tv Mad Money CNBC January 27, 2020 6:00pm-7:00pm EST
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the earnings miss a couple of weeks ago. >> xlu, i am a seller. >> i am swimming in bk's pool right now with the chicago mercantileexchange cme. >> good stuff there. big day. go>> my mission is simple, to me you money. i'm here to level the playing field for all investors. there is 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" and welcome to cramerica. my job is not just to entertain but to educate and p put this into context so call me at 800-743-cnbc or tweet me @jim cramer are we dealing with systemic rift or a slow market that has
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yet to be priced in the market when the dow lost 454 and nasdaq plummeted 1.89 that is a big decline. know what? i'm stel betting on the ladder which is not as disastrous as the former however, i also think that the risk of a slowdown based on a decline in expected profits isn't fully baked in if china does a full shutdown of their economy by telling people to stay away from work or just stay at home. that could be very bad for business even if it might be necessary to stop this virus. but before we get to the negatives, let's take some systemic risk issues off the table. what makes me so confident this coronavirus won't totally wreck the market after this big one. maybe cause a huge decline well, think about the flu. yeah, influenza is a terrible disease. so far this flu season in our country it is already affected
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15 million people. 15 million people. of these, 140,000 have been hospitalized 8,200 people in our country have died from the flu this year and many more people have died from the flu in america than the coronavirus in china but it doesn't shut down our whole chi. if everyone had to go to the emergency room all at once we would not be able to hand it but know the numbers people. they matter. now we know the chinese government did it's best to cover up the sars outbreak and while this didn't spread as easy as the coronavirus it was much more lethal so sars didn't shut down their economy the pictures of hospital sceneses that you may have seen, they're awful. but our hospitals could be pretty bad too i almost wonder if china is being overly cautious. 18 major cities. could they bring in all of the medicine they need wouldn't it be better to screen for intensely. but they shared the genome
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sequencing of the of the science with the rest of the world they're doing their best put it altogether and i wouldn't be surprised if someone come come up with vaccine and slow the spread of the disease. i'm hopeful about that that we'll all wear masks and gloves in public is pretty farfetched but even if that happens, we'll get through it. to me this is not as frightening as the ebola square but even in west africa, the ceo of wrangle came on the show and told us you could still do business in this epicenter as long as you didn't shake hands. that is all it took. with the coronavirus, you get some purell, some clorox wipes and you keep your arms to your side and you don't touch your face then you'll probably be fine that is right. that is what it requires oh, if you haven't gotten your flu shot, please, you should make sure to get one even to just help medical horts know that you have contracted the
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coronavirus. that is what they would tell you after you had the flu shot could this outbreak cause a temporary slowdown sure but more on that later but business won't grind to a halt the last time we had real systemic risk was during the financial crisis when mortgage mania brought down banks and literally destroyed the economy. if, say, half of the country came down with the flu, farfetched, right, that is bad for business you could see less consumer spending but it won't cause huge companies to go bankrupt and shut down the financial system n. short this outbreak is not the end of the world but it could be bad so why don't we do some triage. first there are stocks right in the blast zone all right. they're way to toxic to own here because you have no idea how they'll do now i'm going to include every single chinese stock in this category picking some high quality one like alibaba at much lower levels because epidemics will
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cause people to buy more stuff online but you need money to spend to buy things and it is hard to make money when your city is under quarantine so let's just take those off we're not going to buy any of those. no need. no need. second, well there are the derivative stocks that rely on chinese spending for growth and think starbucks and apple and nike and those in china and they deserve say coronavirus hair cut because they're on the verge of reporting and unless they could reassure us that chinese goods will still be sold, they'll get slammed. i like every one of the stocks but it doesn't matter. same with the casino companies like wynn and las vegas sands and you simply can't own them here as opposed to the derivative ones i just mentioned. third we have the travel stocks. those went down 25% during the sar epidemic and you have to use
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that as a bench mark don't tough them out because we're nowhere near there think estimate cuts. fourth, other companies that will be hurt by a worldwide showdown not destroyed but hurt and that includes many manufacturers like caterpillar and you saw that dip today which relies on china for business and also boeing, that is so convoluted and 3m reports tomorrow. same with united technologies. they report tomorrow morning i'm doing a lot of work on both companies and our report tomorrow night to say here is how they're going to contain the narrative. worries about a worldwide slow down mean people buy treasuries and that is why they've been coming down so hard on the banks. financial technology company that rely on volume could be cut but i'm not as worried about these. now you need a lockdown like they have in china to shut down retail although i could see plenty of people just staying home and
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yes, ordering from amazon. how about the commodities in minerals too much economic exposure stay away. what is left back to the domestic stocks, housing food, drugs including biotech and social media and be careful of the drugs because we hear that bernie sanders is surging and he is no fan of the companies. i like comcast and disney and i know they have china exposure. it is not as important as the rest of the franchise. and if we have an outbreak here, yes, theme parks will go down. it happens before. but i've been waiting for a chance to get into this stock and recommending it for a long time and this might be it. disney works now later on the show i'll have a list of seven stocks that i think could be bought now. none of the ones i just mentioned could be bought right now. i'm trying to prep you in the same way that i told you to sell stuff last week that is going down now because we're taking systemic risk off the table even the
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groups will be worth buying when you go low enough. you can't be eager about finding anything until you figure out the pecking order from the worst to the pest given the possibility of a multi-week selloff. i come back to this week two years ago when we got a hot unemployment number and triggered a vix unwind and crushed the stock market out of the super bowl and we had to get to a position before we bounced and after today's session shockingly we're still over bought on the s&p oscillator i follow but just by a smidge i wish i could be more hopeful and constructive and it is ages since a selloff and people have been riding and riding and doesn't know what one look like. and investors are too eager to want to buy and for club members, they know we're still looking for things to sell on a bounce. stefano in new york. >> caller: a big booyah to you
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jimmy chill. >> what is up? >> caller: my question is about viac, viacom cvs i own at $40.70. >> we don't care where it it came from and we care where it is going to. these guys better do a very good job of saying where the earnings are coming from because it is the cheapest stock in the entire s&p 500. that is one of the reasons why the club -- i recommend it to the club it is not panned out it is actually been the worst stock. sometimes you have to oeb that i did not expect it to be this bad. why is it this bad because people feel it is the cord cutting negative stock. i think it is better than that so far i'm wrong let's go to robert in south carolina >> caller: jim, thanks for taking my call enjoy everything you do for us. >> thank you. >> caller: question. the coronavirus travel stocks taking a hit, my question is about royal caribbean rcl, would this be a time to get in as a short-term trade at this
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point -- >> too early too early. and i'll tell you. i'm so glad you mentioned royal caribbean. that is such a well-run company. but look at it 12 times earnings and only down 12% for the year and we've been saying these stocks did go down 25% during sars so you still have work to do and maybe watch this one with a 3 1/2 or 4% yield. no hurry because we haven't been down for so long everyone is in a hurry to buy do a little balancing. sell a little to buy a little. it won't hurt you. it is not too late to sell we're not there yet. this isn't systemic risk which would mean i would tell you any time if you need money in the next five years you should sell. it is not. it is a global slowdown that has yet to be priced in the stock market correctly don't be too eager about anything just yet. even for a trade on "mad", tonight, the big game is a week away and i'm drafting two of the most important players on my roster find out which tickers i'm
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picking to lead your portfolio to victory even though we know what is going on with the virus. and as coronavirus terms escalate, what could you buy i'll give you my take. and oil and gas stocks are getting crushed but could the sector gain some energy. let's go off the charts to find out. so stay with camer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. imagine, feeling fearless when you walk into the dentist. imagine a mouthwash that strengthens your enamel,
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some of the favorite stocks in order to be able to illuminate things what is the point here i want you to understand where these companies fit into the respective sectors sometimes the best way to do that is to explain where they fit into a football team it is a gimmick. it is shtick but anything i could do to make you learn better so let's start with the quarterback. the most important position on the field. the quarterback is the field general. he commands the offense and begins every play. this sunday we have a fantastic match-up of quarterbacks between kansas city gunslinger patrick mahomes and san francisco jimmy garoppolo. who are wall street quarterbacks, the software industry responsible for tremendous portion of the gains for the past decade plus tea-- e companies not the stock, buttine if the stocks get hit today with everything else tomorrow or the next day, think about it like this, we just checked in with microsoft the other day, and remember we were out there and
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it is the second largest company in america with a trillion dollars. apple is now the largest company in america but only able to achieve the $1.35 trillion market cap by building out a massive service fueled by software, remember they report tomorrow the third and fourth largest companies alphabet and amazon, both with gigantic cloud computing that allow other software companies to exist. long story short, for the past decade athe software industry has been essentially to the long-term success just like a good quarterback it is a make or break position so which of the software names could compare to the great patrick mahomes and jimmy g. because these guys are the kings of the gridiron. we need to look at elite software as the cohort and i think it is adobe systems to
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become one of the most important players in the space after kansas city drafted mahomes almost three years ago the head coach, my hero, andy reid got to work retooling the chiefs offense into the spread them out and motion filled system that it is today, a system run at a torrid pace with a past bias and mahomes will scramble around the backfield evading pass rushing with ease and stop on a dime and flick the ball across the field. we led them to four touchdowns in less than 10:00 and what a comeback that was. and you see other teams trying to mimic their rapid fire style. and that is why i think adobe is the right analog a few years ago adobe became one of the first software companies to embrace as software as a service, with licenses and seats and taken the industry by storm and keep changing. they made a couple of big acquisitions to expand into
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helping other companies set up e commerce platform with more ease and adobe believes they have the best-selling suite of software just like andy reid has the ideal quarterback with mahomes when it comes to san francisco wonder boy garoppolo, the only possible choice is salesforce. a bay area native going from a disruptor in the software industry to an institution with a skyscraper to prove it just as jimmy g. went to back-up to superstar. salesforce has always been a great player but it felt like they were nipping at the heels at oracle, sap, microsoft. when jimmy garoppolo was drafted he got stuck behind tom brady and only got his chance in 2016 when brady was suspended for four games and next year he was traded to san francisco where he's come into his own just like salesforce has become
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a mega cap software ahead of the oracle and sap and plus there is a certain calmness to the stock in the frenetic cloud space which reminds me of the nonelectric garoppolo. just likemahomes and garoppolo adobe and salesforce are on a collision course lately both companies have been pushing on each other's turf they used to be companies with specific products and now they have platforms for small and medium size business and that puts them in competition this is one of the great rivalries in tech nor the next five to ten years. how about the fiscal approach. adobe is expected to grow at 18% clip and that is is slowing to 16% and maybe 14% in 2022. salesforce has 23% this calendar year followed by 19% next year and maybe 20% in 2022. but adobe has much higher
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margins and trading at higher stock at versus 46 times for salesforce and wall street loves growth and boy do they have growth the tam, at the analyst day they projected they'll have $128 billion market by 2022 and around the same time saleforce is supposed to have $168 billion addressable market up from $140 billion the year before they both have a ton of room to grow but it looks like salesforce has the more room to grow. who is the better bet? i'm punting on this one. while i'm rooting for the chiefs on sunday, i can't pick between salesforce and adobe they are both great. they just appeal to different constituencies pat mahomes of the software space and they want to be the arbiter of how digital
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advertising looks and feels and finding tremendous success with the strategy and with e-commerce and with any on the channel strategy salesforce is more like garoppolo. it is the game manager of the software companies they're comfortable enough with their own solutions that they want their clients to use them to become better at connected with the customer. their job is to distribute the ball efficiently in favor of the clients and not make any mistakes and that is a fabulous stock. the bottom line. as this market sells off and like i said it is going to on the coronavirus outbreak, well let's just pray that adobe and salesforce get sacked so you could buy them into weakness because these are both phenomenal players stick with cramer.
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don't panic. it almost never makes sense to sell right into the big freakout like this one and the only time was in the financial crisis when everything was being crushed but as i said at the top of the show, this is not another financial crisis instead of selling everything, you need to ask yourself what is not impacted what is going down that doesn't deserve to go down because the stocks are worth buying into weakness if you have fresh cash that is. first though, once again, because i'm not pretending to be bullish, let's go over the negatives. we have to proassume the kroe coronavirus will not be contained. the disease spreads rapidly from person to person and it is going to hurt to selloff and do you want to kbo out to eat knowing you might have someone exposed to the virus and they could still be contagious even if they are not showing any symptoms
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you don't want to fly to or from china. and some people won't want to fly anywhere at all. travel is worrisome. however, we flagged all of these for you last week when there was still a good chance to get out they're getting hit just as we predicted. we could keep hitting them here but we made our points known so let's now make another set of points that leaves plenty of stocks that you could safely own. why don't we just build a portfolio of companies that either have a lot of exposure to the coronavirus outbreak or could benefit from it. i know we're not supposed to try to benefit off of something terrible but you ask me in twitter, jim, what can i do? okay so we'll give you a list because we like to answer on twitter what people want and we know that the chinese government is being -- they're using a combination of two abbvie drugs and they have a great portfolio. i don't know if they are going to work. they aren't preventative but they did work for some people
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duri during sars. and given the company is about to close on the acquisition of allergan, i don't think the quarter matters that much. but they could take the allergan main drug botox and push it overseas abbvie could expand that footprint and a much better distributor of drugs and there was a pill that came up to alleviate migraine pain for host people within two hours as a spokesperson for the american migraine foundation i could tell you from personal experience this could be a huge blockbuster. migraines could be blinding, agonizing, debilitating and never a decent pill that makes the pain go away and it is not excedrin, it doesn't work like i think this is drug is way too low and that is why i want to get more abbvie. but the stock rallied today but
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knowing this market, it is going to be down tomorrow. do not buy -- i want you -- here is what i want you to do if it is up, don't buy it. it was up today and people bought it it and i didn't want that next is clorox here is another nice reliable company that sells the only cleaning product that kills everything oddly people will stockpile their wipes. i am that is right. knowing that even without any coronavirus cure in sight, these could be a life saver because the main way to prevent transmission is by not touching things that other people have touched. whenever there is an epidemic though cause the stock -- and during the h 1 m 1 outbreak in 2009 and there is a new version of the bags coming out shortly and kingsford season its too far away to matter the stock yields 2.7%. that is not bad with the tenure at 1.6%. but mccormick, the spice king
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pen. i like to call it that they report tomorrow they make a bunch of things. they make -- they bought french's mustard by the way. i saw that at $1.97 at walmart a whole wall it is incredible a wall of value. and they report tomorrow as people are squeamish about this one and it is a couple of bucks from the high like someone anticipated the epidemic and gobbled it up. and if you need to cook and if you cook you need seasonings, let's see what they say tomorrow the coronavirus, a company called owens and minor bought a company called hallyer that was sun pov by kimberly clark and they got a franchise in hospital gowns and masks. however this stock is not for the squeamish. it is fallen 82% in the last
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five years it is more than $1.6 billion in debt and that is a mistake and trying to sell certain properties to raise cash and historically it is good during heavy flu season so i think it works here as long as you recognize it is a speck, people. fifth, moderna it seems like it was shooting from the hip last week when it told us it was working on something for the coronavirus but wait a second. we spent time with these guys at the jp morgan trade conference, but there is a biotech company with developing new category based on messenger rna that takes the blueprint from your dna and makes them into your reality and you change the messenger rna or re program your cells and maderna will treat a host of ailments web they talked about being on amazon and inputting things and they are doing infectious disease for the coronavirus and they have major
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government contracts including one with darpa which invested in new technology for the defense department and working with merck for more vac vag. i think moderna is likely to come up with something por this coronavirus outbreak in a very short period of time now maybe just a few months. that could feel like forever but it is time versus the speed of the outbreak i wouldn't normally recommend a biotech stock as speculation of something like this. odds are nobody will come up with a cure. but moderna has so much going for it, but i think it is buying it six, how about thermo fisher that is the old thermal scientific if you read the lancet, one of the oldest medical journals and i think the single best source on the pandemic, i can't believe i'm checking this but i do, and they put out that the gene sequencing technology is the key to figure out how to treat the disease. the stock could be better. i know in sell programs
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everything goes down but think about bristol-myers that has great franchise including the pick up of celgene and reports february 8th and i bet the layout for the synergy and plus the 2.8% yield doesn't hurt with the exception of owens and meyer, these are all conservative situations but then again i'm recommending them because they work regardless of whether or not we can contain the coronavirus outbreak in a short period of time you need that kind of peace of mind if you're going to try too buy anything into what i think could be a multi-day selloff let's go to kevin in massachusetts. kevin. >> caller: hi, jim booyah. >> booyah. what is up. >> caller: i've been out of the market for a while and looking to get back in i was looking at fedex, what do you think the price on fedex and
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also what can i start we portfolio with. >> fedex is something i talked about with david faber this morning saying there has to be activisted and it has gotten too cheap. and he said what is your catalyst i do not have a catalyst because especially china trade, thank heavens we're not at war -- economic war with china. it will slow again and fedex needs it to accelerate this selloff will hurt but there is still plenty of stocks to own whether we contain the coronavirus outbreak or not. much more "mad money" ahead. fossil fuels have gone out of style in the wall street fashion show big time with the coronavirus causing yet another step down but is that drop warranted? i'm going off the charts to find out. then how is panic playing a role in this market moves i'm offering my take after today's drop and all of your calls, rapid fire in tonight's edition of the lightning round so stay with cramer.
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here, energy now lately fossil fuels have gone out of style but the coronavirus causing another step down and it is almost unbelievable how much this business has changed over the course of my lifetime. when i still had all of my hair in the 60s and '70s, a little bit of the '80s, we had a huge supply crunch in oil and gas and the creation of opec caused prices to skyrocket. i used to have an even or odd number at the end to be able to get gasoline some schools in colder parts of the country would shut down during the winter because they couldn't afford the natural gas bill that is right. to heat the building until the late 90s the scientific consensus was that the world was running out of oil, particularly us and we spent decades trying to shap into the shale plays you've been hearing about. i remember they were drilling in colorado and nothing we just couldn't do it everyone accepted that our country would be hostage to foreign oil. every year we had a little bit
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less for better or worse, fracking changes everything nobody is worried about oil and gas supplies and forget being hostage to foreign energy and the only thing is that it requires a massive amount of infrastructure to move liquified lng natural gas. and oil prices keep kilting. these are hated commodities. maybe the most i've seen them hated and tonight we're going off the charts with the help of carly garner and very right and the co-founder of decarly trading and the author of higher probability commodity trading because, are you ready, she thinks oil and gas could be do for a relief rally i'll say up front, i don't agree with her but that is okay this is a huge contrarian call garner has a great track record with contrarian calls. at the moment most traders hate oil and gas and everything else
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despises the simple explanation is most speculators are wrong more often than right when everybody hates something, the hate is baked in they don't make that much money because that is what people expected but if something changes for the better those haters get wrecked so when the massive raiders are convinced the commodity will do one thing and decent chance it will do the opposite makes sense, right rational and right now wall street is very negative. it is impossible to find a analyst positive on natural gas and oil. in the stock market, they're throwing the fossil fuel babes out with the bath water because of money managers and esg but it does seem ugly out there but take a look at this chart showing historical patterns in west texas crude this is a seasonal chart how oil tends to trade over each year and it bottoms in late january and february before making a major move higher this doesn't mean it is at zero. this is a composite over time.
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natural gas tends to bottom in late february but this year garner thinks there is a case to be made that the bottom may come early thanks to a much warmer than expected winter now me consider the weekly chart as wall street started to worry about the coronavirus, the outbreak last week, the price of oil, it got slammed. you could see. it just got slammed. it is now back down to below $53 a barrel went out at $52.80 today people are worried about a slowdown in economic activity and it translates to less demand for energy but this could be a massive overreaction con rary to my view. when you look at the chart, it is clear that oil is still trading in the same range that it was stuck with for well over a year and the relative strength index or rsi and important momentum indicator, it is only mildly oversold. garner is not convinced it will
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matter we haven't seen oil go to oversold levels since early 2016 when the price of crude briefly dropped below $30 a barrel and some of us remember when it went to $26 that day. it has a floor of support at $52. that is the blue line. g given this is a testy commodity, it might slide to $50 a level tested multiple times last year, 50, 50, 50, 50 however then oil would make a significant low between 50 and 52 and that is where she expects a bottom if she's right that could catapult past 60 and then potentially sending oil price to the mid-70s. you know oil peaked near 76 just in 2018 and garner believed the ceiling is much harder to break but the u.s. dollar collapses it could go back to the 90s else who is thinking like that not a soul certainly not anyone selling that chevron every day or exxon.
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what if garner is wrong. well oil might fall below 40s but they doesn't expect that to happen if it does visit $40 again she said to buy it hand over fist. the coronavirus would have to be something out of a steven king novel, the stand, remember that lincoln tunnel scene, no thank you. to cause that much destruction it is incredibly unlikely. i do expect profits to be trim for many companies how about natural gas. unlike oil, nat gas is near the 2016 lows. this is a hideous chart. people in the industry are talking about a natural gas depression, not recession, depression workers are being laid off and rigs are shut down and people are cutting down 50%, 60% of the production and with fewer rigs running the price will shrink and prices could rebound and consider the commodity futures commitment of traders report for natural gas which
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tells you what heathers are doing. and here you have the different groups the ones that matter are the large speculators, that is green. those are money managers at the moment large speculators have gotten incredibly bearish, and clo is holding one of the largest net positions for natural gas in the history of futures. garner thinks this could be a sign that everybody who wants to sell is already sold and the net is by 250,000 con rackets for natural gas in the longest short position ever was 257,000 contracts. if the sellers run out of fire power the price will rebound regardless of the fundamentals and could trigger a 50% rally in the commodity from these levels. again something i don't know a soul looking for now take a look at the weekly chart for natural gas. garner can't rule out a quick dip to 160 but thinks it is
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reasonable to assume that prices could soon bottom. the rsi is at 35 and bottomed at 2016 and in 2012 it went to $1.90 where it is trading and then spent the next few years climbing to $6 and change. garner doesn't see that happening. but even a short recovery rally could lead to $3 in gas and break above that could take us to $5. i don't know a soul that doesn't think it is going to keep going like when you talk to rusty in brazil, the rbn expert, he doesn't think it will go anywhere at all. we have so much gas -- let's put it this way. they have to flare so much of the stuff, remember we had parsley on, trying to get less flaring. but it cost -- this thing is just losing money hand over fist if you're in this game the bottom line, the charts is interpreting by carly garner suggesting that oil and gas could bounce and the stocks are not saying that. i know it is hard to believe right now when the groups are so hated but often that is exactly
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when you need to go bullish. "mad money" is back after the break. man: can i find an investment firm that has a truly long-term view? it begins by being privately owned. with more than 85 years of experience over multiple market cycles. with portfolio managers who are encouraged to do what's right over what's popular. focused on helping me achieve my investors' unique goals. can i find an investment firm that gets long term the way i do? with capital group, i can. talk to your advisor or consultant for investment risks and information.
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it is time it is time for the lightning round. and leb the lightning round is over let's start with drod in connecticut. >> caller: hey, cramer, i watch your show all of the time. thank you very much. >> you're quite welcome. what is up. >> caller: the stock is 3-d systems. >> got to pass on that one that industry is in flux i would see you in hp with a small business there let's go to sharon in illinois sharon >> caller: hi mr. cramer, booyah. >> booyah. >> caller: i have avon around two years ago and bought it for about $2.78 and bought 100 shares and it made me really good money. >> yes >> now it merged with ventura
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and tco -- >> i interviewed them. i think they have a compelling story. now i know look in in market, this market is going down but as one to accumulate to weakness, that makes a hell of a lot of sense so i'm on board there. to david in virginia david. >> booyah professor jimmy chill cramer. >> jimmy chill is here. >> caller: is it time to buy with the virus. >> no. it is in the blast zone. it is in the china -- no i understand why you want to be there but for so many others, if you want to be in experience of the economy and want a little yield go with epr. go to justin in virginia justin >> caller: hey, jim, how is it going. a big fan and i love the unpatched energy and wisdom you bring every morning and evening. >> that is what we try to do thank you. >> caller: my question is about the company navian.
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>> it just had a big spike this is student loans, i think it can come lower. wait for that. to barbara in pennsylvania. >> caller: professor cramer. >> yes. >> caller: first time caller long, long time listener. >> i love that what is up. >> caller: what time of future do we have with zynga. >> i think the stock is bottomed but i don't know how far it could go but it is not a bad speck. how about gary in north carolina gary. >> caller: gary in north carolina i recently bought kinder morgan for the dividend and the pipe and gas -- >> i think you're fine. it yields 4.7%. i can't get excited about it why? because the pipe as we heard last week on rbn energy, it doesn't have a lot of growth good yield, not a lot of growth. let's go to chad in iowa chad >> caller: hi, jim
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booyah a huge fan here. >> thank you. >> caller: and hey i was wondering, i'm asking about the stock wells fargo. >> they had a horrible quarter charlie sharp is trying to clean house and things are worse than expected, selling at 11 times earning and it is not to ten and that, ladies and gentlemen, it the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade i see award-winning service, and a trade desk full of experts, available to answer your toughest questions. and i see it with zero commissions on online trades. i like what you're seeing. it's beautiful, isn't it? yeah. td ameritrade now offers zero commissions on online trades. ♪ but how do i know if i'm i'm getting a good deal? i tell truecar my zip
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let's talk panic as i watch this market plummet in the morning and briefly bounce in the afternoon, i thought to myself we had a panic and then it got bought and now a lot of people will assume that it has to be over and tell themselves the panic is done the worst case is baked in but there is no sign that things are contained. which is why that bounce unraveled. there is no sign that we have anything to treat the pneumonia that tends to accompany the coronavirus. at least for older people. and the mortality rate is very high for them. there is no sign of a vaccine but we have some of the best minds working on it and theresy combination-drug from abbvie, after some initial gaffes i'm impressed with how well the chinese government has spread the world to the rest of the world and they're opening the book it is a plea for help. maybe we could come up with something. here is the problem.
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we know this disease incubates and you could infect other people while it is still dormant. so if the disease starts coming here in large numbers, we could see a dramatic up tick in the number of cases here we haven't gotten that yet but be mindful of things that could cause another selloff and if the disease spreads you better believe the market will get hit again. a death from this illness will -- if that happens here, bring a cascade of selling it is a possibility of screaming headlines about the exponential growth of the epidemic that keeps me from telling you to buy aggressively here even though this is the first big pullback in ages because if the disease keeps coming people will sell the same stocks at lower levels. case in point, some people bragging about jp morgan and taking victory laps on twitter that is a nice price versus the people who bought is at $138 but the stock has been going down since bond yields dropped
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because in response to the outbreak when it down to 132 would with stand more stories about how the economy is poised to slowdown because of the virus and could they handle something from the world health organization and that there could be a pandemic or shut down in china or doing business with the people's republic saying the business is taking it on the chin. if you hear warning to starbucks or estee lauder, won't you regret you tried to go bottom fishing here ultimately i think the make or break issue for our market is what happens many the united states if you start hearing the people who never went to china have come down with the disease. that's the most frightening possibility for investors and why i think any bounce is built on quick stand, like the temporary rebound this afternoon. even if with conviction, your fellow shareholders won't and you don't want to be there when they get shaken out by more
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headlines because they bought it down 1.89% believe me, the headlines could only get worse once we're no longer dealing with impeachment. or mourning the tragic death of kobe bryant and his young daughter so please, pick if you want, pick if you want on the way down, but please stay small for now. i think you're going to get a better buying opportunity lower. remember, it is been ages since we've had a big selloff. like i told you at the top, the market feels like the lead-up to the super bowl in 2018 when the employment number came in hot and we had the vix backfire and crushed the market and so i'm begging please leave room if you're buying for further fallout. do not try to be a hero right now. it is not worth the risk stick with cramer. >> booyah, jim, congratulations on a great show. >> "mad money" is not a show about picking stocks for you it's a show about empowering to
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think for yourself >> this is bill from new york, jim, thanks so much. >> jim, this is curtis in north carolina i want to say thanks for creating "mad money." >> booyah. >> the man, the myth, the legend. >> the wizard of wall street. >> to stop you from -- >> i want to give you a good booyah. >> you are the reason why we do this harvested, farm to dumpster to table. uhhh, what do you... what else do you got? (stammering) w-we have a melon rind stew. comes with a pork and bean reduction. yeah, we're going to just do a lap and we'll come back. okay. well, we'll be here. man! why isn't this working? my mouth is watering. i think that's just your rabies flaring up. with geico, the savings keep on going. just like this sequel. 15 minutes could save you 15% or more on car insurance. we got gristle pot pies!
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and when it comes to something as important as taxes its good to have expert help on your side. i freelanced last year what expenses can i clam? let's take a look. people can be good at anything even taxes. intuit turbotax tonight on all new american greed, a mysterious plague is sweeping the country and the all victims received medicine from a pharmacist watch at a special time at 9:00 on cnbc. and then please do not miss the incredible reporting from my friends cnbc phil lebeau and you much watch fugitive ceo, the carlos ghosn story at 10:00 p.m. eastern. there is always a bull market somewhere and i promise to try to find it for you i'm jim cramer and i'll see you tomorrow an greed"...
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c.e.o. stewart parnell starts with peanuts and makes millions by cutting corners and exploiting workers. it was run like a plantation. narrator: parnell's peanut butter goes to stores, schools, hospitals, and u.s. troops. but his factories are criminally dirty. we were trying to seal up holes in the wall to keep mice from coming in. simon: we found evidence of roaches, rats, mice, beetles. narrator: the filth breeds one of the biggest food-poisoning outbreaks in u.s. history. parnell knows the risk, but raking in $30 million a year, he instructs workers to "just ship it."
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