tv Mad Money CNBC September 25, 2017 6:00pm-7:00pm EDT
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>> weakness in banks xls. >> karen >> master card put i'm afraid for the business. >> dan >> easy for you to say buy it, sell it. >> check out the poll. nobody's talking about it but i think i won. get get yo . my mission is simple, to make you money i promise help you find it rkt "mad money" starts now hey all i'm cramer welcome to "mad money," welcome to cram america. other people want to make friends i'm trying to make you money. call me 1-800-734-cnbc or tweet me @jim cramer sometimes we forget why fang is fang the stock to make up facebook,
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amazon, netflix and google plus apple and nvidia are rocket ship names and yes, rocket ships peer yoodically, you know what they do, they fall. and when they do they inspire sell offs like the one we had today. nasdaq so many high fliers, losing .88%. in fact we had two rockets ships that worked today, fang and rocket man himself, gkim jong-u. this time our fly overers of north korea amount to a decoration of war. now when a star ship fang crashes to herself -- as more
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risk of versus money flood into the u.s. treasuries, the dividend yields. i show how the buy was, it may be -- it takes a -- up the shares of company that make canned soup, cereal, bell visit that all fall out. rather than the need to stockpile food that can withstand radiation and preparation for a thermal nuclear war. let's reset the clock on this session though before the new north korean threat surfaced in the morning we awe something not all that common in this market. a rally in the chiefer stocks like general motors and ford as well as the oil stocks. this is the level where oil tends to backtrack, every time we forget -- we forget this is the level that they sell off we
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get obliterated. nevertheless it's a positive force for the moment maybe there's another way to look at it though. perhaps what we're seeing here is a reversion to the cheap and repulsion to the dear. investors look at the fang stocks and it feels like, what the heck, the evaluation are truly out of space at the same time they survey the landscape and say why was the stock at general motors a huge discount to the buyer market when it too is a -- of technology it help drive the stock to new highs. the case can be indeed made that gm stock is just too cheap i wish it wasn't about made at a time when the estimates maybe wasn't too high and have to be slashed because of a slump in
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u.s. sales still the contrast was stark between the cheap stocks that managed to work the way higher today and the more expensive stocks that got pulled back to earth by the gravitational pull of this high valuation sell offs each has an individual for winning. let me give you some examples so you foe what i'm talking about first there's the stocks with the phone companies, name liver rise, at&t it's true that if our cold war with north korea started to turn hot and investors flea to the safety of 10% yielding ten year treasures, of course you want to buy stocks with big david ends however verizon also has the
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story behind them. t-mobile and sprint do intend the merge. obviously three phone companies will be less competitive than four unfortunately meaning your phone pill's about to go up probably maybe at&t and verizon will earn more money than the analyst think. there's more than to this move we've herd rumblings of merjser in the drilling business it's about time these companies thought about combining forces for heaven's sake. third, the hunt for value bought buyers into the airline stocks sure you'd think it will be counter sbuttive, the biggest costs are going higher think of these airlines as zwrur undervalued companies with cheap and under complete exploited stocks the down size seems minimal if
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not qualified after falling from $83 to $59, they've already been down for 18% of the year finally there's the retailers. these stocks are out and out hated and hatred is a creator. temporary a stock by tg s which soared today sometimes an unloved stock and become loved if it surprises to the up side. next, exactly one of my favorite analysts jp morgan says will happy when tg s reports. lots of retail seems inexpensive, your home depot sales seem to be stronger with hurricanes the sources competitive to that of the unloved amazon. gap source continues to perform when the stock yields 3% and earnings are coming in better than expected. now leticia talk about the --
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let's talk about the flip side starting last week we heard rumblings that the sales of apples and new phones may not be as robust as expected. i look at apple as a much cheaper consumer product story than the one people are buying i'm willing to bet next year will be a good year and sales will frm up once the iphone ten come out later this year, so all me a buyer maybe that's just me being a throw back, urging me to own not trade the stock of apple wall street encourages trading that means people end up buying high, and selling low. someone has to tell you to the to play that game, might as well be me. is there anything wrong with the stock of facebook or facebook itself amazon you could always make a case today, amazon's over betting. go look at my twitter feed,
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there are amazon bashes galore netflix one of those stocks that's beautiful, let's just say the beauty's strictly in the eye of the beholder. i see people going -- and who am ito disagree with them given the cheapness of the former and the evaluation of the ladder this is the and of fang and company. if you look through the old news clips their filled with premature obituaries of fang, everyone's been wrong. that's why i like to keep 1 foot in the rocket ship and another on earth call me old fashion but when the stock of facebook gets crushed as it did today, obviously we're attracted to it than when it's soaring. i feel is t same about barba, nvidia or red hat which had been down today
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it could be a potential panelist higher stocks do get cheaper as they do gown, something i preach on "mad money. sure, they might be even cheaper still tomorrow and that's the risk you take. these stocks didn't get where they were before the sell off by also ka my, they got there because the companies are doing phenomenal here's the bottom line, today was all about profit taking and winners and a love of the losers and i don't think that much more, on some or both in a portfolio diverse tied by riskiness and i think you'll do just fine. let's go to no rin in illinois >> caller: hey jimmy how are you doing? >> i'm good how are you? >> caller: good how about that cake >> how can i help. >> caller: i have a question about trip adviser
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they're continuing world revenues next year, i was wondering if this is a good time to buy >> i think you want to go with expedia which is the one -- i know the ceo, the company, or price line i think they're both superior companies to trip advisor. let's go to laura in new york. >> caller: boo ya cramer, love the show i bought insight, you had mentioned on pull back i paced it up at 123, it's down 11% here to 109. my question is how do you know if institutions are dumping your stock or if there's something unannounced that's wrong with the company? is this a good opportunity or buy or is this a signal of trouble to come? >> well, no, i'll tell you, you really hit upon the biggest single quandary of investing in
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what i regard as higher fliers to me the insight formula and drug complex is still in tact and i urge you to wait down another 10% and do more buying thank you for offering a question that i think really does captivate all investors it's time to take that risk. you have to own some winners and some of losers if you want to win. diverse fie by risk and not just by sector and i think you'll be all right. a company of a bowietal sell off where it lost 20% of the market gap sounds tough but is it worth speculating. i'll reveal the name while trump is paying sports radio is anything happening to the tax code unlikely great news if your dog ate your home work,dy it for you and it could make you some money live take on three stocks one
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later on tonight we're catchings up with a few pieces of home work sometimes i'll get a question from a viewer that's so good that the question deserves its on segment. jim in arizona called no to ask me what happen to bio and energy a small medical device company that's better known for its heart monitoring systems here's a stock that's been a winner for years in the beginning the friday for
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last the bio them century got hit and cost the stock to lose 20% of its value the move was staggering and made me want to devote time to answering the question what in the world went wrong with the story. before we get in the sell off, the company has been publicly traded for nearly a decade when it became public it was known by its old name, cardio net. the stock got obliterated, but and it never really bounced back, it just kept sliding the company changed its name and business structure the stock has been marking higher ever since. the bio telemay century -- all time highs, then it collapsed.
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to understand this break down though, you need to know about the rally that preceded and its long-term run traces back to the company's transformation four years ago. a lot of this is involved in claiming the structure the key is the cardio net became bio telemay century. the stock got an initial top for the organization its performance became choppy again in 2014 and 2015 as the financials were still pretty hit or miss for years this thing was like a sea saw. it bottomed out in 9 bucks and change and it's been on fire every since with the stock going up to $39 and change it started to deliver strong numbers, the company's revenue growth began to accelerate last year thanks to a series of a
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acquisitions meanwhile, it kept expanding and the strength continuing in 2017. the company delivered a nice bottom line beat and raised its four year sales guidance these guy ls only have one real head ache. for a long time it's been in a battle to buy the system's play. a battle that ended with a successful completion of the deal in july the take over gives them more exposure to remote heart monitoring in diagnostics. if the deal close the stock continues to soar higher, that is until earlier last month when the stock came plunging back to earth. what caused this decline a little inside base, on friday september 15th a seller struck and off wall street a publisher
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published initial stock with an outrate sell rater, and a $21 price target down 16 bucks from where it was trading at the time off wall street's consorting group they basically -- stocks will go down they have a long-term history, have a lot of right ideas, the reports are difficult to obtain. in the case of the stock it boils down to a basic thesis, they believe the company's services division, which made up 80% of the business last year is losing market share. these declines are being obscured by the many company's acquisitions these bears point to i rhythm technologies whether or not the bears are right t research report was certainly effective in beating
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down the shares price. it feel 6% the next trading day and another 2.6% the day after that since then they have struck back the stock isn't widely covered the few analyst who do follow the stock quickly jumped to its defense. lake street stepped in arguing this is a buying opportunity, the core business remain strong. they think remote heart rhythm monitoring represents a gigantic opportunity. the company's recent acquisition spree will bolser the earnings going forward. talk about a range, mainstream was low. in my opinion the best defense
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contempt from a docketing company. all the issues were addressed off wall street. again the guys at docker painted a different picture. they note that while all wall street frets about -- something have to do with a 1% reimbursement cut from medicare. given medicare is expected to boost by these devices 20% next year -- going to turn into a tail wind. this makes it more likely the stock will be able to lit and sale for the targets more importantly while wall street threatens that -- they expect the company's mobile cardiac business to see the stock climb by 5.6% this year
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and another 5.6 next year put it all together and they maintain their $40 quality on the stock. did the stock deserve to get slammed or did the bears give you an amazing buying opportunity here the bottom line, i got to side with the analyst who has been covering the name for years rather than the nay sayers off wall street. even if they don't necessarily exist it's not that big of a deal the stock didn't run a great deal but thanks toft sell off i think you get it at a great price. i think it's worth buying. even as the newfound negativity has created what may be an excellent buying opportunity much more "mad money" ahead. hear it all the time t do you taxes but the president doesn't seem to be heeding the same advice i'll tell you what's ahead in the tax debate then as hurricane season
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continues to join with heavy exposure in the south. ever try to figure out a gift for a loved one i may have found the answer. it could chang the way you buy stocks stick with cramer. for your heart... your joints... or your digestion... so why wouldn't you take something for the most important part of you... your brain.
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who wants tax reform less? the white house or congress. right now the senate's engaged what seems like another futile action to repeal and replace obamacare. amazingly it looks like they put less and less thought into each version. meanwhile, our sports radio host and chief donald trump seems to be spending more time to watch
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whose kneeling he tweeted last, arizona, alaska, maine and kentucky seem to be winning. think back to the statements the president's economic team going into september, if you believe what they were saying, they actually expected to get something done this month, something sub talent tiff on taxi ta reform they might as well be working from two different countries to solve the taxi issue and it's clear that congress can't possibly tackle two thing at once getting tax reform done in september turns out to be a pipe dream. it's almost laughable the big six can accomplish anything. the personalities alone should make it a starter. i can't see these guys finding
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consensus on where to go for dinner let alone what our tax system looks like. no democrats are on board with tax reform, they view it as give away to the rich every republicans need to agree to the the plan or nothing else will get done like with healthcare it's hard to get everybody on the same page. more importantly, congress won't let repeal and replace go. even as michael need wart, the senator of sent team says this gram cassidy version is poorly thought out and less chance to pass explained to us right here on "mad money," the senates tried to get a major overrule does even as none of them understand what the overrule does this matter because you simply can't pass a piece of legislation in this country unless both president and congress is focused. the president's more concerned about the national anthem, nfl
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and ratings for football games i think there's poetry in the pact cnn will host a debate on healthcare policy at exactly the time when the cardinals will pay the cowboys. and more team will be focused on who kneels, who leaves the locker room and will get fined or criticized. in other words, i think jones would be the owner who would most likely follow the president's advice and actually follow the president's advice and fire a kneeler during the anthem if he didn't want to win so bad september comes to a close and nothing has been done in washington it's the ultimate do nothing congress and now we got a do-nothing white house at least until the president stop talking like a radio host. if you want to have anything don't from this government don't hold your breath
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nathan in florida. >> caller: hey it's great hear from ya. >> how are you >> caller: i'm going well. i'm trying to make sense of the solar industry, but -- the government's hands on all that and i just want to know would you kind of advise to steer clear -- >> yeah just steer clear from the group. we got so many companies selling off now major major reports in sell off that i think we're going to do well over the next two years, let's look at those instead. brian in new jersey. >> caller: hey jim first time. >> okay. >> caller: i have a macro question as an investor how do i hedge against the uncertainty with respect to foreign policy, north
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korea, russia, global tratd, et cetera and with respect to domestic policy as it relates to healthcare reform and personal and corporate income tax reform. >> no, my philosophy from the day i've gotten invested when it comes to individual, cash. have a lot of cash on is t sidelines. don't be in and out trying to trade that won't work just raise some cash. i can't tell who wants tax reform less, the warehouse or congress doesn't look like anything will be done on this front for now. take a, nothing done on healthcare as well much more "mad money" ahead. an entrepreneur with an idea that could change the way you buy stock like facebook, apple, amazon and a lot more. tonight i'm talking to a company with a different take on
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now, that your kids have all gone back to school, time to catch up on home work. when ever someone stomps me with a stock that i don't know, i do more digging and circle back down the line, because that's my job as your investing coach. there's been so many issues and companies and stocks that have now grown in value, it's incredible hard to keep in mind up with all of them no matter how much
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so with that in mind let's get to work.on september 12th jj in new york asked about jell wind holdings i said i'd get back to hem here's a company that make doors, winds and all other products under the jeld wen brands, this company's been around for years but its stock is a newcomer. the ipo in late january, 23 buck as share since then it's up to $43. jeld wen tells a good story, they're in the process of cutting costs and cutting huge global network in wake of irma and harvey you can make a great case for residential housing play like this one but is jeld wen worth owning
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the revenue growth has been inconsistent and its balance sheet with $1.2 billion in long-term debt versus $200 million in cash, that's less than ideal given the company has negative cash flow last year. mainly though what worries me here is that when jeld wen came public this was a privately backed equity po a firm called onyx owned 63% of jeld wens shares the thing about having a company own so much of the stock is they can always call the shots. it's a major overhang because when these guys sell in bulk it can wreck the stock. when onyx sold 13 million shares back in late may, jeld wen got slammed. it's unnerving with the private
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equity start -- it's been a big win, i get it. on the one end i really do like the big picture theme jeld but on the other hand there are better ways to play it, more ways i'm knowledgeable in. i say go with home depot buy the stock of the home builder. i'd be willing to reevaluate the stock if they do more selling but for now, take a pass next up, also on september 12th, jacob in indiana called in about universal insurance, i said i needed to do more work and get back to them they've had exposures through the indianapolis
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given the bulk of universal insurance business comes from florida you think this company will be on a hook to sell to homeowners down there. that's why this home tank has threatened to make landfall this month. then something happened, the storm didn't hit as hard as we thought it would outside of the keys i think the sell off earl wrer this month was overdone, uve has done a -- made up 79% of the company's insured value last year, that's done to 88% now that's way too much florida exposure for me. we know it's one of the hurricane areas for sure i wouldn't be surprised in this stock has more room around here however i'd be weary of
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recommending universal insurance for investment until we get a better ready on the situation. maybe the wind damage of the storm turns out to be worse than we thought i'd say stick with travellers which years ago decided to stop writing insurance in florida because the risk overwhelm the reward september 13th, kathy asked about veritone, eri. i wanted to catch up on this one before giving an opinion veritone is a fresh -- ipl company's develop a cloud based artificial intelligence platform, used a -- unstructured video and audio data veritone's ia platform can sift through data that most computers can't understand given 80% of the world's data is unstructured, meaning it cannot
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be officially searched or analyzed, these guys could have a major market opportunity veritone use different engines in order to process data better than a human being good for purposes of transcription, face detection, and audio/video from this point finger from this point. that's a lot of fire power right now they're helping organizations figure out how to target their messages. helping lawyers when they need to comb through tons of video and information and helping police my view veritone is one of the few purer plays in the artificial intelligence around given the stock has already quadrupled since it's rpo, it
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. it is time -- and then the "lightening round" buzzer, are you ready. start with jeff in california. >> caller: hey jim, boo ya from san diego. >> all right >> caller: where our hearts have been ripped out by the chargers' move to la six months ago my 95-year-old dad bought century link. i asked him why he told me about the acquisition, but more importantly there are trucks laying around all the
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neighborhood so -- >> yeah, look i hate ancient experience i got to pull the flag on that one, why because i do believe that in the end that ug of 11% is a red flag and it worries me. neil in iowa >> caller: big boo ya jim, you're the best. >> thank you >> caller: what do you think of boyd gentlemaning? >> not as good as mgm. let's go to rick in new jersey rick >> caller: jim boo ya, how are you? >> what's up >> caller: this is rick from new jersey my stock today for you is myocard ya >> awe man, stocks up over 200%.
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we got to take a breather on that that's way way too hot john in new york >> caller: hey boo ya jimmy how are you doing there? >> all right how are you >> caller: good jim. jim was going to and you being u.s. steel. >> i don't want to do down that path, no no for letter x. stephany in virginia. >> caller: hi gym philip morris >> that's a good one tim in ohio. crimin . >> caller: thank you thank you thank you. >> sure no problem >> caller: thank you for teaching us and providing us goodrich character
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congratulation to your chief eagles taking our -- and beating the giants yesterday with a 60-ya 60-yard, one-yard game professor cramer, buy sell or hold factory suit call >> no, we're going to say don't buy. we like everything that joe papa's doing i think the thing will be okay but i still got so many drug companies that are down on their luck right now i can't go for that one how about ken in massachusetts >> caller: hey jim >> i'm going well how about you. >> caller: doing great a long time listener big boston boo ya although i'm living in newton >> i love newton >> caller: have you ever find yourself here give me a call
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>> fair enough i like that >> caller: you want to know my stock? >> yeah. >> caller: bbun. if you like it i want the know why. >> we like it because we had them on and it's a terrific situation. the last quarter was good. i like margot in california >> caller: hey jim, back in april you recommended -- >> yes >> caller: -- 10% after this earning so i had three questions. is there an inherent thing or a bad quarter. buy, sell or hold -- >> i like it this puppy's down. as i saw it on the scoreboard for lincoln financial, i like -- but i really do like dow dupont. and that concludes the
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"lightening round. . oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.
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of style with younger generations. millennials don't seem to trust the stock market personally i think there's something else going on here, something other than he or sosty to the other asset class millennials live in a world where signing up for something supposed to be easy. put in a user name, password and boom you're done for their in -- suddenly as a regarder a real pain in the neck by the quick generation. which bring me to stockpile. basically, you give stockpile your money, you can use it to buy fractional amounts of publicly traded stocks, anyone can get a gift card, perfect for kids or quickly open a broke rack stockpile account. make it easier to put your money
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in the market without having to cough up hundreds of dollars let's take a closer look with the ceo of stockpile and learn more about the business. welcome back to "mad money." we've been following you ever since, we love the gift card market tell me how this company is doing, because it's privately held we don't know, and whose doing the buying >> we're doing great i think we're doing great because we're making stock investing easy and affordable for people and it never has been that way people are told all the time, start early, diverse fie and do it for the long haul it's hard to start early when you're young because you don't have a lot of money and you don't know anything about the mark, they don't attach it to
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you in school. you can't walk into a traditional broerk ranch and say hey i got 50 bucks how does it work >> one of my daughters was in high school, they did a little contest. this to me seems like a better idea >> i opened a cody y'all accounts for my kids i put thousands of into those accounts and i couldn't get them interested because i had them log in, all the ingauge mtsz and i got the statements as soon as stockpile came to be and they opened stockpile accounts, they had their own log ins, they could check in on their stocks, buy things they knew, and place trade. and all of a sudden an engaging experience was done. just a few hundred dollars but they had skin in the game. >> if there's a stock that's a
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$900 that does nottee mean you need $900. >> that's exactly right. let's take amazon. i come in and want to buy amazon for $25. we take that and -- and we'll keep the rest of that share in a stockpile account ourselves. >> so, we see these -- these cards where? >> so these cards you can buy online at stockpile.com or go to target or kroger, safe way or a lot of other places and buy them off the gift card rack like any other gift card. >> my staff was telling me there's a halloween pro emotion sounds interesting >> well i was at my dentist a few weeks ago and they hate giving out candy he said wouldn't it be neat if i can give out $1 stock card to
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the trick-or-treater i'm sitting here thinking this goes well with amazon, orange and black, you want to give those out. i live in pal low alto and there's a feeling that hey instead giving out treats if the form of candy of sugar and sweets why not invest in the children's future. >> there's this etf -- there's this notion you can give your money and do it by algorism. can individual stocks make a come back? >> i think so. i think 86% of america is not invested in individual stocks but the market it's horrible because the last 8 years, right, the tied had been rising, stock market's been doing well but most of us don't feel rich because our ships have been in dry docket and not in
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the water. to get into the market i think the easiest point of access is to invest in something you know, something you love if you're an apple fan start investing in apple if you're a nike fan or sports fan invest in that that's the onramp, we have many lessons in our apple that start to teach you to diverse fie, looking into etfs, start investing in other countries >> well, it's the essence of what we try to do on "mad money" that's why i'm so glad you're on the ceo of stockpile fractional shares, get the kids interested and stick with cramer tripadvisor's freshest, lowest... ...prices. so if you're anything like me... ...you'll want to check tripadvisor. we now instantly compare prices...
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on "mad money. i'm jim cramer i'll see you tomorrow >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ first into the shark tank is jonathan boos with an innovative product line for the well-dressed man. hi, everyone. my name is jonathan boos,
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