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tv   Mad Money  NBC  November 4, 2016 3:00am-4:00am CDT

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my mission is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other op i'm just trying to save you some money. my job is not just to entertain but to educate and teach you, figure out how to deal with this market. so call me at 1-800-743-cnbc or tweet me @jimcramer. you know what's the most important currency in this business? not sales, not earnings, not orders, not anything like that. for investors, no currency is more valuable than credibility. it's awfully hard to come by and easy to lose. but when a ceo has credibility, you know that his or her stock
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given that we got a heck of a lot of dips going on in a market like this one, where the dow sank 29 points today, s&p declined 0.44%. nasdaq lost 0.92%, i think it's going over who does have credibility and who doesn't. so that you can learn how to tell the difference and do some buying as we are now down eight straight days. that's the longest losing streak since october of 2008. that's staggering. let's talk with someone who's got credibility in spades, rick clemmer. he's the ceo of nxp semiconductor. he's been a transformational executive. nxp was long viewed as little more than a component supplier for apple. last year he snapped up freescale, a maker of chips for autos and the internet of things for $11.8 billion. four private equity firms had led a leveraged buy, paying
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company was always a few steps away from death's door. but to him it was a way to diversify the footprint away from the cell phone and towards autos and internet of things. now qualcomm is buying it for $110 a share. this stock could fall into the mid-60s in february. you're getting a monster return here. my charitable trust has owned this one for ages. rick clemmer is the definition of bankable. trying to adopt the same strategy. speaking of fitting, you know who has lost a great deal of credibility? james park of fitbit. you may like the product, but one thing we know about this stock is it loses you fortunes. last night park came out with some horrendous numbers and an even worst forecast. this is kind of astounding to me because i had park on the show
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were showing dramatic weakness for his products, he dismissed them out of hand, pointing out how well fitbits were doing on amazon. i don't think park was lying. i do think he might have been clueless. if he was doing a more rigorous job running fitbit, don't you think he wouldn't have to wait to find out how terribly his products were really selling? today's 33% decline was brutal, but i say forget fitbit because the company's credibility is now nil. thank heavens i hit the don't buy button on the eve of this report. let me give you another positive example, though. jeff bewkes, the ceo of time warner, he's got a ton of credibility. he's created a huge amount of wealth for shareholders by getting rid of many extraneous properties and transforming time warner into a pure media company. after he was done cleaning house in july of 2014, fox came in with an $85 takeover bid after all the work that bewkes had done. a $14 premium to where this great american had taken the stock. but bewkes point blank refused
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was a non-starter because he wanted a price well over $100 a share. so fox walked away, and a lot of investors cursed bewkes for his hubris. but lo and behold last month at&t agreed to pay nearly $110 for time warner. that's what i call credibility. on the other hand, there's the ceo of occidental petroleum who earlier this week reported a devastating and completely inconsistent quarter with a fright foolhardy spending outlook to boot. she recently took over from stephen chasten and apparently they couldn't be more rigorous. he was tight fisted, always concerned his balance sheet not be stretched. my charitable trust, which had a position, committed more capital to it. but when this quarter was announced, we learned they spent
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in what's become an expensive region even though they already had a fabulous position. even worse, after listening to the conference call, i started to worry about the dividend itself. yep, occidental has gone from a stock i coveted to one i wish the charitable trust simply didn't own. and if the price of oil bounces, well, we're out the door. sometimes executives don't get the credit they deserve. so let me give you a typical example here. i'm sick of tim cook never receiving the benefit of the doubt at apple. when he o at 53 ducks. now it's at $109. 104% gain. yet cook is doubted almost constantly. he was doubted when apple was at $93, and everyone thought the new iphone would be a dud. then he was pilloried after the company reported a good quarter last week when the stock was at $115. we keep hearing apple has stopped innovating with cook. why are so many people switching
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plus he hardly gets any credit for the service stream. 50% plus gross margins. even when the analysts do talk about it, they talk about the service stream as accidental. cook somehow backed into it. i only wish more companies could back into a $28 billion business like that. apple supplier chip company qorvo slashed its forecast badly. now, here's what you do in these situations. we did an off the charts the other night saying it could go to 102 and all bets will be off. you got to let the dust settle here before you pull the trigger if you don't own any apple. it's expensive. in contrast we've got nick woodman, the founder and ceo of gopro, total commodity. he has no credibility because he created an ecosystem that never really took off, the opposite of
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gopro, you didn't need another gopro. even as they kept introducing new iterations. it just isn't that special. and gopro's earnings were just slashed. its forecast was slashed beyond recognition this evening. fitbit, nothing more than a commodity. now, there are two others that have been called into question right at this very moment. the first is the management team at facebook. this stock got hammered today, but i think it's a victim of its own success. i keep telling you not to trust stocks that run up into their quarters. facebook's stock ran up aggressive i think the company was managing down conservatively on its conference call last night and ult mate we'll see it as a desire not to let expectations get ahead of themselves as facebook tries to recruit another billion people to its properties. more on facebook later in the show. for now, i think it's a buy into the further decline that i expect from these levels in tomorrow's session. maybe monday is a better day. tomorrow i expect will be weak too.
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finally bret saunders at allergan, who now is despised. he's made shareholders a fortune but this recent run with allergan, it's now become a real loser. it could have been a huge winner when pfizer tried to buy the company last year, but then the treasury department changed the rules, moved the goal post-on tax inversions, blocking the deal. it has really been downhill ever since. yesterday saunders announced a $10 billion buyback coupled with a 70 cent quarterly dividend, but allergan also missed estimates and the stock has been crushed, falling from 209 to 189. this is just in a two-day session. that's down a stunning 45% from its high. we own this stock for my charitable trust, and we've been telling actionalertsplus.com over at thestreet.com that saunders isn't getting enough credit in this vicious environment for drug companies, but do not touch the stock until it gets to 180, which is about
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at that point it will be cheaper than johnson & johnson, pfizer, bristol-myers, and eli lilly own though it has a much faster growth rate than every one of those, and that's insane. but it's what happens when the market takes away your credibility prematurely. even as it sold at this time generic business to teva earlier this year. but it did get some stock, and teva stock is down 10%. management matters. so remember track records. remember what's been said. remember what's been done. judge ceos on their words and deeds and performance and character, and be prepared to stick by that judgment when times get tough. when times get tough like they sure are getting now. joey in florida, joey. >> caller: yes, sir. thank you for taking my call. >> of course. >> caller: a booyah from the space coast.
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i have a good, well diversified portfolio that i've developed over the last 15 years. stocks such as pepsico, which have tripled and quadrupled in value. my question is this right here. with the impending election coming up, historically the market has been volatile regardless of which party gets in under a new presidency. >> right. >> caller: would this be a great time to take these things off the field and step back for a while if it goes down and -- >> i've got to tell you, joey. day with jack moore who runs the charitable trust with me, and we're not a hedge fund. we don't want to flit in and out. we raised a huge amount of cash, the biggest amount of cash. you raise the cash. we've been sitting on this huge cash position, haven't liked the market because of this election. that's what you should do. i don't want you to sell everything. i think you should raise cash. take some off the positions you don't like because this market -- now, it's oversold. wait for a bounce. eight straight down days, but understand that's what we did.
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the charitable trust isn't a hedge fund. no need to cashier all your positions. martin in my home state of new jersey, martin. >> caller: booyah, jim. this is martin from nyack, new york. don't get us mixed up. >> good to have you. >> caller: i'm up 40% even after it dived. is it a trade, or do i hold it as an investment. >> what was the stock? >> caller: etsy. >> look, i think you have to -- if you're up 40% and you take a quarter off it, all right, because we don't want to give it all back. so if you have like 200 shares, take 50 off. i do think etsy is a great long term story. it's just it's run so much and this market is taking no prisoners. like i told the previous gentleman, you want to have some cash on the sidelines just in case this down eight days straight doesn't end. i know we should bounce because we're oversold. i would sell 25%. let the rest run. credibility in this market is as good as currency but not a lot of people have it.
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records you can count on. on mad tonight, take two interactive has developed some of the biggest titles in the video game industry, but can the maker of grand theft auto continue to rise? i'm sitting down with the ceo to find out if it's game on after earnings. then three little words caused facebook stock to tank. what were they, and can the stock regain its footing? i'll reveal. and will the results of next week's election impact american electric power's chances for growth, or will they power right through? i've got the exclusive with the company's ceo. so stay with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something?
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this is awkward. new mucinex fast-max clear & cool. feel the menthol burst. and clear your worst cold symptoms. start the relief. ditch the misery. let's end this. i keep telling you that the video game space is on fire thanks to the fact that more and more people choose to stay home
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and last night we got still more confirmation of this when take two interactive, the game developer best known for grand theft auto, reported a blow-away quarter. take two delivered a stunning 15 cent earnings beat off of a 30-cent basis with higher than expected revenue, up 21% year-over-year. management maintained their full year revenue and earnings per share guidance. that's why the stock shot up over $3 today. remember, it was a terrible day for the market. this move was totally gettable. if you listened to the ceo last time we spoke, you now have a terrific gain of nearly 30%. let's check back in with strauss zelnick, the bankable chairman and ceo of take-two interactive software. mr. zelnick, welcome back to "mad money." good to see you, strauss. >> nice to see you. >> thank you. >> i'm holding up a picture of an ad. it looks just like a movie ad.
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mafia 3. june 22, 1993, when the movie industry wunderkind left, did you ever envision you'd be making something that would look like a full page ad for a movie but certainly is probably more lucrative and better received? >> it's actually what i thought would happen. that's why i went to crystal dynamics, and in fact i thought the video game business had the creative opportunities and the the 30s. >> how is that possible because that was when we had chips that were incredibly slow, only main frames were able to do anything fast, and you could never have anything in your house that would have the computing power? >> crystal dynamics promise at the time was it was going to be the first maker of high-definition video games, but they certainly didn't look high-definition compared to what we see today. >> why is this what i see as
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>> i think it came out hot because it's gritty. it's authentic. the soundtrack is unbelievable, and i think we've set a new standard for a cinematic video game. we're not trying to make interactive movies. we are trying to make incredibly realistic, compelling video games that have strong story and character elements and great game play. >> how long did it take to make something like this? >> the title? several years. >> several years. you have said over and over again on this show that you do this is an example of something you waited and waited until it was exactly right. >> i think the team at hangar 13 did an incredible job. it was their first effort for 2k and take-two, and we're incredibly proud of what they've achieved. >> there are some other secular stories. my wife and i are talking about how we're picking games already for -- we have a package for the nets, and i couldn't believe we were talking about basketball before the season really had
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nba 2k, people are talking about playing that before the season had begun. >> it's a year-round game. when we started at take-two, basketball and the other sports games tracked the season they were in. and now with the engagement last year around, if you have a good game, and the revenue last year around, because we have recurrent consumer spending opportunities both in the game and in the my nba 2 k companion app. >> are these happening so quickly they overrun what people quarter was extraordinary? >> i think actually we do have a sense that the opportunities are even greater than many of us had thought, and it's a nice place to be. so that i'm not promoting it from our point of view, let's look at it from the industry point of view. interactive entertainment is the fastest growing part of the entertainment business, has been for some time. the average age of one of our consumers is 37 or 38, skews slightly more male than female,
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their lives the entertainment they avidly consumed at the age of 17. you know that to be true. >> i'm getting double-digit number percentage of days spent on gaming. >> i think that will continue to grow. >> as the games get better? >> as the game gets better and as the cohort grows. as they age, they don't stop playing games and new people begin playing them. >> talk to me about wwe which i had been dismissive of at one point until my friends are telling me that they're front row seats. >> i will be taking you to wrestlemania. before we signed that deal, i went to wrestlemania here in new jersey. there were 90,000 screaming fans in the rain. you couldn't pry them out of their with a crowbar. and i went back and said to the team, i think we're good to go. we're excited because the game has gotten better. we expect to be up year-over-year on the title. >> we'll still when you look at
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redemption coming out? this obviously does matter. i know you're the least promotional ceo but also the ceo has done the best since we've been interviewing. you can't promise necessarily when something will come out, but this could be big for next year? >> we said fall of 2017. >> but how do you know that when you've told me over and over again, if it's not perfect, you're not going to let it come out? >> there's no question that perfection is the standard that the team is seeking. it's certainly thend confident that we're going to be out in the fall of 2017. with red dead redemption 2 and with an online component. >> are you close to nvidia, any of the chip companies? when you left fox, you was looking at your background when you were the wunderkind, and i know you had to believe that the computers were capable of something. nvidia is about to report, and what i'm hearing is the chips that they have in the hopper will make it so that we really
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between reality and virtual reality. >> i'm pretty sure we've talked about that here before. i think the creative part of our business, which is driven by technology, is when what we do looks like live action. do i think that will be possible? unquestionably. timing? can't really call it. if you believe in moore's law -- and, remember, moore's law was not supposed to last forever. a lot of people debate when it's coming to an end, and you'll even read in the last few months people saying, yes, finally -- >> i've read that. work at intel. >> so far hasn't happened and i do believe our games will have the opportunity to look like live action. we're still going to make titles like borderlands, but for some of our realistic titles, it's going to be possible. >> i know cliff mason who is my co-writer who said you would be remiss if you didn't ask strauss to date how many units sold, grand theft auto? >> thank you, cliff. i appreciate it.
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and it continues to sell. it's one of the reasons we had such a great quarter. and three years after release, grand theft auto online had year-over-year growth in the quarter as well. >> but that's not possible. >> i think it's become the standard bearer for this generation. it really has. >> i just got to congratulate you. we've known each other for a while. you've never overpromised. you have always been consistent, and it's just been a remarkable run. thank you so much to strauss zelnick, chairman and ceo of everyone is playing mafia 3. what can i say? yes, cliff loves it. stick with cramer. >> announcer: coming up, more than a billion people are using facebook on their mobile device. but after a big post earnings selloff, can the stock stay as popular as the social network itself? find out when "mad money" returns.
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three little words trumped everything fantastic on facebook's conference call last night. three little words outweighed the company's staggering 56% revenue growth up to $7 billion, not to mention its rapidly expanding monthly average user base of 1.8 billion people. 1.2 billion of whom check it every day. and of course its unbelievable $2.4 billion in net income. what words could be that the first was meaningfully, as in add revenue growth rates will come down meaningfully. then aggressive, as in 2017 will be an aggressive investment year. and substantially, as in there will be substantial growth in capital expenditures. it didn't matter what facebook had done in the past, including giving similar guidance about slow downs to come.
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projected toward the low end of its expense forecast. it didn't matter that facebook's average price is actually going higher. so even if the company restricts its add load to preserve the user experience, they can still make more money. nor did it seem to matter to anyone that as facebook makes video its priority, it dramatically increases its total addressable market in advertising, allowing it to capture an ever larger slice of ad business. $7 billion quarter as large as that still leaves plenty of room for improvements that there's $250 billion in quarterly ad spends up for grabs. and facebook is reaching 16% of this right now daily. facebook's penetration could be much higher. i think the ceo is thinking that way. they just need more form factors to reach their users and keep them logged in for longer. that's exactly what zuckerberg and his team spent most of the call telling you, not that anyone cared about that. telling you what they're developing. that's where the aggressive spending is going.
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put this somehow on course to reach more viewers for longer periods of time. there's no reason to believe that their current need to spend aggressively, including substantial capital equipment to handle all that traffic that they generate will be any different. no reason to believe. yet the takeaway from the call was that meaningful meant material or perhaps even extremely material, which implies listen up, wall street, time to take down your estimates. these three words amounted to a forecast cut in many people's minds and st trajectory. now, no analyst actually cut numbers today but it didn't matter. we have a jittery market and many investors decided they had enough of facebook, too good to be true, and wanted to get out ahead of estimate cuts even if there aren't any. which is why the stock ultimately fell 5.64%. add in two more elements. why would the company need -- when you're in a negative mind-set like this market, you
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must be taking share from facebook, and, two, the world of advertising must be tapped out. facebook doesn't want to be the one trick cell phone pony these same analysts think the deplorable apple has become. put it all together, and meaningful, substantial, and aggressive all sound like code words for we aren't doing as well as you think because there's a ton of competition, so take down those numbers. now, let's step back for a second. let's temper these words. le's say what really happened here was the cfo who said th words is simply saying things are great, but you know what? i don't things can stay this great although they sure have lately. then what would have happened? i think analysts would have raised numbers and price targets to levels that actually could be too hard to beat. if you own the stock, you want exactly what happened last night. if you don't own it, be prepared to buy it as it gets cheaper when it comes in and this market gets even uglier than it has been. right now the market is saying
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just say not a hit at all. i'm saying the stock ran up a great deal and is just undergoing profit taking but that it could be a part of the multi day variety of profit taking. here's the bottom line. i've been wrong so to speak for 100 points of upsize on facebook if you judge it instantly when i tell you to buy it, and i've been right for a hundred points if you just give it some time as we did for my charitable trust. so just be patient. i think the bulls like me will be right all over again when it comes to fb. rajan in california, rajan. >> caller: hey, jim. thanks for taking my call. >> of course. >> caller: i owned acacia communications but sold when it started down trending. >> right. >> caller: do you think it's a good idea to get back in, and if so, when? >> you know, this is one of show sliver stocks we talked about where all they did was offer a little bit of stock and it got really hot.
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the stock is trying to find its footing. it's trapped by a lot of these other stocks right now. we could be talking about twilio too. my take is you need to see -- i know this is going to sound strange. you have to wait for a bounce. this is something we used to talk about all the time on the trading desk. until this stock has a bounce, it's just going to go lower has people keep panicking. it has to stabilize. it will be very clear when it stabilizes. it will stay where it is for a couple days and not keep going lower. art in maryland, a >> caller: hey, jim, booyah, baby. >> booyah. >> caller: i have a question about amd. >> okay. >> caller: they recently came out with three chips for mac computer, and they also have one of the chips is for artificial abstract reasoning similar to watson's ibm. appreciate your comments and thanks for taking my call.
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still pretty much a commodity semiconductor company, and i think it's good. i think it's inexpensive, but it just did a very big financing. the one that we're keying on is nvidia. that's the one right now that has the most momentum, and broadcom avgo is the one that i think is going to lead the group. those are the ones we take our cue from. qorvo reported disappointing tonight. skyworks is about to report. amd is caught up in that. i think if you can get it at six plain, it's darn good. which facebook do you believe in? is it the old social star with new competition or only in the early innings of its growth story? as an investor, you've got to decide. i think there's still much more ahead. now, speaking of much more ahead, there's much more ahead on "mad money." it's been a tough couple of months for the utility stocks, including aep. but can the stock regain its electricity in the market?
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electricity we can get because i am all charged up for tonight's edition of the lightning round. bring on your best ideas. but first do your stocks have what it takes to survive the unknowns of this market? i'll be the judge of that when we play am i diversified?
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it's been a rough few months for the utilities cohort. the whole group has been slammed for one simple reason. market equivalent stocks so when we expect the federal reserve to raise interest rates, something that's likely to happen next month, these high yielders suddenly become a lot less appetizing and money pours out of the sector. but the thing about stocks is they get cheaper as they go down, and that goes double for stocks with big dividends. take american electric power, a company that owns the largest power transmission network in the country, serving over 5 million customers in 11 states. also a stock we own for my
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follow along at actionalertsplus.com. now, we started buying aep back in january, and the stock ran from 58 at the beginning of the year all the way up to 71 at its peak in early july. remember in the first half, the utilities were red hot as investors desperately searched for yield. since then, aep has fallen down below 63. but that has nothing to do with the business. they reported a nice top and bottom line beat on tuesday, and management even raised their full year's earnings guidance. on the same day they held a analyst meeting with a plan for faster earnings growth. terrific sto but this is a dividend stock with a 3.75% yield, and the people who owned it for that have been selling the darn thing as bonds become more attractive. the yield on ten-year treasuries has increased by about 40 basis points. i think the fundamentals matter although you might need to be patient before that happens. let's take a closer look with nick akins, the chairman and ceo. mr. welcome to "mad money" in person. good to see you, nick.
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>> nick, a little snippet from your analyst meeting. everything can get it online. it's all there including the tech. as i lead up, this is the story of aep. it's more regulated and more certainty. so from a shareholder perspective, it should be just an excellent story for investment going forward. isn't that too good to be true? how can that be? >> it's not too good to be true because we've been in a several year process of transforming regulated so it can provide consistency, quality earnings, and obviously dividends as well to our shareholders and reform the business in that perspective has really worked out for us. now we're fully regulated and we raised the growth profile of the company going forward. so it's going to work out great. >> there was one point in my career i wanted all these utilities. everybody told me you wanted go go utilities. they, you know, they went around the universe trying to sell power. that model did not work, did it?
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consistency for our shareholders, and that's what they expect obviously. so we want to make sure the business actually focuses on that, and we have the added benefit of a huge transmission in infrastructure play that makes a lot of sense. >> how can you assure growth at a time that is so uncertain in this country? >> because we invest our capital. we have a $17.7 billion in capital that we're going to be investing over the next three years in infrastructure, and we recover through the regulated an r.o.e. that's associated with that. so we actually produce earnings from that perspective. >> so return equity has been consistent? >> yes, and we have the largest transmission system in the country so the return on the equity for transmission are usually higher than the state-approved r.o.e.s because the commission rightfully so wanted to encourage transmission to be built.
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my colleague interviewing elon musk. he's got solar panels. they look like singles. and i was thinking what happens if everybody did that, nick? what happens if everybody put shingles on and every power company had to take the power from individual houses? to me the grid would fall apart. we're not ready for that. >> there's a huge challenge associated with that because the more distributed generation like that you have, we need to be able to control it and manage the grid itself. strategy of aep is around infrastructure to support all these renewable resources being added. so it's not only the infrastructure of transmission and block and tackle type of investments, but it's also in terms of information flow, in terms of new systems, new technologies that are being deployed so that these systems can be managed. so obviously controllability is key there. >> now, i know being a utility company, you have to be neutral. i mean you're regulated by a lot
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one candidate is yearly pro-coal. he says that, donald trump. another one may be more anti-coal than president obama, not clear but it seems like it. a company like american electric power which has gotten out of a lot of coal, which has reduced its carbon footprint dramatically, is that a defense against someone who might say, listen, i don't want any more coal? >> i think we're doing exactly what our customers expect us to do, moving toward a cleaner energy environment. and for us, no matter who is business and we plan to be around for a long time. we manage between both parties all the time, and that's something i think that as long as we're staying focused on the customer and the expectations there, then we'll be fine. we've had a huge transition going on, and we'll continue that transition toward cleaner energy. >> last question. i see that suddenly, mexico has got a shortage of nat gas. i see the plant we've been monitoring, they're starting to
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is there ever a chance we have what happened to australia, where they ended up shipping so much they ran out? >> i think one of the clear issues that the u.s. needs to consider is the pipeline capability across our system. so if we're going to depend upon that particular fuel as a backup supply for intermittent resources in the future, we had better have the natural gas supplies and the accommodating infrastructure to allow us to depend on that particular fuel. ship overseas or more that is shipped to other countries, we need to make sure we take care of the u.s. first. >> i think people should be thinking about that. they may be playing with literal fire. okay. that's nick akins. he's chairman, president, and ceo of american electric power. my charitable trust owns it. it's a stock that held up today. maybe that's saying something. "mad money" is back after the break. ? harry's meeting clients from far away.? ? but they only see his wrinkles. ?
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things over. ? ? if only harry used some bounce, to dry.? ? yeah. ? ? he would be less-wrinkly and winning at life. ?? we're going to prove just how wet and sticky your current gel antiperspirant is. now we're going to show you how degree dry spray is different. degree dry spray.
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>> it is time! it is time for the lightning round! that's where i take your calls rapid fire. you tell me the stock. i tell you to buy, buy, buy or sell, sell, sell. we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." let's start withy >> caller: booyah, mr. cramer. >> booyah. >> caller: zto express. >> yeah, the zto express. well, i got to tell you not really that big a fan of the zto express. as a matter of fact, we're going to -- >> sell, sell, sell. >> after alibaba reported that great number and it went down, enough is enough. steven in washington, steven. >> caller: booyah, jim. hey, i've been watching charles
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i haven't bought it yet. i was waiting for after the election maybe. >> i think you're absolutely right. let's wait until after the election. now we're too close. i think it's definitely the right call. it's got the right group. the fed's going to raise rates. we have to wait until after the election at this point. there's no reason to pull the trigger. paul in new jersey, paul. >> caller: hey, jim. big booyah from englewood cliffs here. >> right around the corner. what's going on? >> caller: i just recently picked up edwards lifesciences. >> you know what, the quarter was great, but the guidance was miserable, and the stock has this market does not like the high flyers right now, but i do think edwards lifesciences, if you take a longer term view, it's right. let's go to steve in kentucky, steve. >> caller: jimbo, i need yield, bro. your thoughts on vodafone. >> i think you're right. that's a good place to get some yield. the yield is 7. it's over there in the uk, but i think it's good. i like the stock. actually, i think that's a great idea. i think it's a great idea. peter in florida, peter. >> caller: jim, thank you for taking my call. >> of course. >> caller: i'd like your take on
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uve, writing property casualty insurance based on the following fact. >> it's not bad. it's not bad. allstate reported a good number yesterday. i have to tell you i actually liked the aig number. i know aig was down really bad, but i interviewed peter hancock this morning. that stock at 58, that's a buy too. i like the insurers, all three. if the fed raises rates, you're really going to do well. let's go to jim in florida, jim. >> caller: hey, jim. originally from bay ridge, so giants going to beat the eagles this weekend. >> well, thanks for nothing. but go ahead. i'll still help you. you sound like a nice fella. >> caller: real quick, kra, kraton corporation, touted on cnbc a month ago. its p.e. is around 7.8. it's got record earnings and sales, and it's dropped 30% in the last month. >> well, because it was up 100% and 66%. you know what, this is a stock that at this point we're going to wait until after the election. this is another wait until after
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no need to rush. mike in new jersey, mike. >> caller: everybody's got to eat, jim. how about hormel? >> hormel, last quarter was not perfect, but i do like the sentiment. i would put some on here and then wait. we had that stunning treehouse miss today, ths down 16 points. wow, looks like the ralcorp stock that conagra sold to them, not working. we thought it was for a while. let's go to mike in illinois, please, mike. >> caller: hey, jim, froe >> congratulations. >> caller: thank you. my stock today is gigamon. hold or buy more? >> gigamon's very, very interesting. you know, the stock's up 100%. it is absolutely in the sweet spot of high-network trafficking, like brocade that got the bid yesterday. but we got to let this cool off. there are too many stocks in the high tech group that are falling apart. wait until it cools off. let the rest of them fall down and then get a chance to buy it cheaper.
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lightning round! [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade. anything meant to std needs a stable foundation. a body without proper foot support can mean pain. the dr. scholl's kiosk maps your feet and recommends our custom fit orthotic to stabilize your foundation and relieve lower-back, knee or foot pain from being on your feet. find your nearest kiosk at drscholls.com. also available for lower back pain, lightens the impact of every step. you bought a wig, a jersey, and overpriced nachos... ...don't let sinus symptoms bring you down now. get fast sinus relief with vicks sinex and get back in the game. sinex, the congestion, pressure, pain to clear your head...
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red 97! set! red 97! did you say 97? yes. you know, that reminds me of geico's 97% customer satisfaction rating. 97%? helped by geico's fast and friendly claims service. huh... oh yeah, baby. iendly as it gets. woo!
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competition is everywhere. we can't predict whether hillary clinton or donald trump will come out on top, and we couldn't imagine the end of that nail biter last night between the cubs and the cleveland indians. but the key for a home run no matter how the competition shakes out in the market is to draft a diverse team of heavy hitters for your portfolio. that's why we play "am i diversified?" this is where you give me a call. maybe you tweet me. tell me your top five holdings. i let you know if your portfolio is diversified enough or if you need to take another look at your roster because we're down eight straight days. you need this kind of help. up first, we have a tweet from @willkelly3, who says am i diversified, bristol-myers squibb, darden restaurants, matador resources, general electric and scotts miracle gro. let me just do a quick check of something. excellent. okay. so scotts miracle gro, we know lawn care. i don't know. i mean home improvement, how
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oil and gas, drug, restaurant, and diversified industrial. wow, okay. industrial, restaurant, that is perfect. that is complete and utter diversification with a little bit of yield. i like it. i say well played. not bad, not bad. let's go to douglas in connecticut, douglas. >> caller: cramer. >> yo. >> caller: hey, my companies are carlisle, exxon mobil, dover corp., 3m and g.e. >> interesting. i'm going to show you a twist here. it's going to be interesting for you. dover has energy exposure. exxon has energy exposure, and g.e. has energy exposure. g.e. fortunately is offloading some of it to baker hughes. i don't like the dover. dover is trading way too much with energy. you're going to get a health care company. we're going to add johnson & johnson and take out dover. that will give you a diversified industrial, another industrial but not a lot of overlap, a drug company, another diversified industrial, and oil and gas. why am i okay with these
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verticals, and that's what matters. polly in kansas, polly. >> caller: hey, mr. cramer. >> yeah. >> caller: first i got to tell you thank you, thank you, thank you. it was because of you that i took an investment class. it's because of you i read more about investing in stocks. so now help me out here and see if i'm diversified. >> all right. al >> caller: grub hub, gray television, mcewen mining, and williams-sonoma. >> all right. this is very interesting portfolio. okay. we got home improvement. we got entertainment, television entertainment. we've got very high-growth tech. we've got a mineral company, very speculative. and we've got grub hub, which is
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my only problem here is we have to recognize we've got a lot of speculation. i regard grub hub as a little speculative. i regard box as a little speculative and this miner as a little speculative. as long as we recognize there's a lot of speculation here, we can accept it. i would have liked a little more yield. i would like to see a little bit of a g.e. or a j&j instead of one of these. maybe we get rid of grub hub. that stock has had a big move. i would make those changes. thank you for the kind words. let's go to jennifer in ohio, jenn. >> caller: jim, it's nice to talk to you. >> same. >> caller: my stocks are apple, microsoft, gilead, oracle, and this last one i'm down 22%. do i get rid of it? it's bristol-myers. >> all right. let's go over these. okay. we've got microsoft, obviously a diversified technology, holding up really well in this market.
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oracle and microsoft, both tech, along with apple. so we're going to have to make some changes there. gilead and bristol-myers. bristol-myers yields 3. i'm not going to say cut and run there although my charitable trust felt after that last good quarter, time. gilead, no yield versus bristol-myers. let's take this out and put g.e. in. let's take oracle out and let's put in -- you know what? we're going to have to put in -- let me just see. there's something from my charitable trust that i really just absolutely think that should be in there, and i'm putting in schlumberger because that oil company is down too much. wow, we didn't get to play that long, but thank you to all our contestants. stick with cramer. once upon a time in the depths of your own cupboard lived eco-friendly products waiting to be discovered.
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"that label's not green, it's purely just chic." then why is she using it week after week? they realized then, it's not the label that flatters, but the power inside is what truly matters. new tide purclean, 65% bio-based, 100% cleaning power of tide. "whatcha doin?" "just checking my free credit score at credit karma. "what the?" "don't you know that checking your credit score lowers it." "actually, checking your own credit score with credit karma doesn't affect it at all." "i guess i could just check my credit score then."
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eight straight down days. very unusual.
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just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow! the fbi is investigating how hillary clinton put the office of secretary of state s up for sale in violation of federal >> he has spent hess entire campaign offering a dog whistle to his most hateful supporters. >> the nation heads to the polls in just four days, but could real action on election day be all about cyber chaos? >> a south carolina woman missing since august is found alive, chained inside a container like a dog. a registered sex offender has been taken into custody.

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