tv Mad Money CNBC October 2, 2017 6:00pm-7:00pm EDT
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i think gdi -- >> really interesting company. everybody, thank you very much catch "fast money" again tomorrow night at 5:00 p.m. eastern time "mad money" will begin on a y tugult monday onouhohts and my mission is simple, to make you money i'm here to level the playing field for all investors. there's always more work and i promise to help you find "mad money" starts now >> hay i'm cramer. welcome to "mad money," other people want to make friends i'm trying to save you money call me at 1800734 cnbc or tweet me @jim cramer we live in sadly cynical times here we see this horrifying event in
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las vegas and our hearts burst, our shoulders heave. we feel nothing but sadness. however we know it is part of a continue yum this isn't the end there'll be others is it simply realistic ironically this stock market is as real as it can get. nasdaq advancing 4.2% all to new highs. as we quick off the fourth quarter i see stocks go higher as people believe in progress and people find ways to dredge through troubles waters. for example, our secretary of state is working to try to diffuse the situation of north korea, avoid a nuclear war this man, rex tillerson is doing everything he can to get the chinese to final clamp down on kim onun right at the moment looks like he's making process.
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president trumps comes out and belittles his mission and saying tillerson is waisting his time and rocket man, he'll be dealt with in a different fashion. my jaw hit the concrete when i saw this we have what looks like to be a wholesale rebellion in a part of spain that's long desired its independence you got to believe tourism to barcelona is about to try out. instead, it seems to have no impact on the market when it occurred this weekend. i'm thinking, wow, the future used to be down big on something like this, nothing the president's memo went out in full force talking about his tax this weekend even though if you're from high tax statings it's anything but i remain convinced this thing
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cannot pass congress since it's currently formulated but nobody seems to mind that either. then there was the horrifying mass shooting last night at the mandalay bay in vegas. another senseless act would have frozen the market. today, after digesting it we rallied. the stocks rallied the hardest, say that things are going great. we have to know true believers are putting money to work. uncertainty is a far more positive word than what i see happening but i don't want to be too negative because that will be out of sync with the stock market let me tell you what i'm talking about, despite all the uncertainty around us, case number one is general motors
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for years we heard that general motors will be autonomous by dealers. and the fact that do we need to own a car, companies like uber and lyft has -- andi even as investment lifts something will be incredible for china, they already have a big leg up instead of ignoring or diszing the stock of general motors, investors are cramming for it. the stock's up 4%. evaluation is depressed by the long term worries, now it's being advanced by them how about sudden disney. the people will come to their senses realizing disney's business model is not in doubt and it's other methods of
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distribution pairing through, i believe that this is a market that embraces the simple and the stock is running because lt's basically gave in. and another time this contract dispute would have been viewed as unimportant instead it's a clairing call by shares of this iconic american company. i suggest to one squawk on the street this morning, that perhaps we'd have to adopt models for hotels going forward after last night's tragedy a few years back my wife and i checked into a four seasons in your dpan and we were surprised to see that we, bags, everything had to go through a screener we discussed it with the manager because we wanted to know if there'd been an incident at the hotel. he told us that a hotel is a crowded place and those kinds of places are targets so why allow guns or bombs to come into them sounds like common sense to me so it's also common sense that the biggest publicly trading
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maker of scream devices, l 3 technologies will see a big run in the stock didn't happen at first how slowly it adopts possibility. sometimes this is simple as a research note that really resonates. this morning morgan stanley updated stanley black and decker it's now able to add its craftsman line i think the recommendation resonate as another way to investment rebuild in the headache of harvey and irma. both considered winners of the storm damage so plenty of black and decker pools i saw several notes this morning about the possibility that nelson pelts, the renown engaged activist investor, because glass lewis and i assess to companies that advise money managers on proctor fights, both sides help
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last week. that could be enough to carry the data what's interesting is i heard a new narrative about the insurgency today if pelts wins there could be something raised about the way men is spent positive the term win-win is being batted about, but that's another sign of how this market embraces the positives. see the glass half full as three quarters full at a minimum the beginning of a month can be a time when new money is put into the market by those who have ira's and 401 k's we're in average this months up in -- there was some increases in the last decade, october's been pretty good overall
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as the dollar gained strength of late we should -- with chatter about how much a strong dollar hurt their earnings. and don't worry if you think you missed something, there are as always stocks going down on days when the averages are going higher i see tons of dislocation in tech sector today. yes, ladies and gentlemen, they're letting you in here's the bottom line while there are tons of reasons that hope seems to be -- in real life still sprints eternal daily in the stock market. today reflects that belief, that things are get better in the corporate world. let's go to isaac in my home state of new jersey please ike. >> thank jimmy for taking my call >> caller: i'm call about western digital. i bought this about two months ago, i did my home work, my
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research value line fence the world of the company among others the stock has been a roller coaster from the high 80s to the low 80s. and the thing with toshiba, it's like, you know it flips flops up three points, down three up two, down two can't put two days together going up how much is this toshiba thing a problem? >> it's a real problem >> caller: is it worth holding on to the stock? >> no i told other members they had to sell it they really needed toshiba win and it didn't go to them western digital, the disc drive side is really weak, i've told other people to sell it. stocks doesn't always himmic reality. this session was proof
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on "mad money" tonight, patterns can be profitable. the third quarter's in the vote and stocks came out on top. i'm counting down the top ten performers the story that's got it all, take over rumors, and a business that appeals to millions of americans seeking healthier options across the country stay with cramer want a snack?
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sure! alright, looks like we've got chips, popcorn, pretzels? pretzels! plain, sourdough, spicy, sesame, honey mustard, chocolate covered, peanut butter filled, this one's in german, it says, "reindfleisch?" plain. great. so what are we gonna watch? oh! show me fall tv. check out the best of the best hand-picked fall shows on xfinity x1, online, and the xfinity stream app. thirsty? when you find a topnotch company with a high-quality stock you need to stick with it. that's why i'm always pounding the table with my favorite names. take acn, that's the giant
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sources and technology company this company cannot be stopped even when the numbers are down and when the numbers are strong. it's like clock work i know i sound like a broken record on this one in this business you don't necessarily need many new ideas you just need good ideas with long-term staying value. accent trick just reported, the stocks were robust, the stocks pull back from highs, once again it's a buy talking about it makes you feel like groundhog day didn't i just tell you to buy this stock in the standard post-earnings pull back. the last time i recommended was in march company reported good numbers yet the stock retreated and i s say you were being given a gift. fast forward to today i'm doing the same song and dance. the last time i pounded the
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table with this stock it's been given a 13% gain my view is simple, if it ain't broke don't fix it buying asent tour has been a huge winning strategy. because this company is kind of a complicated enterprise and many people have trouble understanding it, i got to dig back to help you get your head around what is terrific but very uncommon story for those of you who don't member, the stock is a major player in management, consulting, digital technology everyone wants to improve their business but don't know the best way to do it they have their own business but don't understand digitalalizing
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it this stock is about helping their client hard necessary technological change and they can have it out to all their experts rather than you doing it yourself and bofrping it they've invested in heavy digital mobile clouds. y need these guys to do ai they work with a host of different sectors, communication, media, healthcare, lots of different resources. if you're running a company and you want to stay competitive in this environment you need to shell out for all sorts of new technology unless you're a very tech savvy ceo you won't know what type of technology to use and how to implement. that's why you bring in asent
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tour i'm conscious that i sound like a commercial for the company but i'm trying to explain to you why they do so well. business is really good. let's talk about what allowed this stock to keep rallying since i last recommended it back in march, even as it sold off right after reported to begin with starting in april the company went on an actvision in partnership spree in order to expand the reach of technology services in april they finished purchasing a 62% stake in a company in germany a week later the company bought koonsman less than a week after that they made a partnership with the german research center for artificial intelligence. in may, the company bought media high, that's a commerce solutions provider june they snapped up a research and laboratory consulting
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company. then they purchased phase one consulting group which helps the federal government embrace digital. this fits with the company's long-term game plan. they make acquisitions to expand their position in technology of in and out sources even though the numbers were good the stock got slammed down 4% like i've been telling you for years, that is the pattern other than priceline i've never seen this repeat pattern with a stock. all my life, just this company and priceline. the company introduced higher revenue, i liked it and they raised their earnings forecast why does this seem to happen every single time asent tour reports, i think because of the stock's trajectory this company give you a good quarter that's not a massive blow out, some people take profits. after pulling back the company
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turns around and pulls more attire since the company -- stock regained all the ground at "the washington post" so fast forward to last thursday, we got the company's most recent numbers and once again they looked good company gave you a 1% earning, higher expected revenue, consulting grew to 76% now the big driver here is what the company calls their loosing, which includes digital cloud the new business good about a base in fiscal year which just ended and that makes up half of the company's sales, not to mention 60% of its new bookings. half a year ago the company didn't even exist, which is good the decline doesn't bother them, it's more than off set in the
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new areas that the company embraced in years. they were well ahead of the competition. a lot of that has to do with the take over strategy i mentioned 2017 fiscal year the company bought 40 million campus this is one of the things that keeps fuelling the company's post and driving it higher the stock barely moved on this fantastic last quarter, now come down four points from its highs last week. many analyst panel the results as being lackluster, merely steady steady has been working for years why many esz with a good one? another reason why the stock always gets knocked down the company reports a good but not amazing quarter its stock -- when it disappoints a little it gets obliterated in the end i think it's worth owning here.
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the fundamentals are strong and the stock isn't what you call expenses even though the stock crave growth in this business. if history's any guy and this stock has been a fantastic guide in the past, this the company should be ready to resume it's long-term rally in a week or two. you got to be nervous for a week or two and then there it goes. once again i'm pounding the table on this company after a great quarter. when a company's track record is this good you feed to tack advantage of the most modern pull back. that's why pick up some of the stock right here then you got to hope it keeps pulling back in order to buy more at a lower level. play more "mad money." i'm welcoming in october with stocks worthy of a run we're counting down the stocks then i'm sitting down with a ceo looking to bring new value
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i've always contended you can learn a great deal from a quarter once its in the bag. this last quarter speaking louder than usual given how the career's been. i want to dig deeper from the top ten from the last quarter. as much as we talk about donald trump and his impact on u.s. economy not a single performer you're about to hear about had anything to do at all with the
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decisions made about the president. i don't see any companies on this list that had to do with federal reserves just think about how much brain power we waste on these two issues in the president's news don't matter to the market why are we in the media wasting so much time on him. at least so far, nothing's gotten done yet. more importantly, nothing in this top ten list would suggest investors are buying stock in hope of government action like the promise by paul ryan, the speaker of the house although to me he seems like the speaker of over promise. yellen's waiting for the economy to get stronger before she tells you could possibly play a role in not hurting stocks. there's no good reason why we have to pay endless tension to the fed, it's a distraction
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that's kept you out of the a lot of great stocks. tax reform forget it, hasn't mattered it's much easier for the media to moeks on trump and the feds than focus on the stocks the latter takes homework not just opinions. i think that's why it's so much harder to make money in the market if you pay attention to the daily noise. we try, look we make mistakes but we try, we do the home work and we try to identify the good ones some of them i think i'm proud to say we were affiliated with allow me to go to s&p 500 top ten. the first is nrg energy. that's a utility, not the kind that has anything to do with interest rates this one only has a 4.7% yield
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two years ago it was slashed from 58 cents to 12 cents. it was after a lot of losses those losses got former ceo fired. his replacement, gutierrez, has done a remarkable job reestablishing the company's finances he's gone a long way making utility that could build dividend i also think it could be a take over target. given its national reach, it's relatively small second is the stock that sirch fies last quarters' winners, michael kors up 34%. kors is what i called left for dead co-hurt the stock people given up because all the worry. if kors is sold at the mall therefore it's a loser right not exactly. the company has a hidden watch
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line, yes, a smart watch, michael kors for it's $1.2 billion access, jimmy choo suggest the business has a pulse. thanks to a combination of short covering and easy comparisons, michael kors is pretty even if i don't trust them what i do trust and recommend to you, gap stores with a stock up 32% this quarter company's benefitting from its closing of underperformance stores, and its name's sake change i've been behind this stock every since this winter when i needed casual clothes in san francisco and found the flag ship gap with bargains i can't believer i bought $200 worth of clothes and i have lived off of them throughout the whole summer. it's amazing what bargains and high-quality merchandise can do. right now boston morgan is pushing this one out
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wait untileveryone in the whol street gets behind it. it's not done. next up, the company also bemarble every time a car company pledges to go elect trick the stock flies. the stock went into high gear after volvo announced its intention to go electric fifth there's lam surge, we love this one it's up 29%. that's all about the internet. you can't make the conductors you need to power this machine stocks were heavily shorted coming into the quarter because a belief among any analyst that
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deviant shifts would probably roll over in price which didn't happen because demands for the conductors it's enormous another one we love, boeing. its showed its stuff this quarter when it soared 28% higher the orders are very strong most airlines are solvent including iran air which placed a big order, but most of it is in disbelief in part of the analyst that cover the stock it's the only large plane model that is doing well, but so what. you know what, it's doing it what i would say about boeing, there's still analyst who are fighting this. go listen to that last conference call. number seven, a fertilizer maker. i think it's purely the function that the psycho analyst come back to life the sharks were swarming on this thing earlier in the year they seem to be running just for
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cover. number eight, united rentals we had them on the show after the use of hurricanes. i think it's a best rebuilder of texas. why buy the equipment when you can rent it. the ceo made an acquisition of another company, naft, before the hurricanes hit naft's got a huge hit in florida and texas. it's better to be lucky than good but in this case united rentals are both lucky and good. we already covered number nine, applied. but this company has a good business making display, displays in machine that allows for all sorts of application let it cool off and buy. finally there's no irony here that rock well collins helped take up 20% for shareholders you have to pay up for beach
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front properties and rock well collins is few -- although a common theme was the expectation they wouldn't be doing well coming into the quarter which bought short selling which turned out to be wrong i think the most important take away is to stop focusing on trump and yellen, instead focus on fundamentals and you'll catch some of these. you'll do much better. michelle in oklahoma >> caller: how are you jimmy >> i'm so good how about you >> caller: i'm good. i'm a new subscriber of alert. >> we worked all weekend on it i hope you enjoy it. please read that how can i help >> caller: my question is i've noticed a lot of professional sports owners talking about investing in the new kind of
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millennial thing of arena east port >> oh its huge >> caller: i was wondering the best way to invest either in the hardware aspect, software or maybe a real estate, the arenas and stuff? >> no no, the best way is electronic parts, take two or because you're a subscriber to active alerts, so you know, activism blizzard. still more "mad money" ahead. want to know which stocks to investigate in charge around and a fast buyer action pack pure edition of the "lightening round. stay with cramer
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last week on squawk on the street, my partner david favor told me that hains she's travel the food maker is not for sale we know things have been difficult for everyone remotely tied to the supermarket space whichmakes seasons, garden of eden, valley, you know these brands the industry's cut very exceptive which is hurt prices for everyone still given the weakness in regular pantry foods it make sense one of the companies might want to buy, these guys had a
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different strategy lastly we came to an agreement with an activist called -- push through a broad base overall business, thanks to a deal engage is getting six board members and a company created a working booth figure out how they can bring up value. this is why i want so much to hear it from the horse's mouth with irwin simon, the chairman, president and ceo of haynes celeste ral. mr. simon welcome back to "mad money. good to see you. >> hey jim, nice to see you. >> david favor's right the company's not for sale right? >> let me come back and correct a few things we got six new board members with industry experience don, who has at nutrisystems walmart, a lot of experience coming on the board which is going to be very very helpful to the company and for me from an
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international standpoint so i look at it as six new board members for hain celeste ral company. >> these people didn't -- >> number one there is -- a friend of mine who used to say we got the secret sauce. there's a lot of great secret sauces and hidden jewels within hain it's not about selling the company but building for shareholder value and continuing to change the way the world eats we're a public company, every public is for sale there's a lot of things within hain that most consumer companies are missing. as i said to you the last time i was on i and the company went through a healll of a year >> even when the decline but you got a chance to get it back. >> even with the decline, some of that was fruit and vegetables
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in the uk some was our protein business we're committed to take up $350 million out of the next three years and commit to growth there's no too many consumer package goods within the food and package good area today that are growing and commit to growth >> when i read through the most recent conference, i kept thinking, okay they're talking about slimming down, cutting core brands, but i didn't hear anything about any brands there are for sale irwin, it doesn't sound like it's part of the core situation it sounds like it's business as usual. >> my father used to say you got to be doing something right when people are talking about >> it could be in a news in a way people are wanting to clamb clamber for your company >> we came through accounting view their shareholders that own
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9.9% why not -- >> you like -- >> they stepped up, they were very very smart, they bought the stock. in the 30s they stepped up, you got to give them a lot of credit, they brought great ideas. >> really, give me an idea. >> they recommended any board members. we want what's best for shareholders and continue to make hain a great company. jim, i have never seen so much change going on out there in the world. i was in europe last week and meeting with our team over there. whole foods, what's going on with whole foods and amazon, we're seeing some of the greatest growth. >> are you closer trying to figure it out -- we had someone from pennsylvania real estate investment and trust whose got a couple whole foods they're still not sure what it's going to look like out of amazon >> there's a lot of some good
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pieces of whole foods that was before amazon. and the pieces whole foods are missing, that's what amazon is great at i think the combination of the both of them will be great for the industry and listen, the whole foods/amazon deal woke up a lot of retailers, okay >> right >> that's what's great why is there so much talk about private labor, because the consumer package goods industry has done a terrible job on innovation of products >> right you said that. when i looked at it and what i was thinking was, okay, there are businesses that product label has done well in, maybe there's some thing you should get rid of not everything's growing equally. >> i look at this like a football or baseball team. >> this is guys you got to cut >> and that's okay listen, what is the next greek
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yogurt what is the next seasoning, what are the next clip. here's the new product in baens, you don't want to be buying beans and soups in a can we come out with almond milk, consumers are not drinking milk. >> no they're not. >> the good thing hain has to be on the front of innovation, new product, packages, sustainable >> so board members are embracing your strategies? >> board members are embracing my strategies but consumers have to be embracing the strategy they're the ones buying the products i get asked a lot of times, what's happening with consumption out there. there's so many companies today declining sales. we heard about this thing called zero base budge. >> right right >> let's cut let's cut let's cut let's cut.
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let's not invest back into the business hain has invested $50 million, awareness to drive household penetration on its brands. millennials are biggest consumer base millennials buy brands but you got to keep them happy with good pricing, value it's got three or four ingredients in it. >> i know. looks like you're staying the course and growing the business. >> like i say when your green you're growing, when your ripe you rot. remember, stay green >> like your tie i like that. irwin simon, chairman and ceo of hain "mad money's" back
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are you ready. time for the "lightening round." jim in new york. jim. >> caller: booyah jim. this is jim. i'm calling from the beauty nor fork eastern long island . >> it's so beautifully what's going on? >> caller: i bought this low pe a high-fielding stock. now sitting on paper gains down from 28% a week ago. is kohl's a hold >> it's a hold i think the yield is good, it's got a good business model. buy it if it goes back under 40, get some more. paul in texas. >> caller: booyah jim. >> booyah paul. >> caller: my stock is lois and company mmc is it a buy?
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>> i like this stock i think they got a got buy john in new jersey >> caller: hello jim >> what's up >> i found in the past your insight to finances has helped me with my investment decision >> that's all i can ask for. thank you so much. it's been a tough day and i appreciate that. >> caller: i'm calling about yelp it's a small company and an industry with a low bearish. it's got a pe 270 and a pate ratio of 21. 90% of the stock held by institutional management what do these people say that i'm missing? >> well, they just got rid of a division they paid a lot of money for by got a lot more money for it they own the sector other than what google does and i think the
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reason -- it's an individual company like zillow, it's unique and someone might want to buy to create a bunch of silos that work richard in california. >> caller: mr. cramer sir. >> yes >> caller: i built my first off in dallas, thank you for having my back along the way. >> thank you >> caller: it's a happy ending sir i'm retiring next month. booyah baby. >> wow >> caller: i if yfirmly believed commit to the best, i got shares and stocks for unit. >> i'm happen to have -- but a 6% yield means -- i don't want to try with that one that's too strong i'm throwing in the red
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flag that is the conclusion of the "lightening round. how'd that go? he kept spelling my name with an 'i' but it's bryan with a 'y.' yeah, since birth. that drives me crazy. yes. it's on all your email. yes. they should know this? yeah. the guy was my brother-in-law. that's ridiculous. well, i happen to know some people. do they listen? what? they're amazing listeners. nice. guidance from professionals who take their time to get to know you.
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normally i'd be worried by this but after being hit with the report i think you can buy them. how broad based is it. let me lay out the strong sectors i saw. first is the banks, i cannot believer how strong they are from first verz to key, break out, jp morgan, as well as fargo. forget a stronger number on friday second, the asset managers, block leaders with price stock the small brokerage. third, nothing's change about insurance except it's gotten stronger, led by the brokers those are car exposure in great shape as well. i'd say this is all about the storms we may be in awe of amazon, it always does well after tragedies
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like las vegas as people believe many will order goods online rather than shop in person or be in a crowd the dollar stores not only be able to compete with amazon they might actually be winning. next so many like others that's headed down before the storm, the auto parts place general motors upgraded again today. it is important to note this has a big component, which is what destroyed that pink awe though thesis now, oil han been able to rally above $52 a barrel and natural gas is going nowhere, so i'm surprised when i see these stocks doing well. i don't know what else it can say other than it can waiver it bounced off the ceiling again today fell down to 52.
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it's lucky, if it stays above 50, maybe things will work out remember our oil companies sell futures at these levels to pay for drilling budgets all of healthcare has been terrific of late but i think the medical device have in the meantime momentum. eight, the transport truckers and railroads are insanely strong i don't understand it. i have to believe it's because of the rebuild of houston and florida. otherwise we got to resume commerce has picked up this quarter. the home builders and home related stocks are vin an incredible month the rally in the builders is much more recognition of how well these companies have been doing for ages than anything new. katy homes number 11, anything
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semiconductor. it's just indiscriminate that goes for all the equipment makers too finally the cloud stocks deserves every shout out you can give them. the fact is i could have highlighted a half dozen groups, fang, ads, financial teches, ecommerce but they've been strong all year. i wouldn't get in the way of all these commerce, in my opinion with the the oils they're going to be climbing through the end of the year so stick with cramer for your heart...
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what is this? it's the new iphone, it's for our anniversary. our anniversary? it's thirty-four days since we first met. i didn't... get you anything. oh it's, it's fine 'cuz... i got myself one too. oh! from you, for me, happy anniversary. i love it. that is very thoughtful of you. thank you. get the amazing new iphone 8. and with all at&t unlimited plans, get hbo for life. less than $40 per line for four lines. only from at&t. no need to chase, there's still a lot of stocks coming down and those are the ones you probably want to buy this market is rotating furiously so don't feel you need to reach for anything. i'd like to say there's always a market somewhere i pronls i'd find it for you here on "mad money. i'm jim cramer and i will see you tomorrow
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>> 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 tank are erika welsh and keeley tillotson, college students with a business they created in their dorm room. hi, i'm keeley. and i'm erika. we founded our company, wild squirrel nut butter, this january as sophomores at the university of oregon. wild squirrel is seeking a $50,000 investment in exchange for 10% equity in our company.
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