tv Mad Money CNBC September 20, 2019 6:00pm-7:00pm EDT
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make the bullish bet. >> dan. >> my quick comment on dijz. the gap you said to see it hold that amazon i think the i agree with carter ominous. put spreads in november. >> that does it for "options action." see you neck friday at 5:30 p.m. eastern anywhere "mad money" starts right now 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 make you some money. my job isn't just to entertain but to educate and teach you so call me at 1-800-743-cnbc. or tweet me @jimcramer. every day we keep having the same debate about the health of the economy and it makes you feel like we're balanced, we're balanced on the edge of a knife.
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but after a session with the dow dropping 160 points -- >> sell, sell, sell. >> the super bowl backslid 0.49%. and the nasdaq lost 0.80%. really that was a day. you need to understand the economy doesn't work like that it is not like we're teethinger between good and bad we'll have one set of good numbers from the domestic companies doing just fine. as long as the trade war continues we'll have another et self bad numbers from companies that are hostage to the global economy and doing terribly the chinese trade delegation went home early, instead of hanging out with farmers in montana, suddenly the market rolled over. a lot of investors believe until the big sky country darkened we might be close to a deal but there is knock on the horizon. if china would do something as low stakes as this farm visit, hence today's sell-off
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as i told you it will be harder to reach an accommodation with the people's republic than many people seem to think that is a good place to start our game plan. i think there could be a lot of very important news this very weekend that may impact monday's trading. for example, there's going to be news in hong kong. for months we've been seeing rig riots as they don't seem to be too thrilled to be a virtual colony of the "people'people's . now we're getting mighty close to the 70th anniversary of the people's republic formation, october 1st, an important day in china. i think the military may start taking a more aggressive posture. they don't want these protests to continue during an important milestone for the regime what else? on monday we get estimates by brokerage houses on how well
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apple's new iphone, the 11, is selling. i suspect the numbers will be put in a disappointing light even if they're good because the expectations have gotten unrealistic going to the launch. that's not the important part. what really matters is all the new service revenue and the new watch, i picked one up today i cannot believe how easy it is. much better facing this, a lot easier to scroll through, anyway, it's flying off the chefs. when i visited tim cook and his team at the newly renovated star on fifth avenue today i had a blo blast looking at all the new products still have the same steve jobs designed cube. the most negative voices will be the loud evidence and the stock is likely to get hit i think it started with it down more than 3 bucks. don'ting shaking out own apple. don't trade it i believe you will be tested next week by the apple barbers who always come out of the woodwork when the phone is in,
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let's day selling in the first five days and now the charters who smell a broken chart geez tuesday should be good we hear from a hose of domestic companies. yes, domestic consumer oriented companies and i think they're in excellent shape and in the morning results from carmax and autozone that keeps buying back its stock. now, both stocks have been big winners, however sometimes these two tend to trade badly on the day they report. even in the wake of strong numbers they only start rallying after the initial dip. if you like them i would buy some before the report and some right into their swoons, i am endorsing that we hear from nike after the close. this stock has been held back because of worries about a potential sloed in china potential slowdown i see no evidence of either slowness and i bet nike share cost soar if they say things remain strong around the globe you want the best company that
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most people have never heard of, it's called cintat sometimes you see the trucks on the road uniform rental service two years ago cintas was allowed to merge with its main rival we championed it because we love monopolies and the stock has been an awesome performer ever since the job market is strong another terrific quarter wednesday we get a read on housing when long-term interest rates plummeted over the summer, a lot assume housing would come right back we haven't seen that until very recently like yesterday's robust existing home sales number you know what, that's good news for an old cramer fave, kb home. they made a new 52-week high but even after this run, the home builders remain cheap i expect them to sell off because the analysts tend to be critical and don't seem to like the way it's run not me i've liked it since '14. i like it double what else? we have two critical analyst meetings wednesday best buy and vf corp
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beth tied to the domestic economy. i bet they say good things best buy is selling lots of gadgets and might give insight into the iphone 11 if the vans story stays hot the sneaker business can carry the whole darn country if you try to put it in spell check always makes this can. acn, you got to do it twice. periodic dips that coincide with the day it reports that's right they report and suddenly like doing well, doing well, and then that's when you got to buy now conagra reports too. this is a real conundrum great management good brands, iffy results. i think they figured out what's wrong and can nail the quarter i really do.
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after the close we have the most controversial quarter of the week and it's micron the commodity semiconductor name several analysts bolted claiming its two key products are turning positive or use the term inflecking they always say inflecting but this stock had a remarkable run. unless they're seeing strong demand for both flash and d-rams i think the stock's gains will be rolled back especially if they mention anything about trade tensions in china. that would be the kiss of death. why is micron so important simple it makes the basic building blocks that go into almost every device you can imagine there could be huge and i'm talking about monster pin action off this one so you need to parse everything the company says and take positive commentary with a grape of salt. long knifes are out for the stock at this level. i detect it. long knives. micron
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there's no such thing as a lock in this business i mean there's nothing like take the bass and give zero but i'll tell you friday boston scientific holds an analysts meeting and almost always has new breakthroughs. abbott is my fave. i think i'm a big backer of edwards life sciences and medtronic in january i had to tell the ceo he should like his stock more there's no sensitivity no china worries halcyon. a bunch of fed heads talk next week i'm begging you not to listen to them see, i got a rule that served me well never pay attention to the droning of any federal reserve official who speaks within two weeks after the fed has already spoken it's just a bunch of pop-offs who confuse you. don't let them throw you off with their jibber-jabber and faux drama i have said for years they shouldn't even be allowed to talk as individuals because you
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know why, they're so discordant. they confuse you and make you leave the stock market as we head into next week remember we don't have one economy. we have an economy that's balanced on a knife's edge, two of them. a domestic, okay and that is strong and an internationally oriented one and that's in much worse shape that's right if you want to understand this market, that's from when billy says we're all going to die in "the predator. the bad part of the economy, what can i say, as of 3:00 today it's suddenly in control let's take calls let's go to dan in ohio, please. dan. >> caller: hey, jim, how are you doing? >> i'm trying not to catch a falling knife. what's happening. >> caller: my question is about ollie's bargain house. had bad earnings, should i dump it >> i don't want to you dump it this is a stock i get asked about a lot and it's really
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incredible and i myself am confused i would like to see mark back. it was not a good quarter. it was not a good quarter and the selling was right so we have to wait a full quarter to see if things get better before we make a move ply plug fell out. i don't want my pc to die. probably more information than you need anyway, today's sell-off did make sense don't listen to any fed talk for the next two weeks i'm not listening, my daughter does that. on "mad money" the trade wars taking a toll but not where you'd expect it. i'm revealing not one, not two, not three but four stocks and plenty of action in the pharmaceutical space with bristol-myers and abdi making big aacquisitions. which could be the better bet and zee scaler, stock suffered its worst day since going
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public could its recent turnaround be the thing? i've got the ceo stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email 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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i like to think i've been pretty clear-eyed about the impact of this trade war but i never thought it would be this weird i don't know what else to call it weird. sure, the trade war is take its toll on business we know that it's not just taking its toll where it was supposed to that's why i'm a lot less worried about how the iphone 11 will sell in china it's dropping today. i'm excited about apple's prospects. how is that possible the trade was has produce add nomly after anomaly, after anomaly. when they tried to protect our
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companies from chinese dumping we were told it would cause prices to skyrocket. steel price, they've collapsed some are appreciably lower than anyone imagined. just american made steel, some of the biggest demand is weaker than expected. it was to prop up steel prices for american companies that deserve it because the chinese have been crushing out and didn't happen. the bizarre plummet in steel doesn't hold a candle to the paradox of chinese demand. when the trade war got going we were worried about boycotts of american goods instead we've seen a dramatic increase in chinese demand for many american products consider the contrarian case of procter & gamble yesterday i interviewed david tyler and he talked about the home run they're hitting in the people's republic.
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let me quote him take china, several years ago we were minus 5% sales growth the next year plus 1 the next year plus 7 we just closed the year at plus 10, end quote. holy cow the secret to their success they sell the best product at a reasonable price that's how they're taking share from cheaper chinese alternatives stashs, starbucks, they may be an international brand but it's based in seattle they haven't had a big breakthrough but their ceo it recently told me business has been improving rapidly and starbucks has a lot more room to grow if anything it's helping them. how about yum china, the owner of kfc, pizza hut and taco bell. the chinese had a state equivalent of a boycott. that's fabulous.
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the company gave a lukewarm forecast but they've always been pretty conservative. the fact is it doesn't get more american than kfc and the business is growing, not shrinking, colonel sanders, two thumb's up estee lauder shorted this stock going into the quarter betting their asian business would be their achilles' heel had to be weak trade war, unrest in hong kong, nope, star of the show asia was indeed their best region if you look at how well these brands are doing in china it's hard to take the doomsayers seriously. when they write off the new iphone before it comes out if apple prices, the new phone correctly, i think they are, the numbers could be much higher than we expect chinese like a valuable phone. my conclusion, there might be tremendous antipathy between our governments but that doesn't seem to extend to the people
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by the way, she's the next mozart. as usual we were behind schedule. but sophie's enthusiasm cannot be dampened. not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places.
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you know, mixing stocks is kind of like going to the library to find a good book. some stories are more compelling than others. when you've been in this business as long as i have you start to notice how certain narratives often lead to big profits. and one of my favorites, when a struggling company with a battered stock makes a dramatic move to take control of its own destiny. that's a great hook and when it works, well, payoff can be enormous but how do you know if management can pull it off we've seen not one but two
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ailing pharmaceutical titans try to make it happen. there's bristol-myers and there's abdi both had started to feel pitiful helpless giants and their stocks became houses of pain n an environment when many had faced head winds it seems like pushing down drug prices is one of the few things the democrats and republicans can find common ground on. br bristol-myers stands out as real dogs the former lost rough aly third of its value since it peaked in 2016, the latter down 40% in less than two years. the markets have been pretty good both decided to make action. at the beginning of the year bristol-myers said they're buyi buying celgi then in june we learn abbvie is acquiring allergen
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huge transformational deals. both will look different from the current abbvie and current bristol-myers. which one do we like more. >> i want to teach you how to evaluate these situations. let's go over both and see which one looks more enticing. you have to understand why this is happening at all. it's not like every big pharma stock has been crushed merck was great in this environment. there is a big performance gap between the haves and have-nots. bristol-myers has been getting eaten alive by competition but their cancer drug op teva versus keytruda it's well on its way to doing $10 billion. optiv's numbers have stagnated
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abbvie, kroens's disease, psoriasis. it's a victim of its own success. humira generated 0 billions. it already peaked and lost patent protection late last year, first quarter humira's international sales plummeted by 28% because of the competition abbvie has this thing locked down till 2023 they don't have anything in the pipe that can replace it which is a big problem. humira accounts for more than half of their revenues both need to do something major to get back on track on january 3rd briggs toll myers made a bid for celgie. celgene has a huge pipeline. many of which are approaching the end of their clinical trials in particular management identified five different
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celgene products is that worth the $90 billion in cash and stock price, the tag bristol-myers agreed to pay? that's a lot of bucks. 90 investors were initially skeptical. but i think management has begun to make it -- well, no, they made a compelling case on this show but a lot of people weren't buying their compelling case i sure did you know what, they could justify paying 55 billion alone just for the products that they have on the market, another 20 billion for the 2.5 billion in costs they're expecting and 75 billion without counts the drugs in development when you consider the pipeline it's really worth 1$120 billion if right that will turn out to be a steal and i got to tell you i think it is a steal. check. please now, what will it look like? let's go to the source
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listen to bristol-myers' ceo dr. giovanni kafario >> it creates the number one company in on k-- cardiology an generates value from shareholders from shareholders from day one and provides a path to sustainable long-term growth for bristol-myers squibb. >> now they had to sell a few pieces of the business to get approval including important ones i was important the government made them sell owe t otezla they believe they can close by the end of the year and the government toad in the way of this great merger but it's going to work. how about one that happened while i was away while i was in italy how -- yeah. how about abbvie allergan. what a merger. in late june i was in florence -- i was hiking the whole day this happened. abbvie offered 63 billion in
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cash and stock for allergan. that's the beleaguered maker of botox among many other drug, a 45% premium to where the stock had been trading but then again it's less than half of what pfizer offered for the same company a few years ago because it had execution issues. don't forget allergan back was a way to get a real tax break. now, management believes they can generate 2 billion and other cost reductions by year three and expect it to close in early 2020 it's pretty simple abbvie needs to diversify away from humira and need to do it fast allergan gives them exposure to medical aesthetics, eye care, women's health and by the way i think a very effective possible pill for migraine. when you get migraine and the growth rate has a boost too and believe to have the best prospects in the industry. i think that is hyperbole. abbvie expects the deal to boost earnings for share by 10% over
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the first full year after it closes with that number eventually rising to 20%. check. please after the merger abbvie sales will jump from 33 billion to 49 billion. humira will only be 40% of it down from 60% right now. that's killed them, that concentration, the new abbvie about the third biggest cash generator between j&j and roche and will allow them to boost dividends. it will be a supercharged version of the current business with much faster growth and diversification. we got to think. which would we rather own, the post merger bristol-myers celgene or post merger abbvie/allergan. i've waffled about it. we come down and dr. katario, i like the abbvie deal at this point more i'd rather buy abbvie stock than
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bristol's. why? first i still have concern about the new bristol-myers. buying celgene for its pipeline, not its current slate of products which have real issues including the fact that their largest drug loses patent protection in 2022 there's a reason they get celgene at a huge discount boy, is there a lot of cash. in 18 months they'll just make a fortune. on the other hand, while abbvie likes allergan's pipeline, they're mainly doing this deal to get their hands on proven drugs that are already on the market, especially botox which has a lot more uses than just wrinkles and it makes it less risky second while abbvie won't say this out loud there is a general sense allergan has been undermanaged in recent years i'm being diplomatic if they can plug allergan's existing products into their own infrastructure it will produce immediate results. i bet it produces instant results. third, putting that aside abbvie as it stands is in better shape
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than bristol-myers humira may have a limited shelf life but it's doing 20 billion in sales, best-selling drug. bristol-myers is nothing compared to that abbvie is paying it away 6% dividend yield. i love both. i love that both abbvie and bristol-myers are trying to take control of their own destiny by making a pair of gargantuan acquisitions if i had to choose, i have to tell you at this point i am going to say the better one to buy is abbvie and that is a decision that i do not take lightly. i think there's some drugs in allergan's pipeline notably the migraine drugs that will be very good let's speak to patty in florida. patty. >> caller: hi, jim thank you for all you do for us. >> thank you, patty. >> caller: my question is about news recently that came out that they are buying bare's animal
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health unit, elanco. what do you think about the stock. >> speaking to the people at elanco, they agreed with my assessment it was really good and should come on i think this company, i know, look, i know it's not -- it will get to be something near zoetis being the best company you know how i feel about pets listen, abbvie and bristol-myers are two pharma titans trying to take control of their own destiny. they are both good deals but i think the abbvie allergan tie-up is a better bet and you should be buying abbvie here. we got so much "mad money" coming up. it's been a tough few weeks for zscaler. how can i help you could its recent decline be a red flag or is it a buying opportunity i got theceo then under the radar player working with the likes of verizon and at&t and i
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the last couple months have been absolutely brutal. >> the house of pain. >> for the formerly red hot cloud stocks especially if they have the misfortune of reporting bad results. zscaler, the cloud-based enterprise software play one of the best performers from the iphone claip class of 2018. 89 in late july. it ran straight into a concrete retaining wall the market got hammered and rotation out of the cloud plays and just as they started to bounce zscaler reported a solid quarter but underwhelming guidance and the stock got steamrolled plummeting from 61 to 49 in a single session. this has been devastating but luckily the company had a chance to change the narrative. they had a well attended analysts meeting where management got back to basics
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and explained why their strategy is working and stocks bounced up to 51. is zscaler putting in a bottom or do we need to be more chau s cautious jay chaudhry is here with us mr. chaudhry, welcome back to "mad money." >> jim, thank you. i appreciate the opportunity. >> absolutely. okay, so, jay, we got to try to understand this. even myself, i've been a stalwart for zscaler it just seems like the competition has gotten too great. i had the cash on from palo alto recently and he said, i'm going after everybody. are you seeing a real disruption by palo alto and a real change in the narrative in your business >> jim, the answer is, no. you know, a few weeks ago there was an analyst day and got a number of texts that said these guys are talking more about zscaler than themselves. you know when par dime shift
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takes place incumbents and legacy vendors are often displaced, they feel the pain and they try to attack everyone. that's what we're seeing but it's not changing our business to do cloud security right you need to have purpose built architecture you can't take the legacy boxes and stick them in a cloud and say it's cloud security. that will be like taking dvd players and putting them in a datacenter and calling it a netflix service. >> i like that that's good. something everybody can understand remember, jay, part of the problem was comments you made when my jaw dropped when i heard it large deals taking longer to close and what that said to me was that somebody else's sampling a competitor and therefore you're not able to necessarily have the run of the table as you have for so long. >> jim, we had a strong quarter. we actually beat our analysts'
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earnings target, sorry, so our revenue target, we did 59% year to year growth for bookings we did 51%. the market is coming to us we're seeing a lot of growth we cross 400 off the global 2,000 companies as our customers so very bullish about opportunity. >> now, let's talk about two misperceptions about your company. the first one is a lot of people feel that microsoft is your enemy but it's really the opposite as you explained at the analysts' meeting, correct. >> yes, very much so very good partner. we help them they help us. >> second a lot of people felt that crowd strike was going to come after you crowd strike and you announced a pretty seminal partnership, correct? >> that is correct because crowd strike is the leader in end point security
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we are a leader in cloud security we are both complimentry offerings. >> now, you did have a blue coat mention in your conference but isn't a lot of your business still to take from symantec? i found one reason rick hill was willing to part with symantec and give it to broadcom is that zscaler has been so tough on them >> so, so vendors like symantec and web sense were the first phase of replacement because we're reset and replacing those traditional legacy vendors but our growth in the past few years is coming more and more by doing local internet breakouts means having an internet connect at each branch office and we provide security so a lot of our business is coming from doing
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branch fire walls, data loss prevention, advanced protection and the like so we have a pretty broad platform so we are not really selling just the type of solution blue coat and others sold, it's a full platform that customers are buying. >> all right so last thing i need to worry about, there's a lot of talk on the network about the macro issues that there are companies that just not doing well there was even a question by brad zelnick asking whether it had anything to do with some of the things about china close some larger deals. are you seeing any weakness in the macro side for cybersecurity? >> not really. actually, even if macro issues start to happen, zscaler provides significant cost savings and the savings come from not having to buy and deploy traditional security boxes. they come from reduced operating cost and also come from tons of
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savings by not needing to have a private network so we think we will be in a very good position even if the market slows down and seeing some of the largest company, ge and siemens have stated the kind of business they have done the numbers go as much as 60% of what they were spending before in terms of savings, so we like the market we think we are well positioned for the next year. >> all right that is terrific, jay. thank you for coming on, congratulations on the crowd strike deal and good analysts' meeting. that's jay chaudhry from zscaler. very interesting company got to be sure that the competition is dying down. stay with cramer >> announcer: listen to cnbc live on your alexa device, google assistant, sirius xm 112. tune in and the cnbc mobile app.
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karen in california. karen. >> caller: thank you, mr. cramer, for taking my call i have been watching you since the kudlow days. >> holy cow, my old pal lar. >> caller: yes, i'm a first-time caller and interested in soma fisher >> oh, can't get a better company. i have to tell you those guys in my trust sold like double. i thought i was being a pig. mark casper so good. let's get him back on the show john in maryland john how are you? >> caller: actually ibought a stock a couple of months back and it's growing and is it better to hold it than sell it >> which one >> i like the combination of
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harris and l3. >> kratos. >> i generally believe they'll get a lot of business from saudi arabia and it is because they have the best radar stuff, let's go to jeannine in florida. jeannine >> caller: jim happy friday to you. >> isn't it great it's friday? i totally agree. what's going on. >> caller: i wanted to thank you and tell you you have a wonderful staff as well. thank you for taking my call jim, i got to tell you i'm excited about this company reg regn that's the ticker and excited about it and it kept going up steadily, steadily and has all the right credentials, tony hunt seems to be doing a great job. they're doing all the right things it appears. exciting company. >> let me ask you, here's the problem, jeaneen, it's been
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around forever and suddenly caught fire. i got to see how this thing went from zero to hero. i used to think it was a bow wow. i have have come back with more information. i don't want to let you down greg in tennessee. greg >> caller: hi there, mr. cramer. >> hey there. >> caller: good to hear your voice. >> right back at you. >> caller: thanks. listen, my stock is hpq. it fell off a cliff back in february when they missed their numbers. >> i know. >> caller: it hasn't come back and i'm losing patience but i hate to take the loss i've got in it. you think i -- >> i think that -- [ buzzer ] >> look, honestly, i think that thing honestly, i think it's dead in the water. if you're willing to wait, i think it's going to be like maybe two, three quarters maybe. it's not a fave anymore. they did have a change in management that is being affected that makes it so i like it less. let's go -- i'm trying to be diplomatic david in new jersey, please. david. >> caller: jim, i love you from
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asbury park. >> my daughter is down there right now. i'm not kidding. at that mexican place with the really good drifknks. then going to head over to the brand-new family dollar. have you seen it >> caller: i love you, man listen, i'm calling about funko. atan all time high monday. >> they did that secondary and busted the short squeeze and taking it apart. the quarter was good but looks like it was really once the short was alleviated went back down i'm not kidding. check the family dollar. it is gorgeous you could eat off the floor although i don't think that's wise and that, ladies and gentlemen, is the conclusion of "the lightning round." >> announcer: "the lightning round" is sponsored by td ameritra ameritrade >> the here, the horror. chipotle, wow. it's like secretariat.
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last friday we cleared out a huge backlog of homework items that piled up over the summer. whenever you ask me a question about a stock and i can't answer it, i don't cuff it. i try to come back with an opinion as quickly as i can. we're planning to do a better job of doing them in a timely fashion instead of letting them build up over time so let's go to work. on september 10th, barely more than a week ago ed asked about digital turbine. apps for you home gamers i say i got to get back to him it's a speculative small cap company that's stock caught fire they build a platform for mobile operators, application devel developers and device maker and make more money with ignite designed to handle targeted
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media delivery basically they allow wireless carriers and phone makers to personalize the application activation experience and monetize the home screens on their devices with revenue sharing with third party advertisers. it's the desire to squeeze every drop of revenue out of every inch of real estate. it's sort of in the sweet spot for the moment they don't compete with anyone it's either smaller players or software that they develop internally when i say this is speculative it is really speculative they get nearly 46% of its sales from verizon and its subsidiaries, another 38% from at&t. that's call concentration. if you've never heard of these guys you're not alone. they've existed for 20 years but as a tiny company named mandalay digital but in 2015 they acquired a leading app installer called apia and changed it to digital turbine and went all in.
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eventually this pivot did pay off. a year ago the stock was trading at a buck and change now it's just under $7 digital turbine's latest leg up came after ingenuity initiated coverage with a buy back in june then reported great quarter six weeks ago. make no mistake the numbers spectacular. they delivered a top and bottom line beat, 38% revenue growth. gross revenues, surged from 40% up from 31% a year ago fabulous but some makes more money. software o they're signing up more customers and expected to turn a profit so i've got to admit this is an exciting story let me give you a little flip side i worry we may be late too the party. even though the stock has pulled back from its recent highs it's up more than 450% i worry you might be chasing if you buy it up here. the thing about these unknown
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speculative stocks there is a pattern to how they trade. they picked up its first coverage from a major brokerage house when a $6 price target was slapped on now at under 7 analysts rolling out coverage is the main catalyst and we missed the first one that said digital turbine, it's got a lot going for it i like the fundamentals. i just think this rally may getting a little long in the tooth. if you want to buy the stock i think you can pick up some but would wait for a substantial pullback please don't even consider buying something this small unless you are using limit orders if you already own it you've got my blessing to ring the register at 7 it's got to cooloff then circle back lower level next up on tuesday adam asked about korn ferry i haven't been keeping up on the company. i told him i needed to do more research before i gave a considered opinion it is an executive search firm
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with a big consulting business that's successful h it comes to high-level jobs these guys, well, let's just say they're one of the best recruiters as recently as last year it was on fire surging to the highs of $67 for the fed raising rates and torpedoed the market it came plunging back to earth still hasn't recovered now trading at 37. so far for adam i have good and bad news this isn't a complicated story the bad news, it's uncomplicated in a negative way. outperformer to a negative performer and hasn't been doing well in the past 15 months the stock has gapped down three times because of disappointing earnings or in line earnings with disappointing guidance and numbers have been deteriorating. earlier for example they posted okay results with a muted forecast for the next quarter. why? they decided everything with the trade war and brexit and makes sense. it gets more than half its
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revenue from outside the united states britain their second largest market that's where i know them from. when you're in the recruitment of business any kind of economic slowdown will hurt your bottom line that's one bright spot the one bright spot it's darn cheap and trades at less than 11 times next year's numbers but that may be because investors simply don't believe korn ferry will be able to make those numbers, stock may seem cheap but in earnings estimates keep falling it can turn out to be real expensive if you want to start bottom fishing you need to wait until we have more reason to feel constructive about either the company specifically or the global economy until then i see no reason to stick your neck out. long story short when i look at these two names, digital turbine is too hot korn ferry too cold but if you keep the ideas coming you can see we'll get it eventually just right. stick with cramer. at fidelity, we believe your money
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should always be working harder. that's why your cash automatically goes into a money market fund when you open a new account. and fidelity's rate is higher than e*trade's, td ameritrade's, even 9 times more than schwab's. plus only fidelity has zero account fees and zero minimums for retail brokerage and retirement accounts. just another reminder of the value you'll only find at fidelity. open an account today. tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch) tell him we need this merger.
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(in dutch) it's happening..! just ok is not ok. especially when it comes to your network. at&t is america's best wireless network according to america's biggest test. now with 5g evolution. the first step to 5g. more for your thing. that's our thing. but we're also a company that controls hiv, fights cancer, repairs shattered bones, relieves depression, restores heart rhythms, helps you back from strokes, and keeps you healthy your whole life. from the day you're born we never stop taking care of you. by the way, she's the it wasnext mozart.g day. from the day you're born as usual we were behind schedule. but sophie's enthusiasm cannot be dampened.
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not even by a run-away donut. we powered through it in our toyota prius. because a star's got to shine, no matter what. it's unbelievable what you can do in the prius. toyota let's go places. apple holders, steel yourself all of the guys who hate the stock will come out monday and say sales are light and the stock will get hit and then over time it will rise again. that's been the pattern so many times now, look, we just have to try to profit. we can't just get angry about it we have to try to profit from it so my advice on apple is to own it don't trade it i like to say there's always a bull market somewhere. i promise to find it for you on "mad money." i'm jim cramer and i will see you monday.
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narrator: in this episode of "american greed"... paul manafort... [ crowd chanting "lock him up!" ] you've heard about the extravagant clothes. melber: here is, we submit to you, the ostrich coat in question. and we submit it to you without comment. narrator: now...meet the man. i will stipulate for purposes of today that, you know, you could characterize this as influence peddling. narrator: for years, influence peddler paul manafort builds high-profile connections, then makes tens of millions of dollars selling his access to the players in charge. manafort was motivated primarily by two things -- power and money. foer: i struggle to think of a client
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