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tv   Mad Money  CNBC  September 13, 2019 6:00pm-7:00pm EDT

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set up into earnings nicely selling october, buy november. upside calls. >> "options action" catch us back here next friday, 5:30 don't go anywhere because you know . 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 cramer i'm just trying to make some money because my job is to educate and teach. call me at 1-800-743-cnbc or tweet me @jim cramer what kind of self-decembstructi maniacs want long-term interest to go higher, how about the kind
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of maniacs who invest in the stock market nasdaq, declined .22%, you got to remember that rising bond yields like we got today and much of this past week, make investors feel more confident about the economy. when you see the yield in the benchmark moving higher, it makes you feel like we can avoid a recession. regular viewers know i think the fears about recession are overblown. if anything, we have had a mild slow down. we could reaccelerate if the federal reserve keeps its strategy of cutting rates. why didn't i buy the argument the recession, because their whole thesis was about the bond market itself. remember the inverted yield curve when long rates went before short rates, they told us that was an infallible sign of slow down. i thought it was a false tale. i told you that. treasury yields, our rates are
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so much higher than the rest of the developed world. you had tons of foreign money flooding our bond market pushing prices up and yields down. now the smoke is cleared, and it's feeling more placid last night i warned you not to become complacent about stocks i feel like investors are bidding up all sort of stocks that shouldn't be rallying at the same time. however, we had some, today, meaningful profit taking, notably in apple, after a research firm cut its price target and earnings estimates off an issue involving apple's entertainment offering apple strenuously denied that estimates should come down like that people didn't care, they kept selling the stock. also the giant got hit after reporting some slightly, i would say ever so slightly disappointing numbers. the stock lost ten points to a level that i find interesting. i admit i might be premature, more on that later when we play
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hostage, no hostage to china all in all, i'm concerned about stocks i worry that this market won't be able to maintain its rosie hue with the banks, cyclicals, all moving higher, when we have a difficult fed meeting staring us right in the face next wednesday. let's go back to the game plan, next week starts on monday, hear more about the la memented we wk ipo. it has me a little spooked the market can't seem to bear even $15 billion evaluation for a company that was valued at 40 billion. this whole we work deal makes me nervous. when you have an ipo that can't seem to find aprice low enough to bring public, wait a second, maybe you shouldn't bring it at all. i mean, if we were that desperate, why the heck would anyone want to buy the stock does this stock have the power
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to knock down the whole market that's the thing about ipos, they have a nasty habit of leaning over to the market let's see if we can price the darn thing, maybe around $10 billion, that might be the level where the mill stone won't drag down the averages, given there's seriously positive revenue growth, maybe some can stomach the losses at a low enough valuation maybe. tuesday, after the close, we hear from two super important companies, fedex and adobe the last time fedex reported management, they had some negative things to say about trade with china, because of the trade war. i think this company has a better handle on the global company than the federal reserve or the commerce department or the white house. not when you consider the trade tensions there's a stock down 11% from its high that's a rare discount i'm betting adobe will deliver a strong quarter, and that's the most robust part of all
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technology speaking of robust tech, z sailer, the cloud based cyber securi security company is having an analyst. the ceo said it's taking a little longer to close big deals. wall street interpreted that as being competitors impinging on its territory, and caused the stock to crash with the pit action actually devastating the entire group the whole cyber security cohorts crumbling, which i thought last night told us a great story on the first show we also get macro figures for industrial production. i am hoping at least for the bull's sake that they will be weaker, weaker than expected because on wednesday, fed chief jay powell gives his latest pronouncement and he needs as many weak numbers as he can muster if he's going to justify a rate cut i don't envy powell here
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on the one hand, he has the president calling him a bone head for raising interest rates too quickly last year which slowed the economy to stable off the phantom of nonexisting inflation. you know i thought powell did a bad job on this. i wouldn't call him a bone job well, i did and now it's the president, and he has a bigger office than me if powell eases he'll temporarily satisfy the president and look like he's selling out the fed, which is supposed to be independent unless he has less than robust numbers to back up the move. if powell doesn't bust, something that's still very very possible, then the slow down thesis becomes a lot more credible and palpable. i know earnings reports will be a side show because it's all about the fed. general mills has been one of the hottest food stocks this year, and it's an astounding 38% and that's because of some terrific execution by ceo jeff harmanick. this is not the kind of stock
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you buy when bond yields are flying higher. if powell dldecides not to cut, they will be all over any media outlet you can find. general mills has a 33.6% yield next up, darden, that's the parent of the cramer fav, olive garden, it's been one of the best performers out there. you wouldn't get the move if the consumer hunkered down, worried about a slowing economy. fedex with world trade darden gif darden gives you a great read on the state of the average american, going home, out to dinner, i know i will be listening. they have been doing a lot of stuff request takeout that's very technological finally, while there are no earnings of note on friday, i think we might be due for a trade update from the president. he has been prone to offer views on twitter about china in the afternoon. they have left us puzzled, if not stunned and i have come to
quote
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dread the tweets about trade on friday all i can say is you have now been forewarned. we have had a monster good week, it's been on a real role i want you to, i've got to guard against complacency, we have a fed reserve meeting next week. if jay powell can't find a way to thread the needle, and presidential pressure simultaneously, this market could have a very rough go of it, next week. let's go to noor in georgia. >> yes, thank you, mr. cramer, thanks for taking my call. >> of course >> this one is on drrk. pepper,s it in line where you think it should be. >> i like the stock. i like the stock very much i think that gam gordon is doing a terrific job i would buy any week, one of my favorites, and not just because i like diet dr. pepper as everyone knows on a late friday
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afternoon. the market is going to roll, but you got to guard against complacency. things may not go the bulls way on wednesday wondering which companies are controlled by the trade talks with china i'm going to play hostage, nonhostage, and didn't leave investors on the first day of trading. i'm going to give you my take, and school is back, and in session. you know what that means home work is due i'll turn mine in tonight, and let you know which companies are making the grade hey, there's a couple of bargains, so stay with cramer. >> don't miss a second of "mad money", follow @jim cramer on twitter. have a question, tweet cramer #mad tweet, send jim an e-mail at madmoney@cnbc.com or give us a call at -800-743-cnbc. miss something head to madmoney.cnbc.com.
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what's the next move for investors, the week's first trading action "squawk on the street," monday 300 miles an hour, that's where i feel normal. having an annuity tells me my retirement is protected. learn more at retire your risk dot org.
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now you can know who's on your network and control who shouldn't be, only with xfinity xfi. simple. easy. awesome. let's play a new game. let's play i call it hostage
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versus non-hostage as in which companies are really hostage, and which ones do we assume are hostages. i'm going to start with hostage or not hostage, geez, i don't know, okay, the company's going on record saying china only accounts for 5 to 10% of their business nobody cares, no one hears them. oil is more important than the people's republic, pipeline construction, they're more important, yet cat stroke trades like it's hostage to china no matter what, and it can't seem to shake it. nobody seems to care a run from 115 to 132 based on trade talk hopes with more hope and an imminent deal on the horizon, cat stock made up for yesterday's losses and then some today. big move i say let's say cat's totally hostage despite the that is correct it shouldn't be hostage
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at all can't swing it can't shake it no matter what. what's not hostage wells fargo, thanks to the rise of ets, these two stocks trade with the rest of the banks which people think are hostage there is not enough individual stock picking in the group anymore. dea definitely not hostage these two. they are both opportunities down here, versus the compatriots even though those connections are really tailless. deer, hostage. i think right in the cross hairs of the trade war, if you don't have the chinese buying the crops, farmers won't have enough money to buy gears 3 m, totally hostage, you cannot get a rally in the stock without a turn in china. too much isn't working in 3m, after the presentation this week, i would argue analysts have to cut numbers. this one is dicey. not nearly as hostage as people think as we learned last up when they reported, because its
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recent acquisitions, ca and semantic have diversified the business away from china knows what can happen if you're too late to china like we're seeing with sky wear solutions good place to go down 10, i say start by using a wide scale the cloud kicks block vm wear, workday, not hostage this is china. pvh, calvin klein and tommy hilfiger, hostage. they will get hurt by the tariffs. the gigantic purchase of mad money friend of the show, manny churico, the two companies linked with ailing department stores like macy's, so his buy might be idle but i don't believe that idle insider bias nobody knows more about the company than manning no reason to buy it here had to move on the inside buy
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news hold it though, nvidia, named my dog after it, no, they did not name the company after my dog. nvidia, hostage, it needs this deal to close, and the chinese haven't checked off on it. if they do get melanox, it makes for the internet of reach out. yeah, hostage. what about semis like zylex, hostage because so many sales depend on china's a 5 g build out, they have told you they diversified away from huawei by the way, they're killing it with samsung, which is why that stock has been so strong most companies that did business with china haven't been able to get out of china with the speed of hasbro or rh. it's easier to move furniture
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manufacturing to another country than it is high-tech component construction or assemblage, and even a small amount of china exposure can hurt a tech company. cisco has very little chinese exposure but was enough to last quarter, telling a nonhostage story that people thought they were hostage why do i go through all of these examples, you better get used to playing hostage, nonhostage, because i don't have hope for a swift resolution to the trade. earnings season is around the corner, and i expect pre-announcers, precisely because for many companies, china is still a major source of growth, and it can't get out of there fast enough to escape the impact of tariffs. you need to figure out who's a hostage and who's free and get clear before we get to earnings season
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the market is trying to stabilize. we had a strong week for the dow, investment bankers are coming back from summer vacations and see another wave of yearly anticipated ipos you have post mates and of course this we work, i'm sorry, the we company coming soon the thing about this stage of the ipo cycle is you're getting lower and lower quality merchandise. sooner or later the market will notice that's what happened yesterday morning when smile direct club came public. this is a dentistry company, rather than going to an orthodontist over and over again to get braces, you can get a remote appointment on your computer no in-person business required then they'll sell you high quality clear aligners, a lot
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less than invisalign stc is a disrupter in the field of orthodontics, so many investors believe it would be a good deal. instead it flopped i thought smile direct club had potential, at least i did until i saw where the ipo price, $23 was above its proposed range, which was aggressive once i saw that, i figured it might struggle i said so on "squawk on the street," even i as negative as i got on this thing, did not expect it to completely tumble and melt down. in case you missed it, stc priced at 23 bucks and immediately began trading at just $20.55. think about all the loss, an instant 10% loss for anyone who got a piece of the deal. it only gos wort worse from thee with the stocks sliding to $16.67 at yesterday's close. ouch the stock up 12% to 18 and
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change it's still down substantially from both of the deal price and the first trade. that's pretty demoralizing start for your smile direct club we theneed to ask ourselves, was this break down right, so let's take a closer look because there's a lot to learn from this i haven't touched on enough of these ipos, they're very exciting you get one and forget about it first off, smile direct club does have a cool concept it sounds like align technology with clear removable containers. without insurance, invisalign's product goes from 3,000 to $5,000 stc, roughly $2,000, more important, if you want to get invisalign, you have to go to an orthodontist and get check ups stc let's you take teeth impressions at home, via a kit you can check in with the dentist via teleconferencing
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that's a lot more convenient, isn't it stc recently rolled out nighttime aligners you wear them for ten hours at night for whatever reason, you can't wear the normal ones during the day i think the story is practically custom d custom tailered for millennials. it makes you look better on instagram. that's the story how about the numbers. in the first six months of the year, sdc had spectacular revenue growth, the gross margin after the cost of goods sold the earnings has depreciation, amortization, at 2.3 million what's eating up so much money, marketing expenses, in fact, stc's marketing expenses grew faster than their sales. up 141% year over year into 209 million. not what i like to see let's go over the pros and cons. on the plus side, what do we have, truly turbo charged
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growth, while the sales growth from 190% last year, 113%, that's pretty darn good. not many companies can both that kind of number average selling prices are going up always a good sign and the opposite from align technology, had its stock eviscerated because of competitors like sdc arriving on the scene. i companies trended toward profitability, even though it's not quite there yet, any substance, those are the pros, how about the cons, first and foremost, there's that marketing cost number. ideally, you want your revenue growth to exceed your marketing and selling expenses, with smile direct it's the other way around we'll have to see. second, i am always a touch suspicious whenever i see a company with a big in-house financing arm because in the past we have seen cases where easily financing for the product in question. this hasn't happened but i always think about it.
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it's in the back of my mind. that's a lot more pros than cons why is the ipo turn into such a disaster, for anyone who got in on the misfortune of the deal. a lot comes down to the price, $23 was too high even at $18 and change where the stock is right now, it's too high for 8.5 this year's back of the envelope, sales forecast, that's very expensive for this industry a lot of technology sells for six times sales. smile direct isn't a software based company, doesn't have a fantastic revenue business model. it's basically the same business as align given that align is profitable, it's not fair to compare the price. on the other hand it is growing much faster. this is a market that favors profitability a lot more than growth that's crucial it's not just valuation. at the end of the day, the key comparison is align technology, and align stock has been a total
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disaster of late because it had a very good run because the invisible tooth align business has gotten competitive when the align had the industry to itself, it was great stock. now you've got stc, 33m, frankl it's starting to feel a little crowded. it feels like the online food delivery space where grub hub was the great investment but became a real dog when others started moving in on their territory, which is why it's very hard to recommend i think they under priced the smile direct deal too aggressively, misjudged the demand, something that starts happening near the end of an ipo cycle like we've had, not the beginning. maybe this isn't a great time for ipos of companies with revenue growth and profits i don't know what right price is
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for stdc, i do know i wouldn't pay more than $16 in change for it mike in florida, mike. >> jim, it's great talking to you. >> same. >> i would like to ask you a question about the stock real real you mentioned the stock a couple of weeks ago, and i agree, their business concept certainly is excellent, but on august 30th, two law firms put out shareholder alerts on this stock, and this was related to their ipo and the firms are investigating potential violations of the security laws, but what's interesting, it seems to be having absolutely no impact on the stocks because since august 30th, real real has had nine straight obsessions my question, should i add to my holdings >> i like real real very much. by the way, my wife just used real real this week and loved it we like this stock we think it's a terrific situation. by the way, ever lane, they like
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it i think real real is the deal, and i would really recommend you buy some more real real. listen up, i thought smile direct club had potential until i saw where they priced it i wouldn't pay more than $16 which is where it bottomed yesterday, not today now that we're finally in back-to-school season, i think it's time to do some home work, a massive amount most calls on biotech to see if any under the radar plays could be worth considering, and i'm under the radar ship maker there's a proxy to the trade negotiations of canine positive chatter about the talks triples out and rapid fire and the lightning round. so stay with cramer.
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(classical music playing throughout)
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now that we're firmly in back-to-school season, time to engage in a time honored tradition, doing all of our summer reading homework at the last possible moment, and man do we have a lot of homework to go through. every time someone asks me about a stock i don't recognize, i don't follow close enough to give you a reasoned opinion on
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i always promise to do the research and give you a serious answer i'm back for summer vacation, i have a lot of names to get back on a lot of companies have come public in the last few years without fanfare and research we've got so much to go through that i actually want to break things up a bit. that's why we're starting with the sector i get the most calls about that is the hardest, biotech, it's a tricky group people love to ask about names that don't get a lot of coverage high risk, high reward names, i can look silly, which is why i hesitate to shoot from the hip and prefer to save for later get them a little more rigorously, even if the stocks sound enticing, you need to be careful. when i say their speculative, don't consider buying them unless it's with money you're prepared to lose i wish i knew all of these prospects over the top of my head there's so many of them, but many have drugs in clinical
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trials it's a very much live by the fda, die by the fda situation. with that out of the way, let's get to it. on may 29th, gordon in texas, asked about sema bay therapeutics this is a development stage meaning it's losing a ton of money. it's focused on helping people with chronic liver disease when we got this call, it was trading at 12. over the next two months, it dropped to 6 and change and it's currently at 5 bucks. what the heck went wrong here. the company released some pitiful results from an ongoing phase two. for the redrug in a type of fatty liver disease. all you need to know is this drug actually did a worse job than the placebo one bad piece of data and the stock can get cut in half. sema bay is studying the same
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drug for different liver conditions they also have early stage sales drugs in the pipeline. that's enough for me to stick my neck out on this one sema bay is way too risky, even after it's crushed june 12th, max in new york called about biotherapeutics, that's another development stage company, and this one is in the cancer immunotherapy stage you know if you watch the show regularly that i have been drawn to the stage for a long-term opportunity. they use a technology here called adaptive t cell, they take the t cells and modify them to become more effective at fighting cancer. treatments for melanoma, cervical cancer, nonsmall cell lung cancer and many types of tumors 10 bucks in mid way to 21 in mid june thanks to a bullish presentation at the key meeting,
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the american society of clinical oncologists. then the fda gave the lead drug breakthrough therapy designation for cervical cancer and even more positive clinical trials. the stock ultimately rallied to 26 in july lately it's pulled back thanks to the selloff in the red hot secular growth place down here at $21 i think this is worth purchasing especially since there's a ton of potentially positive catalysts going forward. for speculation only, don't put something like this in your retirement portfolio this stock has got what you're looking for. michael in new york, called in about arrowhead pharmaceuticals, another development stage, working to treat intractable genetic diseases by shutting down the genes that cause them to make that happen. they use something called rna interference we have had a bunch of these companies on if the dna is the blue riprint,a
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is a messenger o arrowhead basically shoots the messenger. they can use it to treat all sorts of ailments. as they have signed some major partnerships, johnson & johnson, two stocks tar owned by my child trust, not bad and arrowhead keeps churning out positive data which is why the stock has been on fire what is down 12% since the end of august, that's thanks to the rotation, anything that happened at the company i got to tell you, this one is tough. when i see a stock up 750% in two years, it makes me want to tell you, i think it's moved so high, you should ring the register, and if you already own this one, and haven't taken off the table, you're being irresponsible. new catalysts with data expected this year, and the company is hosting an r and d meeting over
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a month. you have my blessing to put a install position in this one emphasis on small, but again, the same speculative rules apply. fourth, on july is -- 11th, kevin in californiamented to know -- wanted to know about regenex bio. i almost think of them of a gene delive delivery platform that lets them go in once and fix genetic defects. for more than 20 different product cases. the inventiveness of people is great. the fda approved a spinal treatment. they're got their own clinical trials going for diseases like
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age related macular degeneration, which causes blindness and is a very big market the stock has been a real wild trader down 50% from its highs a year ago this week, rallied 25%, that said, it is still down substantially from where it was trading in july you want to spe speculate on the gene therapy, i say fine i like a lot of these. you know that. i'm drawn to this group. july 25th, krystal biotech, thi is yet another gene therapy company, focused on treating rare debilitating skin diseases. this has doubled year to date. you know i'm hesitant to recommend it here even as a lead drug candidate a gene therapy for a condition that causes your skin to blister
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way too easily has made good progress interesting. why do i like arrowhead and regenex boy and less confident about crystal, because they are plays on particularly gene therapy technology platforms they have a lot of shots on goal crystal's focus is much tighter, the other two have high profile partnerships with major pharma and biotech firms. they've got believers who know a lot more about this business than i do. crystal doesn't. if you want a super speculative gene therapy stock, i would rather that you do with arrowhead or regenex bio there are three that are willing to bus for speculation arrowhead, and regenex bio just be careful with them. younger viewers, listen to me, you have your whole lives ahead. you can make back any losses, one might belong in your "mad
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money" portfolio, as long as you have decent risk tolerance as for krystal, and sema bay, too risky for me
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it is time, how about that and then the lightning round is over are you ready. devin in california. >> jimbo, my man. >> yo yo. >> thanks for taking the call. >> my pleasure >> a pioneer i'm managing a account for my kid, and it's up significantly i'm looking to take a trek on a pullback we have been recommending treks for a very long time, but i've got to tell you, this thing is going parabolic, and i do not like parabolic booths, you have to wait for that to come down, and i feel great even recommending it because i use it in my house, with that said, wow, up 50%. i'm going to have to say up here >> it's okay
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>> let's go to mark in wisconsin, mark. >> jim, a couple weeks ago i called you up and asked you if it was time to take profits and end phase, since that time, the stock has been beaten down from 35 to 22 by people taking profits. >> right >> and short sellers are jumping on the stock now because generak is coming into the space should i use in weakness to buy more or clear out. >> i'm glad you asked about this mark, the heat i have taking about opining on end phase in twitter has left me to say okay, it's every man and woman for themselves on this one it's too hard. you're right, the shorts are all over it. i'm going to say i don't have a view i am going to be the punter, lust like on a special team in fantasy. let's go to gene in arkansas
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>> hey, jim. this is gene in arkansas, i'm a transplant texan, go horns, and i got two sons who graduated from arkansas so i'm split personality, go hawks. >> had to be something at home boom boom boom. >> yeah, i've got a question about an investment i made back in april and it's alcon labs, it was off from lavartas. i have a long history. >> i like alcon, and winners abounding there. you go to alex in new york alex >> jim, how you doing? >> i am good, how about you. >> great, great. i just want to say my 9-year-old son really enjoys your son for your knowledge. >> that's kwhawhat i want to he. rite aid, the equity rite aid, i purchased it before the -- >> too risky, too risky. doug in arizona, doug.
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doug. >> yeah, hey, jim. >> you're up, doug. >> hey, it's doug in arizona, a big booyah for you, jimmy, been watching you for a long time, i dvr your show every day, made a lot of money on you last year for the star wars in october up from there and dividends, so i appreciate that. but i'm calming about pg&e, tall grass energy. >> i'm not an, people think it will be a higher bid, that is the lightning round. >> the lightning round is sponsored by td ameritrade >> it's late, getting pumped for "mad money". >> that kid's got a horse sense, burning down the house where have you been all my life.
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muah. >> you're my personal shopper this is fantastic. >> let's pin the blame on generation x >> you suck. >> it's long, it's too long. i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪
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tonight we're catching up on the homework we're mig r missss on this summer i'm not going to cuff it we covered our bioteches, now i've got three more, a small chip maker and a couple health care stocks. on july 19th, frank in new york called in about accelerate diagnostics. and this company is actually a company we discussed before, also part of a homework segment back in april. what happens, obviously, i was stuck twice. accelerate diagnostics is a company that tries to deal with a very serious problem, the rise of antibiotic resistant diseases, bacteria evolve quickly, we're seeing more and more of these super bugs that
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resist most forms of antibiotics. there are ways you can diagnose. the current technology takes two or three days to come back when you talk about a serious, it takes way too long, accelerate diagnostics, accelerates the diagnostics, it's got a simple solution, their digt system allows -- diagnostic system allows for faster turn around times, a bacteria or fungus in 90 minutes to figure out which drug it's vulnerable to in seven hours the company is having execution issues, the last time i talked about this one, wait for more evidence that hospitals were buying the machines before you did any buying of the stock. they have seen the share rally 10%, that's a little bit better than the overall market. how about the fundamentals, we're waiting for signs of better execution you know what, the more i look at it, the more all i can say is that we do not have signs of better execution and there's last two quarters, accelerate diagnostics has
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missed the modest efforts, the stocks trade on sales, they're simply not selling as many machines as investors hoped for. i'm not ready to recommend this one. nope >> don't buy, don't buy. >> and it's got such a good concept. i did want to hit the buy button we need to see results on the sales front before we can accelerate diagnostics and call it safe. of course management about the 4th quarter. i hope they're right hope is not an investment strategy at the end of the day this is a $1.1 billion company that did less than $2 million in sales last quarter no thank you, next what else, on july 30th, brian in new york asked me about ttm technologies, i said i got to get back to that one ttm technologies, a chip company, they make printed circuit boards, as well as radio frequency, and micro waver components, it stands for time to market. the selling point is the company
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is a time critical, one-stop shop f you're trying to develop ships and bring them in the market it's up roughly 20% in the last six weeks since brian called about it good on you, brian the fact is the stock has been a real wild trader, why, because it's the kind that's being hostage to china and for good reason. ttm gets more than 18% of sales from the people's republic, and a big chunk goes to uber bad guy, huawei. the huge chinese, pure public enemy number one in the trump white house. the company reported a very strong quarter at the end of july, at the end of the day, this stock has become a proxy for the trade negotiations with china. you got to watch this thing, when you watch twitter and that's why it's been roaring over the past couple of weeks. and every time we have positive chatter about the talks, ttm technologies and others like it catch fire the good news, the stock is quite cheap, trading eight times next year's earnings, estimates, not sales, but estimates thank
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evens, the bad news, it often means they don't have faith in the earnings estimates, ttm technologies is not for me regular viewers know i'm skeptical about the trade talks. it's hard to get a deal. if i were feeling more bullish about them, there are plenty of potential ways to play in the trade war. what i am saying is pass finally on august 20th, tom in florida wanted to know about med pace holdings, i said i need to do some homework med pace is a contract research organization or cro, okay. basically when pharmaceutical biotech companies want to run a clinical trial, they hire companies to manage them they want to make drugs, they don't want to manage the trials. think of them as an arms dealer to the whole drug and med, a facilitator of innovation, picks and shovels, go for gold this is a mid sized, doing a ton
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of business with small biopharma companies. med pace has been a huge winner, longer term and recently the company came public three years ago, it's now at 85 and change, better than a triple most of the move has come since february of last year. and when you look at med pace's finances, you can understand why, steadily ramping, the earnings have followed suit, by the time med pace reported its latest results, management knocked it out of the park, posting stellar beat and rays numbers. we're talking nearly 26% revenue growth and an acceleration from 23%, in the previous quarter which translated into 32%. plus the new forecast was even better instead of 15 to 18% growth, management is talking about 19 to 22% growth. that's huge, and they paid off all of their debt, which means they could potentially use some bountiful cash to either let's
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say give you a big dividend or buy back stock in short, there's a lot to like here over the next couple of days the stock jumped from the low 60s to the high 70s, and it's continued to climb, and it's at 85 and change. that's the one problem i feel like we're pretty late to the story. especially since med pay sells it for 26 times next year's earnings on balance, i like it t. maybe this is an idea. maybe you start a small position in med pace. you have my blessing to do so. the numbers are too good to ignore i like this thing a heck of a lot lower because then it's something that might happen if we get good economic news that causes a rotation, secular growth, the contract research market has been a good one med pace is a great way to play in fantastic set for the growth trend. the bottom line, finally, we're cleared out of all of the homework backlog, just in time for back-to-school season. going forward, i promise i'll do a better job with keeping up
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with these in a timely manner. it's not right, but we have so much day-to-day press. don't forget, of the last three home work names, med pace is the one to buy, but only on a small position, cross your fingers, we hope it pulls back so you get a better entry point stick with cramer. at fidelity, we believe your money should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. just another reminder of the value you'll find at fidelity. open an account today.
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of the value you'll find at fidelity. liberty mutual customizes your car insurance, hmm. exactly. so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ doprevagen is the number oneild mempharmacist-recommendeding? memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. i can. the two words whispered at the start of every race. every new job. and attempt to parallel park. (electrical current buzzing) each new draft of every novel. (typing clicks) the finishing touch on every masterpiece. (newborn cries) it is humanity's official two-word war cry. words that move us all forward.
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the same two words that capital group believes have the power to improve lives. and that, for over 85 years, have inspired us to help people achieve their financial goals. talk to your advisor or consultant for investment risks and information. resigning from the apple board, that makes sense. he's been a great contributor there but now they're going head to head. it's hard to believe they should stay together. why should iger give the ideas you need to know to apple's board when he's competing head to head. i think it makes sense i don't want to read too much into it. they should not be aligned anymore when they are opponents. just for you on "mad money", i'm jim cramer and i will see you monday
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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." ♪ shannon: and we're from san diego, california. come on, james! we're two busy moms always on the go. regan: shannon and i met at our kids' preschool field trip. after a long day with 40 4-year-olds, we were ready for a glass of wine. [ both cheering ] we dropped our kids off with our husbands, and we've been friends ever since. regan and i both worked in corporate america for several years, and it came a point in our lives

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