tv Mad Money NBC December 15, 2015 3:00am-4:00am CST
3:00 am
what makes it seem lousy when the averages don't do good like today. nasdaq inched up .38%. some of it is because all we ever do is look at stocks through the prism of the federal reserve. every day we guessed what the fed will do and every day we make it harder and now that it's almost upon us this discussion monopolizes it. we know employment has been strong. there's no reason to keep short-term interest rates too low. but it's how companies are doing like mine. the amazing race would be the last thing you do. i can't name a business group doing better than it was six months ago. that is if you thought that employment matters all that much because employment wasn't as strong then as it has been in the last few months. they haven't missed anything.
3:01 am
though, the stock markets rock because anyone that follows individual stocks knows that things just aren't so hot. individual sector analysis says things aren't that hot. all right. not that hot. that's not a technical term. it's a term that explains where the economy is right now. that's where the confusion comes in. how can the cooling economy produce more jobs? the answer is simple. the businesses i'm looking at now will be laying off more people than they're hiring at this pace. that's why everyone is focused on the statement that the fed issues when it makes it's decision. the fed is cognizant of the economy. that means it's going to take it's time until the next rate hike. that won't stop them from saying it's going to be this week but it would take the next few months off the table for this parlor game which could cause the christmas relief rally from an oversold position beginning this wednesday afternoon.
3:02 am
why the markets seem to have disappointed them. the other explanation, the number of stock going up themselves. i read it each day as part of my paid side of the street.com. he said the action has been far worse than it has appeared. it has been an extremely narrowed market and that's been covered up by the major indices. how narrow? the top ten stocks in the s&p 500 are up at an average of 20%. the remaining stocks, they are down an average of 3%. stunning, right? further only 23% of stocks are trading above their 200 day moving average. most stocks are losing new money and have been for sometime. the saving grace, this divergence with the vast bulk of stocks doing poorly has been going on since july of 2014. the concern, he thinks that the stocks in the major indices and the ones that are up 20% have to
3:03 am
can advance. i don't want to be that negative. why not? if the fed gives the right statement this market will most likely behave like a coiled spring as it did in late afternoon today and there will be tremendous regret if you decide to dump the winners in advance of a benign coming wednesday afternoon but to know that a few stocks are responsible for that advance, that doesn't seem right either. i can tell that last week was poorly received by reading my twitter feed. i got repeated blasts that if cramer doesn't like it then it's time to buy. however, given that i liked a lot of stocks until the big labor department employment number but a nail in the coffin of lower rates i have to say did you bet against me all the way up? how about the concentrated stocks. the difficult thing about selling them is they have tremendous scarcity value. what is it based on? unlike so many stocks and so
3:04 am
i'm talking about facebook and amazon and netflix, big winners all are truly doing better than they were six months ago. it's self-fulfilling. they're going high because there's far fewer companies that merit being valued in this environment than six months ago. the fundamentals of downturn are going down for the vast majority. what else makes me a little less negative? they announced it last week and pfizer allergen deals. >> these mergers will yield better prices. just not yet. balanced against the combined forces of some stock doing well and some to get their share prices higher is the news flow that brings the bulk of the apartment down. global growth almost nil.
3:05 am
disaster. terrible. europe, japan, russia no help whatsoever. many of our favorite stocks and sectors like apple go into the products and anything oil have stalled at best. plus we had this new junk bond credit crisis getting worst before it gets better for the retail investor that bought mutual funds filled with the best kind of bonds and loans betting that the diversification would somehow ease, produce good results and make redemptions okay. all of these forces combined to make it so we do rally and have an oversold position like this today, we can't maintain any momentum which is when they ultimately start giving up their games. that's been the pattern over and over in 2014. this market feels bad because
3:06 am
seems high. if you aren't at least a tad cautious in this environment i think you're being arrogant or clueless or both. morgan in new york, morgan. >> before we begin, i'm a big fan. long time listener, first time caller, i know shake shack was very overvalued in may but so was chipotle, what sit keeping shake shack from trading higher. >> what happens is people compare the average unit volume and how much the unit makes of shake shack versus all the other restaurant chains and it's just the volume is good but the valuation of each store is so ridiculous based on the apple to apple me trick that it's too expensive. the stores aren't worth as much as the stock indicates. let's go to anthony in new jersey, anthony.
3:07 am
>> i keep scaling into xom. will it ever rebound. >> you're having long-term after a climate conference where they basically said fossil fuels are going away. so the answer is no, not long-term. we're going to be changing our stance throughout 2016 on fossil fuels because of what happened with climate concerns around the globe because they basically decided it's the end of fossil fuels and if you're thinking for your kids, you don't buy them. panic is not a strategy. patience is a virtue. the market has seen a tremendous rally but i still believe the caution is warranted. on "mad money" tonight has lululemon overextended to the down side? i'll see if it's a good fit for the holiday season. plus some investments lurking in your portfolio. you need to be aware of this. i'll give you the rundown just ahead.
3:08 am
some of our country's most recognizable brands. >> coming up, joining forces? rubbermaid announced a deal today creating the $16 billion newell brand with names such as mr. coffee and elmers can it rule the aisle of retailers like target and walmart? cramer sits down with the management behind the merger, next. >> don't miss a second of "mad money." follow @jimcramer on twitter. tweet him #madtweets. send jim an e-mail at madmoney@cnbc.com or give us a call, 1-800-743-cnbc.
3:09 am
3:10 am
3:11 am
tremendous heft to the point where the new brands have a lot more bargaining power and negotiate with the retailers that sell their merchandise. we got to speak with the president and ceo that will stay in that job of the deal. then we spoke to the founder and executive chairman who will be a board member of combined newell brands. take a look. >> first, congratulations. we made a lot of money for our viewers. >> you are putting together a company that will have how much aisle space in a typical store that our viewers visit? >> it's a $16 billion company and we'll have $10 billion of revenue when we combine the enterprises. both of which are performing strongly in the marketplace so this happens from a position of strength and you'll find us in virtually every aisle in either the mass merchant's store with
3:12 am
but you'll find us in virtually every aisle in the rest of the store from sporting goods through to the general merchandise section. >> i know you have strong partnerships with retailers but they're very powerful. this does give you more leverage than if you were separate from each other. >> through scale we'll be able to lead better the development of the categories through our retail partners. and that strategically is the ambition we would sit and where we hope to leverage scale. through collaboration with with retailers to increase the growth rate and the profitability in the categories across the total enterprise. >> now people are used to you coming on the show and used to generating an amazing return. so some of our viewers are saying if martin is done i'm done. this is just a great run. i'm going to sell. what do you say to them? >> i'm going on the board of directors and i'll help mike anyway that i can.
3:13 am
of my network in the company and i see a lot of upside. if i didn't see a lot of upside i wouldn't have done this transaction. mike's the first guy i met frankly. he has the same kind of vision we do and creating efficiencies to be able to drive product innovation. we see a great fit and if we were the bigger company we would probably be the buyer. we're very happy and, you know, this is going to be a great story for many years to come and i think that combination is going to get you there faster. >> one of the things that you have done. are there products that you see that you'll be getting that you already had great ideas for product extensions. martin has done a great job but maybe more can be done? >> both companies will be stronger together than they would apart. there's a number of intuitive combinations in our portfolio.
3:14 am
about. >> sure think of the combination of the leading baby gear brand in graco with the leading feeding and soothing brand in nook. this is a phenomenal combination in baby gear. you have combination between rubbermaid and food saver. we're launching fresh works that will allow you to extend your produce life longer and reduce the amount of produce and fresh vegetables and fresh fruit thrown into land fill which is a tragic waste but martin is ahead of us quite frankly with food saver. it's a $250 million brand that takes a different product approach to preserving and extending life of protein but it's the same principle. same underlying principle. so you can go through the portfolio. you can look at the commercial products and industrial products with rubbermaid products and
3:15 am
you can look at the kitchen appliance business. and the more time you spend unpacking it the more you see. there's two things that are category synergies and cross sale opportunities. average containers can tap into the distribution power of coleman or k-2 or even a brand to create assist access for these products and channels we wouldn't reach. so those quite frankly we haven't even figured into the algorithm for this deal that are out there as opportunities beyond what we would assume. >> let me ask martin since you were on last. martin was a little skeptical. this is the ring company and you have been in it now and people were skeptical when you bought yankee candle.
3:16 am
with it. >> yes, including me. >> when we first met. tell me what you have discovered and low hanging fruit. >> well, we love the business. we think it's a very interesting business. the low hanging fruit here is the -- again the fit. it's a whole new distribution channel. when you get to a certain size you need to keep on finding new ways of delivering your product to a consumer and in this case you take the parker pen business. we do these momentos and they're great for gift giving and that's going to be a great new product to put through the channel. but what have we seen? no surprises. we do our due diligence very thoroughly. they're doing to what they said they would do. they're lined up to have growth and the more products we put into that channel the more organic growth will be driven.
3:17 am
watching and listening about this high yield market. you worked hard to keep it so you did not get into that category. >> we have always been investment grade and we intend to always be investment grade. we quickly delever right to our target leverage ratio. so we're really pleased with how the combination is worked. it creates a tremendous amount of value for both shareholders. it was important for both constituents to see the value in the deal. in year one high single appretion and year, year five because of double synergies. >> i don't want you to name any now. but could there be -- you said 80% are core. could there be some that if you
3:18 am
it. >> i don't think we'll need to do that. we can hold our dividend and increase it with earnings. i love all my children and that's where i start when i think about brands and products. we're going to spend time learning and understanding the portfolio and getting the know the business models and we'll see what happens overtime. some of these combinations offer great potential and i wouldn't make a judgment about any aspect of the portfolio for sometime to come. i think we need to get into it and understand it. this is a company that will be comprised of every day brands and have tremendous global potential. >> i want to thank you. the ceo of newell rubbermaid. thank you so much to both of you. >> thanks, jim.
3:19 am
3:20 am
ahead. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews. enjoy the relief. let's get these dayquil liquid gels and go. but these liquid gels are new. mucinex fast max. it's the same difference. this one is max strength and fights mucus. mucinex fast max. the only cold and flu liquid gel that's max-strength and fights mucus.
3:21 am
>> last week, everyone's favorite take over target, lululemon reported a suboptimal quarter and i have to tell you something, they took the thing right to the woodshed. that's right. it plummeted 13% on the one bad number and i have to tell you also, i think that lulu, it delivered every bit of the hideous number that some of the bears were expected. it was maybe an unredeemable quarter but i found myself wondering if lulu's results were that horrendous. sure the company missed wall street estimate top line and bottom line but they did deliver an incredible 9% increase in same store sales at a time when retailers are struggling to put up descent comps. i like these situations where something is wrong but maybe something is right. did it really deserve to sell off 13% last wednesday?
3:22 am
the year, maybe we can make a case that lulu deserves to go higher. i've got you, don't i? let's dig deeper in the latest report and find out. for starter's, lulu's missed by 2 cents and the companies revenues came in a bit light. 14% year over year. it's a growth stock. to make matters worse, the company's inventory shot up by 56% and inventory is the bain of all retailers. when you see these inventories surging it tells you they're getting very promotional. they have to click through a ton of discounts in order to move it's merchandise. big for sale signs everywhere. lulu gave signs for the next quarter. the loan bright spot was the same store sales. they grew at an astonishing 9% clip. that's an amazing figure. it's very puzzling because a company blowing away their same
3:23 am
excelling in other me tricks. that's not the case here. now the market's negative verdict was clear after the stock plunged at 13%. however at the same time the analyst community reaction to the quarter was much more mixed. sure a bunch of firms downgraded lulu or cut their price targets but they're reiterating the targets while they cut their price from $69 down to 60. they also told investors not to give upton stock. was lulu's quarter that awful? warranting the double digit decline in the stock or is this an eye of the beholder situation where you can get a bullish thesis and it just got hit because there's so much hot money in the stock because of the takeover prospect. underarmor, nike. lulu's results say, you know what, the company is really frankly doing as bad as the stock suggests. let's start with the negatives. they're pretty straightforward.
3:24 am
flag. we see this problem lately warmer than expected weather and increased competition means more and more being held than sold. but it isn't a one off problem that we can blame on the unseasonably hot weather. the fact is the rising inventories are a worrisome trend at lulu. 56% in the most recent quarter. nike and under armour also experienced it. with under armour up 36%. not great but way better than lulu and this problem wontd be going away any time soon. total inventories are expected to remain similarly elevated at the end of this quarter too. some says it has to do with the shifting to transportation strategy toward ocean freight but it could take a long time before that shift is fully worked out. second lulu has a gross margin problem.
3:25 am
to keep. the gross margin has been contracting pretty consistently down from 51.5% in the fourth quarter 2014 to 46.9% in the last quarter. that's a very big decline. the cause of the margin shrinkage? they took 130 point basis points from product cost, another 130 basis points from costs and currency shaped off 90 basis points. none will abate any time soon and while they gave lulu a 70% boost, that's not enough to offset all the other sources of weakness. it's trying to boost it's margins by improving logistics but they don't expect to see real margin recovery until the second quarter of 2016. lulu needs to turn these numbers around but after this quarter it's difficult to workout how they're going to pull this off.
3:26 am
women's pants up 18%. they also saw weakness in tops, tanks and shirts and while the company made some changes on the design and merchandising size of the business we don't know if they're going to pay off yet. fourth they saw a staggering 21% increase in sales, general and administrative expenses. fifth when lulu slashes four year guidance they blame the number of negative trends including traffic in the fourth quarter. they did point to improvements since thanksgiving. that's the result of increased promotional activities surrounding black friday. they also up in the current quarter. that's not what we want to hear. when you put it that way, things do look a little bleak. however it is worth noting that it's not like the stock is going without recognizing it. it's down 32% from the 52 week high up a few bucks from the low.
3:27 am
we need to accentuate the positives from the quarter because the negatives could have already baked in. but what are the positives? even though they missed revenue estimates it still put up growth this quarter. that was in part by very strong e-commerce sales. can we really say our retailer is doing badly? at the same time lulu continues to expand internationally and they brought in a bunch of very smart new executives on the design and research and development side of the business. next remember the hideously elevated inventories? they're still dealing with the overhang from the port slow down at the beginning of the year which caused them to rack up excess inventory. they're trying to sell it from normal channels. that's why inventories have been so high. but management says they'll have cleared this out by the end of the quarter. we should see real improvement on this front in 2016.
3:28 am
still have a strong brand that consumers endure. still even after the vicious padding this is what gets me in my krau. 26. that means it's still trading in a big premium to very good companies like vf corp. or columbia sportswear although i think the numbers are way too high for those guys too. lulu stock reflects too much of a takeover premium though it was up 3.62% today. you know my rule, i never recommend a stock on this show for takeover speculation unless the fundamentals are sound and what i have just gone over with you know that lulu is far from sound. even if you still think after what i describe that nike or under armour might come calling any day now. i believe if there weren't expectation of a takeover lulu would be at $36 where it would be vald like the non-takeovernames. the ones that aren't going to
3:29 am
all the speculators that owned this stock had to live through. as long as you accept an 11 point risk, you're free to lulu. i'd rather wait until it comes down to my fundamental price or not buy it at all. >> luke in florida. >> booyah. how are you? >> it's gorgeous down there. how can i help? >> my question is on fitbit. the stock was doing good awhile ago and i'm wondering is this one of the stocks before christmas and fizz out or do you think it has a steam left. >> it's going to have a good holiday season and i'm beginning to wonder if that's the wrong way to look at this stock. this is not gopro. i think this is something here and i'm not going to blast the idea of selling this stock, of buying it before christmas and
3:30 am
that's not what i'm going to do. the valuation for lulu, it's a big stretch and while the brand still holds a ton of value i just can't get comfortable with the stock all the way up here even after it's been hammered. much more mad ahead. including the worries in the high yield bond market. it's something you own? well, you don't want to miss this. the averages are being held by one piece of the commodity complex and i'm answering your questions in the lightning
3:31 am
so stick with cramer. you really would have needed to move heaven and earth to create a worse portfolio than that of the stumbling third avenue focus credit fund. the mutual fund that barred redemptions last week setting off serious turmoil if not total hysteria in the high yield bond markets. now there's two parts to this third avenue story. first there's the decision by the firm's ceo -- the former ceo because he no longer works at third avenue as of this weekend to cease redemptions of a mutual fund without even consulting the fcc.
3:32 am
could have special rules like capital partners, another fund that ket off redemptions friday evening. no it's a mutual fund and implicit in the nature and bargain of a much yule fund is the notion that there's the price of what the firm is worth and what your money's worth and you can redeem those shares and get those price today. that's just mutual fund management gone rogue. there are rules. rules that have to be followed including running money in a responsible enough manner that meet redemptions when your fund is doing badly. you stop buying, start selling because when your fund is down 26 act as this one was going into last week's decision you want their money back for heaven's sake. to me this decision to cease redemptions is reputiation to protect you.
3:33 am
with a lockup. the people in their fund weren't network individuals. and they got what they paid for. a portfolio of totally unsustainable high yielding investments. but it's the second term investments that seems very lightly used. when i look at this fund i see the kind of funds put together and the housing credit boom in 2007. every second rate examination of the ratings agencies it also gave you an outside return. if there's lots of funds that mirror this one and it's bad or even worse we're going to face weeks if not where the price of the mutual funds is very high. it's every man for himself to get out of this right now. you never should have been in
3:34 am
have to pay a high price verses the assets they own because of structural problems in the market. that's because there's often no bid side or buy price for these low rated bonds in these funds if you need to sell them to redeem. almost every bond is small and difficult to value. if you submitted a bid list to any firm that had to work any of these positions, meaning if you showed a brokerage house what you owned and the prices you were willing to accept it would be amazing. literally amazing if any of the client of the firm would buy most of the stuff. i'm only talking about the public debt. >> well, how about principled the merchandise. meaning what if they bought the bonds at low prices or term loans at low prices and then held them so it could make some
3:35 am
that's exactly what dodd frank made illegal because the brokers were running a hedge fund of investments and that's banned under the new law. you can't run them anymore. that means very lily quiddity and no reason for any broker to extend itself to help the third avenue guys. just too risky legally. we don't know when or what prices he bought the assets. it seemed to have a strategy of buying the lowest pieces of. paper with the highest yield out there. maybe it figured the vast majority would be affiliated with companies that could continue to pay their coupons and not default. the ones that did default would be so few and fall between that the income would make up for them. they would be so diversified that no one area of investment could create a level of default big enough to drag down the entire portfolio.
3:36 am
it. it's here that the nature of third avenue management becomes obvious. i examined every corporate bond. more than 50 and based on the publicly available information i would only invest on a half dozen of them with any conviction at all and even that might be a bit fanciful. everything from energy plays including american eagle, chc helicopter, energy 21, hercules offshore, to mineral mining plays like ak steel and miranda. verso paper, liberty tire, just stinks to high heaven. i do think the company and then inventive a contract research organization and maybe part of the old clear channel communications have some
3:37 am
know heart radio. but who knows if that's the good stuff they sold to meet the redemptions while carrying the bad assets. the ones stuck in the trunk of a liquidating trust. the lack of judgment, stupidity and the bad luck of the people that put this together. they had no right to run a fund at all because they couldn't have any knowledge of how badly the company was doing and would have always been fool hearty to believe they could have gotten out if this went wrong. you're not going to find loaded with verizon and att. still many of these companies have bonds that will end up going dramatically lower in value. i bet the state evaluations were nowhere near what they're really worth which brings me to the second part of the equation. look at this risk. i can't believe they got to say only down 27% next week. i think in order to sell them, they would be worth half of what they might be carried on.
3:38 am
half. that's why i think avenue had to close. i don't even know if they could get prices for them to close their books at year end. whenever i owned anything like these pieces of paper i would value them at 20 cents on the dollar at best. that's why i only owned two distressed bonds. i couldn't value them. i couldn't get a legit quote. everything seemed overstated. that's why i decided to quit buying any hard to value assets so i didn't overstate my year end performance. it was wrong. could that be why the firm went wrong and decided to gauge it without any clearance from the government because it was so overstated in value that it would be a strav city to put a real price to these assets? i don't think i could call a trading desk and get a quote anywhere near where i see them valued at. i would think the same way about any other firm stupid enough to own this horrendous paper. no fund like this should be allowed to be marketed to
3:39 am
offensive strategy. it's one that no one should ever be permitted to swim in. "mad money" is back after the break.absolutely love my new york apartment, but the rent is outrageous. good thing geico offers affordable renters insurance. with great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. delivery. hey. lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. have a good one. ah, these small new york apartments... protect your belongings. let geico help you with renters insurance. man (sternly): where do you think you're going? mr. mucus: to work, with you. it's taco tuesday. man: you're not coming. i took mucinex to help get rid of my mucusy congestion. i'm good all day. [announcer:] mucinex keeps working. not 4, not 6, but 12 hours. let's end this i take pictures of sunrises, but with my back pain
3:40 am
3:41 am
3:42 am
but that's not our style. let's go to don in ohio. don. >> booyah jim. >> booyah. >> i need your help. my stock has gone from 10 million to over 30 million short interest increase in a two month period. the stock being in financials. >> it's in acquisition isn't it? i mean that's what i thought was happening. i think that it's terrific. i still think that key is great. if you think fed is going to raise rates that's a good one to be in. let's go to joe in new jersey. joe. >> he will low, cramer. the beautiful melissa lee had nothing but great things to say about you. it was a lot of fun. my stock is hain.
3:43 am
he has to do a better job. natural organic brand names no longer matters as much. that's part of the problem. let's go to bob in washington. bob. >> big booyah too you jim from tacoma washington. >> no, that is troubled. i'm not going there. andrew in new york. andrew. >> andrew. >> booyah, jim. big booyah with cheese on top. >> i like that. >> my stock is valero. >> oil is down a lot and the refineries continue to make money. i'm not a fan but people do love
3:44 am
mike in ohio, mike. >> hey, jim, how are you? love the show. >> thank you. >> what's your opinion on equifax. >> that is just a financial service company that this market loves and i have to agree that the market is right. and that, ladies and gentlemen, is the conclusion of the lightning round. >> lightning round is sponsored by t.d. ameritrade. i have asthma... ...one of many pieces in my life. so when my asthma symptoms kept coming back on my long-term control medicine, i talked to my doctor and found a missing piece in my asthma treatment. once-daily breo prevents asthma symptoms. breo is for adults with asthma not well controlled on a long-term asthma control medicine, like an inhaled corticosteroid. breo won't replace a rescue inhaler for sudden breathing problems. breo opens up airways to help improve breathing for a full 24 hours. breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. breo is not for people whose asthma is well controlled on a
3:45 am
like an inhaled corticosteroid. once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. do not take breo more than prescribed. see your doctor if your asthma does not improve or gets worse. ask your doctor if 24-hour breo could be a missing piece for you. see if you're eligible for 12 months free at mybreo.com. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews. they work fast and don't taste chalky. mmm...amazing. i have heartburn. alka-seltzer heartburn reliefchews. enjoy the relief. man (sternly): where do you think you're going? mr. mucus: to work, with you. it's taco tuesday. man: you're not coming. i took mucinex to help get rid of my mucusy congestion. i'm good all day. [announcer:] mucinex keeps working. not 4, not 6, but 12 hours.
3:46 am
3:47 am
before any news flow and that sent the s&p 500 futures into the stratosphere. it's the green one, okay? and that caused the s&p futures to nose dive. and then oil went back and the futures rebounded. 16 states derived income from oil and gas. that's it. of those texas, oklahoma and north carolina, ohio, alaska, louisiana colorado and california are impacted by lower oil prices. look at the net impact and jobs everywhere and it's a cheap feed stock and cheap recruiters is a net negative only for north carolina because of the high cost of balkin oil and the difficulty of getting into the markets. you layer in the savings and natural gas because it's so warm anyway and it's more of a net benefit to the country. how about all the debt that the oil and gas companies layered on though?
3:48 am
definitely. there's maybe as much as $300 million in debt in this industry. that could be a huge hit. it could be bad. but here's an astonishing number. the housing collapse, 20 times that figure. 20 times that figure went bad. let's say all the $300 billion in debt goes bad. it would still only be a fraction of just the $6 trillion in housing related debt. >> right here, right now. that's a big number. but not one they is sink in the bank. nowhere near.
3:49 am
that invested a lot of money in this oil and gas firm which is is why we're so fix sated on the mutual funds. hedge funds don't have to open up the gates. now i could easily say the oil futures and s&p futures are just plain wrong, this whole thing is ridiculous but in the new world where correlations matter more than whether they make sense we can't break the linkage and it can drive you crazy. does it really make any sense at all that alphabet, the company formally known as google saw it's stock swing from 736 to 762 because of oil reversing it's downward trajectory? and it rallied a buck? that's actually what happened here. does it make sense? of course not. that's why we keep saying we're in crazy town.
3:50 am
make money on the long side if something nasty happens to the supply of oil. the demand can't take us back. given that the saudis pumped more than anyone i dealt with thought. it's difficult to think of any sustained advance in this market. we can have spikes like today. one day we'll escape from crazy town. it hasn't happened yet. even a small portion of high yield debt and 8% of the s&p and a whole lot of partnership should be impacted here. not google for heaven's sake but that's how it is. i don't make the rules. i just try to help you understand them. even if they're as wrong headed and as stupid as i have ever seen. stick with cramer. phil! oh no... (under his breath) hey man! hey peter. (unenthusiastic) oh... ha ha ha! joanne? is that you? it's me... you don't look a day over 70. am i right? jingle jingle. if you're peter pan, you stay young forever.
3:51 am
if you want to save fifteen percent or more on car insurance, you switch to geico. you make me feel so young... it's what you do. you make me feel so spring has sprung. i take pictures of sunrises, but with my back pain i couldn't sleep and get up in time. then i found aleve pm. aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. i'm back. aleve pm for a better am. enough pressure in here for ya? i'm gonna take mucinex sinus-max. too late, we're about to take off. these dissolve fast. they're new liquid gels. and you're coming with me... you realize i have gold status? mucinex sinus-max liquid gels. dissolves fast to unleash max strength medicine.
3:52 am
3:53 am
made some calls and turned out that it wasn't doing as well. apple sells at 12 times earnings. my advice is not to trade apple off the channel checks and actually to own the stock because it's inexpensive and has a fantastic franchise. i like to say there's always a bull market somewhere and i promise to try to find it for you right here on "mad money." i'm jim cramer and i will see you tomorrow. it's tuesday, december 15th, coming up on "early today," tonight, a wild west show down between ted cruz and donald trump as the republican presidentialn candidates square off for the first time following recent isis inspired terror attacks. and on t heels of president obama's strategy on the war on terror. n and a man drives directly
37 Views
IN COLLECTIONS
KWWL (NBC)Uploaded by TV Archive on
![](http://athena.archive.org/0.gif?kind=track_js&track_js_case=control&cache_bust=879314466)