tv Mad Money NBC December 8, 2015 3:00am-4:00am CST
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and the elf on the shelf picture of regis. >> shake, shake, shake, shake, shake, shake, shake, shake, shake, shake, my mission is simple. to make you money. i am here to level the playing field for all investors. there's also work and i promise to help you find it. "mad money" starts now. and i am cramer. welcome to mad money and i am trying to not lose your money. my job is not to entertain but teach and educate. you can call me or tweet me at jim cramer. are fossil fuels the next tobacco stock? is it fossil it's going to go
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that notion and the diselusion of the cartel are rattling in a way that nobody could predict. dow going and s&p shrinking and on a day when the price of oil fell to a low and then a 17 year low. we have to talk about this. you you know that i have been saying how the market is in crazy town. a place where good news is bad news, and we did have a nice change of this on friday and we rallied. today however, perhaps the best news that could happen to the consumer aside from the tax cut which your never going to get. a further giant decline in the price of something that we all spend a lot of money on. energy is having the usual horrendous impact on the entire
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some of it goes with exxon and chevron. she have seen people get crushed because they bought them in yields. many of them cannot be maintained. many will have to be cut. some will be eliminated. worst of all, we have seen the stunning decline in s&p's. that's a group for the outside distribution and in part that the guys and the groups finished with opec no longer trying to curve the production and causing an glut that's lead to the a lack of demand and pipelines and also falling apart in park because kendra morgan the huge pipeline company has a stock
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notice that i did not say morgan and that's not ml p is falling apart, but the stock is getting killed. for many that own shares in the gigantic corporation, that's all that matters. you probably don't care that the bonds rallied today. you just feel the pain. how did we get into this positive predicament? the consumer paid gasoline and heating and oil natural gas. there are only a few states that have the oil and gas related jobs that are growing and just a hand f, so the pain is concentrated in those areas. not only that but because of the price of energy is so low and the pipeline is being built to ship the gas and the places that it's in plastic, we're adding that in the states and especially in louisiana.
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the basis. the answer is that opec has dissolved, and that's turned everything down. saudi arabia is a rich county that hates iran. they don't want them to rebuild the oil facilities. china and russia wants to take the share away, and it's natural to cut the prices and keep the relationship. now the united states is a huge winner in this. the saudi's want to give us the cheap oil. i could see a tax on gasoline at a couple of cents a gallon and double the size that congress
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it. probably would not notice a couple of pennies. ux see the mashlg and that's part of why i do the off the start segments on tuesday. these institutions are and the heat is being turned on and the issue. it's not going away that's right to not own the stocks and it's an institution and call foundations and dumping them at any opportunity. this is what i hear all of the time. at the same time the ener skri names are individual -- the
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rates down and so individuals turn to the master limited partnerships as maybe they taught that it was a safe way to pick up the extra income. well, they got if income but the principal is cut. the pipelines have been very distressed in the business. the total of it is not so much. many of them are doing just fine. they're raising it because the producers need it more than ever and then the new users are taking advantage and then the power plants are switching from coal. here is the problem. these companies will rely on the need of increasing pipeline to capacity and areas in order to raise the distribution. we have stopped it because the saudis are flooding the world with oil. to build the new pipelines that
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years does not work i want to assure you not that it matter because we have had this one a lot and boosting it and talked about the coming pipeline and begin how long it takes to the site to site and build. bring us to the heart of the matter. they're so inquisitive and finding a pipeline that could move to the areas and in the basement prices and they might have gotten it cheap. nobody cares. they think that we need more pipe and want to own more. it does not matter.
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have to cut it and the credit agencies are now angry with them. some speculate that it can be half from the current 51 cents or outside 13 percent yield for the year. that would hurt the company stock badly we were talking about raising it and now people may cut it. if you own the stock then you have no reason to keep on holding it at this point. that's who is selling it. people are scared. the birs of the best might cut them and he has been viewed in that light and what does it say about the other guys? all of these stocks trade together and investors are terrified and people are dumping
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it's not a you have cycle and more and more is offered, and it's a nasty situation. now energy does not respect ten percent of the stock market, but punches above the weight. if you run a hedge zpund decide to pick approximate up a low rate and pick up the partnership as many have, you're the trouble. that's like the troubles have the funds and forcing them to sell the stocks. you have seen them on mad money, and you think that can spurs them?
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companies that benefit from cheaper oil and natural gas and the consumers place and that consumes a lot of plastic and gasoline. here is the bottom line. it's not helping the margret the way that it should. instead they're hurting because so many individuals are panicking out of the bad stocks and good ones. i say to let the selling continue until it stops and then you can average down or pull the trigger. i don't think that you can do it before. >> hello mr. cramer and go seminoles. >> go noles. >> here we are and we bought underarmor several months ago, and it's down over five percent for us since we bought it. should we expect any upside potential or maybe switch over to someone like nike?
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it's impossible that under armor may not be having a good quarter. it's not conducive for being the terrific fall and winter clothes. maybe that's the opportunity to stay the course and buy more if they have a disappointing quarter, kevin is not thinking about this quarter. he is thinking about this quarter of a century. i like that guy. this is spreading across the tape and let the selling continue. when it stops, then you make the move. all mad dont and the dollar stores are doing battle. who comes out the victory? i am going reveal it. can chiptole recover from the outbreak? i will see if they continue to feel the pain. and i have an idea. you may in the see it, so tonight i am sending it on a stock that's shining and could shine even brighter.
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madmoneycnbc.com. >> at a time when so much of retail is in dire strength two took wall street by surprise when they erie ported blow out numbers and while getting pounded the stocks are roaring higher lately. this is one part that has a lot of upside. why because even though that we have seen the job growth in the country, look at that on last friday's numbers. many of them are feeling the cash strapped and part that the wages are for ages and in part of the climbing health care act and housing remains out of reach and student loan depth or low paying job with little wage
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feels that they can shop in places like dollar tree and general. the price of gas helps but people are spending that at lower value stores rather than course making their homes look a little better. plus the federal reserve is about to raise the interest rates and you have to believe that more people will soon be shopping at the dollar store again. not less as car payments and mortgages and credit card debt are are higher. put it together and this is a strong one for the dollar tree and general. however, even though that the companies are in the same line of business, the story lines are different over the last year. remember after an intense bidding war, they were red i do rest the family dollar for $8.5 billion. this deal transformed the
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competition into a two way as dollar tree was the number one with $19 billion in revenue. more than 13,000 stores across the u.s. and canada. now, i have been a big fan of the family dollar deal because fdo is a undermanagement operation. they can get a lot of milage after whipping them into shape to bring the numbers in line with the business. there's no denying that they're now on different plans. dollar tree is merger and it's all about how much they can rack up and turn the family dollar store chains around. dollar general on the other hand is a narrative that's more about internal improvements and now as i said before, i like both companies. i am on a mission to help you become a better investor. that's what made money is about. that's teaching you how to go between two good stocks in order
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if you try to force me to pick, go with -- i would say it's tease time. let me walk you through this. both dollar general and dollar tree let's just say they have got very interesting stories, and i am going to with hold my verdict until the end. start with dollar tree and that's with the excision and over the next couple of months it was $84 and everyone was crazy about it. it's the the closing of the deal and pushed off. it's arranged to sell the locations and in order to appease them. they finally got the clearance in july and they close on july 6. even though that wall street was in the aquisition, once they close the deal and they went into a brutal multimonth sell on and going from $80 down to $60 in mid-october where it finally bottomed. i have to tell you that very few people thought that.
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own. investors worried that it was bake in the stock, but the merger was not. these are hard things to do distribution centers and staffing. when dollar tree reported, they delivered a mixed quarter. man, i am not used to being that low. we have expect that guidance and they have it higher. well, let's say it. investors and analysts say that they may not be living up to the vacations and the stocks bounced along it. last month the dollar tree began to get the grove back. less than a month ago it was in the dumps and then it was back up to $69 and then a better than expected quarter and sure enough when they reported on november 24th, they beat the numbers and held the investors hands and let us know that the dollar was on track. the stocks shot up to $74 and it
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you will notice that dollar tree stock is how well they execute on the integration. if it stays on track and they deliver on time, that is going to keep ongoing higher. look, longer term i bet that it's going happen. however, if there's a tiny hiccup, then weekend investors will dump it like they did before. doing this was a big deal. i would not be surprised if dollar tree did not do it. this stock maybe more volatile that you would like in the portfolio. den general is a straightforward story. they pounded from late august to november. not only did the company beat the earnings, but they announced
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the new ceo that came up under a former ceo and rick and seems to be doing a terrific job and all of that is the cost control measures and the earnings going forward. i wish that he would come on the show. i love the conference call. dollar general is a strong execution and there's a double dig it and wow. dollar general is growing and there's 11,000 stores and on track to have 730 locations in this year and very few have the growth and several opens and a lot of opening. not only is it more the consistent operator, but the stock. one that's selling and then the earnings investments. so here is my bottom linin dollar tree may have more potential upside thank toss that
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i like that. at these levels, it has more risks. any kind of merger will request the stock and any information it's rare to go totally according to plan. dollar general on the other hand is a nice consistent company. solid gross store and classically undervalued and then the announcement of the buy back and all things considered if you like the sparks i think that dollar general dg is the safest and smartest way to pay it right now. again, i like this both but my two sense i love shopping at dollar trees. that's right. i got three that i like and not a single dollar jena i go to. that's not that relevant because all i go is to go there and get my candy. i love my candy. a real sweet tooth. did you have chipotle this weekend and have fear of e kollily? i will tell you how it will impact the company going forward. and then a bold make up and double in the past year of the
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can the stock keep on shining? i am focussing on a tack player that you may not have heard of or missed. i will reveal it ahead. 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. it's what you do. 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. 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
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60 percent and it's in the eight to 11 range this quarter. history says that it will last history says that it will last longer. the last outbreak occurred in 2006 at taco bell. the cdc pulled them from the menu, and while things were sorting out, they saw an 11 percent decline and then a seven percent decline and then six percent. these numbers are much worse. that's a little surprising given the brand loyally that they have verses taco bell. it makes sense to get control of the situation with the cdc
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states joined them with the new cases and boosting the case count from 45 to 52. this weekend i asked my 917,000 twitter follower whether they're going go to chiptole after the news. 62 percent say they have no problem and 65 says they will stay away. people that love it and say that it could happen anywhere and that's the case with other outbreaks and one at cosco and then some saying no way. not all things created equally. one was danny myers that
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pedestal and failed to get the food safety right. another one got personal and you say that we should. it should make it safer and the fact that taco bell and the most processed food had an e.coli outbreak puts the comments. if you had kids would you take them to chiptole? i would think not. there are reports of eight boston college basketball players are sick with e.coli and ate at one. the reports cannot be proven. maybe the last word should come from our own abgal stevens that works with mad money as the social guru and does the par scopes. i quote her and her saying that i had it on friday, and it was delicious.
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it's a good one. where do i come out. i think that they will solve the problem, but then they do you will have to wait a quarter to see the turn. we have short memories and it will be a great stock. not yet there. too expensive and early. andy in california. andy. >> caller: yes, i am a small time investor and i do not have a lot of money to start at one time. i want to start a position in starbucks, but i wonder if you should do it in small increments? >> yeah, it's worth the wild. if you want to follow along and find out what we say about it and we wish that it would come down more. why? so we can have a bigger position. we think that howard has cemented the retail were as the
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i think that chiptole will be a great stock to own. still more "mad money" ahead. don't get blinded by the light. listen to my take before you make the move. listen for a tech that can play. i am telling you that if either company is owning and i am taking the week off with the calls and then the fire and tonight's edition of the lighten round.
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how in heck do we explain the incredible run in the brands? the big lighting ones. it's like what is he talking about? it's a $9 billion company that's not anything but a provider of outdoor lights. it's been unstoppable for not one or two but three years. it's rallied for 60 percent, so we have to ask what the heck is going on here? if we're going to tell the story, we have to go back to the great recession.
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lighting systems and that translated to fewer orders. back in 2008 it was old fashion lighting provider and did not sell led based products, so for the first few years, this puttered around and then next to nothing. then in 2013, it start today roar and has not stopped flier and that's why i think that we have to talk about it. how did it get it's mojo back? some of it has to do with the rebound, and a lot of it comes to the major companies transformation and then the resent years. the kind of things that i am trying to get you to see. before 2011, the most exciting thing about the company is that it made the control systems to let you dim your lights. that's when acuity started with the technology and the incredible efficient low power
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that's right the brand is a plan to climate change. accord to go the department of education those refiled by 2020 and 75 percent will come from led's in 2030. they got ahead of the trend to where it countries for total half of the revenues. if that number continues to grow and then the led products are up nearly 50 percent in the latest quarter. you can catch a wave like this, you ride it. just look at the performance and that makes the ships and the lighting systems. this stock has been a total dog over the same period where it's roaring. in part that's where it's expanding and then the lighting control products and then the
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internet of things. in order to do that the company has had to do everything that they can to acquire other businesses with the technology. it's doing what i thought emerson could have done if they wanted to do the growth exposure. this could helped honeywell. this bought the juno lighting group. that's a down lighting fixture. claiming that it could boost the companies annual earnings by 40 percent and considering the fact in april they had a bite light and provider of the location for the led lighting. basically the technology lets the retailers connect to the
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shopping experience. now this has the potential to be exciting. bet you thought that no one should say that about lightening. i tell you that i try to bring them to your attention because they're exciting to me. you do the work, and you will be excited. how about the distech controls. a provider of the automation and the solutions that allow for the immigration and heading immigration and access control and closed circuit television and emerson, come on. the idea is that it gives them the about to offer the op that sags for the smart buildings and beyond the lightening. it's the imbracing of things. now, we talked about smart toasters and when we talk about the smart lightening, your lights are everywhere and if you have lights, then you have the power. that's used to run the devices
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for example when you combine it with the lighting technology and then the parking system can connect the drivers to the the empty parking spaces. throw in the fact that it's rising in the country and we know that from the banks and then it's a conversion and then the existing buildings that have the old lighting systems and they need to be replaced. you can understand why it's on fire. it's an echo play and industry. it's no wonder that when the report is in the quarter the company beat wall street and the top and bottom lines. not only that but the company saw the volume and that's 70 percent and it is home improvement and international and utility and markets. even better with the markets and what they're embracing the total adjustment or were the tam could expand by 50 percent over the next few years and that would be huge. this is what people thought that they had. they brought the wrong stock. of course it's the ayi and then the home gamers is not cheap after this tremendous run.
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next years earnings. now know what? that's how it works. i think that they deserve that after the technology and the companies leadership position and then the lack of industrial stocks with the growth. there's a carsty of one, and that's why i think that you have to buy it. look at this market. here is the bottom line. even the most boring companies out there can transform themselves into something that's exciting. acuity has gone to a cutter edge innovate er. it's a play, and i think that it's no wonder that the stocks are on fire. the tract record is developing the technologies. what can i tell you? i think that it has room to run.
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it is time. it's time for the lighting round. and then the lighting round is over. let's start with the captain of catherine. >> caller: thank you jim. i want to know trn. what do i do? >> no, we're not going to touch anything with trains. lewis in florida. lewis? >> hey, i am calling about jet. should i sell hole or buy more? >> no, all of them are going hard.
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phillip? >> caller: jim, how is it going? doing well. with all of the lighting going up, what do you think of the dominion resources? >> they're all going well. it yields four percent. when it gets through, then i think. carl in mississippi? carl? >> caller: yes, sir. >> you're you up, sir. >> caller: xrx? >> i don't know why you want to own the stock. sunny. >> caller: jim, my question is for the american eagle. >> turn the company around. that's best in the show. if i like them all i go the favorite. it's lb and january in florida. jan?
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>> there you go. i love that. all right. i have been doing a lot, and i have to tell you that the group is not going any lower. that goes lower and let's go to tim in california. tim? >> caller: cramer, tim calling from california. i am interested in the land over group. >> that's good. i think that ace limited is the best in show. that gentlemen is in conclusion of the jets giants, lighting round. >> the lighting round is sponsored by t&t ameritrade.fe. 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.
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csc and that's going to break up into two public companies. one to serve commercial clients and another would serve the u.s. government. last month that plan was finally approved by the board of directors and the play was named csra and then on monday the splitd up happened and then i want dodd this piece because i saw them ring the bell, and i hated them having knowledge. you know what, i better know what i am doing. now the computer science break up has happened. are are either of them worth
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because i can tell you that wall street isn't. there's nothing written about these at all. this is the added value that you're going to get right now on cramer america. let's start with the legacy business. it's been a publicly trading company and took off in the major i t outsource and play and then the bubble went sideways and then spiking on the make offer. then it was a company in turmoil and facing two billion and the computer patients and then the britain national and health service. the sec was on the verge of charging it and then the company seemed to be a screw up frankly. csc performed to modern niez and then at one point they said $300 million in tax refund. at the same time the air force was writing off the $1 million that it paid for the new
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worked out. to make the matters worse the cost structure was uncompetitive and then it cut the cost and the cloud. overall the pretty good program and then we saw the accomplishment and overall and then stepped up and then he is really going and then it's the ceo and matters of all tool and then the ceo and then took over and identified 40 contracts. in the last the number and then
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losses and then then it's selling and then the negotiations and then it paid $190 million and then and then detouring the money and then the bonuses and then it's becoming and then so it's no wonder were that the stock is tripled since it's lows in the 2012, and i know that most people thought that it was going up and it's going after the management. lately a number of high profiled investments and notice the turn gets involved and then the firm jana partners. we like it when they're in there. pushing for the spin off of the government business as csra. in a sense it's the break up of the turn around efforts. you know that i believe that
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and then the clients have the specials and deep understanding of the business that can help them understand the funts. you have seen that from a ton of companies but on the public sector side it's about having the best technology and working with the government. by breaking it to two companies each is among the scale and you know that they love the pure and then it's to the government and the csra and the public and sra and to create the largest government provider. wow, this was smart.
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the portfolio and making the company more competitive. i like it. a week ago they spun off and that's what i saw when i was in post nine and then merged with sra and now the computer science is broking un. what are you getting with each one. what is it worth? the new commercial industry business is 25 clients and operations in 26 countries. the new one is a slow grow er and mostly plans to go and not a bad idea and fuelled by higher employee and management. long term the companies is only expecting the growth of one to two percent. that's exciting for me. i demand more than that. the new stock is trading at 11.5 percent of the earnings, and that putting it somewhere in the trouble i bm and then the
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however, they're the former yielding and then the ladder and let's see. i am going check this before i say this. the dividend -- i should have checked this before is two percent. that's versing. how about the government focus of the csra? the newly created is a top notch team and they normally ran the business and it's more than 30 years of experience and more than the intelligence community. csra expands -- is massive and fda and homeland security. did you watch it last night -- medicare and epa and the military. not only does csra have a deep
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the government, but it's a long standing relationship with a number of agencies, and thanks to the large scale, it's the best of anyone in the government technology basis. see where i am going here? plus with spending the government and then information of the technology is expected to increase across the major industries. that's how they plan to grow annually and that's the ten percent growth then the merger. i like this. this company is selling it 15 time nx year and that means that it's going to the applications and neither of which i like as much as this one. my pot tom line at the end of the day it's a tremendous job and then it's until tonight i think that ship may have sailed. if you want to play the turn, you have missed it. at this point, they have all the high fruit, and it's much harder to grow going forward.
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so much, i say to go with -- and then it's some real upside and then you should buy csra if you think that the federal government is going ramp up the nondefense spending going forward. there's a chance, but as we go to the election year, you know what? it's not a slam dunk. stick cramer.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. let's end this. ugh! heartburn! no one burns on my watch! try alka-seltzer heartburn reliefchews.
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