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

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spread, reynolds. >> dan. >> facebook, i like callers an next week results. >> our time has expired. i'm melissa lee. thank you for watching. for more "options action," check out our website. and our daily segment inside "fast money" every day. we'll see you back here 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 my job is 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 save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. or tweet me @jimcramer. yes it is indeed true that the great stock market crashes did happen in october, 1929, the great depression kick off and 1987 debacle.
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and sure we saw some real uglyness in the october leading up to the great recession. from after the stocks closed today can we please remember this month can be bullish with dow gaining 1,371 points best in four years. and s&p falling nasdaq sinking as well. now with one more week of high profile week ahead of us and fed agree to keep rates low this paftd week let's go to the calendar. monday we get results from bluest of blue chips, visa and
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estee lauderdale. we know this market is giving you some bizarre buying opportunities likes the selling with starbucks last night. if my conviction about this quarter has only gone up since master card resulted master results earlier this week while american express once again gave a hideous number earlier this month. e estee lauder doesn't strike me as a company is that will screw up again. we also have ism american
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manufacturing going into recession? let's see what the numbers tell us. after the cause monday we hear from fit bit. fit bit is often lumped in with go pro. but go pro as we learned earlier under spent on its future while fit bit invests mightily with new product. i like this stock, decent buy for long-term investors. lately this market has taken a liking to old-fashioned food companies like krks ello --
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kellogg. you might want to buy some kellogg. cbsc corp i'm warning you not to bet against him bet with him. we hear from tesla, everyone's kids seem to love tesla. tesla is a cult i can't bet with or against a cult. tesla's fabulous at promotion. expect proshow even the numbers aren't that good i have no dog hunting in either direction. al allergan has become a take over narrative. i like it either way. in some ways i hope it comes
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down so my travel trust can buy more because it will get a $40 billion cash check in stock in the first quarter because it is selling its generic drug business to teva to give more options to the shareholders when it comes to making money. each time takes a good company and makes it better it would be amazing if pfizer bought allergan. stock went out 308. it did hit my initial $100 price i set. when it was selling at $60. best thing to do is wait for the market to give you a better entry point. started today the stock was hurt badly even though it is an
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amazing company it's a rich stock. we also heard about stock not that cheap but going down a lot, whole foods, to me wfn if i were running the show i would take it private. the group is falling out of favor. if you want to buy wait until after the quarter. still more expensive than kro zbrks er that's kroger that's my favorite stock. however, just under $30 might be close not yet. this industry needs to have whole foods the company to put them all tokt. thursday it's all about disney..
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thursday it's all about disney. disney's worked back to nearly 114. my take is you buy disney where it gets hammered. it makes a good case for itself. it bought back a gigantic ament of stock in the -- amount of stock in the interim. i would never take other side of a trade two quarters in row he's the ceo. we also heard from cell gene. to me this might be the quarter where we hear something about rocepto it was recently required by celgene, a very inexpensive stock on 2017 numbers which is how you value bioteches in what
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is known as the out years. friday it will be all day fed talk. this is what i do, i put head phones and listen to joc jams. the curious statement from the feds could be in a simple phrase. if employment weakens if you are bull you route for weaken employment number. me i just want to buy good to g stocks at my prices and hold them. be ready to pull the trigger. the bottom line. sell. you know what, most of the earnings have been good so far this month, in months now done, and were rewarded with higher stock prices no matter what the industry. i think that will again the case next week. and there's plenty good companies to choose from. how about dora in louisiana.
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dora? >> caller:. >> caller: back in september you talked about hewlett-packard and i've heard the stock price might go up to the $30 or $40 range do you agree and do you feel good about the split. >> i do feel good about the split. remember stacy smith the cfo intel said he thought the p c was doing okay. if you want the a pc you got the enter prize portion of hewlett-packard and if you think there will be consolidation of groups than you want to buy the hp portion.
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i think there could be a trade ahead. gene in north carolina. gene? >> caller: jim, thank you for 20 years of your knowledge and entertainment. i have a significant portion of my market in epd. >> i don't know if you were on the conference call the other day when they reported, i've been saying this is the one to own, that was a really good quarter because enterprise products partners is the new blue chip in that segment and they are going to do well in this lower oil environment. let's go to victor in california. victor? 1kw4r >> caller: hello jim. bo orks yha. boo yeah. why is solarcity getting hammered. >> second time. you can go down once and market will be forgiven but twice no, the market is going to say boo,
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and that's what they did with solarcity for the record i ain't going to play solarcity. from good stock rewards with higher prices. that could continue next week. only 55 more days until christm christmas. i will reveal which retails could be high. and i'm focussing on the merger snyder lance with diamond food and i have exclusive request ceo after earnings. i got an idea, why don't you stick with, cramer! >> announcer: don't miss a second of "mad money" follow@jimcramer. send him an e-mail to madmoney@cnbc or call
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1-800-cnbc. . @jimcramer. send him an e-mail to madmoney@cnbc or call.
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wherever i go people want to
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know if it is safe to buy stock of walmart. figure has to have big yield sooner or later. n does the it have to turn. i think the yield could get bigger not from the way you like, that's because i think walmart's stock could go lower. 3.4% yield doesn't enough protection even when dividends are safe and covered the way walmart is. why? for many reasons. last year they had free shipping if you spent over $50. which i thought was a mistake given their lower income demographic. unh unher unheralded turn around based on change in the stores, boy do they look good, coupled with
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international offers. you would be surprised how much private labels versus nationally branded stuff. target like costco, cheaper brand names. walmart's order on line pick up in the store strategy, costco has more room to encroach on walmart's turf. i think they are taking walmart shoppers. plus costco is a cost advantage from kirkland brand and membership. unlike walmart's they do have sam's club. in addition to the ever-changing delivering products to your amazon nem sis, however tltz one
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thing walmart has in its favor it is odd it gave you a gigantic multi year guide down allowing them to do something bold, boulder than anyone. but can they be bold enough? will they be? not with the current offerings and plans? of. what do they need to do 12? they have to try something very gutties. guts jagutsy. you can slice your phone bill by striking a deal with t mobile, you could offer free internet provide they had spend $100 on
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walmart.com or $50 in the store on selected items. you could offer something at a well below cost, yes the blue light special, except make it so it is only available with a walmart charge card. or you go to starbucks and tell ceo to give the coffee away to anyone with the walmart credit card. that's why i didn't want him to commit to the $20 million buy back. it would be better use than to try to prop up the unpropable. bottom line, it's going to be a target, amazon christmas, the worse kind of christmas for walmart. i will tell you this, if you don't think my ideas could get people in stores i have wasted a lifetime of retail through my father's it eyes no one new it better than that man, first
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working in the box stores and selling boxes and bows for 50 jeers he knew, years, he knew, right now walmart doesn't know, unless they watched this segment. news ahead, we talk eaton, and i'm sitting with the ceo of add coto find out what the heck is going on. vago find out what going on. (vo) what does the world run on?
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it runs on optimism. it's what sparks ideas. moves the world forward. invest with those who see the world as unstoppable. who have the curiosity to look beyond the expected and the conviction to be in it for the long term. oppenheimerfunds believes that's the right way to invest... ...in this big, bold, beautiful world.
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we thought we'd be ready. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn't need a loan. we needed short-term funding. fast. our amex helped us fill the orders. just like that. you can't predict it, but you can be ready. another step on the journey. will you be ready when growth presents itself.
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realize your buying power at open.com. you might not have noticed the hub bub of earning season but on wednesday got major acquisition in packaged food space. $1.3 billion cash in stock merger. dime is maker of nuts and chips and popcorn, these are all household brands. i recommended the stock over the summer. thanks to the take over now you have a 29% return in less than five months. because we believe in accountability and i always take the blame whenever i get it wrong i think it is okay to take a victory lap here in diamond.
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it is a dramatic story. watch. >> sooner or later the market will start giving diamond foods the credit it deserves. if it doesn't i could easily see the company be grabbed up by a larnger kpetit larger competitor for i'll aisle aisle space in the food section. >> now should you ring the bell and walk or is it the company worth owning. i thought it was a brilliant acquisition. why am i such a fan? here's a snack company created in 2010 by a merger snyder, love those pretzels and lance, today they make chips and crackers and
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uber cramer fave nip cheese and bread sticks and all sorts of cheese sticks and pork rinds, this is far from healthy as it gets but we know unhealthy snacks are so popular, after all there's a reason there's an obesity epidemic in this country. the fact is people love to eat junk food. i eat three of these after my workout. you should have carbs after a workout. now the latest quarter was an out and out disappointment. sales were just up 1.8% year over year. however i think acquiring diamond is what snyder's lance needs to reignite its grown, far
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outweighs the sub optimal performer, given they fell from 36 to 32 it's since bounced back to 35.54 as of today thanks in part to couple of upgrades yesterday who see a bullish deal. what makes combination so compelling, first of all they are incredibly competitive grabbing a lot more aisle space after this transition. after the deal closes management can decide whether to shut down under performers and reduce competition in snack space. diamond foods is much further along selling health foods, so buying diamond gives them more exposure for the less than bad for you part of the snack market.
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they anticipate new synergies. second they are complimentary on a financial basis. diamoniq diamond had not so hot recent quarter but schneider -- >> third and perhaps most important both companies are small companies. that's why combining in order to become larger makes a ton of sense. fshz the key is scale. the larger you are the more control over shelf space and pricing power. it's all about this combination.
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meanwhile the operational advantage could be enormous, the combined company with manufacturing facilities across the united states and uk. they have turned cape cod chips into a national brand i love those chips and with diamond facilities will have distribution channels to grow into national or even international power houses in fact had he have viewed diamond's uk business as a beach head it creates opportunity to cut cost by eliminating back office jobs, using greater scale to get lower cost neez are hall things -- these are all things why people merge. they expect 50% costs be realized by next year all by 2017. i think they are low balling. i am a big fan of diamond's food
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ceo brian bristol who took over and master minded one of the greatest turnovers of all time. last but not least, i got to tell you snyder lance could snap up new dominant company in snacks base. pepsico could do it, bolster the frito-lay business. although that business is so strong. coca-cola could run that through their distribution. hey you know what here's a 52-week hyperenal, we know that mono lease would like to sell
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the company if that's off the table it makes sense to go into acquisition mode and snyder is target once this is put together. i was a big fan of diamond food where we found out it was being bought out by snyder's lance and after the deal closes the combined company will be a power house. it's absolutely worth owning. now where the heck are my nip cheese. larry in massachusetts. larry? >> caller: jim congrats on your precise focused questions on your debate. and uber congrats to your wife on her birthday this weekend. >> geez, how did you get all that. i forgot was her birthday. i got scrambling to do. >> caller: no gift cards this year. do we buy more on bases when we are over 20% like i am with white where.
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>> did you see guy with couple calls it got the stocks going. i like the chart. we feel it is holding at 40 level. i believe november 5th might be put under natural organic. we got to wait two more days. let's see how it does and then we'll make a decision. >> all right good talking to you. what do we have going on maybe my stage manager kyle knows. diamond foods was hot and it will become a major power house. much more ahead. we talk eaton's results, not that great today. we'll see if they can get it buzzing again. then agco still up 7% this year. is that company field of dreams or is the story soiled. i got the exclusive with ceo.
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and let's end the week with freaky friday holiday addition of the lightning round and of course a look back at the week that was. stick with cramer! auto is.
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i told you repeatedly that
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in this earning season beaten down stocks able to rally off take industrials. general electric, boeing even gm, but some numbers bouncing too. consider what happened with eaton, big manufacturer of control products, hydraulics, truck transition missions a-- transmissions and arrow space components. eaton cut its full year guide for second quarter in a re. why weakens. stock rallied. sometimes by 3%. high yield at 4%. in was some positives not only is eaton expanding construction to cut cost but also $1 billion in capitol they are ready to
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deploy to buy back stock and maybe do acquisitions, with trading nearly 12 times next year's earnings estimates that's enough for a nice rally. let's hear from mr. cutler to find more about the product welcome back to "mad money." >> thanks jim, good to be with you. >> i seen positives. the cash flow is holding up pretty well, actually better than expected and obviously you have a nice cash balance you can do a lot of things with. how would you think you could make it so stronger market costs have more money in them and maybe some of the weaker markets cut back. >> sure 1y5i78 jim you're right we had $973 million and next year up 10% to 15% from this year. doing very well in terms of what we told investors of having
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stronger cash flow company. we were very clear with investors at end of the second quarter that we expect to split future cash flow by half fenway n & a and buying back shares. at the kusht price we're focussing a little bit more on buying back shares. the quarter we came in at $95 half way between our guidance $90 and we've seen organic growth deaccedesell rate. we think get out ahead of it, cut companies. in spite of weaker top line. >> which of these have the best two or three year prospects, for instance i think aero space you already had great growth.
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if there was a way to do an acquisition to turn the mix it would be great are there just not a lot of sales in that sector. >> we continue to be bullish in aero space and electrical which we think grow next year, if we can see the right opportunities, price correctly, we wouldn't hesitate to add to that. at the same time we're also aware we have investors interested in seeing us buy back shares so there's a rough balance of 50/50. but during weak periods we will be opportunistic in buying back shares. >> question out there is not when the feds should raise but when. when i hear about your end markets i question whether you would think it is the right time to raise interest rates. >> yeah we do believe that,
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look, we've been almost eight years at abnormally low interest rates, at some point we need more realistic activities in that record so most of our peers would agree the first step whatever it turns out to be is really priced in the market at this point and time we get to a more normal monetary policy and then start to deal with responsible fiscal policy. >> some of your markets, i kno , have gotten 5i89 ba little bit . when i look at europe they are doing a lot to make things better there. with injure tax regime does it with your tax regime does it matter where it is good. in other words a euro in europe actually works more to your advantage if you were in the united states correct? >> clearly our tax rate is largely a result of where we
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earn money so if our business is stronger in countries that have lower tacxes and most of europe is that way it resultsrt-reboun inve investors. i a better flow to our investors. n better flow to our investors. we had $650 million buy back shares. $450 million this year. it's a real benefit to our shareholders and means we have kasht for grow cash for growing in markets we like to build on. >> excellent. great to see you and stock had a great move, thanks so much for coming on chairman ceo of eaton. se see you, sir. >> thanks jim. >> these are beaten down stocks
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and if you think they will come back, they are certainly the place to be. is .
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>
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. it's time for the lightning round. are you ready? ski daddy. cramer "mad money." i want to start with rory in texas. >> caller: jim thanks for helping me turn $5,000 into $120,000 and down payment on house in less than five years. >> yes thank you very much. >> caller: beautiful. been doing what you say, 25 shares as the stock keeps going down, do i keep buying, sell or hold. >> which stock many. >> caller: horizon pharma. >> it is not a valean but you dot to wait for the smoke to
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clear and stock goes down because it is a weird guilt by association. let's go to tony. >> caller: hello how you doing? >> i'm doing well. trick or treat tony. >> caller: okay that's great. jim, tell me about rr donel. >> i want people in it. sells ten or eleven times earnings. so glad you mentioned it because it's a buy. tom in florida. tom? >> caller: hi jim, happy friday to you. >> thank heavens. >> caller: i got in on u.s. steel, i wonder what you thought. >> i think the chinese decided it is not going to happen. they are in the cross hairs of the decline in oil and gas because they make oil country tube and they are in the cross hair of the carolina ease for dumping steel like crazy. so can you not own the letter x. let's go to luke in
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pennsylvania. luke? >> caller: hey cramer what do you think of rice. >> minor energy company where oba few are working. let's go to glen. >> caller: boo-yah jameis. quintiles why is the stock diving. >> i know the stock had been up. i don't think there's something fundamentally wrong with it. it's not a high quality company you buy when buy when it weakens. let's go to tyler. >> caller: hey jump big buck eye boo-yah. >> what's happening. >> caller: aj ooir jrkayi. >> it is what the heck. it's good to go with 52-week
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high today. that's the conclusion of the lightning round. >> announcer: the lightning round is sponsored by tdameritrade. did you know today was national tax day. we're celebrating on "mad money." why not. i got a play you can bet on. it's not just cute cats on twitter. >> do you follow cute cats on twitter. >> i do. cats rule the internet. >> yes they do. every time someone slams me a troll i send them a picture of a cute cat. >> meow. brand stores like tiffany, a pandora all together only 5% of the industry. but if you look at card yay it is expensive.
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every kiss begins with kay. >> i didn't touch it. >> people want high-speed internet. but if your broad band connection goes down in the house. it's a panic day. my life would not be able to continue on without it. there's the wife, there's interloop net. there's the wrief. there's the wife. she never seen the show. doesn't even know about this. it's really amazing. been here three years. when she catches on to this i will have to change my whole at the attitude. don't you tell her. >> don't you worry. >> promise me. >> keep her in the dark the fact you have a television show. >> that's a good one, man, that's a good one. i'm here at the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay.
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our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.
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as much time as you spend talking about the cell collapse and energy metals and mining spaces over past year fact is all commodities have been hurting including agriculture which is going through pretty lean times however couple days ago world's third largest maker of equipment reported wednesday morning and the company delivered a robust 27 cents
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earnings beat off a 50 cents basis and stronger sale and earnings guidance over full year. think finally getting traction here. the back drop is still ugly. clear that wheat grain reduced demand. they are focused on controlling cost and taking control of their own destiny. let's take closer look with the incredibly seer likened part of the industry chairman of agco welcome back to "mad money." >> good afternoon jim, you are so kind again. >> well, look, you saw it all coming you are still stuck with a i hand. you are an ag company. you did come on the show when everyone was bullish about that group and said you saw leaner times now everyone is getting
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bearish do you see possibly better time. >> the storm is still blowing. all hands on deck. so we tried to outperform our peers which is not easy. we have great competitors. but i'm not so sure how 2016 will look like. the prices are still depressed, are low, farmers are in pretty good shape because they deleveraged their businesses during the past year but i'm a little scared that 2016 won't look much better. >> can you maintain that incredibly high free cash flow that i was kind of shocked to see you put up. >> yeah that's the eye idea. we want to have low inventories and that's one of the main tools here. that's what basically could bump our, raise our cash flow so much. >> okay. we got to talk about brazil. you've always been honest.
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you talked about russia before russia was bad. brazil, you have to be there. you're an agriculture company. what would happen if you put up five plants there. take advantage of the real. i'm just struggling with how you can't leave brazil but brazil is a black hole. >> yeah we have a weak government with one of the worse presidents ever. they start to discontinue funding for farm hes which of course is very bad and which is a poor policy. brazil farming is extremely important but still we are i think in the meantime we bottomed out and hopefully we can see a little bit better demand next year. >> i mean, is it possible that that government, this is what a lot of people i know real short the bonds, that that government 235 falls and a better government comes in. >> yeah there are people talking
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about indictment. i'm not sure that will happen. also there are a lot of things which didn't work so well. corruption did factor in. a lot of investments going on also regarding active government, actually people from the government, so that's not over yet. then next year we have the olympic games and that normally makes markets a little bit more difficult people are not focused on business but on other things. >> let's go china. opening a new factory in china. i'm feeling better about the chinese economy. it's the consumer economy that i feel better how about aguero ague agriculture economy. >> we come in with a better design with better quality and we will ask for slightly lower
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price than the chinese kp competitors so that's the challenge to get farmers to buy something better but also for a slightly higher price. >> i got to ask you, would it matter if more farmers go organic or they just use your equipment no matter what. >> this is what is happening mainly in the western world and it's a trend. it started in europe. in my home country of germany people did get a little bit excited about it. now it's coming over to america. it's growing. people eat less meat. that is another trend good for animal farmers. overall i think we will see more of this in the future. >> i was going to say into. i think plant-based foods, plant-based drinks, the younger generation unlike our generation they don't eat meat and don't like milk they like cashews and
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things that we think are sflsna make milk out of them. >> i love to have a nice steak. but it is true. there's a new trend. and the good thing is people are prepared to pay more for those products which is basically good for the farming income. >> that's important. we will leave it on positive notes because you deliver positive numbers. chairman and ceo of agco always great to see you, sir. >> thank you. >> here's a man who doesn't just sit there, he augments. that's why i like him. stick with cramer. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. 1450er
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. selling 18 homes? easy. building them all in four and a half months? now that was a leap. i was calling in every favor i could, to track down enough lumber to get the job done. and i knew i could rely on american express to help me buy those building materials. there are always going to be unknowns. you just have to be ready for them. another step on the journey... will you be ready when growth presents itself? realize your buying power at open.com
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greed, is this james bond wanna be an international spy or crook looking to hide fraud worth millions don't miss it at 10:00 pacific. don't forget it's daylight savings time this weekend, you got to fall back. i told my trainer this morning at 4:00 we should stop and listen to the starbucks conference call because it is a clinic how to run a company. they delivered an amazing quarter. if you want to know what a good call looks like, i know it's hand hour and half but you should go and listen to starbucks. there's always a bullish market i promise to find it just for you. i'm jim cramer and i'll see you monday!
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>> narrator: in this episode of "american greed"... joel steinger loves playing the ponies but finds betting on death is a bigger thrill. >> he's a bad guy. he's one of the worst that florida's ever seen. >> narrator: steinger's company, mutual benefits, tells investors they can make a killing buying life-insurance policies from dying patients. >> they were telling investors, "listen, you're helping sick people have money in their last days." >> narrator: the $1.2 billion scheme even touches olympic gold medalist greg louganis. >> hiv/aids was still thought of as a death sentence. you know, i didn't know how long i had. >> narrator: when joel manipulates the odds, investors are put in a terrible spot. >> no, i don't hope for her to

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