tv Mad Money CNBC March 9, 2018 6:00pm-7:00pm EST
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make you money 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 save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. what can i say we ran the gauntlet. this is a market where the main thing you have to fear is fear
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itself eventually, the positives prevail and we rocket higher s&p shot up and the nasdaq pole vaulted 1.79%. think about it all week this market was haunted by the specter of this cross the board tariff on steel and aluminum people were terrified. trade wars and instant retaliation that would cause our economy to collapse like a house of cards if you sold stocks while everyone was panicking, he made a big mistake. first we heard about a carve off for mexico and canada. i have to tell you, i called that and i have to say i said et president would be more flexible and i told you please don't freak out and don't freak out
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ahead of time. so many commentators have a tendency to get hysterical when something scarce them even a little always acting like this is the end of the world and do things can and do happen. in recent decades. only time the western world came close to ending was in the financial crisis in any other scenario, the chicken littles were wrong treat selloffs as buying opportunities. it works in february, and worked this week. and everything worked out, didn't it? think about that after the big rebounds, the averages couldn't punch through new levels everybody was worried about today.
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specifically the labor department's report. last month, we got hit with a huge selloff thinks to a wee bit of wage inflation. people were frightened that could repeat itself. instead we got a gigantic hiring number and now we have reached the end of the gauntlet. in short, we are backing gor goldilocks land. tons of growth and little inflation. the reality is that good things can happen too and when they do, we get terrific days like today. days where you have to be in or you miss the big performance let's go to the game plan next week where it will be coming at you from san francisco talking to the hottest names in tech the invest in america defining the future flight is back on okay on monday, oh, boy this is good.
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it is equifax. there was a time when nearly everybody felt this company's reputation would be permanently tarnished. but it turns out people have short memories and it went down to the 90s and i wouldn't be surprised if it went back to 125 where it is right now. there is forgiveness, that may not sound fair to you after that big hack, but it is the world we live in. established players rarely, rarely go down and stay down unless the g government themes down and jackie gleason always said and away we go nike and underarm our big
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suppliers to dick's. toys r us bankruptcy hurt them we can get a lot of color from dick's on how a lot of industries are doing dick's just stopped selling assault style rifles i wonder if that will have an impact on their earnings they will tell us. hd supply, we talked about autos peeking but how about the day-to-day businesses that make up the backbone of our economy wednesday morning we heard from cignet the struggling jewellers, this thing has been a met --
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mess signet is more of a finance company than a jeweller. so far we haven't seen the barest gli barest glimmer of a financial turn if signet can remember it is in the jewelry business, it may be ready to be rebound. i think it is early. i wouldn't make the bet. i wonder if williams sonoma breaks out it wouldn't shock me here is one that is a quandary can dollar general put distance between itself and the falling dollar tree. they posted a sub par number with guidance. i have more conviction in dollar general when we hear from them the stock has come down a lot in sympathy and i don't see the
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upside but i don't see the downside that dollar tree had. after the close, we get results from one of the most enticing companies on earth and that is adobe. and i bet it gives us a super quarter. what a remarkable ceo. as hot as adobe is, ulta is highs cold it is pretty good numbers of late, good for every other company, but ulta is pretty good they aren't enough to get investors excited. many worry that the amazon death star is now hurting ulta even if -- excuse to dump the stock. and maybe next quarter they
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here the manhattan store is going to be big tiffany's seems tempting finally we get analyst report from united technology putting up big numbers activists are circling i think ceo will be forthright about whether he too leads a break up boy, it has been a horse let's finally stop indulging the chicken little people. follow the fundamentals and use any weakness in these high quality stocks as buying opportunities because you believe in their long-term prospects. don't let all the picture doomsayers freak you out it has been a mistake to panic nearly every time. phil in pennsylvania.
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>> caller: booyah. phil from allen town, pa. >> where i used to live. >> caller: i held cell gene for yea years. >> let's think about monday, maybe tuesday, wednesday, that group has gotten hot but i can't endorse it anymore they pay a lot for an acquisition that doesn't seem to be working margo in california. >> caller: do you feel like the sto stock market is one big soap opera? i have too much stock in venator materials. the new drama is the mother of all fires occurred in their
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manufacturing facility unfortunately the cost to rebuild exceeds the limit of their insurance policy by over $225 million so i have two questions, will they survive this disaster and two, i am an action alerts member and i wonder if it will be good to sell off. >> i own 5% of acompany that made artificial and it was so cyclical, i couldn't take the run. if you are an ao plus company, i like dell dupont i would make the swap let's go to john in new york. >> caller: booyah. huge "mad money" guy >> thank you. >> caller: so i picked up
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crisper therapeutics just across earnings, wanted to know what you think? >> look, we just had the run of all times and if i were you, i would take a little auch as a matter of fact, you have had such a good move in that but congratulations on a really good call by you not by you don't sweat the chicken little stuff. i want you to focus on the fundamentals and use any week to do some buying next week promise me you won't panic on "mad money" tonight, clean up in aisle six kroger stock dropped after reported earnings. is it worth browsing or continues to be a scourge of the victim of a supermarket. i am focusing on the artist
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former known as taser. how is the company faring after its name change. a company you probably may not have heard of. 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. at fidelity, trades are now just $4.95.
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yesterday's disspiriting con forest call. it was a brutal ride down. the stock has been rallying on next to nothing. but kroger's problems didn't go away in fact it intensified the company fell 31 basis points with management indicating that it could get worse before it could getter supermarket business is tough. worst of all is when the ceo said and i quote, we are not going to lose on price that is the last thing you ever want to hear when the supermarket starts to peel on price, everyone in the industry loses the cost were under control as private label business was taking share, it was the best managed supermarket period
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end of story for the second time in two months, the whole edifice came crashing down. give you the line uttered by ceo john michael slotman and i quote our financial results continue to be pressured by inefficient health care and pension cost and some of our competitors do not face wow, let's think about that. that tends to happen when amazon moves into your industry and you need to spend a fortune retooling your stores so customers can buy online it doesn't help that kroger has one of the most heavily unionized labor in the group the plain truth is that a unionized work force is bad for shareholders for the life of me i can't understand why anyone thought
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this chain could thrive. a pair of two german cut rate grocers, needle and aldi i don't know how anyone convinced themselves that kroger's margins would be able to improve in that environment but they did a lot of investors were caught off guard which they saw these number i have to ask the heck do people think that would happen. walmart? they are no slouch, let me tell you. why do i call it faith base investing? because the conference call was so up beat you would have thought kroger was in great shape that is the only explanation i
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have for the sign off at the end of the call and i quote, with st. patrick's day and a big basketball game coming up. he went on to say we have to help our customers and have great celebrations and great parties and through our digital. too you think these analysts give a darn about that i will tell you what they are wondering about, mcmullen madness. if that is the extent of the plan, then i say give me another stock right now before the tournament begins. after kroger's total, you need to treat the supermarkets with
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caution. i rather bet on cincinnati's own xavier the stock of the cincinnati grocery giant? hard pass. more "mad money" ahead including the shares of axon are up 50% year-to-date. could it give your portfolio a jolt i'm investigating. can david beat gol lie yoiath i am eyeing a periphery space in the space. stick with cramer.
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>> we spend so much time focusing on the big picture. that we run the risk of missing out on phenomenal opportunities in the stock of individual companies just because they don't fit into the broader narrative. that is why i like to highlight terrific stocks that haven't been getting the attention they deserve. let's talk about one that i can't believe is not on fire amazing move of axon enterprise. aaxn it soared into the stratosphere last week flying up 28%. never heard of it? that is because it is the law enforcement technology artist formerly known as taser.
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how is a stock like axon rally and then tack on another 40% in the end of the week. all right. 11 months ago taser decided to change its name and that was a brilliant piece of foreshadowing. this come was synonymous with what used to be its biggest products, stun guns. taser is to stun guns as kleenex is to tissue paper years ago, the company started expanding. think audio recorders and body cameras and computer vision technology all designed to help law enforcement operate more efficiently and more accountability the side of the business has been exploding axon is the video brand. and last year, management realized that going forward, their business would be about
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the video brand. much more important than selling individual stun guns the company announced a bold new strategy going to shift focus from hardware to software axon said they were going to give away free body cameras to every police force in america that wanted them and many people were critical to this. but they were really embracing that business model we like so much once you like axon's hardware, you need the software to make it work trading hardware sales to higher margins to the software side for most of the last year, wall street had no idea to make of the story. could it transform itself to something totally new? rarely done until last week it
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seems the verdict was still out. axon stock was at $21.90 the last time we had founder rick smith on and it stayed stuck in the low to mid 20s for months. and then last week everything changed. axon delivered a stunning fourth quarter and suddenly wall street recognized this transformation needs to be taken seriously. i was a believer the whole time in the transformation. and caught 82% gain since the interview. it is becoming like a cloud company. let me break it down for you first of all, you need to understand that axon didn't suddenly become a better business overnight it has been in the process of transforming itself for quite
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some time and many didn't know this was happening the taser was a play on nonlethal weapons. in general the business was choppy some years were really good, and others were not so good. then taser started selling its stand alone body camera in 2009. and didn't catch on until tragic shootings. the police departments with body cameras get fewer complaints fast forward to last april, and rick smith announced the new initiative to give the body camera to every police
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department however for the first three quarters of 2017 it was hardly to detect this transformation in the numbers. many analysts were fretting that they were giving away so much hardware that they were giving away profits that was put to rest the company earned 13% per shares sales came in higher than anticipated. forecasting 16-day 18% revenue the big worry was that axon's free trial program was weighing too heavy on the company clearly that wasn't a problem here the most bullish thing about this quarter, it was about rick smith's new compensation package. listen to this smith is not getting a salary or
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a cash bonus or stock option like so many of the ceos that you think are being piggish. he is getting a performance award where his options will not vest until he hits specific targets tied to axon market capitalization the first -- the six-month average is a lot lower for each of the remaining milestones, smith needs to grow the company's mile cap by another billion dollars. if the ceo creates actual shareholder value, he will be richly rewarded. and if fails, he gets next to nothing. the stock has gotten expensive at these levels. trading at 100 times this year's earning estimates. given its growth rate or how reliable you look at the 2020 numbers and
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it is selling at 29% earnings. here is the bottom line of this incredibly exciting story. axon enterprise, the company formerly known as taser has seen its stock going up from 27 to 40 in nearly two weeks time and that is only because the numbers have begun to validate management strategy. i like this company very much and i would adore the stock on any kind of pull backs on any of these levels if axon gets slammed next week, its stock definitely belongs on your shopping list mason in california. >> caller: booyah, jimbo i love you today. >> great what's happening. >> caller: we are talking defense stock. how are these tariffs going to
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affect raytheon and things like that. >> a lot of people think raytheon ask going to be good on tariffs but bad on a peace deal with north korea the president is saying if you are a good citizen to us, we will give you an exemption my travel trust, club members know, owns it. steven in florida. >> caller: booyah, professor cramer, i've got a question about a cybersecurity company, okta does this company have leg as soon as i am a long-term holder. >> if you are a long-term holder, you are fine it has been a rocket ship and it doesn't make money palo alto nextworks, and sysco
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has a great security business. but you are in a bit of a speculative story. amidst big events happening, winning stocks are -- axon has been a beast there is much more "mad money" ahead. including my exclusive with a company. you may have missed it so do not miss my exclusive with gtt communications if the dog ate your homework, i did it for you and it can make you money. rapid fire in tonight's edition of the "lightning round" and a look back on the week that was stick with cramer.
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pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future.
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how long can a smoking stock keep surging higher. take gtt communication broad band provider with a twist. allowing businesses to connect directly through data centers. if you are embracing the cloud, if you need a private network, gtt is a company with a scale. what sets them apart is the business model they actually lease a lot of networks from other service providers and this low cost model have been allowing it to expand the stock has rallied over 1500% over the last five years 114% gain since we discovered it
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in 2014. how long can they keep it up in late february, we learn it is shelling out $2.3 billion. then again, betting against these guys has been a big mistake. let's check in with rick calder. and mr. calder, welcome to "mad money" good to see you. >> thank you >> you have been one of the great stories of this year and it is your first time on so kind of walk people through why companies like a royal bank of canada need gtt >> you did a segment about us in december of 2016 and said we were the best performing stock no one heard of. and we were at 27 then, and 50
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now. >> we love growth. what we like for you is we like your trajectory. you keep buying to be owning the space. >> we are about a 2 billion company now. we play in a market that is 300 or 400 building. billion. att is going to fight with the justice department to buy time warner media we think it is tremendous market opportunity. we think we can grow faster over the next 5 years. >> i am royal bank canada and you just mentioned companies are big and i say, i have to go with att is huge. and someone says gtt, faster, better, speed.
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>> we connect people across organizations around the world to the cloud we talk about the cloud, the cloud is a tremendous asset. most networks today were built when the cloud didn't exist. if you were an att or verizon it was proprietary. our network is built around the cloud. you want to get to the cloud, we will have diverse secured connectivity to every location that takes you instantly to any one of your other office locations with speed and agility. >> when i did the work on it, i think it is disruptive how can you make it so they are a better company >> we bought a whole series of companies over the years that weren't growing and aggregate. we have been able to combine them at our platform we see the same thing. just a story about enter route
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the ceo came to see me in september of last year just to say, let me have breakfast with you to understand that power in putting these two businesses together, we met for four hours. we had to order lunch because it was a compelling combination we were just so he can stasic about the combination of being the disrupter. >> there was a piece written and they are saying, gtt needs to increase their sales force -- in order to be able to achieve organic double digit revenue growth you need more salespeople? >> we have had the problem of outpacing the size of our sales force. we have been expanding and we will be expanding again we have competitors saying we want to come into gtt, we think
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this is the attractive banner to be a part of this stage. we think we can grow our sales force 250 and beyond in the next coming months. >> we have been starting to realize, that we are much earlier than we thought? >> it organizations, cios are saying i want to take my it out of my office and move them to amazon, azure, google cloud. they are saying i need bigger pipes. the bandwidth has to be secure, has to be secure i need someone that understands to get multiple lines to each of our offices. and we think we have a tremendous opportunity to take their share. >> people are saying look, they are not making money i say they are going for the growth how do you deal with the idea
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when they are making the money, give me a call. >> we are an incredibly cash core business. we take acquisitions and take charge with those. but we are a cash flow machine we haven't built all of the access we rented them from the players we have. we trade with 2,000 vendors around the globe and if you are an investors you look at our business and say, oh my goodness, what a cash flow. >> i am glad you pointed that out. if you wait for the actual earnings, you miss the actual. >> president and voechl ceo "mad money" after the break.
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it's time for the lightning round. starting with brian in florida. >> caller: big, boca raton booyah i own apache what do i do >> i screwed up on apache. i thought they had more oil and less natural gas i suggest you don't hold onto the stock either way a lot better ways to be in the oil patch. paul in california. >> caller: hi, cramer, this is paul from california thank you for taking my call tell me, cramer, just got if a few days ago tell yourian. >> it is speculative
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hayden in new york. >> caller: how is it going happy friday. >> looking forward to going to san francisco for a great week of shows what's happening >> caller: atara. >> i don't like to give people false hope that's all i have to say mitchell in new york. >> caller: booyah. i have been watching your show from high school and i have learned more from you than my school career. your opinion on ammarin. >> i am talking about a real speculative stock. you can lose what you invest in that one, and i am okay with it.
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chris in california. >> caller: love your show. this is about twld. >> this is jeff lawson and i think he is a terrific guy. now there business is booming. so i think it is a good situation. but they were volatile but it is good now john in florida. >> caller: john in florida. >> good to have you on the show again. >> caller: always a pleasure speaking with you. it has been flat for a while, what do you think of dina vax? >> i don't think that i can commit to it all the way up here tha f thank you for calling. and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade >> hey, jimbo.
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booyah i love you man >> hey, jim, always gravely to catch up. >> news flash, the sky is not falling. >> caller: i talk about you all the time my boiyfriend wants to know who is this jimmy guy. >> caller: we renamed our dogs to prime and boeing. >> i sleep in my eagles pajamas. >> slap the tax on bourbon sorry, not sorry tions. thank you. how many kids? my two. his three. along with two dogs and jake, our new parrot. that is quite the family. quite a lot of colleges to pay for though. a lot of colleges. you get any financial advice? yeah, but i'm pretty sure it's the same plan
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they sold me before. well your situation's totally changed now. right, right. how 'bout a plan that works for 5 kids, 2 dogs and jake over here? that would be great. that would be great. that okay with you, jake? get a portfolio that works for you now and as your needs change from td ameritrade investment management.
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every night i come here and take your phone calls because i am trying to make this the most interactive show on television and every now and then i get stumped by a stock i am not familiar with. it is a biotech company, and they might have something new and i can't say it is fine whenever that happens i try to do my homework bob in texas called about bgc partners it is the brokerage firm that
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spun off from fitzgerald back in 2004 now this stock took off like a rocket after donald trumpwon election 13 months later it closed at 17%. back in december, the company spun off its real estate services company little appetite for the ipo. tried to shell 30 million shares, instead they sold 20 million shares at 14 what is the issue? well they still own 85% of this business and worth less than they thought and that is what has been holding the stock down in my opinion. the fact is, the stock is now an albatross around bgcp's neck go buy the stock of goldman sachs. it is less risky
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next up, jeff from california asked about electro scientific, esto what do they do? these guys are part of the semiconductor manufacturing and food change. all about laser base manufacturing. semiconductors are so tiny that you need ultra small, ultra precise ways to manufacture and lasers are the best way to do this now this stock caught fire last year we have been hearing from everyone else in the industry, this field has been booming. the stock was roaring. but when electro scientific
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reported the stock sold off. the guidance was only okay and some people thought it was a bit light. these weren't bad numbers but investors got news to blowout numbers so the stock ended up being crushed under the weight of great expectations a feeling that was familiar. a lot of that also had to do with the market wide selloff still brutal could it be worth buying down here this stock is now in the opposition of being down 30% from its highs yet up 200% over the last few months. i am a big believer of semiconductor capital business place. this one seems unnecessarily risky to me. there are safer ways to make money. if you want a semiconductor equipment play, go with cramer faifs applied material or lam
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there are a lot of rumors about what broadcom might be doing and intel might be doing i like intel on fundamentals, it is worth buying. i like broad com on the fundamentals pre announced a good quarter do not buy that stock because of a take over, you buy it because you think it has a lot of good intellectual prompt. qualcomm is the hardest to value they seem so determined to stay inindependent. all of that said, if they can do $7, then it is not a bad stock to buy 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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