Skip to main content

tv   Mad Money  CNBC  July 30, 2015 6:00pm-7:01pm EDT

6:00 pm
enough. >> electronic arts. a minus, not bad but high expectations may be going in. not bad, though. >> guy? >> amgen, a for amgen. >> nice. >> see what you did. >> i'm melissa lee, hey, i am kramer and welcome to mad money. going to make friends and i am just trying to make you some money. my job is to coach and teach you, so call me or tweet me at jim kramer. sometimes we have to remove all emotions from the equation when you try to analyze and look at a stock, you can not say how can
6:01 pm
it go down like that. i have to buy it. maybe i should sell it. what you have to do is use key metrics. kill sets and cold hard facts. hast that's how they arrive -- when you see an american icon leading the dow jones down for the day you can not be shocked or perplexed. you have to be cloin cal and skeltd balance. i mentioned that -- it's not out performing them now and it's stocks should not either. whether it's lacking kilg er innovation or maybe it's too
6:02 pm
large to manage or simply because it's charging too much and they're hitting you up for the packaging. let's just own the fact that at the end of the day proctor's not de de delivering by what matters. in any business there are key yardsticks to follow and the key that call the tune in each one. all that matters is organic growth and pack tornados and it grew to one percent. is that growth? forget about the headline that they put on that. i am going to quote it that they
6:03 pm
have core ordinary reasonings in physical 2015. if you read that it's up three. it was done that much. why, because the real growth away from it is one percent. how much does that matter. they delivered four percent and pepsi at five percent and then or owe and cadbury gave you four percent just this morning. much much more than pack or the. that's why they rallied over five percent while they're down over four ners the same session. the action in these products and stocks was totally logical. >> they decertained exactly what happened. do you want to see emotion, consider what happened in the trading today in facebook. the f in fang. facebook reported a fantastic no flies quarter last night, and
6:04 pm
yet it got glob erred down two percent and making people wonder because they look at the action whether it deserves to be part of the fang cohort. my answer is of course it does. facebook stock is running up hard and traveling from $77 where it fell to after it's last disappointing results all the way up to $99 when it gained the status just nine short days ago. now, that's a ramp and one that went hand and hand and the other high growth names. that's reported and put aside the fact that you look like a moron for selling the facebook here. forget mac and i was discouring discouringed when i reread it. what matters to facebook stock
6:05 pm
st. is $3.75. yep, $3.75 because after last night's conference call is what they can earn. that makes it the largest growing company on earth with a monthly average user of 1.3 billion people and up 23 percent a staggering figure lost on everyone that sold today. facebook has gotten a quarterly revenue why do i care about them? because that and the low expense structure because of the user content and do not listen to those that say don't listen. they do not know what they're talking about. they benchmarks allow me to put pen to paper in a way and figure out what i am willing to pay for what i think is the $3.75 cent
6:06 pm
itself in earnings power. i am using the numbers and you can understand why stocks go up or down. when i see a company growing this fast i am willing to pay two times the growth rate. i don't like to panel ice the growth stocks in this year. that's too short a time to evaluate. with the numbers it's easy to argue that we should be willing to pay up and growth matters should tell you 60 times and twice the dwrouthgrowth rate. you have to give it the maximum lift. that's 60 when applied to $3.75 cents and gives you a price tart. the stocks are at 95 and 89 if we get that eight percent profit that we had last time. you know what you're skeptical. let's do this. why don't we say even though
6:07 pm
that i am using the classic earnings it's too absurd. at 30 times earnings and totally absurd and let's just play it that way because you want to play it that way. you're sold. even then what do you get? how about $112 for facebook stock. you may think that this is nonsense and look at the stock going down and say there had to be something wrong. you may just say because the stocks are down and i have to sell. when the smoke clears they will come back to the stock of facebook what is my standing here? i have been doing this ever since my trust bought this in the mid-20s. i have been right. that's worth smchlth it's called
6:08 pm
credibility. doubt ers don't have it. sellers don't. more importantly it's the emotional way of evaluating the stock. that's what they do and that's what i am trying to show on mad money and what they're thinking and doing. you will not know it because that's what i want to do. want to know another example. look at whole foods. is it how profitable and perhaps the most of my main retail er. is it ridiculous giving the per sies and fantastic food. i mean come on. no, it's declining sense. in the end they're judged by a metric too and it's sales and that's the organic growth number and i was so disappointed and whole foods gave you something like proctor. that's terrible and well below
6:09 pm
all of the major retail ers and a considerable distance from the chain kroger that posted 5.7 percent growth and an acceleration and there was a time when you could not both to compare the two. it was apples and oranges. it was apples and rotten apples. it was a chain and then a regular old supermarket. go like i do and you will see that it's jammed pack at lower prices so in an apples to apples whole foods social security going one percent in the change growth and it's accelerating. kroger sales at 18 times earnings and after today's decline it's 19 percent earnings. that cause not make sense. it makes whole foods too expensive. it's 11 percent for this year and whole foods is more expensive and doing worse and the money managers use. they tried hard to judge it
6:10 pm
stores using other metrics and return on the investment cap. they called it her neverettrit cal. it should be private. never the less my discipline of using the same and yes i am con train restrained by the four walls and more on that later has rarely lead me astray. listen at the amgge of 60s and retail like this i cannot change now. it's dropping on the base of fundamentals. i love going and shopping and that's emotion that's talking. you have to take the emotion out of the equation. when you do you can think with ai clear head. forget the current price of the stocks. reflect on where they're going.
6:11 pm
for an investor it's a longer term. it's right to sell it and wrong to fell facebook. you may disagree, but know this. you're disagreeing with a process that most big time money managers use for the lock term and tend to be on the right side of the history. you know why because the process controls history. phillip in texas, phillip. >> jim, how is it going? >> it's really good. trying to really understand this stuff. what's going on with you? >> man, you saved me some money on facebook and pulling out before the earnings. okay. so i am looking at c drill and we had a oil rebound and then a decline today at 48 and that's where is it going to go or is it going go to above 50. >> chevron is not bouncing that good. we have to see. we saw royal dutch cut back for
6:12 pm
billions of dollars. i cannot recommend the shares of those companies with world dutch that was the biggest bowl at the top is cutting back. we have to walt. emotion does not belong in the room and does not belong in the home when it comes to stocks. remove it from the equation. only then will you have a clear head and realize that all that matters is where the stock is going based on the fundamentals. then from apple and then china and a long list of stocks. did you hang up on the names or hold for clarity. plus, it's been sprinting past the hatters for a couple of years now. shuts out with a gain and double dig it sales, but a sketch ers is running out of steam.
6:13 pm
stick with kramer. ♪
6:14 pm
introducing the samsung galaxy s6 active only from at&t. tested to withstand pretty much anything life throws your way. switch to at&t and get a $300 credit with eligible purchase and trade-in.
6:15 pm
6:16 pm
right in the middle of it all is fire eye. the stock is up 50 percent and up 10 percent and the company reported numbers that were stronger than expected in the top and bottom line and in a surprising move the company
6:17 pm
announced that the ceo is departing for another firm. that raises eyebrows when that happens. something that i pointed out on my own show and boxesok. is it being punished and giving the prospects? why don't we dig deeper and that's the share and ceo and hear more on the quarter and mr. dewalt welcome back to mad money. good to see you. now on a path approximate but i have to tell you as someone that loves growth i would rather see you hit that billion dollar sales mark first. are you able to do both at the same time and get closer and closer and get to the billion sales that is really well and on the way? >> absolutely jim. if you look at even a second half guidance alone it's over a billion dollars in sales. we had a strong quarter overall. 57 percent on the top line and 77 percent on the differed and
6:18 pm
geography was great and portfolio and positive cash flow for the first time. clicking on all cylinders and it's proving go get better and better over the quarter. the best is yet to come. >> i know that this industry is competitive. someone at visa made an opinion to pick what was coming. why do you they they went with fire eye and not someone else? >> well there's a lot of misconception that we do compete with them but for the most part we do not. we have a diversified product and some on the end point and cloud and services and a lot of companies pick both of us so both are doing well. when you look at what fire is trying to do and stop threats in every part and we do not compete with them. like i said i think that the best has yet to come. >> let's talk about that you
6:19 pm
were on mad money in may and it's a certain certification and some would say basically that is too broad. why don't you give us the enlightenment on that. >> yeah what we are is that we have the first cyber security company that's ever gotten the certification and that's a big deal, and we have the highest level of certification and under acts acts of terror when it's breached they certainly can get the plorotection in the legal court system and in the breach. that can be a very big deal. a lot of companies are getting breached and what's an act of terror. is iraq and syrian and the russians an act and north korea. when you look in cyber security
6:20 pm
there's a whole lot of very good attacks happening around the world and having protections like the certification is a step in the right direction. he was the first to get it and the only company to have it. it's helping sales and companies. so far this has been a very positive thing for all of the clients and for us. >> what i want to ask is that i notice the lines with the group and that's a company that we think is the best in the causality and also with marsh. we think of that is because the designation that you do have. >> well that's innovation and not just in products and service services bit with the partners as well. there's two examples and there's a company and ace is a fantastic company. we announced the partnerships with visa and others and we're trying to transform it with the way that it needs to be solved. we need the protections and we need to be able to solve the
6:21 pm
problem differently with people and product together. a lot of these relationships are taking roots. we had the strongest quarter ever in 2015 as a result of that. >> it's a tremendous faith in your cfo michael sharden that's been with you for a while. going a private technology and i get nervous when they leave. >> yeah jim there's nothing to worry about here. first of all we have a fantastic and been a cfo company before and steps right in. we had a strongest quarter ever and the transformations are a natural. he is a type of cfo and we're needing to get to the next level
6:22 pm
like a billion dollar company and beyond. we brought in a lot of leadership and the new leadership across the board that we will see and new orleanshead of government and industries. we had 30,000 applications to come and join it. we hired 180 people in the quarter. a lot of positive things happening. there's a will the of people that want this cfo job. everything is good and it's a natural thing and the trans transformations and he did a great job and company and not to worry. >> one last question and speaking of worrying and not word worrying. are there things going on that are going to drop theour jaws on some type of terrorism? >> well, we just announced a russian attack er and one of the
6:23 pm
most genius attacks that we have seen in a long time. hit the high targets and we were not a liberty to say who. we're announcing it and it had big coverage and a lot of them are asking and you're going see more and more of that and we're delivering on it. >> congratulations and beating the numbers. always good to see you. thank you for coming on mad money. >> thank you. >> it's going on and much more. >> coming up. who is on the phone. the economy is growing.
6:24 pm
kramer is next.
6:25 pm
what do you got to offer us today? ♪balance transfer that's my game♪ bank you never heard of, that's my name♪ haa! thank you. uh, next. watch me make your interest rate... disappear. there's gotta be a better way to find the right card. whatever kind you're searching for, creditcards.com lets you compare hundreds of cards to find the one that's right for you. just search, compare, and apply at creditcards.com. ♪a one, a two, a three percent cash back♪
6:26 pm
in this chinese slow down and it's starting to bookle the
6:27 pm
the mind. it's everywhere from the price management the number of cars that they can sell and not as many and the counties and can drink. whatever there's a slow down and it's the things are slowing down. cell phones are the marginal buyer and because it's in infrastructure. and it's the technology and we don't know where it stands and of course china is where apple's and it's in the amount of in the stock market and picking up
6:28 pm
whatever and they go gang bust ers in china. we have no reason to doubt apple or ceo and we can suggest the sales have slowed but it's the mass rival. some days are corab baited and samsung announced on the phone and discounting apple. they do know this some companies are going to be hurt and hurt badly. we know the issues and the company says that there's no issue that they have in china if more to do with the loose of samsung. stocks are down and there's cash and structure. it was over punpunished. both of them reported last night and these companies represent the hotdest portion of the
6:29 pm
conductor business and the chips that go into everything and x approximatepi and after being down for hours and it goes down 14 percent. now, along with sky works are the companies and so any time that we hear anything negative from them and getting that apple won't let supply ers talk about it. last night we could sense and it was functioned in china and not anything -- and i mentioned this
6:30 pm
you did not know and it was positive. one by one here. still with the evidence you could argue that it's not just the infrastructure and not just samsung but the slow down and the crash and the chinese market and it spared no one. you know what i think that's a poorly framed question. now the hot money kind of -- or everyone the industrials and many the oils. in fact i think that i can give you the bottom line abc. finally sort out what went wrong in the chinese stock market and the samsung disillusion and the saturation. starting going back up and you should own and don't -- wes in
6:31 pm
illinois. wes? >> hey jim. thanks for taking my call. shout out right at you. >> i'm liking everything that you just sad. >> my question is the trend and the massive recall of up come nothing the future and the cau. >> we don't double down and not my volkswagen. it's almost anyone and you're going sell sell sell. it's easy as abc and cell phones. when we sort out what is wrong we will be on if way back up. there's more ahead and my player that's crushing ith right now. sketch ers is up and adding to 450 percent gain. i got the exclusive.
6:32 pm
then it's an end of the era and the company's ceo stepped down. plus the lightening round. stick with kramer.
6:33 pm
this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business.
6:34 pm
6:35 pm
a big sneak er maker. >> sketch ers are giving a 72 percent gain and last ceo and four months ago. not more than 45 percent and a quarter of them mange is expectations and last night they delivered one more time and sketch ers reported a monster speed and putting up a dollar 55
6:36 pm
and the shares and it increased by 36.4 percent. it was a double dig it and it's the business channels and 12.9 percent and seen this year and that was very bold in the commentary and sketch ers is clearly in the most exciting time in the companies 23 year history. and even it appears and let's take a look at the amazing story with david and sketch ers and chief financial officer and the spectacular corner. >> it's always good here.
6:37 pm
>> everything that we do and all of the categories and the product and the reception and the image and the advertising and it all works and starting to work better. >> these are people that you regard and it's every single. >> absolutely. these people are big fans and it shows through. it serves us very well. >> i want to talk about that. some of the bigger sneak er companies and they might be hiring guns. and it selects it. >> yeah they're wearing it and comfortable and nothing new to them and pick their own shoes when they go out.
6:38 pm
>> have i to say that i have the go go match. >> we have been working hard and it was light weight and we have taken it to walking. we do walking better than anybody. that is light weight. >> the number one walking brand in the u.s. and it's amazing that you're the number two athletic footwear in the brand. >> that's right. we continue to grow. we have to take that in the world and building it out and we're still looking up higher. >> you know the rage is the chinese stock market past.
6:39 pm
>> we will meet the demand and then we have a great reception and move to a franchise model. it's going to be very very and it's the market outside of the united states and there's no compliments. it's moving along well and the great reception and people in the store. there's just not enough yet. >> i think that the struggle in europe and i know that he was not happy. >> i don't know from now on yeah
6:40 pm
yeah. and we may have to expand that before we're done. >> now what do you got new this year in the scene. dazzled by the technology and approximate more things in store for fall. >> yeah, we opened the store on fifth avenue and we're bringing new innovations in and hoping that you will come to the show room and show them the new product at that time. >> showing around the world. >> well i got to congratulate
6:41 pm
you. we got early on and this is what i wear. see you and sam and it's great to see you sir. zbla great to be here. thanks jim. >> we talk about my under er
6:42 pm
6:43 pm
6:44 pm
. it's time and it's lightening round and they're going to be like this and the lighten round is over. the lietsenning round and let's start with barb in connecticut. barb. >> kevin, what is happening with alcoa? >> it does not matter. the stock is going down. i say hold let's go. >> trading outside and it's in
6:45 pm
hold. >> i ma seller and did not do the number that i like. let's go to michael and go to greg. >> hey, kramer i am looking at pgns. >> youi mean like i need to go and he admitted it. >> i got a question on the house. >> one of my absolute favorites.
6:46 pm
>> it's kramer. >> don, what's up. >> kramer is dog a lot of dumb things and they cut the distribution and i have nothing to stay -- and there's a mission and i am talking and it's for virginia. virginia. >> hello mr. crack er. >> hi. it's jenny and please share your knowledge and advice on morgan
6:47 pm
incorporated. >> these stocks are still in fall and they're in seller and kmi and there's the conclusion of the lightening. y, gting 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. i asked my dentist if an electric toothbrush was going to clean better than a manual. he said sure... but don't get just any one. get one inspired by dentists. with a round brush head. go pro with oral-b. oral-b's rounded brush head cups your teeth to break up plaque and rotates
6:48 pm
to sweep it away. and oral-b delivers a clinically proven superior clean vs. sonicare diamond clean. my mouth feels super clean. oral-b. know you're getting a superior clean. i'm never going back to a manual brush.
6:49 pm
it's the ends of an era and
6:50 pm
the bank of the ceo and saw it triple since the march of 2005. he not only steered but transformed it from a glass chemical and materials with a lot of commodity exposure into a business focused on all the sorts of much more difficult to knock off coding and paints with a lot of long term relationships and all of the companies that have been trying to move away from the side of the business think or dow are following the playbook. so it was a real blow when the company reported two weeks ago and chuck announced that he was retiring. same day they reported an earning and the basis and the revenue came in and it would have been great. the results are good and it's a day of disappointment and sherman williams and the surprising announcement did knock it down far more than it
6:51 pm
should have been. any time there's a pull back you have to be a buyer because the stock has resumed the march ask higher. this time i don't know the ceo is leaving and it's right to buy. let's check in with the bunch and ppg industries that made fortunes over the years. where it's headed for the last time. chuck welcome back to mad money. >> great. thanks to be here. >> now i know that chuck was going to be here. is this the last one between now and me? >> i am going stay actively involve in the company. i am going involve in the strategy development and most importantly our growth. that's where we need to continue to improve in this challenging external environment. >> let's talk about and i we want through an amazing
6:52 pm
presentation. you zoelstole a mexican company. i want to talk about what's going on in mexico and what p approximate pg is doing. you're not a house paint company in mexico. you're maybe the old industrial supply er of paint. walk the viewers through what it really did for ppg? >> well the legacy business in mexico was a very strong automotive and big industrial codings player. great positions. we did not have however a position in the architecture codings market. there's been a strong driver in mexico with their growth rates both in gdp and in population growth, so the opportunity for ppg to pick up the market leader in mexico great growth rates at what we felt was a good price last year and we've continued to see this momentum build in
6:53 pm
mexico and strong brought rate since the acquisition and you saw it again in the second quarter and high growth rates, and i am really impressed with the organization and they're leadership and the base of customer that is they have down there. >> can this make up for what i know that you're concerned about in the july 16th conference call that there's a bit of a volume or a growth slowing going on in china now that i know that your in tune to and then an automobile when things are not going as strongly. >> right. we've enjoyed excellent growth in china and especially in the automotive. our first quarter was excellent and the second quarter was also very good. we saw the slowing in the market in the last many or so in the second quarter. i would say that growth rates now we were looking for
6:54 pm
automotive growth rates of the six to 7 percent this year. it's probably now going to be for the year three to four percent growth so a little bit of a down shift but we're expecting growth in automotive in china in the third and forty quarters so we feel still opt mistake about our position. we're the leader there in the market. we they the market will stablize and continue growth and maybe e that we saw last year in the e beginning of this year. one of the slides in your tremendous pact and you mentioned that you're involved with that. i was surprised that there are thousands of small regionals and leading regionals and 14 of them that would be potential candidates to be bought by ppg. >> yes, the market is fragmented and about half of the market is
6:55 pm
outside of the hands of the top ten players. there's still along term consolidation story here. we think we're well positioned. act you -- we have got two more and we announced that we're advancing and there's plenty of opportunities to make further accusationquisitions and it's a long term growth story and we need to supplement that with the or dpan i can organic growth. >> still going and there and going out stocks and the people that have the shares. >> we bump it in the seven percent and the last quarter. we're committed and we're committed to building on that and also this year we've already purchased $350 million of ppg
6:56 pm
stock, and we intend to continue those share by backs as we go through this year and next year. we have a long term commitment to return cash to our shareholders and combine that with the dividends or organic capital and spending there we think that we have a balanced playbook for the growth in both top and bottom lines. >> well chuck you have done a remarkable job. i want to wish you the best of luck. still hope that you come by. outgoing ceo chuck. good to see you, sir. >> thank you very much jim. it's great to be part of this. >> chuck's made people a lot of money. there's no reason to believe that he would not leave the company in the hands of someone that will continue. staying and approximate ppg is terrific. this summer, challenge your preconceptions and experience a cadillac for yourself.
6:57 pm
♪ take advantage of our summer offers. lease select cts models in stock the longest for around 399 per month.
6:58 pm
why should over two hundred years of citi history matter to you? well, because it tells us something powerful about progress: that whether times are good or bad, people and their ideas will continue to move the world forward. as long as they have someone to believe in them. citi financed the transatlantic cable that connected continents. and the panama canal, that made our world a smaller place. we backed the marshall plan that helped europe regain its strength. and pioneered the atm, for cash, anytime. for over two centuries we've supported dreams like these, and the people and companies behind them.
6:59 pm
so why should that matter to you? because, today, we are still helping progress makers turn their ideas into reality. and the next great idea could be yours. still one more great quarter. do i like those guys. i only know that because i am in the hos palty industry in my spare time. facebook it went down eight percent last time in and reported a good quarter. i said buy it. wait and buy again. just trying to find it and i am jim kramer and see you tomorrow.
7:00 pm
lemonis: tonight on "the profit"... andreas: meat in the gyro? lemonis: ...my big fat greek gyro is a small franchise with a growing footprint. are you guys still in love with this business? -mike: i am. -kathleen: i am. lemonis: already, there are five locations up and running. -how long have you been here? -jace: a little over 3 years. lemonis: and as the business has grown, so have the problems. mike: you're my partner. you can pick up the slack, as well. kathleen: you're gonna put it on me now? lemonis: husband-and-wife team who started it have no idea how to run it. rich: i've lost respect for mike as an individual. lemonis: their food misses the mark. they're actually terrible. andreas: you don't like them? lemonis: no. their branding is all over the place. hamburgers and hot dogs? and the franchisees aren't getting anything close to the help they need. kane: the only help we ever got from them was on the first of the month, they came and picked up their royalty check. lemonis: for this business to survive i'll have to put a clear process in place and fix what's broken.

67 Views

info Stream Only

Uploaded by TV Archive on