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tv   Mad Money  CNBC  March 8, 2017 6:00pm-7:01pm EST

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i'm long. you should be long. i think it's going to fly. >> panera bread. break it out. >> thank you for watching. see you back here at 5:00. "mad money" starts right now. i'm here to tlefl -- to level the playing field. mad money starts now. hey, i'm cramer. welcome to mad money. welcome to -- tweet me at jim cramer. don't give up the ship. these are the last words uttered
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by u.s.s. chesapeake. they could apply well on a day like today. s&p declining .23%. sit a day when too many people seem too eager to give up the ship. in fact i think that phrase applies better to the market. let me give you classic cases. keep the ship afloat. they surrendered when they should have kept fighting. one of my favorites. it has been stuck? a rut because it has been okay.
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you would have missed today's amazing move. ppg is doing exactly what you would expect it to do, what they have always done. over the years ppg market has climbed higher and higher and higher. if you were a bull and you held on your patience is rewarded. how about this magnificent move in the childrens place. it is one of the few chains. we have endlessly prefiled how
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the fantastic ceo has been able to put up excellent numbers. this is the last good number. the company reporter again today and it crushed delivering high single digit same store sales. an astounding $18 or 18% in a single session. i had my doubts when he was on the show a couple of months ago.
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they knew they were facing a prosecutorial cramer when we spoke to ceo william cobb. cobb came here. he didn't mind. he was ready. he had just lauvnched an ad campaign and followed it up with a no fee advanced tax refund product and using ing ibm's wat. bill cobb's level of con fi dense made me want to not give up the ship. it drove the stock up dramatically. any time the tax code changes they get more business. we are starring in the face of not one, not two but four rate hikes as long as the employment number we get on friday is
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anything like adp reported this horning. remember, adp is the largest in america. it means we could have as many as 298,000 jobs added to the roles. a colossal number. when interest rates go higher we know the banks make money unless stocks rally. i have seen so many people give up it is downright painful. to me you take a stock like citi group and i think with the house all in order, with deposit base, with easier regulation it is hard to imagine it being stuck at 60 bucks. a lot of people have given up on it without even meeting it. i think it's a huge mistake. it is cheap not to mention where
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it was in the old days if president trump presses to let banks do their thing. if you believe in my worldwide growth theory then of all of the american bank cities it is rallying above $61. many people are saying at least, finally i'm back to even. time to sell. wrong. that's a big mistake. people said the same thing at baj of america. many of those sellers are wondering how am i able to get back into bank of america? the answer is you're not. the shape has sailed but you can climb aboard citi group. i just did a big call with action orders club members this morning. i was asked if it is time to take profits now that the profit has broken out. you ain't seen nothing yet.
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ed will soon combine these two companies and split them into three gross situations. this merger came together when dow was in the 50s. no. i don't like to chase but dow dupont is not something you should think about giving up on not now, not here. some wanted to know if they should give up on arconic. this is a tricky question. first the stock is up huge from the bottom. a major activist fund has taken a big mistake. they have officers and new ceo well known as respected which the company is key in. if way i see it if the ship looks like it's listing elliot will be able to step in and give
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them the track record. i think the scenario is a win-win for shareholders. you don't bail. you wait and then you buy more. right now the oil stocks are being abandoned with a vengeance. here we go again. down here at 50 i say don't give up the ship. it has been ablit rated. i say find an oil stock and dig in slowly waiting for the next rotation to come back to you and kick you right out of it. chevron reported good numbers. you start buying eog tomorrow small and then you get big over time when others are abandoning ship near an end of a rotation you need to climb aboard quality oil. get ready for the next move up. sure you may be seasick for a couple of days. bottom line, go get some
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dramamine. the move everyone is giving up on just before it happens. miko in my home state of new jersey. booyah. >> caller: booyah. will this be a good time to load up on more shares? >> go tell it to the dog. i looked at bug. hey, he's all about fitness. fitting this whole piece in his mouth. i said square has the same ceo as twitter, okay? so he sells square for like 21 bucks and then bug went away because he wasn't interested. don't sell square. i think it's going to get a bid
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and jack will have twitter to do what he wants to all by himself. i don't know. i like the theory. r robby in connecticut. >> caller: booyah. >> booyah. go ahead. >> caller: there's been uncertainty in the retail industry especially as it pertaining to earnings reports. they have taken market share from sports authority and gulf smith. s >> right. >> how do you think it will move forward? >> it was very clear everyone was saying listen, they got it down a little bit. they have their own private label. what people are scared a you're annualizing the decline and fall so cops will get more difficult.
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that's why everyone was leaving the story. i agree with you. i don't like apparel. my if you want to stick it a small position in dick's wouldn't be a bad idea. >> let's go to ray in new york, ray. >> caller: jim, booyah. >> booyah. >> reporter: are you still bullish on cmg. >> december 7th of 2017 the next outbreak of an illness at chipotle. we are not yet at the 18 month level. it's getting there and that's when the stock will take off. join in. get ready experience the next
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ride. everything from cell phones to corrected cars. do they continue to deliver? i will throw in lithium too. you may still be mourning the katie perry and/ orlando bloom t means pliting up is for the best. it is before the stock becomes an open house. don't make a move
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ways wins. especially in my business. with slow internet from the phone company, you can't keep up. you're stuck, watching spinning wheels and progress bars until someone else scoops your story. switch to comcast business. with high-speed internet up to 10 gigabits per second. you wouldn't pick a slow race car. then why settle for slow internet? comcast business. built for speed. built for business. i keep telling you it has a lot to do with real companies
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doing well, not just washington. people think it's a lot more to do with an improving global economy, not just president trump. when we start to experience a genuine expansion there are a few sectors you always want to pile into. take the chemical industry. so when economies around the world get stronger the chemical countries see earnings rocket higher with or without trump. that's why tonight i want to pound the table with two of my absolute favorite names. and fmc not doing much. i told you to buy last may. it is one of the best industrials i have never heard of. as for fmc i recommended in january. while stock hasn't done much
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since then there have been more that make he like it and you need to buy it. i think they are too good to ignore. we'll start with alb. a lot of people feel like maybe they should jump out of the horse. it is used by a bunch of different industries including lithium for all sorts of rechargeable batteries. this lithium business has been booming thanks to the rise of hybrid and electric cars. while a laptop battery might need an ounce of lithium a hybrid needs more than 3 pounds. here we go. a high performance electric vehicle like the tesla can use more than 100 pounds of lithium. they sold the treatment to the european company for 3.2 billion. the idea here is alb wanted to
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foeg fa focus on higher business. it is in order to focus on the red hot area like lithium compounds. they reported they weren't particularly well received. it all changed with the surprise selection of donald trump. the whole industry caught fire including stocks like alb. it brings me to the latest. this time the company absolutely delivered a total employee out. they posted a nice 5 cent earnings over the 73 cent basis. massive revenue. management gave very strong guidance for the full year. that is why the stock. it is breaking out about $100 level. it's not done even though a lot of guys are getting off the horse. you know what helps? citi group downgraded earlier
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this week. the reasoning, city was very clear this is about evaluation and evaluation only. while they like the story they think it has gotten too expensi expensive. since then it's been pretty much good. what did they do wrong in that last quarter? let's ge skieb describe it. it is serving agricultural, consumer landmarks. they make pesticides and herb sides. they provide colors, structures
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and non-me dinsal -- mainly fmc is a protection plan. thanks in large part to a crowd protection play in 2015. the company gets about 40% of sales from latin america. it is being split three ways, the middle east and africa. for years they struggled. brazil's currency spending at least five year ns free fall
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from mid-2011 to january 2016 they lost roughly 63% of value. lately latin america and brazil have been making a real comeback. it is very good news for fmc because it does so much business in brazil. by the way, all of the ad kpaens do a huge amount of business in brazil. it they make lots of pro pry tear compounds as opposed to those that can be by anybody. the company used to have more commodity but they sold in 2014 and 2015. it is kind of a boom bust business. like i mentioned earlier the stock is trading almost exactly the same way. the company reported at the beginning of february and this latest quarter was -- i don't think it is considered a disappointment. it did cause the stock to lose
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6%. was it really that bad? parts of it -- the headline numbers were flat out ugly. they posted a small 1 cent earnings. they determined it would earn 50 to 60 krencents a share. there are positives over the weak headline numbers. first they only missed earnings by a tiny amount. it means it is getting a heck of a lot more profitable. fmc saw revenue rise by 3%.
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. as for lithium business experiencing less than 1% rise and it doubled up almost 92%. more importantly it is pretty solid. company predicted it would earn $3.20. in february 2016 fmc gave a weak outlook especially for the last year's first quarter. it beat its own forecast which leaves me to believe these guys are being conservative. it wouldn't be surprising if management is practicing under promise and under deliver.
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buy buy buy. >> smar known as the break-up month. but with spring clean in full swing it doesn't have to be a bad romance. it has been one of the most aggressive investments. renewable resources during a trump administration? i'll tell you worry over warning signs. too many warniorry over warning signs. stick with cramer.
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we all love a good break-up story. in the corporate world there is enormous amounts of value when they are done right. let me give you an kpfafrp kpar one. it's never too late to flush out a good story. maybe we missed a lot of it. roughly a year ago -- actually about a year and a half ago masco, they make cabinets and kitchens and bathroom fixtures. this is called top build.
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it is up 43% over the same period. when i came out here and tell you that breaking up is easy to this is exactly the kind of situation i'm talking about. how is top build been able to rally this hard? first of all you need to understand why they spun this off to begin with. it is often the ground work. the company that lead this division where they would install installation, newly built homes. it may sound something like a perfect fit but when they announced what would become top build they said it would make it
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a lot less company and shifting the balance towards repairs an remodelling. in short they waned foe wus on making things for new and existing homes that existed in installation and other people's products in installation. they weren't the same. in the years leading up to the breakups it is to the point their services business would be able to survive on its own. this leader installer with service partners, a major distribute to into a separate enterprise and spun it off as top build. it would grow faster focusing on new home construction and expanding to the commercial and retro fit market. these -- you can see these two
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companies could be under one roof. it was a way to -- when the spin went through they did become a lot less cynical. they got top build to play around with especially with home building getting stronger. let's fast por ward to right now. stronger employment means there are more people who can afford to buy a new home. top build mainly provides contracting services these days. about a third of the business comes from distributing all kinds of home related products they don't install themselves. they never really got the attention they deserved. as a stand alone company top build has been able to -- taking market share and expanding into the enormous commercial construction space. while this company has lucked out in terms of environment it
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also has topnotch execution. they sited many we always hear to explain the success of housing related retail chain, mainly a as tons of people have been -- have put up buying home or starting families. now that employment has gotten strongly these people are investing in their existing houses. it means more customers and installing things for top build. since then it helps to optimize the roots and track how jobs are growing. it gives the company a more tangible way. on top of that they made a few more where they don't have enough exposure.
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it is a virginia based installation company. they are added. i like that. the stocks have really taken off. this is one of those. how about top build's numbers though? even though the company posted only a small earnings lightly less than expected revenue it roared in response. wall street liked management's commentary. they told us their commercial construction business grew at 13% clip last year. they said things about the trump white house projects and what the white house could do. thi this is really important. top build also told us this. the builder community remains optimistic around supply and demand fundamentals.
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the pent up command could take years it is better to be lucky than good. it is one of the most promising quotes i have rae. the important thing here is the same factors and 23% since the beginning of 2017 should continue to drive share prices higher. i think it's why they just announce add buy-back gift. this is 200 million tlarz buy back. here is bottom line. if you bought stock and held them you would have an astounding 66% gain. that's the kind of break-up we
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adore here. i think that top build is the hot stock right now. it is designed to be a company that does better in a strong economy. it tells me top build's management agrees with me. joe in new york, joe. >> caller: jim, what's up? >> not much. how are you? >> caller: from long island, new york. question. i have had a position and i saw the spin off. i received a few shares. i want to find out whether it's worthwhile to take johnson to adient. >> i know johnson has been kind of a bust but it's too early to make a judgment. yeah, i think you stand pack. that's what i would do. let's go to robin in texas. >> reporter: hi. jim. i have listened to you for many
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years. i am in austin, texas but originally from philadelphia. >> fantastic. >> i own some shares of it. i have a nice profit in it. it is being taken over by rock we' rockwell collins. >> i think rockwell collins is a great company. that's strong buy. by the why, congratulations. that's what i wanted. it took longer to get the job done but you stock with it and i think that is terrific work. both great questions. yeah. we liked it. some times you need patience. didn't need any here. breaking up is easy to do if you're going to make a profit. case in point, i think top build is the one now. hold onto it. much more mad money. >> last year donald trump said wind power kills all of your
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wi birds. what could it mean? then a word of warning for those watching the warning signs. and all of your calls in tonight's edition of the lightning round. stick with cramer. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.
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is it really safe right now in even a very well run y-- utility. take agr, the company create until december of 2015. it was the united to create avagrid u.s. d.a. a lot of wind power exposure. it is up more than 10% here today. it is in part because they reported a solid kwater a couple of weeks ago. it is slightly stronger than
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expected. the yield will get less attracti attractive. plus you have to be a little concerned about renewable energy business. let's take a closer look with james. he is the ceo to get a better sense of how his company is doing. welcome back to mad money. good to see you, sir. >> good to see you. >> first before we get into what it means i have a release here. amazon wind farm. tell me how it came about and what it means. >> they wanted to have wind power, green energy supplied their data farm down in the virginia area. we started the wind farm. it is producing 208 megawatts every day. it worked out great for us. >> how do you know that a wind
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farm works? >> well, you put it up. they start spinning. it is very interesting on how those t wi the wind works. you angle it so the wind is right on the nose. it is all aerodynamics today. you can see it working and you can see the electricity. >> did anyone having any sighting issues? >> we had a little bit. department of defense has an over the horizon radar. we sighted it and cut back on the number of wind turbines we were going to utilize. the farmers there are very happy with it. they love the fact they have wind turbines on their property. it works out for everybody. >> what do you do with excess power? >> it goes in the grid. >> and other ones get turned down. let's say other plants that need to be turned down and not run at the same time. >> now, j.p. morgan says the
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difficulty of achieving earnings quotes and little margin for error make it a challenge. renewables seem like a good way to make power these days. >> it is. all of the ones we are building today have long-term contracts associated with it. you're not winging it. >> no. and we don't just sell into the marketplace. it will have a long-term contract with it. >> i do have to say, i have to ask, what is the effect of the trump administration's lack on your business? >> it hasn't impacted us. the states are the ones with renewable portfolio standards. so that's how we are working it. you might be the low-coast
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producer. >> we are a low-cost producer. we have a lot of wind farms. we have almost 6,000 megawatts of ones we can develop. 2,100 are around the country. we have good spots to develop them today. >> go back to the top then, with this portfolio, the idea that you can perhaps raise the divide dividend, it puts it as a nice counter point. >> absolutely. we are looking at 8 to 10 earnings growth. >> it is very big. >> i know but in 6.5% to 8.5%. we have rate cases resolved. we are wind farms being developed already. so it is already there pretty much. we have to manage the business well. we have other things going on that will get us to the 8 to 10. getting to that we have worked
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with it. >> this is a very strong story. for younger people who know wind power will inherit the earth this is the kind you should own for the long it have term. mad money is back after the break.
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it is time for the lightning round. are you ready in time for the lightning round, renee. >> caller: yes. thank you so much for helping us in everything that you do. >> you're the best. >> caller: yes about this. >> i keep saying all of the hot money is out of it. it is up 224%. people are thinking it's head
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and shoulders. it has to go lower. you have to get those guys out. i need to go to sari. >> caller: hi. jim. i love your show. >> thank you. >> caller: penumbra went down and back up. >> i have to do more work on this. i followed it but i have to follow it more. it is my fifth homework piece. let's go to nathan in my home state of pennsylvania. >> caller: hey. how are you doing tonight? >> i'm doing fine. how are you? >> caller: i have a question about rai. my question is, is there a point at which i should cash in on the run and sell? >> i could go and buy atria.
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let's go to august in new york. >> caller: big booyah. >> yes. >> caller: question on intercontinental exexchange. >> there is a shortage of exchange stocks. i think ice is a fantastic buy. let's go to rick in indiana. >> caller: booyah. is it too late to get in. >> so we know we are later in the game. i think you had another quarter you can hold on it to it. that's the end of the lightning round. hey gary, what'd you got here?
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every time you see aheadline about five warning signs let's just say you should take it with a grain of salt if not a full 12 box case of morton's iodized.
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i have read over them literally tens of thousands of times. a business editor says the averages have been rallying for a while. we have had to couple of rough days. time to dust off the last few and retop them. i tell myself it's okay. i tell -- the kind of evergreen stuff. and telling people when to stay in. i don't know. i question its worth. for me though, here is the problem of the stories. it is always the same. very simple. it truly cash out of the market.
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two weeks before the crash of '87 the great nasdaq in early '99. all of the other moments were simply times not to take heed of the warning but to maybe cut back a little bit so you had some money to invest. in 1987 the crash was purely about mechanics. mass oif overvalue. far worse than '87. they were all involvalued on -- produced an almost total breakdown until this week eight
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years ago when then ben bernanke drew the line in the sand. three declines. even more massive over evaluation and total downturn and specifically housing that spild ov spilled over and 14 trillion at risk that distorted the size of the problem. other than those three moments the canaries haven't been very useful. a lot of angry birds. a lot of games. not a lot of profits. now i'm reading the warning signs again. it is that casting variety. a belief that washington won't hurt us. rate hike cycle about to begin. lynn to all of these and yes,
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they are wore -- worrisome. in 2011 we had a lot of signs. dow fell from 12,000 to 10,000. it nevertheless turned out to be a perfect buying opportunity. most of the problem had to do with washington, the government shutdown and the government could destroy us been defaulting on obligations. it took us down every time. when the s&p downgraded you got an exquisite moment to buy. you did so well. more important though was the need to stay the course. that's the term i always use, stay the course the whole time. buy more stocks if the opportunity presents its self-. that's where i feel we are now. i don't see any of the warning signs starring us in the face.
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instead i see a market that's had a very large one and needs to consolidate. if you think that way and you kind of like the warning sign articles and dwell on them, please, feel free to heed them, take something off the table. no one ever got hurt taking a perfect. understand this, i hope you can get back in at a lower level. most people i know didn't. they never got back in. all you're selling will do is give someone else a chance to get in at a better price than he deserves. stick with cramer. so beaeautiful. what shall we call you? tom!ame it tom! studies show that toms have the highest average earning potential over their professiol lifetime. see? uh, it's a girl. congratulations! two of my girls are toms.
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i work for ally, finances are my thing. you know, i'm gonna go give birth real quick and then we'll talk, ok? nice baby. let's go. here comes tom #5! nothing, stops us from doing right by our customers. ally. do it right. whoo! look out. ally. do it right. at bp's cooper river plant, employees take safety personally - down to each piece of equipment, so they can protect their teammates and the surrounding wetlands, too. because safety is never being satisfied. and always working to be better. duexperience our mostand pthrilling models ever., including the exhilarating is,. ♪ experience amazing.
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i'm jim cramer. i'll see you tomorrow.
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