headline dram 2010, question mark, short supply? that reflects bizarre strength in dram.he kind of memory that's used in all kind of computer and devices. you crack open a computer, drams will flood out of it. that's so unusual compared to this time next year when the business was tanking and seasonally has been tanking for years and years. clue number two. the research firm j & p says the first quarter has improved for emc. if business has gotten so much better for emc in the fourth quarter, then it should not be able to slow down in time to hurt the first quarter. i think when you look at the trajectory of emc, it's getting stronger by the week into january. the third. micron on its call last night, a huge tip company said that dram prices are up 25%. that's -- i'm flabbergasted it's so big. micron also gave flat guidance rather than down guidance, which is what analysts expected. because that's for demand for pcs and smartphones. also the servers are doing well and everything seems to be getting a boost from microsoft's windows. in other words, everything that goes int

it is the big of the marriage of drams in the world.as been there for years and years and years. no new capacity has been added in some time and that's aloud random access memories which have been falling in value to stabilize in price, and maybe even increase a bit. this week micron took a real header, why? because it's competitor is rumored to be building a new dram factory. just the rumors set the stock down gigantically because it could put the dram market back in equilibrium ors are worse, oversupply and it was all it took. similar similarly, seagate, and -- as neither they nor anyone else saw much of a need for new one given the decline in pc sales and the flash memory, a competitive form of chip, but get this, just the idea that a dram factory might be built sent these stocks lower for fear that it might lead to new disk drive capacity, that is guilt by supplies is yagz. yet, you don't need to be an econ major to understand stocks and if you don't understand supply and demand then you'll be mystified about how stocks move and a m

you see, there used to be many, many competitors in the dram business.ding japan and two large companies in korea, as well as micron. however, because of capital constraints and the long-term decline of personal computers, the major japanese companies combine into one entity. then collapsed only to be rescued by a $2.5 billion buy. the collapse took out a huge amount of capacity and left pricing firm. chose not to build capacity. they did that in part because of the negative mindset of the great recession. where every manufacturer is afraid to expand. every quarter since the micron lp, the deal closed a little less than a year ago. but thanks to the lack of new capacity, we never saw a collapse in pricing because there was no new supply. now, ever so suddenly as the stock of intel would tell you, we're getting insurgence in demand of devices that use drams. another positive piece on micron. that means prices are actually rising for these commodities as the cost of making the chips is coming down, leading to a potential explosion in earnings. no doubt bec

drams, disk drives, why are these doing so well, rick? >> well, so i can't speak to drams too much.re in the nand flash area and more of the products we try to design into the industrial base. so as far as the really volatile volume dram market, can't give you much perspective there. but we do play in certain segments of the microprocessor and hard disk drive space. it's not been dropping off a cliff for us. >> now, typically in this period, i'm used to hearing avnet. you talk about the seasonality on the conference call, but usually europe shuts down, i'm always nervous, but you declared a dividend yesterday. you guys canceled your dividend a while ago because i think you didn't have that kind of visibility. this is not the thing that i would expect from avnet which is always worried about its visibility these days. what happened? what gave? >> so, jim, we've talked consistently over many quarters about our capital allocation strategies and we've talked about we always like to prefer to invest in growth wherever we can. we've done some buyback recently as we've talked about on prev

the dram is no longer random. it's logical.m line, i'm willing to give micron my blessing for speculation only but it's not for the faint of heart and if you're going to own it you have to be ware that at any moment the ax could come down. i would pay very close attention to the yellow cautionary flag here because the new capacity could be deadly to dram pricing. but if you're willing to take the risk, i do think there's probably some more money to be made in micron before the punch bowl takes taken away. >>> all right i need to go to sarah in my home state of new jersey. sarah. >> caller: hey, jim, booyah. >> booyah, sarah. what's up. >> caller: what's your thoughts on integris? they just reported. >> oh, man, geez. you got me in a stock you know i liked a long time ago. have to look at it again. i spent a lot of time prepping for that and i'm not going to say anything until i spend more time on it. i'm going to go to steve. steve in vermont, steve. >> caller: hey, jim, how are you doing? >> i couldn't have the ice cream. i'm

back in november of 1993, dram demand started soaring when the stock was at $3.80.t peaked in september of '95 at $47 on a legendary call by a top flight semi-analyst who noted that demand had been overwhelmed by new supply. the tipping point had been reached. bingo, less than a year later the stock was back at $8. boom, then bust. we got another cycle that started with micron, this time at $17 in april of 1999. it rallied to an outrageous $98 in june of 2000 as the dot com bubble was in full swing. of course that was followed by one of the most precipitous declines i've ever seen. it plunged down to 8 bucks in january of 2003. noticing a pattern? it stayed down until november of 2012, when it stood at $5. two years later micron went to $36, where it peaked, pir wetted and fell back to 10 bucks in february of last year. this most recent run started there, and so far the stock's gone from $10 to 28 bucks, which is the smallest percentage gain of any of the boom-based rallies that i just showed you in the past 25 years. so based on the history of the magnitude of this

this is from the dram exchange bull ten. the kind of memory that is used in all kinds of computer devices. if you crack open a computer, drams will flood out of it. that is so unusual. the research said that it has improved significantly for amc. i think when you look at the trajectory it is getting stronger by the week. clue, the third. micron on its call just last night. a huge chip company said that d ram prices are up. i am flabbergasted it is so big. there were flat guidance rather than down guidance. and that's because of demand for pc's and smart phones. if servers are doing well and everything seems to be getting a boost. so in other words, everything that goes into micron, everything that micron goes into is selling better than i thought. by the way this is the first time, number seven, that micron has been profitable in three years. this is driving a lot of tech that people don't understand. the fourth clue? on his conference call yesterday, the assembler said computer and storage is strong into q1. where? what bus

that was dram and flash. it's not too late for you people. because micron makes both. micron's stock is way too low versus the possibility of margins for both flash and d-rams. i think it should be bought at $17 and change. how about the flip side? what happens when there is too much competition? all right, just take a look if you can bear it, at the stock of sprouts farmers markets. sprouts, a once nimble, exciting, natural, organic supermarket, c supermarket, we heard it was stealing market share from whole foods. and the latter began having the first hiccups in its own numbers. well now it's been downhill ever since. today sprouts announced it would have the same-store sales that were flat. it's actually a no-growth story with shareholders fleeing, with sprout selling nothing but spam and velveeta. it turns out that the rest aren't oblivious. target and walmart decided to cut these boutiques. when you start a price war, everyone loses. the pin action for sprouts has plummeted within 13%. also the stocking of whole food foodifoods and kroger down 5% and 4%. today gen

and so customers are looking now to build dram in the third dimension. that's by stacking chips on top of chips to create high bandwidth memory. and in foundry logic they're going to vertical transistors, which also is driving tremendous opportunity for a deposition and etch company. >> when i talk to you and other people in this, in this industry, i'm always proud that we still make the best and lam is the best. that's tim archer, president and ceo of lam research. lrcx probably from my first show, i thought that this was the company and the predators company that you should own if you want to own technology. memories back after the. >> break coming up, is it time to fill up your grocery baskets? cramer's getting a read on inflation and food prices with the ceo of spartannash next. frank holland worldwide exchange, weekdays, 5:00 am eastern, cnbc. >> get invested. join the club. >> the cnbc investing club is for everybody i joined to achieve financial freedom in retirement. >> jim cramer is the benefit you get that you can't get anywhere else. it's a gr

you're seeing dram coming down this looks like the first quarter that's impacted. i have to believe given where they are that it's the first of many >> yeah, no, that's a grade point. dram did turn around to become a tailwind for us like we expected given where the prices are we definitely see this for the next couple of quarters really helping and being a tail wind for us we're excited to start to see that benefit after being such a big head wind. >> chuck, i see the america's up nine you're up five i see asia pacific down four i know some of that has to be china. while china may have been weak, i'm going to ask you about that. how much does it really matter to the overall past of what you have going >> we talk about it, jim china's only 3% of our business. obviously we don't want any aspect of our business to be down but it is a small portion so the revenue numbers that you just cited were really, you know, mostly related to china. as we look at our order run rate for the quarter, we were really pleased with, you know, around the world our global public sector bu

dram, that's a kind of memory. and wireless chip segments. and its imaging and optics business.sera has the technology for smaller, cheaper cameras. expect to see its revenues go up from 28 million annually now to 100 million for this one division by 2011. that's a gigantic increase. you can bet a lot of it comes from the mobile internet tsunami. just about every mobile device now has to be equipped with a camera. tessera also expects to announce another big licensing agreement along the lines of one it recently made with samsung and toshiba by the end of the year. hey, there's a catalyst for the stock. but the big, big technology tessera's been talking about lately is silent air cooling. another thing we've got to learn about. it's an ionic cooling system. not like ionic breeze from the late unlamented sharper image. this replaces the exhaust fan on laptops. another small device. remember how hot your computer can be when you put it on your lap, a laptop and you're like burning? this removes about 30% more heat than a traditional fan, allowing the device to become even thinner.

. >> now, we do know there has still been weakness in some of the -- in some pricing in drams. saying that the word "sustainability" means that these companies, your customers see it, they're unwilling to go down the path of just total destruction of margins they're going to be considered about their buying, and one of the reasons this september could be the bottom? >> i think we've been in that world for a long time, if i'm honest with you, jim we live in a world where profitable market share the objective, not just market share for our industry and for the industry of our customers as well today we live in a world where memory customers are all reporting in the range of 40 to 50% operating income memory revenue growth has been at an all-time high, and that's a by-product, you know, of the fundamental value proposition that exists today in the realm of the evergreen verticals, as we talked about last time. the infrastructure needs of the world, the health care needs of the world, the agriculture needs of the world redefining connectivity and cloud memory and storage and comput

on top of that chinese handset makers like to buy them bundled with drams. but sandisk doesn't make drams, which gives samsung, micron a higher edge. they can offer a hybrid product. that's what the market wants. how come sandisk has managed to perform so well over the past two years? simple, for a long time there were major supply constraints in the nand flash market and excessive demand. but it now looks like there's a lot of new capacity coming online. hey, look last night, predicted the supply of nand chips would grow by 35% to 40% this year. man, that's the kind of supply increase that's ruinous for pricing. consider that sandisk forecasted 2% revenue growth this year even as they expect their shipments to increase by nearly 30%. that suggested 28% decline in pricing, that's hideous and possible that sandisk is once again being way too optimistic. one last problem, sandisk's highest margin products are flash based memory drives removable chips or peripherals. but consumers aren't buying external flash memory drives like they used to. in large part becau

domestic coal production fell by an average of 2.2% a year and lately the decline has accelerated dram with coal product down a staggering 8.4% year to date. when it comes to coal the trend is not your friend and this downturn shows no signs of abating any time soon and that's because coal production is not coming back and thanks to the host of regulations and a rise of natural gas which is both cheaper to produce and cheaper to transport. coal is increasingly looking like a thing of the past especially since 94% of the companies coal-fired power plants were built before 1990 and they were courtesy of the new pollution regulations, of the coal plants that existed, 17 were closed this year and you have to believe more will be shut or going forward and although a considerable amount of power will come from coal in short, king cole has been dethroned. we've already seen dozens of bankruptcies in the coal space since 2012 with another prominent member of the group, filing for chapter 11 bankruptcy, and they traded a staggering $140 as recently as 2011. now the stock's been delisted and ove

a whole new class of memory that is a mix between dram and nan. it's the speed of dram and the non-volatility of flash, and it's going to rearchitect ow memory is laid out on your pc. i can put that memory in your pc and give you a 20% performance improvement, just through the memory. that's huge! that's like a new cpu to you. >> and i'm used to the blue man and intel inside, but you've got a new campaign with lebron, who has been having an unbelievable series. how's that going? >> that one's going good. and i good give to our ceo. it's really showing intel in a different light, right? it's really all back to how do we take our compute models and push them into new markets, which we're doing quite a bit with sports now and digitization of sports. >> have you talked to him? it's a very different campaign from the old days. >> lebron -- yes, i have spent time with lebron, and the great thing about lebron, great sense of humor and he's just a great person. >> will there come to be a championship that you might see down the road? >> i hope so. you kno

that's allowed the company's dram business to maintain price, a lack of capacity for the second lineept pricing strong for that commodity, too. it has as both personal computers and cell phone sales have gotten a tad stronger here. an acquisition is behind the recent outperformance of linn energy, otherwise down market for oil and gas producers, linn is buying barry petroleum. and that will soon close allowing analysts to raise the numbers. and then there's celgene, revealing positive data that brings it still closer to being the first line treatment around the world. that puts the possibility of $17 of earnings power on the table as soon as perhaps 2015 which makes it an incredibly cheap stock even after the 2% run today. finally there's the refiners, a group that's been down and out not that long ago as the price of u.s. oil has come up so much that they weren't able to arbitrage the difference between cheap crude and expensive brent. refiners were able to buy crude, here or over there, refine it and sell the gasoline at the global price which was priced off of brent, the higher on

will be tied throughout the year i think flash probably has more of an opportunity to level out but drams going to take several years. it takes time for that to play out. but there's a very large basket of cost that gona a pc some are high, some are low. some of it is offset by currency we offset making sure we're in great cost position elsewhere in the business and continue to operate with scruples of magic the customers really value >> printers, tell us about that market >> the printing business is still an incredible -- >> personal printer. >> both at home and in the office in the office, it's $110 billion market and we're only claiming $55 billion of it. the printer that we see behind us here is why we did the samsung acquisition. it opens up the other $55 billion copier market to us. we have very low market share, but we're growing there. it gives us a growth platform for many years to come >> i know you are conscious of the legacy of this company, a legacy of innovation, but it kind of got, i don't want to say it ever went down. but as one big company, a lot of divisions got lost,

best candidate for dramatic appreciation don't mean a play on worlds that they make g rams and drams the data center is filled. it is filled with d rams and that is micron especially. that morgan stanley call create a situation that was untenable from most money managers they don't want to get run over. after the bell, qualcomm announced a $10 billion stock buyback. plus, it is not just china that is the free traders are worried about and everybody on wall street loves free trade. heard rumbling that the nafta talks are going poorly now, i like this call from mo morgan stanley and it is the cloud thesis that we talk about. we are going to talk about the ceo etsy, the ceo of zebra technologies to make sure ecommerce gets to you. electronics arts talked about last night's conference call it dominated the disney conference call. it is what is behind walmart $16 billion acquisition of flip card and of course it is the technology behind f.a.n.g which always goes up if there is a fire lit under the cloud let's not forget the cloud kings. remember that one new relic, up today. sales now, re

makes a kind of static semiconductor based memory that's faster and more expensive than the standard dramit's also got image sensors for consumer electronics again, wireless devices. third piece, data communications. 17% of cypress' business, controllers from mobile phones pdas, and cameras. these guys are at the heart of what we've been talking about. cypress semi reported a great quarter two weeks ago, 6 on the 16th. delivered an absolutely terrific number, much better than the street's consensus, up 34% to 59% in june, blow out guidance. 52-week high today. you got any stocks at 52-week high today? and it did it not just investing the bottom line like so many companies i'm not crazy about, but the top line too. cypress semi may be up big, but it could be looking at a multi-year move. thanks to the mobile internet and to the great products it has. don't take my word for it, when a stock had this kind of run, i want to make sure everybody's in it, i want to make sure it hasn't run out of momentum, which is why i want to hear from t.j. rogers. dr. rogers is a hero of mine both politically

well either, down 11 straight days, lowered the boom on the giant particular chip maker focused op drams and flash memory these are the building blocks of a sorts of devices micron is at 41. that's the definition of a bear markets. the semi conductors are also in that mode. it's seen its stock pull from 234 to 150 no sign of a bottom. now yield is almost 3% i am waiting for the downgrade same goes for applied materials. 38 now we had nxp, remember, i think they are bringing jobs analy analyst meeting yesterday. the company was a subject of a takeover, they traded as high as 125. the deal is put, it hit a 52-week low of $84 that's actually pretty positive. the only unscathed chip maker is amd. last time we spoke to ceo lisa su she traced out her long-term plans to excel in gains. the stock is up 7% today it never quits even after the market closes. this isn't a fly by night move there were 169 million shares traded i think you want to let the stock cool down. there are some gigantic institutions buying stock. i am a huge believer in su apple got hit today. it didn't runnam in advance of t

there's a lot of dram.hink it will be in a bitof glut we know from western digital, we have a bit of a glut in flash. i want to hold off it has not bottomed yet. low 60s it bottoms, and then we take a shot at it. bad news for the global economy, fantastic news for a company that nobody cares about and they should global foundries auto its a buy much more "mad money" and dow, the old dow chemical how is the chemical commodity play -- that's a tongue twister, isn't it support a healthier and greener earth. yeah, plastic. and demand or supply, that's the question a closer look at some of the week's biggest reports and sharing why this question can help you craft and then of course rapid fire. the lightning round. so stay with cramer. >>> now that we've made it through the busiest week of earnings season, sheer hell, by the way, i want to carve out time to talk about some of the longer term issues that plague not just our country the but the entire world climate change the need for more sustainable business pra

world where on interstates, there can be big compressed natural gas gas stations and we could cut dram dramatically our amount of imported oil. are you hearing anything like that? >> yeah, that's starting. and the mere fact that that's feasible is really getting the attention of people. >> also, i mean, we've had talked that we have so much that we'll end up exporting the stuff if we don't end up finding a market. >> and that gets people's attention, too. you're discriminating against the cleanest-burning fuel. that makes no sense. >> why are they coal plants being built in this country? >> the coal plants have stopped. >> tell me about it. we had guys on earlier that are putting some up. >> they're trying. but if you want to have to cluneeclun cleanest-burning fuel that you can, you want natural gas. >> i just think that we could -- jobs, energy independence, clenlyleclen l clen clenlyness. you guys have all three. devon energy ceo, most growth, best way to play the up side. after the break, i'll try to make you even more money. >>> coming up, buying in bulk. our week-long series come

even as natural gas prices have rebounded hard in the seven-week rally that we called a dram dramatically the ungs done nothing, basically nothing. i think that you could do much better in the actual stocks they recommended. xto, anadarko, apache, lynn that big yield. we heard from mary garber yesterday. has two problems. one it doesn't buy natural gas. seems like, it right? it buys natural gas futures contracts and that means the finesance has to roll these every month. selling the old ones. buying the new ones and when prices for natural gas in the future are higher know that the current price like they are now and then the ung will lose you money every month, every month, every month. second problem don warned us about two weeks ago is the ung stopped creating new shares. caused it to trade it as a massive premium to the net asset value of the futures. something that you knew would go away once it started to create shares again and that's why the etf missed out on that ral low. why you should not go near this thing especially since the new shares are coming, starting on monday. wha

flash pricing peaked several months ago, drams could peak this year because of new factory supply ifhat's the case, micron will fall short of the estimates. it's possible demand will accelerate for flash and d-ram, that's possible. but there's new supply coming on line from south korea. i suspect the bulls believe these kinds of chips are more proprietary than they are and not as dangerous as i think they are. here's the truth i've seen the stock collapse three separate times in my life and the circumstances were almost identical to those we're seeing right now more supply coming on after a big run in price for d-rams people didn't see coming this time it has a sect produon product line, flash. clever speculation always makes sense to me. i'm probably the only person on tv who agrees with that. but a recognition that you're speculating not investing would make me a whole lot better about how i feel about anyone making these choices. everyone focuses on the rewards from these stories but you'll never get anywhere unless you start taking the risk as seriously as the rewards that's righ

cisco is much more of a service and software play which it deserves a high priced multiple third, drams is plummeting in price. fourth, cisco is a great way to play the buildout of 5g, it's got a fabulous balance sheet that allows it to acquire what it wants while alsos raising dividends. the bottom line, i think this market can go higher as long as we don't get overwhelmed with new supply from this wave of ipos because the valuations are too low for so many of the stocks however, this market needs a deal request china for some of these to work. this one and this one or we're going to lose leaders like united technology and apple and it needs new money coming in off the sidelines. it needs your money to add fuel to the fire. let's go to donny in texas donny. >> hello, jim. and boo yeah from arlington, texas. >> good to have you, donny >> hey, i'm calling regarding southwest airlines >> right >> high product performed all that well over the past year compared to its peers, and in addition, with the boeing 737-800 issues since their fleet primarily consists of that and also today, their e

about micron two main lines of businesses, flash and what's known as dynamic random access memory or dramstial component of all electronics, especially computers when i say they're commodity semi-conductor companies, what i mean is there is nothing particularly special about these chips. they're not like intel, which each product is protected by a wall of patents. theoretically, if you want to get into the flash memory business, all you really need is enough money to build a f.a.b. that's why flash and d-rams tend to be boom and bust businesses when demand for these chips take off, pricing goes through the roof and companies like western digital and micron make fortunes, but eventually new production comes online fairly quickly. prices break down. when you deal in commodities, investors are always worried about an impending boom/bust. >> sell, sell, sell, sell, sell. >> so when you see the western digital's down more than 45% from its highs in march with all-time highs for the market while micron's down more than 30% from its highs in mays, you know know the reason why i'm going to differ

like today's dram exchange issue. man, that was one hot issue. it's the one they put, you know, the cardboard over it. like they put it in the paper bag. the lead story, they're calling for a multiple-year positive cycle in semiconductors. that's right. a possible move lasting three years for stocks like micron, my version of pornography. ticktock on the clock. what am i supposed to do with the knowledge blasted out today from goldman sachs that as high priced certificates of deposit roll over for key and huntington bank shares and suntrust and regions their earnings will jump dramatically? these banks were paying fortunes in cds. now they'll be paying you next to nothing. should i just forget about it and go buy those pathetically paying cds, or should i help you look for bargains in the stocks that got hit today? think about it. what are we supposed to do with the brokerage firm jess up lamont recommending urban outfitters even after it stumbled last quarter? ignore it like the gollum? what am i supposed to do with barclays ignoring staples des

i've been watching micron move up and i'm saying drams are back and bigger than ever! what's up? >> caller: what do you think about supervalu and/or kroger, and do you recommend either one? >> oh, geez. you know, it's certainly not supervalu. i'm going to absolutely say no to that. if i had to, it would be kroger, but see, i don't have to, because no one, other than myself, has a gun to my head! i think that the better play is whole foods on a pullback because that's got hospitality going for it and people love working organic food. okay, froth is the enemy of good investing, and you have to understand, do not let the froth of the market destroy you. be smart with your speculation and don't chase anything thad that's running. "mad money" will be right back! . >> coming up, natural gas prices are at a seven-year low, but what does it mean for the stocks? cramer goes one on one with petroleum ceo jim hackett to find out if his stock can start to heat up on "the executive decision." >>> and later, most retailers are beating the street, but which ones are actually growing? attention

. >> micron has higher end drams that are better. i think we're troughing. i agree with the hype.out is two firms are now upgraded michael in texas michael? >> caller: hey, jim. good to talk to you. >> good to talk to you, michael. >> caller: i was worried about the stock of new didn't mont. >> let's go to wily in utah. >> caller: hey thank you for taking my call, mr. cramer. >> you're welcome. >> caller: i have invested in jack henry a while back, jkhy. >> it is a very good company, but i do not want to be in the service bureau business for banks right now. i think that group is challenged we saw some jack henry people at salesforce, but i don't want to buy the stock. let's go to paulina. >> caller: hey, jim. you and i share confidence in the ceo of biohaven. it was the only migraine medication that worked for me. i have had the stock for a year. and the stock has been puttering in the $18 range, $19 range. how do you see it performing >> you and i agree that it is terrific pfizer owns that he did miss in his last test now you are in speculative no man's land i think that if you

mexican exports which means we'll import lots and lots and lots of, let's say, well, it will be a dram n sometimes i think what would it look like for ksu? it's just a lot less stuff coming. given that ksu gets half of its revenue from mexico, carl quintanilla said to me, why is this ksu up so big? because half their business is from mexico. anything that messes with nafta is going to impact these guys' numbers. you're going to slash numbers badly on wednesday morning if trump wins. now, on its latest conference which is expected to produce 5.3 million vehicles by 2020. many of these vehicles would be transported north on ksu's trains, but if trump gets his way on trade, that's going to be like an ice pick in the skull of mexico's auto industry. in short, if you get rid of nafta or even just renegotiate it to be less favorable to mexico, that's going to crush ksu's sales and earnings, making this company's stock maybe the biggest single loser in a trump presidency. what else will go lower if trump all right. ever since trump locked up the republican nomination, the u.s. listed ishare m

action and dram goes into hardware you need to set up a home office another sign that it remains strong and not what we call a pull-through where it's not going to be any good three months from now. i say that because last night dell technologies told us the story of a fabulous holiday season if your house is your schoolroom and your home entertainment center and office, guess what, you need more than one family pc you need a boatload. that's what's driving the revival of laptops it's far from over after listening to michael dell, i think dell, the stock is a must buy third we got still more evidence that apple is having a merry christmas. we keep hearing about the long lead times and issues with availability which shows you demands is off the charts. this stock has been stuck in the mud. it got it groove back. pin action there sky work solutions and a host of others i like. fourth, after the close we found out salesforce is buying slack technologies listen to what slack said last week, quote, in a normal po post-covid-19 environment ceos expect 38% of employees to work from home routin

wayside or gotten out of the business and ever since micron bought al beana and that's a big japanese dram producer and this has been a slap-happy oligopoly, three players, micron, two south koreans and samsung and we caught a rumor today from a trade publication that samsung might be adding capacity last year and immediately slammed micron and i think it's idle chatter. on the part of their business, flash remains in tight supply, too and meanwhile, for the first time in ages demand for personal computers has actually picked up and while history says someone in this business should blink to enact capacity, when rowe have so few players you tend to get forbearance, you know what i mean? fourth best performer? i'm not surprising, allergan, agn, a drug company has been in play ever since it caught a hostile takeover bit. i remember we recommended it hard at 80 when david pyott came on. he's allergan's ceo. the consolidation is hot and heavy and you have to earn some in the industry if you want to beat the market even though we'd normally be selling pharmaceutical stocks now that the economy'

>> i think what you have to look at is over the last couple of years, the dram demand has gone up substantiallyally has built strong value in the end market applications such as cloud, such as automotive markets. this demand has gone up over a couple of years, unprecedented levels of pricing and unprecedented level of demand over a couple of years, and that led some of our customers to build up some inventory because they were fearing shortages. so yes, we are in that air pocket where this inventory has to be cleared from the customers, but, again, the main point is that the end market demand drivers continue to be more diverse than they have ever been in the past because now you've got cloud you've got data centers, you've got graphics applications, mobile, pcs and of course automotive industry, all of these need more memory in order to ultimately deliver the value in their applications, in their end markets. so that's very different from times in the past. >> you have been buying back stock. maybe it's okay to pull back, let the stocks go under the 2750 book value, get a little bit better val

"mad money" starts now heying i'm dram early him welcome to "mad money. welcome to cramerica i'm not trying to make friends, i'm trying to make money my job is not to make money, to teach, quality me, 1-800-743-cnbc a calm doom heads to encircle a a city, schools, universities, hospitals, people want to live in a democratic society. the fed chief heads to capitol hill to talk about lowering the boom on the economy, rampant inflation soaring off the carts. this combination of doom and boom naturally produces gloom. that's what folks today are feeling. s&p plunging nooks tumbling 1.59% i want to say gloom, not panic a legitimate sense things have gotten off track and won't be on track any time soon. i say, look, why don't we step back for a moment and see what happens, rather than taking action >> sell, sell, sell, buy, buy, buy. >> some headline of someone fought telesnot selling foeps to russia the fed chief will explain how the war in europe won't break down our horrors, the levels are uncertain, causing interest rates to plummet, when normally they woul

coined the term intel inside, and intel began its run from semiconductor company that used to make dramsn the late '80s to the biggest proprietary semiconductor maker on the pc franchise. this is when pcs crashed in price, became affordable for you and me, regular customers, as intel kept bringing down the price of its chips, you got powerful computing for less money, that was the beginning of that period. this was the backdrop to the nasdaq's 13-day winning streak that ended in january of 1992 when we all recognized the pc revolution was for real and we made fortunes off it for the next two years. how about 1996? even more exciting, this was even bigger. a move generated by the recognition that the internet would be the next big thing. if you bought after the nasdaq's 11-day winning streak that year, you were ahead of the dot com boom. in 1995, we got windows '95, the first version was built in support for dial-up networking and tcp-ip. there was the year the internet explorer was introduced. by time it got to 1996, the excitement about the web was palpable, aol's stock, remember the we

there's a lot of question about that recent downgrade to make people feel like wait a second maybe this dramnot that good. i will endorse this. i feel like i'm going to get hurt by this one. i don't know but i feel ike going to get hurt. let's say the stock goes to 32, we'll take a 10% gain. >> sell sell sell. >> now we're going to, ooh, bo in michigan. bo. >> caller: hello, jim. how are you sir? >> not bad. listen, good luck in the playoffs, man. >> caller: thanks. i've got a two-part question for you. my stock is arcelor mittel. i want to know how strong the overall steel sector -- >> you know i'm not going to recommend arcelor when i can recommend nucor because dan d'amico runs the best steel ship in the world. so we're buying nucor, we're not buying arcelor. why don't we go to zack? ooh, south carolina. zack. >> caller: yes. >> zack, you're up. >> caller: okay. big jim. >> yeah, you got me, partner. all right, gamecock, speak to me. >> caller: okay. i wanted to find out what he thought about gun sales being up and behind six months in delivery and ammunition also behind -- >> okay. what'

makes compact dram memory, allows you to store all your songs and videos on your iphone. up 35%.ldri aldrich. up 24%. the power amplifiers to boost your smartphone signal. ctv, no one likes it, up 24%. makes antennas for cell towers. great business. and palm up 22% of course, the smartphone maker we just talked about. these are all plays on the mobile internet tsunami and i believe they can all go much higher, and that's what you buy into the sell-off of the next couple days. the stock market, got to have all these -- they have all these stupid half baked double and triple etfs that are so dangerous. they have etfs for every nonsense wind, water sky, like earth, wind and fire. we need an etf for this "mad money" mobile internet. and we will keep connecting the dots every day on this show until i hear someone else anywhere in this world who talks about this trend and understands the explanation and why it's driving all these tech stocks. only then will i perhaps even think about stopping. this is the biggest trend since al gore invented the pc and the internet. it is that big. so

the $21 billion maker of memory chips, mostly drams and flash that's been rallying hard lately but needs n markets. the blushing bride? the $10 billion advance micro devices, amd. the maker of processors and high performance graphics chips including the refreshed play station four and the x box one. before i explain why i think it would be a good deal, let me give you background. both stocks on fire with micron up 50% to date and amd gaining an astonishing 280%. >> hallelujah. >> as the stock gained traction and escaped from low single digits where it was trading for years. while there are things to like about both companies, the fact is these were really relief rallies. micron had a terrible year in 2015, losing more than half of its value. amd was pretty much stagnant although it had come down more than 40% from its relative peek in july of 2014. in short, when the year began micron and amd were viewed as road kill. both companies struggling to find revenue growth or at least stop the revenue shrinkage. micron was killed by the strong dollar and faced brutal competition. plus, personal

like the stock because i like the merger they did with the japanese dram company, but no, you can't docause tech is kind of shaky between now and the beginning of october. so be very careful. maybe trim some back and buy it lower. rob in california, rob? >> caller: all right. how are you doing? >> real good, partner, how about you? >> caller: good. what are your thoughts on renren. >> chinese stock. we're not buying those. those are all killing people. jerry in tennessee? >> caller: big old, thank you very much elvis memphis boo-yah for ya. talking about vodafone, largest telecommunication company. >> now you're talking, this is the kind of stock i like. i want european exposure, high-quality company. i want you to buy this stock. i need to go to larry in massachusetts. larry? >> caller: greetings, jim, from your number one cramaniac. how are you tonight? >> boston looked okay. the yankees are getting hot. what's up? >> caller: well, having been a mets fan in the '60s, i can only emphasize and recommend wait until next year. >> my professor when i was up there. >> caller: oh -- >> yeah

a giant dram user. that's where they go. they go all over the place. they are in a lot of different things. there's still time left before we get to the bottom of the huge inventory but the stock has been creeping up. we don't have big demand at the pc level. we don't have those new pc's. that will be first quarter of 24. all the ai stuff with your pc but that's far out. maybe we can anticipate it. thursday morning we get to hear from one the most consistent companies in tech. accenture. they aren't really a tech company. it's more of a consultant to companies that want to digitize. they should have a solid handle on ai. how quickly can we make money off it? anyone can tell you it'll be accenture. they rarely miss. when they do its something to sell off hard and then it comes back overtime. business is so strong and people need their help. carmax, they are more than i thought. sit down, wow, they know what they are doing. i'm expecting this used car company to put up great numbers. there's a financing part. they -- interest rates are going higher. peop

welcome to dram "k." i'm trying to make you money my job is not just to entertain but to educate and teach you but call me at 1-800-743-cnbc or tweet me@jimcramer let's get digital, digital, as in the internet, digitalization because digital is no longer the future it's now at thispoint it's a question o survival your business either goes digital, digital or it goes down the drain. that's why i keep coming back to this theme including on sedate days today when the dow lunged will 6 points and the nasdaq .23%. with or without the pandemic, and, of course, the pandemic is going on on everybody's minds particularly because i thought we'd have more doses faster, and we're not going to, we have to start talking about some other things that can make fabulous long-term winners. some of of this stuff is so obvious it's in your face, or at least in your hands. look, we have cell phones, right, and then we got smartphones and now the smartphones are miniature personal computers, something like a s&l tough to miss b

that's dicey, but you can see why because with the acquisition of the big japanese dram product theyopoly going on. that's amazing. plus, micron has flash. flash is on fire. and another paleozoic techie, sandisk. notably the dinosaur that's western digital and don't forget to pick up cypress, the anti-apple. i know this whole concept of buying retro tech is frightening. people were pretty incredulous, they were rolling their eyes. after all, personal computers are supposed to be dead. disk drive companies were laughingstocks. microsoft has been downgraded repeatedly, by people much smarter than i am. what can i say? they have low expectations. they do better when europe bottoms. it's the whole point of why we're worried about fed tapering. plus, they won't get hurt by higher rates. they have soared multiple times when rates have gone higher in the past. all i ask, don't get cocky. when these companies report they'll be not so hot. but then again, that's ages and ages from now. it's the least of your worries. stick with cramer. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get

or look at dram chips where micron has been on fire again for the last couple of years precisely because that business went from ten different players to just three. the beer business with constellation and molson. goes on and on. when you have fewer competitors in a given industry, it almost always results in stronger pricing which leads to greater profitability. and i think tobacco will be no different. if anything, consolidation could matter even more here because at least within the united states, it would mean pretty much what i call a creation of a slap happy duopoly with altria controlling perhaps 90%, 90% of the market for cigarettes. might realize $400 million in synergies from cost cuts, but the real moneymaker here is the increase in pricing power for the industry. think about it. if the only two players in the tobacco business who matter are altria and reynolds, it'll be incredibly easy for them to avoid competing on price without colluding. that said, a lot more clout with or some would say against the retailers. now, the great thing about tobacco business is because it's il

basically, these dramatically increase the throughput of dram modules.ast but not least, the company has an advanced power management business, where they pioneered the chips used in wireless charging technology also a fast-growing category i'm interested this. when they reported on monday the company blew away the numbers, gave stronger than expected guidance. the computing business was particularly hot. that was up 41%, versus the previous quarter. and even though the stock has already had a tremendous run, i wouldn't be surprised if it kept climbing. let's drill down with greg waters, the president and ceo of integrated device technology to find out more about the quarter and his company's future. thank you so much for coming on "mad money". >> my pleasure jim. thank you for having us. >> now, you worked at skyworks for a long time. one of our recommendations said it was five. is that where you learned to be able to get a stock to double in a year? >> it was a great run with a great company and even more fun is being part of the next great franchise a

drams. now, demand happens to be outstripping supply for those, according to intel and hp ink, that also makes printers. both of these companies, hp and intel, mentioned on their conference call that there's tightness -- that tightness in the industry part that moo plays in, and i think that's very significant. to me it means the stock can go higher. wednesday we hear from a company that keeps delivering again and again. constellation brands, the maker of the best selling beers at san miguel, as well as craft brew ballast point, and casa nobody lay, which has long been my favorite tequila of choice. the beer stocks have been on growing major liquor company on earth. i think its stock remains a buy. i'd own some before and after. monsanto reports wednesday too. this is a nutty one. this stock is selling well below where it was when we learned the buyer, which is the bayer kind was in talks to acquire it. we need to find out if the discount is because people fear that the many governments invo

all you've got to do is look at the price of dram and flash memory chips. new semiconductor foundries being built will tip the scales of supply and demand making supply softer. i believe if analysts repeatedly ask if there's more capacity coming on somewhere around the globe, it won't matter what micron reports. stock will go lower. wednesday, we hear from two stocks that often react violently to earnings, often violently wrong! bed, bath & beyond, best buy, and monsanto, anyway, the latter's numbers on the surface are often not what you want to hear. and the stock got clocked only for it to go much higher a few weeks later. that's the nature of monsanto, a biotech in agricultural clothing. this time, the conference call could get more poignant. why? because general mills announced today that it's stopping the use of genetically modified organisms. yes, that's what gmo stands for, in cheerios. is this a beginning of a trend that could hurt monsanto? i want to hear what they have to say. bed bath is a stock that seems to get crushed on the cryptic outlook. t