tv Mad Money CNBC June 11, 2018 6:00pm-7:00pm EDT
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volatility -- >> i want to know about the game tonight? >> i think it's pretty solid i think at&t is going to win that ruling. >> buy at&t. >> yeah. >> all right i'm melissa lee. thanks so much forching. see you back my mission is simple, to 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 today was a lot less placid than it looked.
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while the market certainly looked comatose, we're witnessing some tremendous break break outs all over the place. break outs that would be held back by the gravitational pull, yes, politics. that is amazing given the gauntlet the market has to run you can argue that rates have risen dramatically shout they be blasted? long the sector, like the housing group, they have been rallying like mad especially after the president's big g7 thblow up. obviously the market doesn't seem to care or it likes trump's action
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as for the earnings, they are positive even when they are perceived negatively, but what about profit taking? come on, what could counteract people ringing the register so natural? simple being off set by target boosts let's start with price target boost. they are impacting stock left and right. this morning an innocuous note from wells fargo about nike. i say innocuous, because it was about a meeting they had about foot locker. as the piece tells us, and i quote, foot locker believes that nike's -- that is good news for nike gave them cover. consider where the stock is already trading, 74. this analyst has used its.
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that doesn't matter. it really, the reasons irrelevant, a price target boost in this environment works. it keeps the ball in the air a natural moment for profit taking was arted and that is what happened today. here is one that this one is priceless. not the jewelry, but it is priceless. signet even though it had been written off and left for dead, it's old management as a lender rather than a jeweller. but that changed taking over and start executing a turn around over turn around and then signet, guess what they
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did, raised the price target from 38 to 51. got caught on the wrong side of the trade. just like nike i predict ma number bumps and price increasing down the road haven't gotten their butts together yet i think these retailers and apparel companies have still good days coming excellent numbers after the bell from rh, restoration hardware up five points which could go further. and dave and buster missed a slew of numbers but not this time and urbano outfitters incredible numbers price target bump, price target bump and price target bump
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okay, until week ago, everything allergen did suddenly analysts who tried to slash their numbers,nd themselves on the wrong side of trade. that is self fulfilling, sometimes the price targets stay the same, but instagram not facebook itself could be the primary driver for the kingpin key is using big numbers for instagram and it would make the story more compelling, so the story pops a couple of bucks here is the thing, every stock that is broken out to new highs, it is a candidate for a price
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target boost i think united health is due for one tomorrow i think estay ---este lauder is due for one. put it simply, these analysts don't want to get left behind and that is what will happen if they don't start raising their targets now. we knew the cruise stock where is pull verrizing after morgan stanley. now the stock ofthis once popular groups have stabilizes typically, the analyst keep out of their foxhole and say, ahh, i can say something. and another example is eli
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lilly, not long ago, it was the clown of the game. lately, it has been sneaking up for no good reason, jpmorgan couldn't resist. saying lilly was one of the best positions of the group could have been done points ago. lilly has many different assets. even though diabetes franchise is challenged, it is now regarded as adverse. jpmorgan where were you in 76. okay, you don't wanto sell an under performer like allergen if something strikes. a letter from elliott manager talking about how it should
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unlock values. on that letter, what do you think happened how about a 15% surge. can u imagine if you sold sempra friday. and that bid looks like more and more it could succeed given that athena ceo resigned. i can tell you that running a full day corporate conference last thursday, you might want to assume might be getting targeted at this very moment. here is the bottom line, there are many reasons why a stock market that you think should go down as many people felt last night doesn't go down and most of them have little to do with trade. you should be thinking positively, and not negatively there are too many good things
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that might happen to justify getting too pessimistic even though i acknowledge that the stock market is overbought heaven help those who bail the day before the activist strike and send your stock to the moon with a letter. mitchell in illinois >> caller: hi, jim, got a question about kinder morgan it has been a dog since cutting dividend the canadian government announced it is buying kmi pipeline for $6 billion which should leave the company debt free, how will this affect the stock and when, is it a buy now? >> well, you know, i don't care for this group i am putting a talk about that includes the problems that are involving the group and a lot of them have to do with the fact
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the balance sheets are so bad and i have got to tell you, i don't think the balance sheet is nearly as good as you think it is when it comes to kinder morg morgan i can't recommend the stock. it will not be left debt free. peter in new york. >> caller: mr. cramer, do you consider whirlpool to be a best -- >> no i do not it continues to not know how to execute. i think they make real, real good washing machines much b, bm about real good stock prices and they don't have it on "mad money" tonight i am comparing hp and hewlett-packard enterprises. this guy is a two timer, not like that, i'm talking about
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jack dorsey's work at the helm of twitter and square. and the number one player in the cash manager industry. could it be the number one player in your cash property folio, what is ahead for breaks, stick with cramer. tweet me @jimcramer. >> 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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and hp enterprises printing, well, i mean, total commodity. the whole point of the deal was to free hp enterprises from hp inc. hp the idea that hpinc, well that would have got you laughed out of the room. fast forward to today, and you know what, that is exactly what happened not only is hp inc been a growth story, but hp
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enterprise has a laggard it is like the movie "trading places." except without the big finale. i pointed out the irony in the situation, the latest quarter hammered the idea home at the end of the day both companies reported solid results yet hp enterprises lost 10% value. while hp inc surged up hp enterprises is still working off the expectations that it had since the break up hp inc came into the world the beneficiary of low expectations. nobody thought it would do particularly well, the numbers started surging up dramatically
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and the stock caught fire. hp inc came back to life thanks to the resurgence of the computer business. everybody assumed the pc was in secular decline thanks to the rise of smartphones and tablets. the pc market is enjoying a bit of renaissance and in fact, the industry is growing again. hp inc has done everything they can to capitalize on it. you know, because you have seen t i am very proud of what i can do with this thing i can't write on it, well, whatever put it all together and the company's pc division went shrinking to growing at 11.3% clip last year and that is where things went right for hp inc
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but where did they go wrong for hp enterprises it might be more accurate to describe it as a complicated spin off one that i might indeed struggle myself to understand hp enterprise itbyzantine is complexity forming a new company called dhc technology and then they snapped up many of these moves made perfect sense but left with a frankenstein monster of moving parts. the old meg whitman who we shouting the world of, investors willing to take it on faith that she knew what she was doing. after all she was the architect
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place. break up in the first but earlier this year, she stepped down and that changes thing. without a clear strategy and a oven leader. meanwhile, the guy is a great understanding of the business, he has a vision of where it should be leaded he is a leader, jovial and as hay vision fast forward to late last month when we got the report meg whitman, first post results, wall street was not. and then added quote, we see a more challenging second half even though neary said the company would be able to hit its
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target, the stock still got crushed. hp inc repd beer inline earnings hp supposed to be the dividend stock hp inc was supposed to be the slower grower. and no wonder hp stock wasbeatip enterprise hp enterprise sells for ten times those numbers. and i never thought that hp enterprise would have a lower multiple than hp, but it does. at the end of the day, hp inc remains a steal given the double
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digit growth hp enterprise is meant to be the golden child and hp inc was meant to be the after thought. but it is the other way around i would still be a buyer of hp inc here, that is how great wiseler and company turned out to be. frederick in minnesota >> caller: jim, hello, thank you for all you do for investors out there. >> thank you. >> caller: question about lamb researcher they did a special dividend for whatever that means, down another seven% this month. do i pull the rip cord or not? thank you. >> this is a great question. and to be fair, it's very difficult when bad things happen
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to great companies and that is where i feel like both with lam and weld be talking about applied materials. these are fabulous companies but people are worried about the end markets and the end markets are worried about micro digital, and worried about micron let's say the msemis are the wrong place to be if they involve d ram and flash. i am not going to tell you to sell lam down here, it is too cheap. hp enterprise was meant to be the golden child, things there are changed. i want you to consider buying hp inc, much more "mad money" including my take on wall street r renaissance man. giving jack dorsey his due
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for years, i have mercilessly mocked jack dorsey, the ceo of two publicly trading companies twitter and square i would needle him about being a ceo is supposed to be a full-time job. how can someone run two separate companies at the same time, right? i like to call him a part-time ceo because what else do you call it? i wanted him to run either
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twitter or run square. but not both and you know what, i was dead wrong. that's right jack dorsey has been doing a dynamite job at both companies and i have got to tell you dorsey deserves a lot more credit than he has been getting. both twitter and square have seen their stocks double they are both up more than 17% now look, i stand by my belief that it is crazy to run two separate companies but there aren't enough hours during the day to do them justice. but jack dorsey has pulled it off. so if this one ceo can give you a 72% gain in twitter and 77%
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gain in square, what can we learn from him doing this seminar on wednesday for action alerts for club members and i have been thinking about this so we got some valuable lessons here, let's take them one at a time dorsey may be able to handle jumping back and forth but for us mere mortals. after we learned there would be replacing monsanto in the s&p 500 last week. two years ago twitter was a troubled company and one that was run by -- abuse someone or overwhelm them with spam nobody likes an unpleasant experience so the company struggled to grow
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its active user basis. this is when dorsey realized we need to clean up the platform. the most objectionable comments get buried at the annual meeting a couple of weeks ago, he explained how twitter is learning. and he did it, hcleaned up the platform at the same time twitter finally figured out modernization. for example, they started a data license business where they organize your public information in real time to make it easy for the public to consume. i think the former cfo deserves a lot of credit too.
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put it all together, the margins are so much better, it is staggering so how about square? this is more of a straight up growth story square started out making these credit card readers, but since they expanded, they lend money to their clients and why not they know exactly how much money these businesses are bringing in, they are in control of the register, so to speak. basically, square gives the small business clients cash advances inexchange for flat rates for credit card sales. and square didhe same thing, maybe just running both companies at the same time gives dorsey some sort of strange edge and i think dorsey deserves
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credit for hiring sara fryer he pretty much gave fryer a mandate to do her thing and create value and it has worked out very well for square shareholders in the very low teens, i learned of sara's incredible work. and we went positive on the stock. you may think it is unfair that i praise dorsey for work being done by subordinates but the guy knows how to hire and how to delegate these are fantastic skills the lesson here, not every great ceo needs to be a micro manager. as long as your cfo is making the right decisions. let me offer jack unsly stated
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advice i know i gladly would pay 15 bucks a month for tweet deck which is a must have who ever does that other than something that is really good. other than spotify, netflix, costco i have only one piece of advice for square, please, jack, stop talking about bitcoin. look, i know dorsey is hugely into cryptocurrency. but ever since square announced it would roll out a pilot program, its stock is more on a play of bitcoin.
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this is such a tiny part of square's business and the r itany has so much going when you talk about this often enough, square is not a cryptocurrency play. but there are days when it does seeming to trade like one, that's crazy the less square talks about bitcoin, the less control the company will have over its stock. despite all the doubters, including yours truly, jack dorsey has done an amazing job of running both twitter and square at the same time. i would be wary of buying either stock. we managed to get behind square and behind twitter congratulations, jack, on a job well done. let's go to wendy in george
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georgeorgeia >> caller: this is wendy give a shoutout to jade and -- >> who is the other one? >> caller: boo i am calling about etsy. >> etsy is a few blocks from where i have lived and proud of what it has done and josh silverman has done and he has been incredible and etsy is such a great company and doing so well and everyone keeps saying -- no, etsy is going higher and higher. and i love the kids. i am like, are you kidding, you want a picture with this loser i want a picture with you. twitter and square have made
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monster moves and i am giving credit where credit is due kudos to jack dorsey i am revisiting a stock i recommended a year ago, don't miss my take on brinks and rapid fire, tonight's edition of rapid fire. stick with cramer. with the new chase ink business unlimited card i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about the details. fine, i obsess over the details. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase.
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never estimate a company run by a company who takes control of their own destiny i recommended a company called brinks at the time the stock was coming off a monster run higher as the activist its starboard value had brought in new management team that was breathing new life into this 180-year old business sure enough, brinks continued to rally. climbing from $67 up to $88 in
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january and then the market peaked in january and brink's stock got slaughtered slinking back to 66 ceo pertz was not content to watch its stock languish brinks got its groove back they snapped up an outfit called dunbar wall street liked it so much that the stock of k was catapulted that action is highly unusual. instead we got a truly explosive rally. when we see such a stunning move we like to dig deeper in order to figure out the move makes sense. so now the brinks is back up to
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80 bucks ng us a 20 point gain. what should we do? let's catch you up on the original thesis. a year ago brinks a turn around story this stock was stuck in neutral. the active investors stepped in and they brought in the new ceo and encouraged him to improve the company's execution they have savfe s that count yor money. one more thing, last year i speculated that brinks could be a self of state legalization of marijuana. somebody is being hired to watch
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over vast numbers of cash generated by the pot business. and this is going to boost this company's bottom line because rates go higher. this is attenuated enough that i like it. by this time last year, brinks had become a consistent operator but still wasn't getting perspective reserv why did the stock lose momentum? after brinks delivered another blowout quarter investors got wise to the fact that this is a much improved company. when the company did precisely that in october, the stock started selling off. brinks is a stock that run up
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into the quarter the numbers were strong but weren't strong enough to justify the newfound enthusiasm. in january, brinks acquired an outfit called roto van the company told us they were looking to do more deals even they this was a small transaction, the stock surged 11%. a the stock got slammed again in february as the market rolled over and then brinks reported brinks gets 77% of revenue from outside of u.s stock has been pounded by fears of escalating trade war. fast forward to late april and the company delivers a decent
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quarter. fly in the oimt, the expenses seem high. when you have one of these two numbers, either better revenue or better earnings and it sure hasn'thelped that the activist at starboard have been selling a position here as they ring the register on what for them is a terrific long-term gain and that does mean from here on, the story is about brinks alone. and there is the stock, bouncing along the bottom at 68 and management shocks it back to live on may, three 1st the31st e the acquisition of dunbar. within the united states brinks is the second largest cash play, and dunbar is number four.
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and the combination will make this company the top dog worldwide. how about the numbers? brinks expect the deals. it might take three years to get there, management believes dunbar acquisition will be added. considering the brinks should earn about five bucks and change next year. anticipating some substantial tax benefits rather than being a broken momentum stock with what has become, this thing fueled into an acquisition wouldn't it be chasing to buy the stocks at this level brinks is still selling for less than 15 times earnings estimates. even after this run. if you are buying here, something that plenty of
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experience with and deliver on those numbers but brinks is less attractive here at 80 than what i recommended at 66 in july now the turn has happened and you are banking on management take-over acumen at this point, i think the team and brinks deserve the benefit of the doubt the stock has been a wild trader and as much as i like the dunbar deal, this thing can be more attractive than a pull back. i think you can buy some here, just in case you don't get that pullback and then i would wait for the weakness before adding to the position to what i think is a pretty exciting story stick with cramer.
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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 you tell me the name of the stock. i tell you to buy, buy, buy or sell, sell, sell we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money."
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start with todd in california. >> caller: hi, mr. cramer, my stock is discover inc, do you think it is undervalued. >> i do. i think via com is undervalued not kidding. let's go to levon in florida. >> caller: booyah from the cramer cadre >> love the rank-and-file cramer let's go >> caller: sens. >> it is like a $3 stock i don't know it well enough. i like abbot we are going to come back. joe in new york. >> caller: thank you mr. cramer for all of your practical advice and knowledge about stocks.
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>> thank you >> caller: ie got a good question for you it is about the stock adt. since it spun off from apollo global management, the stock price dropped to seven so i bought some and think it has a lot of potential. >> disagree. disagree i think it is a disaster i mean, they put it together some other companies and loaded up, and probably have to take it private again. it is pathetic don in florida. >> caller: greetings i sold have my position and invested in abmd both of those are great. steven in florida.
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>> caller: booyah from boca. long time listener calling about l brands. >> good number from urban outfitters, meme may take that stock to 40. but at 40 cha-ching, sorry dan in new york. >> caller: thanks for taking my calling. i would like to buy more of screaming hot adp. >> carlos rod drigz torned out to be amazing. th is the conclusion of the "lightning round >> announcer: lightning round is sponsored by td ameritrade coach. ooh. so, why don't traders have coaches?
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how the heck are we supposed to makes sense of the president's trade policy in other words, why didn't stocks get slammed today even though president trump had a trade blowout with our allies. what does it mean to anger the allies that they feel compelled. here is my hypothesis. the president doesn't care for
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many of these leaders. in his view, the united states has been propping up europe for decades. the cold war is over, so why have a cold war policy, this isn't my view, but trump can't figure out if merkel or putin is responsible. unlike the germans, russia has no equivalent of bmw or mercedes that they are dumping here they don't compete with our manufacturers. the russians can help keep down the price of oil, what can the germans do for us? and he would probably say nothing. that is how the president thinks the president hates the idea of any sort of power equivalence. he can't stand justin trudeau.
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okay, when i was a judge on the apre apprentice, trump tried to pit one contestant against each other. and he fired the loser, but felt bad about the firing he doesn't look at it the way we do we are not trying to win the nielson's overnight like he was back then or trying to win the 2020 election as he is trying to do contestant mnuchin held on for a while. what is the end game with china? my best guess is this is about
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intellectual property. mostly like happen by the end of this month that's right, by the end of the buy any american companies of any size how about the end game of germany, to me, it is only about blocking the cars in the u.s i know it seems impossible to regulate, but he might say you have to pay more than 10% on a me mercedes or bmw if not made in the u.s. out larry kudlow to sa is an optimist and everything is fine judging from today's positive actions, there are plenty of
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investors that clearly aren't worried about these things and some think trump is dead right about these things at the end of the day president trump thrives on chaos and that is the world we are in now can it be that simple or simplistic you bet it can stick with cramer. as the nation's leader in energy storage we're ensuring americans have the energy they need, whenever they need it nextera energy. yes or no?gin. do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time the rm, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards
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e*trade. the original place to invest online. with the new chase ink business unlimited card i get unlimited 1.5% cash back. it's sime, i don't even have to think about it. so i think about mouthfeel. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase. but we should be seeing ymore range of motion., i'm fine. okay, well let's see you get up from the couch. i'm sorry, what? grandpa come. at cognizant, we're uniting doctors, insurers and patients on a collaborative care platform,
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making it easier to do what's best for everyone's health, every step of the way. you may need more physical therapy. ugh... am i covered for that? you may need more physyep. look.py. grandpa catch! grandpa duck! woah! ha! there you go grandpa. keep doing that. get ready, because we're helping leading companies see it- and see it through-with digital. after getting blasted on twitter all weekend. it was gratifying to see thank you for the rest oration hardware call. it was right and believe it or not it can go up even further. i like to say there is 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 you tomorrow
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♪ >> narrator: in this episode of "american greed"... vanity and death in the cosmetic-surgery underground. >> when you're a hustler, you know how to get money. you know what i'm saying? and i know how to get money. >> narrator: this hip-hop model, famous for her physical assets, works with a provider of silicone butt injections. together, natasha stewart and tracey lynn garner sell body enhancements to a young woman for the ultimate price -- her life. >> this was a very barbaric procedure that should have never been performed. >> narrator: and later, chad livdahl is a doctor who develops a botox knock-off and distributes it to more than 200 physicians nationwide. >> he had it in the palm of his ha
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