tv Mad Money CNBC January 9, 2020 6:00pm-7:00pm EST
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nice job with that a lot of people have been saying armageddon it for lyft and uber, the last dep leprd reference of evening. but lyft since october done well. >> great show today. see you tomorrow tomorrow night "mad money" with jim begins. "mad money" starts now hey, i am jim cramer i am trying to make you some money. my job is not just to entertain you but to teach you call me or tweet me @jimcramer today was all about momentum that's why even though we did not have much in the way of news, another magnificent move
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today. this time dow industrial rising. nasdaq at 28.1%. these were all miraculous record closed by the way. where did that momentum come from momentum is a tricky thing i can tell the market is on fire because employment is red hot. we know adp, at least incredibly strong numbers the labor department will give us a positive non farm payroll report tomorrow. i can tell you people are buying stocks, good feelings, breaking up with u.s. and china thanks to phase one trade deal chinese seems to be placing large orders with american business, don't you think?
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there is just one problem. i am not buying that these i am not just pushing these medical forces i think they're not the force of today's market momentum. why? well, because momentum is what happens when a stock keeps worrying for emotional reasons and not financial reasons. a stock that goes higher because buyers went in at any price, that my friend is momentum now especially i like it when stocks rally i am not a fan of momentum buy stock market going up and down you get something to boost the company's earnings forecast and you can happy pay up the stocks. you got to rally with staying power. that's my kind of rally. get to the point where the momentum takes over when people start buying stocks, simply because they believe those stocks are heading higher. that's where i think we are getting to, if not reaching there today. these momentums typically led by
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analysts stocks explode to the price targets, they issue higher targets in order to keep up. they tend to be honest when a stock exceeds that level then the assessable thing to say is okay, there is nothing new here so it is time to declare victory and downgrade this thing from buy, buy, two, don't buy. we have a few of them since the new year began so many stocks are pouring higher not every analyst will give you an evaluation downgrade. lately we have seen a lot of analysts doing the exact opposite we have seen price targets being bump, bump, analysts basically playing catch up to the market it is analyst equivalent, heading higher too many of these price target
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bumps and the market turns frosty that's what i don't want to see happen we get froth, we get trouble let me give you a couple of examples consider the case of apple here is the stock that's been out running virtually every analyst price target healthy rally or frivolous momentum in this case it is he will alth. we got new data that cheers you. the company's earnings to be better than expected they reflect the fact that earnings have headed higher. yesterday apple retails are performing sharply than expected that means the earnings of s&p needs to go up then today we learned that apple's chinese verses -- now, that's a good shocker when you
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consider the company preannounced a year ago because there were severe slow down in china and let's remember, that last quarter, the chinese and the united states were at logger heads. i heard people talking about apple being boycotted. these kinds of stories are totally legitimate what's a frivolous momentum base upgrades look like we have several bank stock upgrades today i didn't see anything new. there were no changes. my biggest fear right now is the banks are not able to make the numbers that there may be estimated cuts people like it, why? because it is going higher i have seen the same thing happening in some of the faang names, typically facebook.
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that's agreeiegregious. the worse momentum i have seen [ booing ] >> today's pathetic upgrade, amd. that's the decade that's vowed to be sweeter. jimmy jimmy chu has to draw the line this is the stock that's running from low 30s to 48 sure amd executed and demand is strong it is phenomenal and the competition aremains subdue that's for months. this upgrade is a late to the party with calls little rigger to speak up. the most rigorous piece of
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research today all through the short hours, we got to the promise land. the most of the eli musk developing something new and special. now tesla is at 460, he raised the target to 525. he downgraded the stock from buy to whole it is easy money has been made that's rigorous. i don't have to worry about price targets. i think tests will stay strong for a long time. navigating investors through th battleground he won't let the sirens song of momentum lured him, as he would have been at lower levels. here is the bottom line. you want to stick with stocks that are running on genuine good news and not just because of late to the party momentum
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buyers david in florida, david! >> hey jim, as loyal shareholders for amd all time lows daily with 2019 box and revenue at 24% we had enough of a negative outlook. short interests over 55%, crushing any buyers stepping up. what does one needs to do or is it time for the ceo to enact on this >> adam aarons is really good. i have known him for decades he's a good ceo. i think the business of movie screening is out of favor. viacom, that's also one of the worst stocks ever seen we got to be careful here. we have thrown away some babies with bad weather i do think he can get this thing. adam aarons is no fool
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let's go to fran in wisconsin. >> sugar daddy from wisconsin. kind of a plus or a minus. the last two or three days, plug power, has increased a dollar per share. >> right >> question one, do i buy more question two, is plug power a possible take over by tesla? >> i don't think it is look, i understand they got some hydrogen fuel sale solutions, i got to tell you to be honest with you fran, the stock has been around peddling at the same thing. i am not geagainst it i favor speculation. i accept and think specular stocks can be at small party this one has broken hearts
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before >> doris in michigan, doris! >> yes, hello, hi mr. cramer oh, i watch your show all the time >> oh great. >> i am calling about fiat chrysler do you think it is a good stock? >> i don't like any autos other than tesla why own any autos when you can own the stock of tesla >> karen from kansas >> thank you so much for taking my call. i want to ask about texas tru instrument >> oh, it is going to have a good year. >> it still deals 2.7. it is 130 bucks. it is a buy. and if it comes down, oh, what a gift even our record seven days, you need to stay focus people. good news, not just late to the
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party momentum buyers where nothing is happening more on "mad money" tonight. how tyson has transformed itself from big to big bird i am trying to take advantage of the savings and go shopping, maybe pick up some coupons, first. there is a reason i don't slow down as much as i used to. i am going to reveal it. i need you to stay with cramer >> don't miss a second of "mad money," follow @jimcramer, send jim an e-mail to madmone madmoney @cnbc.com
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with the average surging to record levels today. what can you still buy without feeling you are chasing the market like a chump? powerful catalyst as and stocks that don't under line the strengths. you want tyson foods yes, the largest meat process of america. it will be a big, maybe the biggest winner from next week's phase one trade agreement with
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china. now the steal is on the verge. i think tyson is poised to make a killing. china desperately need pork. thanks to african swine fever which is devastated their hog population, united states do not have enough healthy hogs to satisfy their demand tyson makes its money taking livestock and turning them into meat tyson chicken tenders, they get most of their sales from poultry and beef tha china is a huge opportunity for them i know i recommended tyson before the great chicken sandwich in 2019 and sometimes my time is a little off all these stuff compares to what can happen to china. that's why we bought tyson for my charitable trust from a couple of weeks ago.
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a big club call yesterday. that's what we'll be doing one week from now. you got to understand, the trade war was the only thing holding the chinese back from the economy of buying american pork. this is a staggering figure. last year they had to call perhaps as much as 50% of their hog population in order to stop the spread of swine flu. they got some frozen stockpiles. they need to feed the people the fever is still rampaging can they grow their way out of it no a huge percentage of hogs are raised in farms. they are vulnerable because they don't have real security in this country, we have industry agricultural with fantastic security just try getting near american
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pi pig farms. yeah, they're protected by fence. you won't believe what's happening with pork in this country. if china wants to become the pork, we have the only surplus because we spend so much time getting it right without their hogs, they need other sources of protein president trump confirmed the existence of phase one trade deal people cut their tariffs on frozen pork. it is not just soybean, it is meat last time for example, we learned u.s. pork served in september of 26% i could not believe tyson food was down after that number came out this was before phase one deal just imagine how business do now, we got a trade truce.
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oh, don't forget, chinese new year takes place january 25th. all demand means tyson benefiting from higher pork prices with pork gaining more expensive. a lot more expensive of beef and poultry. larger business for them as they become relatively less expensive to pork. it is too early to matter. they have some killer plant based chicken tepnders that may taste more like chicken than chicken. >> hallelujah. >> so the case here is simple. thanks to the phase one trade deal in the african swine epic stocks have gone cheap, that's really low if i am right those assessments coming as higher than expected stocks are looking even cheaper than retrospect. what is that all about
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here is the crazy thing, tyson stocks have not run. this company was already paying a very bullish picture you don't need the truth the headline results were worse than expected. however, the stock of more than 7% of the news, optimistic story of the future. that was without china now, the numbers like last night export figure. tyson have not taken off and i think that's a gift to you here is the bottom line. thank you to the swine fever, i think tyson is the biggest player of the phase one trade deal or at least the wake up i am betting it still got a lot more room to run stick with cramer.
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what the heck just happened to the stock of bed bath and beyond >> the stock imploded today. plummeting more than $3. close to 20%. finishing at $13.45. a record close day for the average. sheesh normally their number is not much of a surprise, that's a real dog bite man story. this company spent the last five years trying to get their act together with the stock sinking lower and lower. the last year we saw some big changes that gotten investors hopeful and a possible turn around led by john duskin, pushing for
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radical change and they won. these activists, they got themselves something and brought targets. this was incredibly higher after a year, bed bath looks like they got their act together you know, if you have been to bed bath, they sell a lot of stuff that's subjected to tariffs. although they make a lot of their stuff here >> that's how bed bath & beyond rallying up to $16 but, this is so big it would make sir mix a lot proud
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you have to view the shake out yes as a buy opportunity i still believe bed bath and beyond from the 16s to the teens, i told you this thing was a sale, sale now the story is changed i think it is a buy. there is some legitimate green suits. it gave me some confidence in the future that nobody talked about today. people dumping the stock down to 20%. now i am going to tell you why before we get into the specifics o f the quarter though, you need to know the context. the stock was traded $12.30. we had today's wipe out. however, the business was in really bad shape i can't buy bed bath because the company had a ton of rime to improve. you can't work that kidnnd of magic over night it failed to adapt to ecommerce
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spirit what were they really about? it is hot enhere in here >> yeah, coupons after years they tried to rejuvenate the store, a spiral in declining sales the former ceo makes disaster choices. new guidance needs to fix them trenton is starting to take action over the course of december, he grew most of it. smart. selling real estate under many of his properties to raise $250 million trenton came in during the middle of the latest quarter and he did not have enough time to work his magic when bed bath reported last night, the number was hideous. and analysts only expects 8.8% decline. instead the company told us their sales and profit would
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remain under pressure during that quarter they gave little hope and not trying to forecast the scale i mean this thing was brutal on the conference call, these results are unsatisfied. he warned us that the path to achieving our objective will not belen year as evidence by our third quarter results but we'll move quickly to cost correct and drive business forward well, it makes sense why you need to hold your nose and buy bed bath & beyond. totally contrary call but give me a chance. mark trenton taking over and now he tries to set up expectations. and maybe everything that goes
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in and you can buy it at the store. there were some real positives i am going to take them down the interests of trying to get you to understand what happens here one, during the five days of thanksgiving from cyber monday, bed bath uses new strategies, mass promotions. compares to the same five days of 2018. same source sales were up, 7.1%. that's gigantic. that is huge, the most important holidays days of the year for selling. it is unbelievable and so many people are overlooking the spectacular number they're not doing the homework the merchandise is great there three, bed bath is closing bingh
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stores the company is delaying 20 closures in 2020 they use their store for clearance sales, makes sense customers still like and trust the bed bath and beyond brand. according to consumer tracking studio bed bath number one for brand awareness of houseware and home goods. so maybe trenton got more to work with than you think after all the high level presents resignation last month. tret t trenton is bringing in his own team, the right talent to execute new vision and ideas further he added, the volume of interests have been extremely high and i am confident he'll
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recruit top talents. that makes sense given his long and successful career in retail. although a lot of people think he can't atrack good talents he plans to give out $1 billion. they're clearing the deck that's not selling and that's what teslas should do to have a turn around trent trenton curtail the compan company -- for year bed bath burns billions of dollars purchasing their own stock they should have put it in the chimney with much higher prices. the most stupid buy back in history. this quarter trenton spent 1.2 million on buy backs you know what set bed bath from other retail stories it had a great balance sheet it allows the company to post things like asset sales from a
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position of strength rather than weaknesses that i have seen improvements in the cost of good souls bed bath is holding an investor event. you need to be in this stock before that. the company is so poorly run that just some basic blocking and tackling can potentially work wonders that event can be the catalyst for much higher prices yes, yes i agree. guilty bed bath and beyond had a terrible quarter but it is a new ceo and he already made some bold moves to turn things around many issues are working despite the stock prices declined. do not let it scare you away what i think could be a fabulous come back story. aaron in massachusetts
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>> hey, jim. booyah >> booyah. i am calling trying to get your take on baozun >> we followed the ecommerce solution, we have said it over and over again we are tired of hurting people in china we like alibaba. we don't need any other stocks besides alibaba. alibaba is it when it comes to china. >> i want to go to arthur in malaysian, plea maine. >> booyah jim. how are you? >> it is great to have outline the sh you on the show. >> my question is concerning with game stock. i am in the stock of mid to upper teens. my question is should i just bail out now and put the money
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some where else or foreseeable to the upside -- >> arthur, it is in the wrong side of the trade. maybe get a short squeeze, i hesitant to tell you to stick with game stop there is just many problems. think beyond the headlines, please this happens to be bed bath's last gas of the old team, not the new team if it is recent reference call, i am going to tell you why it is a good thing does your portfolio have what it takes of the unknown of the market i will be the judge of that. rapid fire tonight, our "lightning round." stick with cramer.
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last time i told you it is better strategy on high quality stocks it is much better to pick a few winners than all your eggs in one basket, even if it is possible to go up. oh no, my friend, i won't have any of that. that's why i play with you, "am i diversified. let's start with a tweet first up, we got a tweet from @shawn corey. twitter, we'll go to social media, right apple technology and consumer
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product technology home depot retail. jp morgan financial. i like this portfolio a lot. these are all different and all good and i would recommend anyone to bikini one of these. i saw a lot of people, i was with my executive producer, people stopped me on the streets, talking about this. this is the portfolio i like next up is another tweet frfrom from @rainman. okay oh, look at these stocks, here we go. bed bath and beyond. zuo, gold and marvel
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>> marvel is 65 today. i can't wait to see it next week zuora, subscription business, you don't need that and that boy, we'll substitute and we'll put it in starbucks. and then bed bath and beyond which is something that i think is bottoming i got retail, starbucks is no. make it pepsi. let's make it pepsi. we have retail and soda and we got tech and gold and we have drug that works for me. okay, i do need to change out. you do need to make that change. why don't we go to riley in georgia. >> yes, sir, mr. cramer, thank you for taking my call >> always my pleasure. >> my portfolio of 2020.
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bank of america, facebook, b barrick gold and apple and disney >> wow, great minds think alike. facebook i need to check zuckerberg's blog today apple? numbers are too low. bank of america, numbers are lying. and barrick? we got gold and financial and entertainment. it works for me. that portfolio works for me. john in massachusetts, good job. >> john, you are up? >> hey, this is jim. what's up? >> you came to the right place >> my stock is bank of america, pac, trn
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applied materials and amat and bmy. >> all right, look at this this is another good one trinity which is tank cars which i am not crazy about that. coca-cola upgraded -- nice upgrade. james quincy is doing great there. i love what brian moynihan is doing. we got a bank and drug company we have a beverage company, a semiconductor equipment and industrial which i would swan out, trinity for union pacific and i would be so happy. "mad money" is back after the break. apps are used everywhere...
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ready. are you ready? carl from illinois carl >> hey, how is it going, jim >> good for you. >> we are talking about investment we are talking about cronos. >> we spoke yesterday with constellation brands so if you don't have to buy one, it is going to be canopy let's go to george in new york george >> hey, jim. my first time. i would like to thank you. >> you are the best. i am a club member >> yes >> i want to let you know yesterday's number call was tariff rick. terrific. >> thank you >> i want to know what your thoughts on epr property >> we all thought of buying epr.
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the stock has come down, good fellas i am quite confident and i love that mr. silver is on. i am quite confident that epr is a good buy here. >> let's go to randy in wisconsin here >> thank you, mr. cramer >> i would like to give a little green bay tackle there >> i am fine don't bother me. >> okay with me. >> my question is teva >> teva is like jadeveon clowney. we have things like crystal myers. why do we need teva when they created crystal myers. let's go to my home boy.
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>> jim, booyah, got a question for you about maxar technologies do you think this is sustainable? >> i have watched this i don't understand this ride, i will be candid i have been doing a lot of homework lately and i do not know why this stock has just knocked the doors out. robert in california >> hey, jim. a great, sunny california booyah to you >> that's excellent, right back at you what's going on? >> i can't believe i am talking the the great jim cramer happy new year >> wow, that was very nice thank you, i am not that great i am chilled >> humble, humble. >> i have a question about iris one. >> he comes on and tells a good
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story. it is a good stock, i like it. let's go to sharon in new york >> hi, hi, big booyah to you and my question is about blgt. >> oh, this is another hype. these are pure speck i got to tell ya, when i say pure speck, you have to understand, you can lose or make a lot of money it is not my cup of tea. periodically this thing has a big move people think tesla is going to buy it whatever, not for me, not my cup of tea the people on twitter and i am going to come back with and say kumbaya. >> let's go to sammy in louisiana. >> booyah, jim jim, you are the greatest and you will ualways be, too >> thank you
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>> i have been battling these stupid robocalls that won't leave me alone they started something and i have not finished it >> sure. >> that's good, man. what's up? >> i gave them a lesson they won't forget anyway, now that they are out of the way, i want to get your thoughts on starbucks. >> starbucks is recommended today and it is about darn time. kevin johnson said he's going to back it up now, i think there is another ten points ahead that's what i think about starbucks. thank you to the terrific cards today. when we are down in washington today, i like starbucks. [ buzzer ] >> no, i am not done i am going to take tom from colorado >> i got one, too. [ buzzer ] >> i am too chill to deal with this clown >> tom, are you there?
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is that it >> yeah, i am here >> hey tom >> hi, are you there cramer? >> yeah, more than ever. >> hey, booyah, how are you doing? >> good. >> so intelsat, do you think this company is going to bounce back so far i am still going the work, let's put it that way. there is more work to be done. you will see it later on in a show in the near future. lightning round. >> the lightning round is sponsored by td ameritrade ♪ ♪
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sometimes simple questions has simple answers why is stock at a record level today? maybe companies are better than they used to be. the big home builder reported another record breaking. up 23% of course, we are hardly alone companies putting up another incredible performance we seem to get a few of them every week i have to tell you, i think companies are doing amazing things with nearly every aspect of the business we are talking about,
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we are streamlining on fire. they never get praised this is regarding as corny at best or it gets worse. i need accurate. lenard is better than it used to be in the old days home builders doing too many things or building too many houses lennar is always looking different. it has long been ran like a family business. it started more than 60 years ago. lennar never took the risk that so many companies that he competed with. lennar told us, i have known stewart for many years, stewart managed to stir the company into
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the great repression lennar did not get ahead of its skis a strong kind like this one, you expect like lennar to be building the nation's hottest housing market yet, that's simply not happening in time around even mortgage rate i extremely low. i am thrilled about it get a sound of lennar. high in homeowners take advantage of all the capitals to get easily building homes everywhere including some that may turn out a few months from now or a year from now are not needed. both of these companies can care more about keeping their debt level. some of them rather buy back their stocks buying thousands of acres. we are seeing that kind of caution across the host of industries these days. companies are not taking the
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kind of risk they did before the great recession. they change the dna if possible. exec tifutives trying to save m. sometim when i listen to these home builder calls, it is obvious that analysts want to borrow a bunch of money they're not going to do it they're not going to do it they want to be in control of their own destiny. home builders are going to be close to us. they do a heck a lot better when the economy is strong and interest rates are low no ceo can ever change that. if you anticipate the next downturn and run your company responsibly, you can offset a lot of the damage this time around that's one reason i am not too worried of a potential slow down company like lennar, they worry about it for me.
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do not get my wrong. sooner or later, there is always another slow down. these companies are taking the necessary precautions and frankly that is out and out fabulous stick with cramer. memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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talked about momentum at the top of the show. you know ever since the stock was missing in the single digits, we actually trim some the other day. the stock is up and there is no news it is painful. it is what's called discipline if the stock does get hit is also a no news discipline trump i promise to find it just for you right here on "mad money," i am jim cramer, i will see you tomorrow
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