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tv   Mad Money  CNBC  January 26, 2018 6:00pm-7:00pm EST

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great probability. >> time for the last call. carter. >> google into earnings. i want to be on the long side. >> mike. >> call spreads on google. sell them in bond. >> dan. >> what make you money.
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i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. >> now, i know the president is a place to do business, and threatening sanctions against unfair trade practices, but another way to do business with america. you can buy one of our finest exports.
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with the fact that the defense is the only thing republicans like to spend money on, no wonder this group has been so strong hopefully lockheed will say something. a modest company that cases a quick dip so you can get in. each quarter pfizer tries to come up with something new to intrigue us. abbvie is up $13 i wouldn't hold your breath if you are waiting for that kind of thing from pfizer. pfizer is like a utility we also hear from mcdonald's ceo has turned this aging hulk around to the point where it is now doing three times the
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same-store sales as starbucks. i think value is one part of the story, but the other part, the bathrooms are clean. don't laugh. after closing resulted of amd sent the stocks surging more than 10% can it break through this level? you bet as long as dr. lisa sue the ceo tells a good story and i expect she will. earning super bowl goes into full throttle. i have to hope that the short-term crowd comes out in force and sells the stock. or on the loss of a trading commission against bombardier which happened today i say you might get a chance to buy it because honeywell, the
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conglomerate reported today and gave you aslight miss. that was a buying opportunity as honeywell surged higher. all of the industrials are up today. a lot of it is davos a lot of it is the president i am pretty convinced that the one area i was interested about in slowing personal computer sales didn't pan out the rate of the decline is petering out and that is all that matters this relative improvement along with the strength of the data business allowed intel to strive microsoft wins with the pc and the data center. booming as your cloud business i expect a monster quarter facebook is a different story. get this, i think the social
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media tighten will put the estimates to shame and that is all that you are going to get that is good i expect management will trash their own stock by talking down revenues and talking up expenses and that will spook people facebook will open the selling window for their shareholders who work at the company and see some first class stock dumping from their top executives. even if the numbers are as fabulous as i am anticipating, the action is going to be mig nightmare. get a lot of thursday. alibaba and i don't care that it is over 200. either buy it before the quarter or wait until the usual morning down light
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we hear from the lee's, alphabet, apple, and amgen first i think alphabet disappoints. that is what hs happened over and over again i wish they knew some of their overseas buyback so be careful. be careful and i say that knowing. i see amazon saying it is going to build a fortune building a new headquarters apple, you have have i half dozen analysts who have hated this thing they will spin whatever apple says into a national fiasco. i am waiting for one of these
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bears to call apple a pittiful giant. i just got to get you ready. i am not glib to say there won't be anything wrong with the quart er there will be. even if it is perfect, analysts will make apple look bad i think it is ridiculous remember, the endless to contend with the fact that apple potential to give us a big buyback. they want the kind of growth you get from an adobe or vmware. apple is the greatest consumer product company of our time. happened to be powered by fantastic technology the ones who cover proctor or
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colgate, this would never stop singing praises. amgen, this biotech has a ton of cash overseas. my choice for biotech of the year right now and no time like the present to pick some up friday is oil day. we get results the first will likely be lackluster and the second unabashedly positive the super bowl earnings never let you down in terms of shear excitement i can't wait for the week to begin. oh, yes, also the game e-a-g-l-e-s! okay let's go to stan in georgia. >> caller: new york booyah to
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you. in keeping with your fundamentals of investing, i have shares in delta air lines over the past week or so, there has been a sell off and also reading some things that may be disruptive to that sector fundamentals so i am curious what you think about the sector and more specifically about delta air lines. is it going to be clear skies or turbulence ahead. >> i have got to tell you. i was on the call and it was clear that they are going to have a fair war. and if they have a fare war, everybody gets hurt. bad for business good for customer but bad for business tim in california. >> caller: booyah, jim i have owned ar conic since it
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was alcoa. and i have a two part question is the new tax code or rate going to help them or not? and also, they have had disappointing earnings every time i have had it and i just wondered if you see a brighter outcome. >> okay. i think it will be disappointing. why do we sell it? actuals are worth more than earnings do i think they will screw it up probably is it worth owning because of that let it come down i am in a truth telling mood today. let's go to curtis in north carolina. >> caller: thank you for taking the calls, how about those
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eagles and foles. >> what's up >> caller: unbelievable, man wide, wide world of rv. >> oh, somebody downgraded now, usually isn't much for thor you don't get to move into it. but they gave it to you today. an experiential story that lasts for years to come. super bowl of earnings i will expect major blowouts write them down, they are opportunity. on "mad money" tonight, up 10% what do drones and data centers mean for their future? do not miss my interview with the ceo.
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does fang have all the action? no, diamond bang energy. fang and we all know technology impacting our world. how does it impact our sports. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
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what in the world just happened to land research. on wednesday night, reported what seemed to be one of the biggest blowouts with higher than expected sales up 37% year-over-year. management gave strong guidance for the next quarter
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even though the stock opened strong, started in the afternoon and closed hard. we don't know why. i expect lam research mostly has to do with profit taking if it rallied rallied -- more ae quarter and where the industry is heading welcome back to "mad money." >> thank you for allowing me to be on the show today and belated happy new year for you. >> same. i came away with one thing is that we are early innings in data center and internet and things and just starting would that be a good take away >> i think that is a great take
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away we grew our company by 50 percentage points and now over an extended period we have grown the company. and that speaks to the engagement of lam research in a much larger scale and it speaks to the world of silicon in this data that we now live in extraordinary amount of innovation and that is the reason why the company is performing well and excited about the opportunity that is just ahead of us just beginning as you said. >> we are all conditioned that lam and whatever, that these are big cyclical companies giant cycles and good and bad. you are not talking about that at all you are talking about a secular growth story for you and your
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clients. why do so few people believe that. >> perhaps the natural consequence of the time it takes to process and internalize the scale of this technology inflection in the broader technology the reality is that there is an extraordinary inflection occurring in every segment of the economy, every aspect of our life is being influenced by this and silicon is at the center of that and so is lam historically, our industry with du dialogues units of pc -- today it is about content. cell phone growth single digit content growth for cell phone 50% per year data center instrumental now for
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the sustainability of silicon and for our business from the cell phone and the data center was a five to ten ratio, today it is two to one very exciting. >> so if we just want to deal with reversal in the stock, you so solved it you say there i hope there isn't skepticism i hope at this point we have a track record on delivering the kind of quarters that you get. no matter what you do there is going to be skepticism but i think it has to do with how far your sctock ran you have to expect the fact that your stock is a rocket >> at the end of the day our
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focus is on what we can control. to develop differentiated and enabling technology for our customers. our definition of success is to compete for broader scale and to win and defend with differentiated first year after we formed this new company, we had shipments that represented 14% of the spending of our customers of that year. last year 21%. this is a story of expanding our portfolio. that is what we get a chance to control and we trust that the evaluation is consistent >> your service stream which you don't break out to the level i would like must be gigantic.
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these are huge machines and no one can serve them other than you. >> an increasingly important part of understanding the economics and sustainability extraordinary about where we start in the ecosystem a business that is growing faster than the installed base a business that is profitable and to your point, a poor component to the quality of our earnings the serviceability to the oem is everything about our company. >> remarkable quarter, remarkable year, i congratulate you in delivering for shareholders thank you, sir. >> "mad money" is back after the break. (siren wailing)
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a little over a year ago, i joked this market was all about a tale of two fangs. there is the familiar fang, my acronym for facebook, alphabet netflix and google and now diamondback that trades under the acronym of fang. instability in major petroleum producing countries, diamondback has become one of the hottest stocks around. somehow fang, diamondback has turned it into one of the sexiest names. a monster 57% game from its lows
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last september nearly doubled over the past two years. how has diamondback company become everybody's favorite oil stock. diamondback is an exploration of production or enp company. now the permion has been red hot for years. attractive when oil prices were sky high and became more attractive after oil prices crashed it is much cheaper to drill there than in the backan, you get it that is why diamondback has been out performing for years and years. a lot more noticeable lately diamondback came public in
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october of 2012 at $7.50 a share. this is when the performance differential started diamondback was a still play on the still lucrative permion. from its peak in 2014 to the industry wide january collapse in 2016 when crude dips down to the 20s, diamondback only lost 40% of its value the xop lost 74% of its value o'er the same period since then the stock has surged into stratos sphere. diamondback now trading well above where it was when crude
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was over 100 bucks you might think that is patently insane, but the truth is that diamondback hasn't been sitting still for the past few years, it has been working if you only learn one thing about diamondback energy, learn this this company's earnings are poised to explode. earnings, actual earnings. even when crude was down at 71 a barrel -- company used the fact that used to its advantage during the downturn diamondback did a series of secondary offerings. $3.5 billi $3.5 billion with additional acreage in the permion including the $2.2 billion
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diamondback's production now 18 times greater than when the company came public five years ago. as crude was goes, the gains go right to the bottom line of diamondback, fang can rank up its drilling program in order to dramatically boost its production now they can turn the spigot back on. and remember, very few other countries had the bold designs to buy other companies when oil went down. fang is different. they stepped up to the plate and on top of that, wall street loves the story. investors shy away from companies they don't understand. the company only operates in a single region and even within the permion basin, they are focused on six core areas. you even the other domestic tend
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to spread their production diamondback is a clean story they don't have much natural gas. gas makes up just 5% of their production so you only need to keep track of one commodity the stronger one easy-peasy, lemon squeezy. company is only 39% hedge for 2018 the rest is 63%% hedge diamondback will be able to capture more of that up side than come petters. these guys seem to have a good handle on the market and hopefully start locking in these higher prices when they can.
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lower cash cost of any operator in the permion basin $7.60 cents per barrel that means they have the highest cash margin. costs expected to come down another five this quarter. the stock is cheap trades around 19 times this year's earning estimates that is much less expensive than apache or eog resources. if oil comes down, the estimates will too if you believe in oil, diamondback remains a different buy. sometimes the stock market makes sense. diamondback energy has caught fire as long as crude stays in the 60s, this company is in great
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shape. if you want to bet on a strong oil market, only one company worth doing it and that is diamondback. let's go to tyler in texas. >> caller: booyah. how's it going i previously used to work for a company chesapeake industry. i received a lot of stock 401(k) match. until it was bought out by another company. my question is i have a bunch of stock in chesapeake and with the fear of coming up and you know how the market, should i drop that >> here is the problem with chesapeake, it is a natural gas company. and natural gas doesn't have any growth so that stock sits at four
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and the other companies are equally under performing i don't mind you holding on to it diamondback has bite it makes a killing from these higher oil prices. if you believe in a higher oil market, this fang is for you much more "mad money." online gaming, i am investigating. from post it notes to aircraft parts, 3 m it can take you to new heights rapid fire tonight's edition of lightning round. stick with cramer.
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earlier in week when we spoke to the ceo of red hot logitech, he brought a plus one to us. you know, this is a big story. but i think it is under estimated and misunderstood to those of us in the older generation mark depi is the acting director of uci irving. if you want a career playing football, you go to ohio state if you want a career playing video games, you go to uc
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irving on wednesday, we checked in with depi to try to get our heads around the story >> this has to be huge now we are talking scholarships for these sports. >> absolutely. uci is one of the first to begin a scholarship program. >> what do you do? you have sponsors? >> our program is unique in that our great friends at logitech, we have this great lan center. >> tell me about who really is involved now and what it meant, what, ten-days ago, millions. >> there has been a ton of buzz around overwatch and we wanted
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to be a part of it so we started a scholarship this year our club team was successful we recruited them all to join us and our team has swept through this whole season. we are 16-0. top in the country playing for the national title, playing against uc san diego and uc toronto. >> so roger moore is not in. >> i don't think he plays -- >> anyone who thought there would have been at the time considered crazy do you think it is possible that there could be major nca esports? >> one thing that is unique about esports is the games are
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owned by companies and intellectual property had to be involved yes, it is possible to get into this but these games companies are choosing to own and operate their own collegiate leagues >> the factors you look for are popularity look for the big numbers the game has to be fun to play over and over. and easy to watch. compelling stories everyone is trying to build that game, build that next esports. it is not just blizzard and riot games, it is amazon and other people tryingto get into it. >> what about take two >> which take two? >> the nba two k.
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>> adam silver seems to like it. >> i am less bullish on the nba games, one, the viewership is not there right now. probably the 50th or 60th watched esports. and they take out the actual players and names and you are playing with nameless avatars. >> and league of legions >> the big fish. we have a scholarship team for that as well they are very successful currently ranked number two in north america. >> i have to ask you this. people who bought a stake in apple and think that apple isn't doing enough to deal with addiction of electronics it is a real problem is it the parents? are you worried? >> like any industry there are
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problems associated with it. we are not going to shy away from it and try to engage with the programmers. >> that is real problem. because it is about bullying, it is about inability to socialize and you are getting them together changes that. >> absolutely. and we are not just putting them in front of a computer and asking them for train for ten hours. we have a personal trainer, a psychologist >> women >> we don't have any women on our scholarship team if you take a snapshot at the industry, the women haven't gotten to the level yet. >> is there a way to support it so they do >> absolutely. the research shows that women are just as good as men, and early life socialization, and then you mentioned the online ox ift of bullying, the internet
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can be a terrible place. we hosted a girl's summer camp for esport and we are going to try to get under represented faces in esports. so we want to provide access. >> why is it geographically, san diego, you guys, why not florida. >> great question, west coast is the best our teams are so-cal based educated parents, a high-tech state and high-tech side of the country. people are growing up more comfortable with technology. >> so you are convinced it is not fad or a flash in the pan. people tell me jim, you are too excited. >> i am bullish on it.
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i think the internet has changed every industry on the planet and esport is the next level of competition. you play who you want, regardless of age, gender, you play at your ability level our expectations are changing with the internet. and esports. >> maybe i am too out there. that is mark deppe chief gaming officer of uci esports
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>> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire we'll play this sound -- [ buzzer ]
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-- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start with nadder in virginia. >> caller: love you, man best adviser on tv i got ford stock dollar cost average of $12.23. is there hope for me and i have a call option. >> i think it is one of the -- i don't think it is going to go much higher. they have too many problems. let's go to henry in pennsylvania. >> caller: thank you for taking my call. i have a question on two companies. ww granger and range resources. >> granger had a fantastic quarter and the other can't seem to get out of its own way. so i am going to say stay away
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from that one bob in new york. >> caller: big booyah from new york i bought maxim you said about three months ago, i am making a killing. should i sell it >> no. come on, man, that stock is doing terrifically i wouldn't sell any of that one. it is terrific mike in florida. >> what's up. >> caller: i want to know what you think about andeaver jim in georgia. >> caller: thank you for your advice huge help. my question is all scripts
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they got hit with ransomware attacks. >> the company is a slow grower. in that segment i like united health and centen. ali in california. >> caller: goldman just initiated coverage what do i do with valeant >> i would not sell that stock joe in new york. >> caller: what do you think about aks? >> the actual number is going to be okay this time. let's go to lee in wisconsin.
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>> caller: thank you for my call i want information in what you think about axon enterprises. >> we like it. it is taser. we like it and the stock is tearing and i think it should be it is right that it is this high and that is the conclusion of the lightning round. >> announcer: lightning round is sponsored by td ameritrade >> how are you mr. cramer? >> cool things too i have to tell you, never mind the hedge funds had their head spun not unlike reagan in a movie i still like. >> go eagles. >> this shirt is for you >> it could be a great revenge
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item too >> companies i bought -- going on today -- my stock is down -- all you do for us jim. had a coa. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum -- just to help you improve your skills. boom! that's lesson one. education to take your trading to the next level. only with td ameritrade. with the extra third rowr... of seats. they think it's theirs. look at them, they have no idea! it's not theirs. it's mine. mine. mine. mine. the new lexus rx 350l with three rows for seven passengers.
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are you excited about your baby sister coming? experience space for the unexpected with the rx l, part of the rx family. experience amazing at your lexus dealer. we have one to two fires a day and when you respond together and you put your lives on the line, you do have to surround yourself with experts. and for us the expert in gas and electric is pg&e. we run about 2,500/2,800 fire calls a year and on almost every one of those calls pg&e is responding to that call as well. and so when we show up to a fire and pg&e shows up with us it makes a tremendous team during a moment of crisis. i rely on them, the firefighters in this department rely on them, and so we have to practice safety everyday. utilizing pg&e's talent and expertise in that area trains our firefighters on the gas or electric aspect of a fire and when we have an emergency situation we are going to be much more skilled and prepared to mitigate that emergency for all concerned.
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the things we do every single day that puts ourselves in harm's way, and to have a partner that is so skilled at what they do is indispensable, and i couldn't ask for a better partner. you want to know what a great quarter looks like i mean like a fabulous quarter
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every earning system 3m puts on a clinic showing you exactly how it is done here is a company the analyst struggle with. it is a power house that make it is difficult to model. when 3m reported last night, a 6% organic growth. a lot of the business came from asia specific which is something the analysts seem to discount. so focused on the americas they simply don't understand everything that 3m has going for it r and d's spendings creates earnings faster. 30% of the company's sales comes from products that didn't even exist five years ago how do you model that?
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how do you predict all of the household products you are doing. it is the kind of stuff that would make a parent's day at least when you move a kid into a new apartment. so many companies are trying and failing to put the pricing increases 3 m succeeding in ways that are surprising the analysts tax rate -- reinvestment is life blood of 3 m but also higher dividends and buybacks now, even better management raised their buyback forecast from two to 4 billion to three
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to 5 billion in fact i think they increased the buyback because the stock keeps rallies. been doing this thing for ages my dad was a rep in philadelphia for 3m whatever they sold. and that could help them sell product to retailers for better packaging. i used to go with pop to his office on saturday retailers always run out of gift box and packages i remember 3 m came up with this thing called sashe n they put a beautiful bowl on it. it was so revolutionary that i
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dazzled kids in my third grade class for show and tell. you can go on ebay and click on it if you want to see this stuff. all kinds of new product to make a call or a sell on. it worked then, and it is still working now. stick with cramer.
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i've gotta say, i love the new place. oh thanks. yeah, i took your advice
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and had geico help with renters insurance- it was really easy. easy. that'd be nice. phone: for help with chairs, say "chair." phone: for help with bookcases, say "bookcase." bookcase. i thought this was the dresser? isn't that the bed? phone: i'm sorry, i didn't understand. phone: for help with chairs, say "chair." does this mean we're not going out? book-case. see how easy renters insurance can be at geico.com. industrials just won't quit. a great number from honeywell today and boom, the stock took off and took everything with it. next week is tech and tech i am worried about. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see
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you monday >> 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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