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tv   Mad Money  CNBC  July 22, 2015 6:00pm-7:01pm EDT

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>> no curve in b.k.'s class. karen. >> you or i, b, b-minus. but that was expected. this is just getting the veil at home with the grade on it. >> 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 people want to make friends. i'm just trying to make you a little money. my job is not just to entertain you, but to educate you or call me at 1-800-743-cnbc or tweet me @jimcramer. china. yes, china. it all keeps coming back to china. that's what kept going through my head today as the dow tumbled
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68 points and the s&p declined 22.4% and the nasdaq fell -- fell -- .70%. when it comes to everything from aerospace and elevators consumer packaged goods, coal oil and now computers and cell phones if it's getting sold in china it's getting obliterated! i think china became the marginal buyer of everything the place where all hopes and dreams have come from in that thesis true or false is now fall apart because of that chinese stock market crash earlier this month. that was the sign that growth has peaked in china. money managers now think that it's all down from here. >> no, no! >> china, mighty china is now regarded as a paper tiger. let's take apple, the subject of endless, after reporting one of the greatest quarters i have ever seen in all my life. china has become a larger and larger part of apple's growth
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and the ceo makes no bones about how it will ultimately become the biggest market and totally private conference call and with the ubs analyst steve milunovich about a potential slowdown in china. cook said china will remain pretty much the best story out there for years and years because of the tremendous growth of the middle class, but there will be and i quote, speed bumps along the way. it was like a duck came down right from the ceiling and said -- >> sell sell sell! >> we don't want speed bumps from china, we have enough of them everywhere else. translation, china must be hurting, post stock market crash, and it loses $60 billion in market cap, yes, it's that simple because the rest of the world is not growing fast enough. china was supposed to pick up the slack, but it didn't. it really didn't matter that apple gave multiple reassurances that there was no slowing in china, before during or after the crash. the stock hit a retaining wall
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falling four pointers on more than 4% and it was just what we heard from united technologies and the otis elevator business. it is no different from the miserable numbers we've gotten from the auto companies they've been banking on so much chinese growth. it's the same from bea aerospace and the maker of interior parts today and how private sales have slowed in china and even mighty boeing after it reported a beautiful quarter. yes, it's all about the chinese stock market and executives do including tim cook who was explaining how the chinese stock market really is with 1.3 billion people in the country and the sheer mention of the chinese bear market terrifies people. it is incredible how scared they all seem to be. i think we saw the same thing last wednesday at cnbc's alpha conference where one after another hedge fund managers said they're concerned about the crash in china and what it means and how the market isn't taking it seriously enough. again, even as the chinese market has since stabilized they
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sure are taking it seriously now, but how true is it now? does that matter? >> i've learned my lesson many times with apple as it did with the ever-climbing cell phone estimates coupled with the global shock and this time with the chinese stock market apple will always overreact and it's responsible for two-thirds of apple's revenue. the days when the iphone was only 50% of sales or less made things tougher for the downgraders and naysayers and it makes it easy as the so-called other products like the slack, and this was supposed to do that. it's so early in this development so what if only 27% of iphone users have upgraded to the iphone 6 and who cares if other customers will switch from samsung given the satisfaction rates which is night ask day. chinaya peak period and that's the mindset and that's the judgment and not going to change soon and it wasn't helped by a hurting qualcomm that it got loose demand and lower cell
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phone. yes, another beating tomorrow. my advice? let the chinese thesis percolate even as the chinese market stabilized. it trades at 13 times next year's earnings and that's before i back out to $200 billion in cash. sit back. watch. maybe don't do a thing. not yet. let the sellers sell. let the panicers panic. don't bother to help them out of the stock, you could get better prices. as for the other chinese casualties, i'm less sanguine and they have expensive earnings and we know the semiconductors who go into cell phones will be poisoned for now because they too, have become proxies are if china. sure, a key componentmaker like sirius logic reported a terrific quarter this evening, but i do want to wait and see on that group and just so we're clear, if you own apple don't trade it or sell it. stay invested. don't trade apple on it. last worn and why the all stocks weren't ready to bottom. that group is just horrendous plus many of the funds that own the oils also own the oil
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service stocks which were crushed when we got word that the justice department might block the halliburton baker-hughes deal and the limited partnerships suffer from the bad ownership and even the ones that were being acquired and they go lower while the liquidation continues and don't worry. they'll know when they bottom because they'll bounce like coil springs so be ready so i will tell you they are going to turn imminently. they're providing way too much safe income right now versus bonds for me to resist much longer. i've been saying watch freeport mcmorran for ages because it has oil and copper and both horrible and it's been a disaster and i think we'll hear the negative scenario play out tomorrow with reports. the industrials with business in china, wait they're not proven guilty and any chinese business is viewed as toxic or potentially toxic and caterpillar caterpillar reports tomorrow and it better show china love or it will take out the 52-week low and drag industrials down with it especially because of the largest american customers united rentals uri reported a
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hideous number. of course, the money flees as it always does and is headed to greener pastures and we're back in a war with domestic stocks and chipotle and showing the way for a wave of restaurant buying and i like dominos and remember it's bouncing back and that's ihop sonic and they came on and they were good red robin gourmet shot their lights out and the last quarter was terrific. retail target and don't forget i adore ulta solon and every retailer will work great. even walmart. do it again and the love is spreading to the homebuilders because they don't build homes in shanghai and beijing and the banks we told you to buy last night they're flying off the shelves, and the bioteches and no exposure and celgene based on the earnings number for 2020. again, too cheap. can you believe that rocket? how about tech. all right. not many but do you remember one key item from last week? maybe the most important takeaway from last week's earnings reports.
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i'll do it in the form of a quiz. what tech stock added $65 billion in market capitalization last week? answer google. how badly is the slowdown in china and you're hurting google? not in the least, it doesn't do business there. believe me if google did, you wouldn't be seeing that with the terrific numbers. bottom line if the company's got business in china even the trance earn commodity business that business has been declared soft, weak slowing, whatever because of the chinese stock market crash and the revelation that china's done growing much faster than anyone else but if it doesn't have china exposure as today shows as nutty as it is unless a domestic-based company severely disappoints, guess what? its stock is a buy, buy, buy. let's go to mark in ohio mark! >> caller: boo-yah! hi, jim. i wanted to get your opinions on exxon and schlumberger. when do you think they might start to recover some of their losses from a year ago? do you think they've hit bottom and do you think they're going to linger around these levels
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for a while before turning around? >> these are two best of breeds. i think oil's breaking and it didn't hold 50 and i think it can go still lower and exxon, goldman put a line in the sand at 80 81 and we had a chartist who said the same. i think that's the stock to watch. schlumberger reported a great quarter and the stock is hanging around where it is each though the rest of the group is coming down. those are the two stocks to watch and if they can keep these levels for a couple of days then they would have bottomed. scott in north carolina. scott! >> hi jim. thanks for having me on the show. >> thank you. >> caller: my question today is about imax, and it is no secret that the theaters such as netflix and amazon and this year it is up 7.5% over the 2014 year to date with big draws on the way like 007 and "star wars." i'm wondering if you think shares is are at a good price right now? >> i need more of a catalyst. everything you said is true is everybody kind of knows that. 2016 will be very interesting because netflix is starting its
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"crouching tiger and hidden dragon 2" if you live in china. china is hurting now and so are the stocks doing business there, but if a company doesn't have china well today it's a buy. on mad tonight, it is deals with some of the biggest names in music including madonna u2 and jay-z. and fitbit may be overvalued, does it value right now? it is a promising drug for giving sight to the blind and the stock is up more than 30% this year. i've got the ceo of spark therapeutics, symbol once, stick with cramer. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an email to or give us a call at 1-800-743-cnbc. miss something?
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head to
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this is one of the most exciting companies we've ever had on. if you locked out at a crowded concert or packed music festival you wonder how you can profit from it and given that the festival time is here then tonight i have the answer for you. i'm talking about live nation lyv, the largest and only publicly traded live concert entertainment company and it is much more than that. it's a producer and promoter of live music and not to mention the fact that they also own 158 venues in six countries including the fillmore palladium and they run the pnc center in new jersey and plus strategic acquisitions four out of the top five music festivals like lola mrooza and live nation bought ticketmaster for $400 million in stock and for those of you who hate paying the processes fees
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when buying tickets and now you know what that money is added to. they run venues and they run festivals and manage many of the artists and with ticketmaster they control the distribution of tickets for just about everything and on top of anything else they're streaming live concerts with the national channel and later this summer the nation is launching its own television channel with vice media. the stock hasn't done much of late and the company is outpacing the ticket sales for the year and it's been a great one to own, but we'll hear more about what they have to say when they report august 10th and let's talk with the ceo mr. rupino. welcome to qwest mad money." >> have a seat. >> i tell people they're seeing things and doing things and you have no idea you own them or run them, and i want you to explain to them because it's a complex business model that is basically everything entertainment in this country. >> right. you know we're in the live side of the business and there is a lot of conversation about the
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recorded live of the business and think of us as dgz for live and our job is at the core to put the rock concert on and we'll now produce 25,000 shows in 41 countries and have been consolidating globally. from that show we're going to make sure you buy the ticket at ticketmaster and we'll charge and make money at the food and beverage at the menu and we'll hope elfly take that show and stream it live on yahoo or elsewhere and drive advertising and digital from that. so a complete ecosystem around the live experience. >> in some ways you're a roll-up of great festivals and the more festivals you buy the more money you make. >> you know our model at this point because of our scale, we're the largest concert company in the world by far. so we can acquire these stand alone businesses and bring them into our model and through ticketmaster and through our advertising model turn them into a much more profitable business and right now our business we have 66 festivals globally. as i said we're in 41 countries and we think the festival
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business is an incredible business and there is a boom going on in america and the highest price of the business and you'll see us continue to monetize and look for other acquisitions. >> i met you through mark beniof of sales force and you have an amazing customer relations business where you basically start with people that go to the concert using social and mobil and you get a lot more merchandise sold. >> right. our business model is double sided. we're a b to b business attracting the artist and venue clients and we're a b to c business and ticketmaster is the top five commerce site in the world. one of the thing when we took over ticketmaster and there was no data mining and they didn't know the customer and we've been on a real mission in the last few years where mark benioff is can we understand the 450 million customers that bought at ticketmaster? can we get deeper around segmentation and become bigger with them and we see great opportunities and the more
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engagement we have with that customer that i should know you bought four tickets this year for your daughter and that one d is coming up next one and i should be ahead of the curve and that's where we'll get to soon with mark. >> how about people's facebook pages and live nation. >> part of our business is this sounds like the opposite of the label business, but technology has been the greatest boom to the live music business. on the core, the biggest reason our business that we're so excited about is it's a global business so i always use the example of rihanna. ten years ago, the reality was we were bound to a u.s. north american europe model. today rihanna has 100 million followers around the world and 60% outside of america. that means we can bring rihanna to colombia and sell a stadium out and thank to the internet, youtube and the other tool the global engaged customer base has made this business even bigger. >> i think people ought to know that a lot of people feel that the intellectual property has been taken by the streaming services and it doesn't mean
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artists don't get pate. you're the way they make money. >> >> it is 90% of the revenue even the younger artist and it used to be they went on the road to sell records and now you go on the record to make money and the road will probably pay your bills. >> is there anybody else competing with you right now? not really right? >> we have a large market share. >> when i look -- people go to the website and it's everybody i've ever heard of. it's almost like everybody is involved with live nation. >> we're proud. we launched this company ten years ago on the new york stock exchange and we were in about three countries and we did a few thousand shows. ten years later we'll do almost 30,000 shows and 41 countries and the third largest commerce site. here is the good news for an investment strategy. we're probably still only 30% on a global global basis because of these emerging markets exploding and as big as we are in america, canada and europe we have a whole bunch of runway
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left as every day these foreign countries want rihanna and they want jay-z and they want u2 to come to their stadium. >> if you want social mobile content you have to look at this company. i was blown away by all of the things they do. michael rupino the ceo of live nation lvp. stay with cramer. >> chipotle's keeping things spicy. slowing same-store sales didn't stop the star from rebounding 100 points after hours. how should you play the volatile swing? don't miss cramer's take.
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as i mentioned last night while this market tends to despise value stocks it's absolutely ga ga for growth. in fact lately money managers have been willing to pay up in an almost supernaturally big way for the most touche owe charged growth names like cybersecurity concerns or areas that have intended to get premium valuations in ages like semiconductor companies and tech hardware makers. taking a group of stocks that regular viewers should be very familiar with right now. ambar ella fitbit and gopro. three companies that traded similarly high multiples and these stocks have become battlegrounds because of admittedly lofty valuations and given that we're in an environment that heavily favors
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growth stocks, we have to ask ourselves should we listen to the bears that the likes of ambar ella fitbit and gopro should be shorted or should we follow in the footsteps of the money managers who are loading up on them every single time they dip because their growth prospects are so compelling and also they have relative lack of chinese exposure which is now to the next big thing. before we can even answer that question you need to understand exactly why it makes sense for a gopro or an ambar ella to trade at an extremely lofty price to earnings multiple. >> remember, even if you have these stocks if you hate these stocks, i need you to understand how a stock gets from point a to point b especially if point a is the base camp at everest and point b is the summit. so why don't we start with gopro, the maker of popular, ultra high-quality action cameras and everybody knows these. right now gopro trades at 21 times next year's earnings estimates which seems pretty
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pricey at first glance given that the average stock in the s&p 500 sells for 18 times earnings. it is very hard to find good comparisons to gopro and maybe you consider garminh that makes personal gps systems for cars and mostly because it just missed earnings estimates dramatically and you can see why people find gopro's valuation worrisome. they want to know help how special is this? the case for gopro is very sifrmel. as the valuation hawks view this as a commodity hardware retailer, with a product that can eventually be replicated by the competition and when that happens it will do serious damage to the company's growth profile, but the case might seem a bit more complicated. the bulls believe that gopro has a lot more time before some competitor designs and equally good action camera and because they have faith in the company's new products like the four-session camera not to mention the quad-kopter drone
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that they're launching next year or the virtual reality applications and the software that's embedded in this and then there's the intangible component and the fact that gopro is building out a media ecosystem with millions of users using the platform to show videos with each other and videos that cause nothing to create and they have social media and the goat riding the surf board with this on its head or the board. did you see that one that has it on the head of the surf board? these are dreams come true and they're the hot buttons in the google-loving stock market so it's easy to identify. it quickly reversed this morning closing down 36 cents and in part because the share his run up dramatically climbing from $56 and $62 over the previous two days and mainly because of senseless negative pin action from tech traveler apple. when you look at the numbers they tell you all you need to know about gopro's valuation and the company grew at a staggering 71% clip year over year and not
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to mention the last so-called linked quarter and wall street loves accelerating revenue growth and loves, loves, loves it and operating margins versus last year's commodity products and they don't have that kind of expansion and 120 bases points versus the last quarter and most important, gopro's earnings exploded higher up 30% year over year. even better gopro got better than expected guidance forecasting 56% revenue growth and 154% earnings growth in part because there are exciting new products that are ready and in stores well before the holidays and i think this heretofore will be a very big gift that parents give to kids. gradually that growth is slow and even though gopro can deliver long-term growth of 30% which as the analyst consensus it makes sense for the stock to sell at 21 times next year's earnings and i know growth managers who would be glad to pay 60 times earnings for a company with these kinds of numbers and i think they're a
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bargain going into holiday season but what about ambarrel the chipmaker that i favor that's the brains of gopro and it's also the brains of a lot of drones and you see the stock market rocket 105% whereas other high-quality semiconductor plays that have been tarnished by china's alleged cell phone slow down and they trade at 14 and 17 times next year's earnings respectively. doesn't that make ambar ella super expensive when you remember the stock fell 25% over two terrible days in june after short selling from citron research came out with a note trashing the stock and its valuation when it traded 126, not far from where it is now. on the other handrthother hand, since ambar ella has been all over the map. if it's a fluke or if the bear is the citron is right, the bears think ambarella is a proxy
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for growth. and i'm more inclined toward the bullish chase which is it is a necessary component for growth-end markets including action cameras like gopro which put up amazing numbers and body cameras and high-definition security cameras for your door, high-tech cars and yes, the burgeoning drone markets and just like gopro, ambarella has the most recent quarter and the company deliver read accelerated revenue growth up 7.5% year over year and not to mention a stunning 258% increase in earnings and also a major acceleration from the prior quarter and the call which i loved which was really good. you have to listen to that call. these numbers put other semiconductor companies to shame and it makes a novel piece of technology that's necessary for a number of cutting can-edge high-growth applications and even at 5 times forward earnings i don't think ambarella is expensive and although you're chasing it if you buy it after the $4 and change gain versus where it was down and then
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there's fitbit. the leading maker of wearable fitness trackers that's now given us a terrific 40% gain since i recommended it when it ipoed over a month ago. it might seem like more of a stretch given that it trades at 61 times next year's earnings estimates which is a stratospheric valuation and it turned out to be way too conservative and that would look less expensive when the action reported and we'll find out for sure because it's announcing in two weeks and for now we know in the last revenue fitbit's values tripled and it increased with 441% and 200% revenue growth it's hard to argue with fitbit, you're selling a product that's been on the market for years and some people worry about the apple watch into the business and the uninsuring watch numbers so far from apple and the much more important fact that it serves a totally different purpose with a much higher price point than fitbit's wrist bands and i'm not that concerned. still even if the analysts are
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right with the estimates and they might deserve to sell for 61 times nosebleed earnings and if gopro is up 35 and earnings with revenue at 70% then you better believe growth oriented managers would pay for a company named fit bit going at a 209% clip. i bet the first quarter out of the gate will be a good one because it is a buy for a 5% to 10% backness over the next two weeks going into the earnings report and we know the market gives that pullback all of the time. if you bought it on my call you should ring the register on some of your position and anything else, pure greed. bottom line stocks like gopro, ambarella and fit bit might seem ludicrous at first glance. this is where investors will pay for unimpeded, non-chinese related growth and it makes more sense and i wouldn't be surprised if they can go higher still. let's go to george in virginia. george? >> caller: how are you doing
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today? >> real good, george. how about you? >> caller: i love your show. first-time caller. listen in addition to buying umbrella i bought a stock ixys to get into the drone market. ixys and umbrella both took off like bulls and umbrella continued, but ixys has turned into a bear and i was wondering if that's due to the market or there's trouble with the company? do i buy more or do i sell and get rid of it or hold on? >> i've got to tell you, this is one of those stocks that is a -- let's just say a second to ambarella, and i would rather own the best. i find when i own the second best i often get hurt but i would like to have the company on air because i'm sure they have good product, but am barella, they have so many markets i feel much more confident. i like the mosaic business that ambarella has. remember this is a market that will pay for growth gopro, ambarella and fitbit they're not
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too expensive for the average growth manager out there and it can go higher. much more ahead, including a biotech that can give sight to the blind with a stock up 30%. don't miss my exclusive with the ceo of a company that you've asked about. if you got crushed by a knee-jerk reaction by chipotle's earnings don't say i didn't tell you so. how patience can get you out of the house of pain and plus a brand new edition of the lightning round is just ahead. stick with cramer. ♪ ♪
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mom has always been one of those people who needs to keep busy. if she's not working in her garden, she's probably on one of her long walks with bailey. she was recently diagnosed with a heart condition. i know she's okay, but it concerned me she's alone so often. so i encouraged her to get a medical alert button. philips lifeline offers the best options to keep her doing the things she loves in the home she loves. if she ever falls, or needs help, i know we can get to her quickly and with her condition that can be critical. and even though she doesn't typically go far from home, the button always goes
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with her. these days, she's still as busy as ever. just the way she likes it. innovation and you. philips lifeline. lifeline is america's #1 medical alert service. visit today or call this number for your free brochure and ask about free activation. from joe in florida about spark therapeutics that's right. i went back and did the homework on this development stage biotech special sizing in gene therapy that began as a research program within the children's hospital of philadelphia. i really liked what i saw. this is a very exciting story. spark uses gene therapy to address major unmet medical
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needs with one-time treatments that can basically cure cure patients with debilitating genetic diseases. for example, the most advanced product is a treatment for a rare gene mutation that causes blindness. currently it is it in phase three development and earlier stage data has shown that this is not an easy word it can reverse vision loss in children with the genetic condition. you know how hard that must be where there is currently no existing cure. if it gets fda approval this can do $600 million in sales. it can cause vision impairment that's in phase 2 trials and it has promising heem on filyaw products and we know how erle they is. it finds the operations for 2018 as the company tries to get its gene therapies on the market. i think this is an intriguing story, so for the first time let's check in with jeff morazzo, the with sparker this er thiser this er thiser this therapeutics to see where his
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dump is going. >> it is not long after i do research and i come upon a headline with j.p. morgan and seeing is believing. gene therapy vision restoration may not be a once your symbol upon a time fairytale initiating with overweight. it can do it. it can reverse blindness? >> you take a step back. what we're trying to do with gene therapy is correct the underlying basis of disease. if you understand about genetics, the concept is that's a blueprint to help cells produce what we're trying to produce. what we're trying to do with gene therapy is deliver that gene to the cells that are missing it or improperly producing it and what we've shown in earlier trials as you reference and as you know is that by putting a gene called rpe-65 into the back of the eye it actually helps restore as far as we can tell from these studies, functional vision in these kids and adults that have this disorder. >> we happen to have some video
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of what it's done and maybe you can describe what we're seeing in the video so people really understand how amazing. this is fairytale stuff. >> what we showed and what we looked nat one of the earlier studies is how patients can perform on a test that essentially mimics the activities of daily living. you will see on the video in the left was a subject trying to navigate through this course with their uninjected eye and in the video on the right you will see that they'll go through the course in 20 seconds with the video on their injected eye and that changed with something that we saw on that patient. that patient also then reported through a number of other media outlets that they were -- that that kid was able to go and play baseball again where before he needed braille to perform in classroom activities. >> this is the kind of miracle that we now see. why is this possible? >> i think part of it is is that we're being able to understand the genetic basis of disorders in a much much better rate. we're also now being able to do the necessary genetic testing to identify patients and understand these very specific diseases
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these narrow slivers of classes of diseases. as it turns out, this gene rp-65 is one of more than 200 genes that could be causative of blindness in people. so actually what we're, woing on and one of the things j.p. morgan and others have been interested in and certainly the investment community is that this is one gene but we could potentially apply this to many of the other 200 genes, but the fact that we understand the genetics and the connection with genetics and the biology and disease allow us to go and try to attack it with these types of treatments and the exciting thing here for these disorders is here to fore there have been no treatments and the fact that we can not only deliver something that may be transformational and you suggest that that video shows that but that it may be one time as well is tremendously exciting. >> how about hemophilia. that's a much bigger market and a tough, tough market to crack. why can such a small company have a shot? >> our first project is in hemophilia b and it's caused by
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deficiencies in factor 9 is what causes that disease and as we look across the landscape and the pipeline we were building and we think the world we're doing in sprk-65 and hemophilia is the tip of the iceberg in terms of what we can do. also the type of the iceberg with what we've shared with the market so far, but. >> hemophilia we looked at the competitive landscape and we established a global collaboration with pfizer. pfizer is one of the world leaders in bringing products for hemophilia with the market and we structured a relationship where we're working together with developing and they will go and seek approval as if we're successful and then market the product on our behalf. it's a great collaboration for us. >> if you can do that neural degenerative diseases and there is a gateway here and you can see other things coming from spark. >> in the area of cns and it's an area that we're very excited about and over the course of the last six months and we've made a tremendous amount of progress and we haven't disclosed the details of those programs yet, but one of the things about the
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cn is that has been difficult is that it's hard to be tractable with other therapeutic modalities and the things that you've seen with chronic therapies have had a hard are time accessing the central nervous system so we're excited about the potential to do something that may only need to be done one time for those disorders. >> every time you hit a milestone, i want you to come on the show and that's how we've approached the companies like yours and we've helped people hit some good investments, too. that's jeff marrazzo, the co founder and ceo of spark therapeutic, we saw the video. this company is capable of doing amazing things. "mad money" is back after the break.
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i take prilosec otc each morning for my frequent heartburn. because it gives me... zero heartburn! prilosec otc. the number 1 doctor-recommended frequent heartburn medicine for 9 straight years. one pill each morning. 24 hours. zero heartburn. it is time -- it is time for the lightning round on cramer's "mad money." [ indiscernible ] play until we hear this sound and then the lightning round is over and are you ready, skee-daddy? we'll start with kevin in arizona. kevin! >> caller: boo-yah from arizona. this is kevin. how are you doing, jim? >> i'm real good kevin. how about you? >> caller: awesome. i have a stock that broke out and converging above the 200-day
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moving average and should i have earn american tower? >> sprint and t-mobile need more tower space and that's good and i saw a crown castle iffy today. i don't care. i like the american tower. how about fred ney washington? freddy. >> yeah. i'd like to get your opinion on fox tv. >> yeah. i think fox is okay. we owned it for actionable >> don't buy! don't buy! >> let's go to larry in new york. larry! >> caller: yes jim. how are you doing, jim? >> how are you? >> caller: fine. glad to be here. scombrim, i just want to thank you for what you do for us home gamers. >> quite welcome. >> caller: and i like your approach to the market the way you do it. my stock is exact science. >> you know what? i've liked exact science and they did the big secondary, and i think ka-ching ka-ching and it's a huge shock.
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no thank you. how about jim in california? jim? >> caller: hey, big boo-yah from north cal. how are you? >> loving it. good. how about you. let's get down there. what's happening -- up there? >> candy, set investigation over and done with. >> hey, listen. we haven't liked candy. we got a lot of heat on the show because we didn't like candy and people blasted me on twitter. go ahead, keep blasting me because i'm not even reading you. let's go to dave in pennsylvania. dave! >> jim, my stock is kroger. >> and your stock is right! i think kroger paid when it's good. it's exactly the kind of domestic stock i want people to own. boy, are they good. would you come on the show. i even love fred meyer and even though i spilled a lot of stuff with the containers on the floor, but i wipe them up with a broom! how about mike in new york? mike! >> caller: jimmy! >> yo yo. an upstate new york rootin
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tootin boo-yah to you. >> and a 46th street boo-yah to you. >> caller: i'm crying murphy oil. what should i do? >> the oils. i'm crying too. they're too hard. they're too hard. there will come a time and i like the high yielding ones right now and, i'm telling people enough is enough and all of these other ones they have to let the lick wi dagds continue. i need to go to gino in connecticut. jean! >> caller: i invested in and i doubled my investment and i am trying to figure out if i should take money off the table. >> you know i liked it then and i like it now. let's go to al in california. al! >> caller: how are you doing, jim? welcome from palm springs where it's hot and dry, and i'm sucking the mud with ge. >> i have to buy a house in palm springs. everyone tells me it's fabulous.
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you go there, too. and here's the problem with ge. i don't know what to say. honestly, they're doing everything and it does nothing. it is really and that ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberyy apple scones smell about done. ahh, you're good.
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this week is a minefield and this is one of the four weeks of the year where we're overloaded with earnings information and that's why i tell you at home to
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stop, look and listen during these periods. >> tough comps for chipotle. in after hours it's plunging and down 7%. >> shares of chipotle reversing a steep loss pre-market and now soaring after earnings topped estimates. >> what was down is now up again. ♪ ♪ if you ever ever ever get the urge to make a fool of yourself by trading after hours again, please just go replay the last 24 hours of the action in chipotle to stop yourself from doing something dumb. we all know chipotle's stock has been under pressure for a while after we got weaker than expected guidance on the previous quarter and that said the stock had run up 10% going after yesterday's prince largely because of rumors that the worst must be over it was immediately labeled amiss, amiss, amiss and on the top and revenue line with the latter coming in at 4%. some were looking for 5%. so take a look at this the
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stock which had been in $674 yesterday, and that's where it closed immediately plunged more than 50 points to the 620s on those headlines that i just said. longs and shorts pressed their bet. why not? each even though many had the toughest history, was there still about an equal number that would have to slash numbers and cut ratings after this quarter and that's what the quick draw mcgraws thought. that's why they were selling and then the release was fully digested and the conference call begins. chip on the le conference calls are not like any conference calls and with the culture of management and they need to be responsible in food and it's chairman and co-ceo steve els talked about the need to remove gmos from food and the traders are, like please. they tried to source pork from better-treated hogs located from a more humane producer and the game friend or faux spelled
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f-a-u-x which was a guess of what was found in their food versus the competitors. agree, yeah, it's sandals and ashram and whatever. that's what the traders are thinking. it momentarily lifted when co-ceo monty moran thought about through put and was robust and then it hammered right back down and right near the lows when he mentioned that labor cost his to go higher because people needed to be treated better to improve customer service and you can see the expense line and expense lines are a real killer in business and this was their chance to break it and that's when jack hartam the cfo, the keeper of the numbers and a frequent guest on "mad money kwot "came on to the call well into the hour and he explained that july not covered by the quarter was looking very strong and that the pork shoulders that's hindered their earnings that was the best selling items and carnitas that was absent from the menus on many parts of the country that it's not even
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in the numbers and nor are the price increases that chip ottilie had been producing no job drop in the sales and pricing and we also learned that there was a 16-cent hit in the quarter because of a labor scheduling issue. i couldn't tell exactly why, but i know the analysts hadn't figured that out either and the earnings were much better than expected and the earnings that caused this to go down and the same-store sales that you didn't know about from the release, on the upswing. next you know the stock is only down about ten points and van harteman asked about the loyalty program and too costly and we have great loyalty and now it's down five and a question about a new concept and pizzeria local and the cheap marketing and development officer, and it's yielding impressive results and the stock is unchanged and finally a question about what they're going to do with all of that cash that's been building on the balance sheet, and of course, buy back stock which is why they put $100 million to work over the sell-off over the
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last three of months and chipotle's stock is in the black by the end of the call and today the momentum continued. meanwhile, oil broke below 50 and all of the restaurant stocks are flying and the result chipotle's stock is up 52 and change as the short thesis disappears and the shorts are busted and the longs come front and center. the moral of the story, wait -- wait, don't trade right after you see the headlines and listen to what the darn cfo has to say right before the q & a. if you did you just made $100. congratulations congratulations. if you didn't stop, either jump the gun or get the heck out of the gate. stay with cramer.
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shocker after the close sandisk delivered a better quarter and that may send them better along with cirrus logic, but don't forget qualcomm will be a real downer. there's always a bull market somewhere, and i promise to find it just for you on "mad money." i'm jim cramer and i will see you tomorrow!
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gs... -(theme music playing) -i'll get it. -...scrubbing toilets. -that's it. -it's all in a day's work... -(revs) -...when you're a millionaire. these folks invest in hedge trimmers, not hedge funds. they turn d.i.y. into r.o.i. and thanks to hard work, incredible passion and a whole lot of mud sweat and tears. they've turned their dirty jobs into filthy riches. -smells like money! -tonight meet a concrete pourer who paved his way from a humble shed to a $4 million mountain retreat... -this is what dreams are made of right here. -...a rodeo racer who turned a lifelong love of horses into a seven-figure steed empire and two best friends with fancy educations wh


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