manufacturing partner of the future. as they think about how they innovate products and how they get to customers all around the world quicker, faster and maybe more deinstructively with products. they have done a brilliant job of integrating style and wearability with manufacturing. doing shoes is not what you think about with flex. >> technology of nike,
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technology company that makes shoes. >> they are a manufacturing revolutionary company. they want a next generation manufacturing partner to help take them to automation and machine to machine communications and integrated supply chain to the process and want to get to customers quicker, faster. you can change style, color, support systems and you can do it in many more locations much quicker. >> how about this? this is a product i happen to love. it is very high tech product with health and wellness inside it. it is not a toy. this is a very complicated device to manufacture. what do you do with this one? >> we manufacture it. we have been a partner of fit bits for a period of time. >> james bark. >> they are tearing it up in the stock market. great company. great technology. they have taken fitness tracker where it monitors steps and
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moving into wellness. and if you think about it as the body is a great source of data where you can manage it to optimize it, optimize your performance, optimize health. get data about your body which is a place where people don't have quantity dative data. >> you do that with seat belts in a car. they can be smart and wake us up. this is connected technology that is the intelligence of things. >> you can put it into fabrics, the steering wheel, pressure monitoring. you can have cameras to monitor the eye balls. you can look for sleep and heart rate. if your heart rate drops it might send you a signal. the applications of these kinds of technologies is really pretty ubiquito ubiquitous. connected home is a favorite category. we think about the world being connected. you talked about the intelligence of things. we think it is not about the
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internet of things but the intelligence of things which means end devices with connected and capturing environmental data. with that you can adjust, change, modify your environment. wink is a device where it is the smart platform or operating system of all connected devices in the home. think about connecting your nest or ge light bulb. >> or my security. >> you have these individual apps on your phone. think about having an operating system where all connect into one system which is wink. and wink then becomes your central control system of how you manage all your intelligence devices in your home. you don't have to manage ten different interfaces. you manage one. >> it is somewhat ironic that there was in this last quarter the admitted slow down in some products in china including cell phones. what's happened?
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>> cell phones, there is a lot of them out there. let's face it. the growth has been extraordinary for many, many years and it is going to continue just in china alone there are 600 million cell phones twice the rate of the united states and use higher amount of data per phone. so it's very ubiquitous. it is the underlying core technology that enable these things to happen. >> we don't have to worry. >> it is not a problem at all. the amount of smart phones are just going to continue to expand. >> we are very much into medical technology. you have pictures. when i read your stuff it is interesting because you have a picture of the car and the body and where our censors are. what are you guys doing there? >> medical we have a pretty large business about $2 billion growing about for many, many years. we will do anything from diagnostics to medical equipment to any kind of wearable
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technologies to blood glucose meters. >> the missing piece of the puzzle is always i think this is such an exciting story. the companies are choosing you are the best. the stock is still so cheap. even though you put back a third of it what is the market waiting for? >> it is hard for us to figure out. >> we just try to put up the numbers. it's kind of a slow economy and we did a raise. >> download single digits and that is what we want to focus on is one category. makes it hard to find with 700 billions of documents that you put out. >> we are in so many different businesses. we have a billion dollar business. people worry about these small
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things. i'm not. >> as long as you are buying back stock i'm not worried. i'm glad you dropped the tronnics. >> leaner, more efficient, cleaner. >> i like it. thank you very much for coming on the show. "mad money" is back after the break. >> nearly 30 million people live with diabetes but a new weapon to battle the disease. your smart phone which shares up over 50% so far this year can the company's stamina continue to strengthen? cramer has the exclusive with the ceo just ahead. vo: know you have a dedicated
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with the guidance and support of your dedicated pnc wealth management team. we all know that home depot and lowes are doing fabulously. it's a given. we know which aisles are selling out and which categories are literally bl literally blowing the doors off. what we haven't been able to figure out is how to profit beyond buying sales directly. why not? because we have been so worried about the darn fed, so scared of our own shadow that we allowed stocks to creep up that seem certain to burst out.
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despite the fed. comes from the nature of the suppliers that sell into the companies. you had to ask me what the strongest categories were i would say appliances. but look out. trying to make money in that category is almost impossible. you think whirlpool is so obvious it is painful. the only pain here caused by presence in brazil. you can own electrolux but then you are butting heads with the defense department. the second category involves remodeling and reconstruction. that is where you go if you want to play the pin action from the great quarters at lowes or home depot. with one exception they are so high you assume you missed the
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move especially in light of the lift off. i am urging you to rethink. the names most investable, masonite are serving a high single digit to low double digit wave of growth that is accelerating as we head into 2016. i know i wiped the stocks. given what the ceo of home depot had to say about the longer term trend here like rising household formation i simply think you are not too late to the party. these stocks have big moves but not so big that you can't buy them. truly in the world beater status. masonite dor is up 3%. stanley black and decker up 12.
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i still don't think these moves really do capture the gains in the profit of the companies. each of these names has flaws. stanley black and decker has international exposure. even though that is the second hottest aisle in the stores. huge foreign exchange problem. masonite has a lot going for it but few people feel willing to get into the story to understand it. i say it has tremendous growth but all about growth in earnings before ebidta. let me give you the bottom line. considering the trends highlighted by home depot, more secular meaning they don't need the economy going than cyclical where they need the economy i think all four of these home improvement stocks are buys. so how would i buy them?
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right now still basicing in the glory of home depot. a week from now when we are fretting and forgotten earnings these stocks will have slipped back and that is when you want to pounce. because they are scarcely val waited and that means you have the wind at your back. jerry in virginia. >> caller: jim, i'm calling on behalf of my daughter, 15-year-old daughter sofia. she has been urging me to buy yum because she says that it bounced off a two-year low of 66, just upped its dividend. one more thing, she said how about a big bayou. >> i will give her a booyah. we are going to do it because of
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the turn in china that has continued during this last six weeks and i think she is dead right. i think yum is a buy. let's go to gerald in california. gerald. >> caller: hey, jim. it's 80 degrees here in southern california. >> what do you know. >> caller: anyway, i watch your show every day. i never miss it. i'm thinking that rising rates are really an incentive to buy a home before the rates go up if you can. i have been interested in a building called lgi homes. i would like your opinion. they seem to have a niche in the low price market. >> i am not that familiar with lgi. i have spent a lifetime of business working with lanar including mr. miller who built the company and stewart miller. it is the best in the home business. i agree with your thesis.
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that is when you will make the money and that is why that group is breaking out. stanley black and decker. dor for masonite all going higher. i want you to buy them on the pullback. much more mad ahead including company with the futurestic weapon in the fight against diabetes. and then brand new bang edition of am i diversified plus the lightning round is just ahead so why don't you stick with cramer? ♪
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vulnerable since washington went on the path about drug prices. terrific growth the kind of stocks you want to own when federal reserve starts raising interest rates. companies like dex com which produces glucose monitoring system. i would like to say it built a better mouse trap. instead of needing to prick your finger these guys you stick it on your skin, it transmits your blood sugar level to wireless receiver in real time. no wonder the guys want to partner up with this company. they did it in august. now, they want the latest generations last month while the stock pulled back from highs back in september it is still up. one giving more than 50% gain in 2015. and we know it is doing well.
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the empcaannounced the results in mid october. not many companies preannounce anymore. and when they reported the actual numbers totally blew away estimates even after the boost. can it resume the rally? let's take a closer look with the ceo and find out more about the company. welcome back to "mad money." good to see you. in the time since we have been following your company we have seen monitors and smaller monitors that you show us and now you have the ultimate. show us how it works. >> the g-5 is our newest platform launched this fall. the transmitter with the censor communicates directly with the cell phone with no other device involved. i have the screen here. you can see we have incorporated the color scheme of the cell phone and those graphics. now patients instead of carrying a medical device can get glucose on the phone and have the capability of sharing the data
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with others like with the share system we launched. >> we have to deal for a second with something that came up today. united health care talked about how it is having problems with the affordable care act. in your documents there are some -- it does seem to help. do these providers understand the value of this product or trying to pinch pennies? >> it is a combination of both. i would tell you over the years united health care has been a big supporter of cgm. we recently changed to a pharmacy benefit with them and had administrative hassles. when you are in a business like ours where we have to bill insurance companies directly there is always a paperwork hassle here and there and we work through it. >> the censors themselves, how often do you switch the censors?
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>> every seven days. >> how much do they cost? >> censor costs between $70 to $75. >> co-pay pays for? >> about 20%. for the patient and then the insurance company pays for the rest. i was shocked to see how little it has been adopted overseas. is that because you haven't been able to blow the product out yet? i have to believe this is international phenomenon and demand would be international. >> we need to get reimbursement set up with agencies and we focus on the u.s. as our growth story has been over the past three years and we made our investments here. we are going to start investing overseas more. >> you made it clear the big issue one big company like medtronnics they can make people much more aware. you have the patents and they don't have anything to be aware of? >> we built the better mouse trap and will continue to do so. you have seen awareness campaigns. we signed nick jonas and started going more directly to patients and on the back end we make it
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more accessible. >> i want to talk google life sciences. they have split it off and they have a group you can say has more rigorous short term. you're with the long term people. fun, interesting swap of ideas. want to put things in the censors or is this brain storming? >> absolutely one of the funniest things i have done. i have never been around these guys very, very smart. the ideas with respect to what they can do with analytics and product configurations we think can really make a wonderful product for our patients overtime. >> i have a wearable but i was thinking it would be much better to get only so much you can read. if you can read everything from that censor could you? >> our censors configure to measure glucose. >> we can put other censors in there. we could over time. >> i would want to know blood count, psa.
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a lot of different leads i don't want to go to the doctor for. it would save the system a fortune. >> that is probably a google question over time and they probably have plans for that. we focus on sensing glucose because we remain very laser focussed. >> and tenth quarter of 50% year over year with limited contribution from this. i know this came out last quarter which was beautiful really didn't have much of this. >> the new patients and patients wanting to reorder the new system is more robust than anytime we ever had. >> great story and interesting. i tell people who have had diabetes asked if they heard of it. some have. >> president and ceo of dex com which is one of the best stocks we have ever had on this show. "mad money" is back after the break.
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and then lightning round is over. are you ready? it is time for the lightning round. i'm going to start with steve in pennsylvania. >> caller: valero energy with the new shell offerings, what is the outlook? >> the new -- stock doesn't yield that much. master limited partners going down. we are not buying these until we get a pickup. i don't trust the bottom is in yet. let's go to ryan in massachusetts. >> caller: booyah from boston. >> what's happening? >> caller: i purchased act vision blizzard prior to the new media department spinoff. the stock experienced a recent pullback. what are your thoughts? >> i think it is absolutely terrific. i like the product. i think you are going to make some money in act vision. it is up a lot but i think it
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can go further. let's go to ben in texas. >> caller: booyah, ferrari. >> you want to by fiat chrysler which is much cheaper. let's go to teresa in ohio. >> caller: hi, jim. my stock is exxon. >> got to come down a little. had a big spike. i would buy the stock. how about we go to mark in washington. >> caller: how are you doing today? >> i'm all right. how about you. >> caller: looking for a buy or sell on seattle genetics. >> started with a sell and i thought it sounded compelling. we have been off and on. i like -- you have to stick with the big major bio techs. it is a little dicy otherwise. let's go to frank in missouri. >> jim, buy, hold or sell.
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>> i say take a little bit lower yield and more growth. i think it has more growth and i like growth. bob in pennsylvania, bob. >> jim, i enjoy your program. watch it every night. jim, i'm interested in hsbc. >> i like that. 5% yielding bank with good exposure and i think it can work. i like the banks because the fed is going to raise rates. i think it is a good idea. let's go to paul in texas. >> booyah, cramer. i know you love bio stocks. this company is profitable. what can you tell me about mine tap? >> i don't know enough to be able to opine on that one. i'm not there already. let's go to ed in new jersey. ed. >> caller: booyah dr. cramer. >> how are you? >> caller: good.
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i know solar stocks are not in favor but using the -- >> if i want a utility i'm going to go to american electric power, nrg doesn't have the yield. nrg has been a very big disappointment. the stock has fallen so much and that is what we call a red flag. let's go one more. dan in delaware. >> caller: good evening, jim. >> how are you? >> caller: i have owned -- [ inaudible ] i can't seem to get the final details on the offer. >> it's not much upside from here. i think you ought to ring the register. i know you have 100 years but other stocks are so much better. that is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade.
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cramer, you are super. you are awesome. >> thank you for inspiring me to get in the game. >> your show is the best. >> i want you to know you have transformed me. >> thank you, cramer. working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.
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at least that is what the millennials are calling it. tonight we are celebrating the am i diversified. remember when i told you to call me if your portfolio consisted of fang. we got great tweets and calls. we are going to go right to them tonight like this one from al who says apple, disney, underarmer, facebook, lockheed martin. thanks for the help. allen, this is very hard. this is very hard because apple and facebook, apple and facebook some people say are together. i say that is not the case. this is a device company that i think some people are seeing have aceco crisis. it is a great company. facebook is really a media company. lockheed company.
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disney is entertainment company not media and underarmer, when you have clothes that keep you hot when it is cold your problem is when it is cold you don't need it. sandy in minnesota. >> caller: jim. how are you? >> all right. how are you? >> caller: good. who you like on vikings or p-- >> i would be careful. we should -- go ahead. give me the stock. >> caller: my biggest holding is apple, facebook, amazon, netflix and google. >> holy cow! when you do that that makes it so people don't take you as serious as the fact these have been the best stocks.
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here we go. facebook, amazon, google, netflix all trade together. that is why i say pick one of these. they are high multiple stocks. they go up and basically you very rarely see them all go up and one stay down. but facebook is a media company. amzaunis a retailer. google is regarded as a media company and netflix is entertainment. because they travel together i say only pick one or two. it is too hard. apple is a low multiple technology stock and does not belong. understand that they trade together and we try to eliminate that concept. pick your best two. john in hawaii. john. >> caller: good afternoon, sir cramer. booyah from hawaii. it is raining. >> i love the big trees. they are so cool.
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>> caller: i want to thank you, everybody, all of my friends, everybody about getting me into the stock market. i have been there for 25 years. took early retirement and live in hawaii. >> that is what i want to hear. let's go to work. >> caller: i want to know if i'm diversified. these are my five stocks. adp, proctor & gamble, cmi, starbucks and apple. those are my five. >> let's go to work. when nike announced the split tonight i said got to try to get people thinking the netflix could be the nike letter n. starbucks i think it is firing on all cylinders. adp i like because i think it is more of a small to medium business cycle. i like paychecks more than adp.
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i would put in paychecks. proctor & gamble breakout we have been waiting for and then comens stop buying back stocks. a manufacturer, consumer products, payroll processor, restaurant, retail and apple. remember what i say about apple. own it -- come back. this is more than just a town. this is our home. and small business saturday... is more than just a day. it's our day...
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to shop small at the places we love... with the people we love. for stuff we can't get anywhere else. and food that tastes like home. because the money we spend here... can help keep our town growing. on small business saturday, let's all shop small. for the neighborhood, the town, the home we love. on november 28th, shop small. and this year, look at whate he put in our driveway. the lexus december to remember sales event is here. lease the 2016 es350 for $349 a month for 36 months and we'll make your first month's payment. see your lexus dealer.
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after the bell discounted apparel chain ross stores reported. this is one that we used to be absolutely crazy about and cool on it because t.j. was doing better but this ross store quarter was magnificent. it shows you that the customer doesn't want to spend a lot of money on apparel. remember how bad nordstrum and macy's was. if they buy apparel they want to buy it on the discount rack. ross dress for less. alergen after the close my charitable trust owns it. in it for the earnings power and because we think he is going to make an acquisition. those playing the takeover game do work on what they do, their cash flow and who they could buy. there is always a bull market somewhere. i promise to try to find it for you. i'm jim cramer and i will see you tomorrow.
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[tires squealing] >> crank her up! [screams] hi, i'm jay leno... >> all: hi, jay! >> hi, everybody, how you doing? and this is a show about cars... it's fun to drive cars that are really different. >> this one's a death trap. >> oh, i see, because... >> because it's dangerous to ride. >> and motorcycles... [engine revs] [cheering] >> and, well, anything that rolls... it's like driving a two-story building. explodes... i love the smell of napalm in the morning. >> yeah! >> or makes noise. >> you ever run a dragster? >> no, i haven't. this is "jay leno's garage." >> start your engine! [engine revs] [tires squealing] [siren wails] >> get out of the car, sir! >> [bleep]. tonight...
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