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tv   Mad Money  CNBC  November 29, 2016 6:00pm-7:01pm EST

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yum. china's spinoff which is what the market wanted. >> ajm still smoking and going higher. >> all right. i'm melissa lee. see you back here tomorrow at 5:00. 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 it make friend. i'm just trying to make you some money. my job is not just to entertain but to teach and educate you so call me at 1800-743 -cnbc or tweet me @jimcramer. where the dow gained 24
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points, as in kak climbing .12%. we have to talk about the lack of memory on wall street. there's almost a whole generation of young money managers who only had bank intervention as a positive for the stock market. let's call them the quantitative easing generation. these younger professionals know by keeping interest rates down the federal reserve, along with other central banks, made all sorts of stocks more compelling than they should be. so for thoeks folks that means the oxygen will get sucked out of the casino and we will all suffocate in our stocks. i get this argument. look, if you've been buying dividend stocks, getting better yield than you might find on the bond market then you are indeed losing your principle prop here in the tail wind. tail wind that allowed the stocks to generate excellent perform thence with bonds offering stingy returns dividend stocks became very attractive. not going away yet. and that's not the only problem we will be losing. with rates low, companies can borrow plan to buy back huge amounts of stock. they buy their own stock back.
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they crunch it. that in turn reduces the adviser in earnings per share p. which is the share cap. that's the deviser. giving you bigger gains than you would have gotten without the buy back. borrowing money to repurchase stock creating fast earn stocks than by say investing that money in order to grow their sales. thesis be investors are thrilled with higher earnings per share and they don't care how they got there. in many cases these buy backs have had the effect of sopping up excess supply of stock. so when stocks have run as they have lately there just isn't as much stock for sale as you might expect. low rates can have a direct reslaipgs to this kind of stock shortage phenomena. that's my own term. i'm going to see it happen. finally cheap money is giving companies ability to borrow by other companies. take over boom has been endless. extra readinary and you have to believe that if you take way the cheap capital, that comes from central banks keeping rates low, this boom will end. and with it, it will take a lot of the upside.
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that's an awful lot of good things to give up. make month mistake, we are giving them up when the feds tight in earnest. it is easy to see how the whole et fuss can come crashing down. unless cheap capital can buy back stocks so companies can have large earning and huge takeover bids. sheer what bothers me people. here is what bothers me about that whole thesis, and it is a bear thesis, i've been around for ages and i've seen the market make big moves higher, raising rates. sure we've seen a ton of selling going on when rates get too high and see that market acts better when rates are being clobbered than when they are rising. still i want it turn the whole big bank thesis right on its head. many people believe that the monster move stocks is fueled in large part by central banks. you're wrong. and they stayed away from stocks
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because they viewed the rally as artificial, they didn't trust it. for half dozen years investors have had one foot out the door because of the constant drum beat that fed is going to titan. in fact, the money that's on the side lines, had grown and grown and grown to the point frankly where you can't even call it sideline any more. it left the darn stadium because all it ever heard was that any minute now, some fed head would pull the rug out from under the market. in other words, we've been afraid of higher rates for six years. and that fright coupled with the worries in washington has made stocks an untenable investment class for a vast number of people in this country. the latter is an important point to consider. we say we favor the gridlock. when the government has nothing to do with wall street. i think is a false rap. i've been thinking about this.
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i'm beginning to believe that what investors really feared was a democratic president trying to do something that could hurt the prospects of companies. by favoring labor or the environment or the consumer over business. what if the we love gridlock was code, code for president obama not to be able to, so he couldn't knock the stock market down. or create rules that favored labor more than capital. maybe that was the code of gridlock. so because of gridlock, nothing could get done. and therefore the federal reserve had to step up to the plate in a way that many investors viewed and still view as frightening. i think this recent rally isn't just about trump. i think it's based on the prezungs that the gridlock has finally been busted and busted in way that's positive for the investing class. for sent ary the republicans have within the party of business and democrats the party of labor. whatever your political opinions the stock market prefers a
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government that favors business. i think trump is perceived as man who wants you to have more money in your pocket no matter how wealthy you are. so you can vest as you see fit. whether it be starting business or buying real estate or yes, owning stocks. if that's the case, and money comes into stocks from bond because people are less afraid that washington will hurt the portfolios with the debt ceiling crisis or tax stalemate that leads to shut down or some material treasury ruling like what happened when pfizer tried to buy aler agage n then owning stocks get removed. you want it own stocks because the government can get things done and the new president want it push for lower taxes for massive tax repray tree asian and for gigantic building projects that will stimulate keent my. some may prefer the fed keeping interest rates lower. keep an a bid under the stocks with 3% yield. but let's be honest with ourselves. most stocks don't even yield
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that much. there's a whole cohort of other companies that thrive, not intermittently, but a regular basis. sustained basis. not pumped by the fed. it is natural that some of that extra money in your pocket will end up in the stock market. and if it does there won't be enough stock to go around. given all these developments, i think it's almost silly it fear the fed boogie man at least in the initial tightening rounds. right now every time some fed governor or president speaks it's a news event because we're afraid it's the oxygen coming out of the room. what if the fed wasn't the only source of oxygen. low rates are like being on a res p r respirator. suppose economy could breath on its own. especially since growth may restore the luster of stocks as they are back by higher earnings from increased sales, not from buy backs. or lack of bond competition. this is the logic powering this economy right now. whether you love or hate trump, he wants it cut regulation that
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hurts earnings. he wants it put more money in your pocket that ends up in the stock market and build things that increase earners for equipment leading to more people working at higher paying jobs. that's what he says tweents do. he may fail. he may fail to do these things. he may post tweets that hurt stocks and crimp growth. but let's face it, he wants it bust gridlock in way that means the fed will no longer need to artificially boost the economy in the stock market. he want it create deals that mean more wealth for the country which he now regards as a surrogate for himself. here is the bottom line. this rally is as much about the don't fret the fed's departure as it is about trump. and that's why you miss it if all you care about is the end of low rates. the fed is no longer just in the driver's seat. trump's growth agenda is too, at least for now. brian, my home state of pennsylvania. brian? >> caller: boo-yah, jim. >> boo-yah.
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call i wanted know your thoughts on big lots. could that beaternings by friday? >> that is not a high quality retailer like i like. i can't get behind it. tjx had a good quarter. i like that segment of the oil price market more than big looks. michael in california p michael? >> caller: hey, jim. michael from california. boo-yah, how are are you? >> good, how about you? >> caller: i'm doing well, thanks for asking. i happened to buy michael kors stock in '60s. currently trading right around $47, $48. current cost basis around $53. my question to you is, do you think this with the retailers having a strong quarter and strength of the consumer having more discretionary income, do you think that's going to be a positive catalyst for this stock moving forward? >> i'm not crazy about that handbag business. not crazy about accessoryes. very up and down. i think you ought to use strength to exit, not to enter.
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george in california. george? >> caller: hi, jim, how are are you? >> good, george, how about you? >> caller: i'm doing great, thanks. thanks for taking my call. >> mm-hm. >> caller: hey, i have a question. i recently invested in air transport services group and i would like your opinion given amazon is partnering to help deliver their goods. >> you know, i prefer fedex. i really do. i prefer ups too. i like both of those more than yours. i understand you got a little dollar amount going there. but to me, fedex is the best. all right, by the way, amazon is great. the fed is no longer the only focus. if you're overly concerned with the withdraw of the central bank, i think you would be missing some serious opportunity. more mad tonight. 8.9 million households in this u.s. own an rv. how can you make money from the trend? dho earnings to see if it's king of the road. and it happened to citigroup, panera group, hasboro, why this
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could hurt your money-making building. and one of the largest real estate properties at theme parks, schools and mega plexes across the country, with the potential rate hike cut blooming, i'll find out if the company can continue to break new ground. so stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer. #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to ♪
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? stocks simply don't know when to quit. look at ford industries. number one maker of recreation kral vehicles. up more than is it% in the wake of another incredible quarter. what makes it so impressive is that thor has been on fire all year. if today's epic movement is up
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roughly 82% for 2016 not to mention 20% gain since we last booked two months guy. this makes me wonder how can analyst keep missing this one? are they not the kind of p em who drive rvs? thor delivered 26 cent earnings beat off $1.23, up more than 65% year over year and the company's recent jaco a acquisition gave them more market share in motor homes. can thor keep flying? let's check in with the president and ceo of the the trade show in louisville, kentucky. mr. martin, welcome back to "mad money." >> thanks so much, jim. glad to be back. >> all right, bob, i find myself wondering, how analysts do not see the kind of earnings power that you have and continue to underrate it. why is it? do you think it is just because they don't have one or ride one? is that just kind of a bias or
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something? >> no, you know, i'm not really sure. analyst and everybody look at the market. it's a cyclical market so they never know when the cycle is coming or not. we've been on an upward swing the last few years. and for us, we just feel that it's going to continue going upward for many more years and a lot of it is these entry level travel trailers, final wheels, less expensive motor homes selling to a younger customer and that's what gives us the confidence to really feel that we're on a positive ride. >> let's go over that because i think in your presentation which is really brilliant, you talk about leesh our travels, such as camping, continues to be popular. favorable demographics. new applications. broader usage. all these sound like, including with millennials, secular not connected with the cyclical economy at all. >> exactly.
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and we feel the same way. you look at the ups and downs of the rv industry and they are ma crow to, you know, macro event and linked to gas and things such as that over the years.mact and linked to gas and things such as that over the years. for us, getting younger buyers at an earlier age helps the psych toll where once they start camping they typically don't stop. they trade into another unit, typically a larger unit. for us, that's great news for the long-term rv industry as a whole. >> let's go into that younger demo. one of the things i find really fascinating is the increasing diversity among that younger demo. this is not your father's motorhome. >> yeah, no, for us they are less expensive. they are a little bit more sleek. they've got a cool look that has more electronics and they are
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very affordable. you can buy a motorhome for $75 to $100,000. to many, that's the price of a large luxury suv. when you put it that way to customers it makes sense they can afford that. they can use it for more than just camping. not just camp grounds. it is going to soccer games, kids baseball games. tailgating. people are finding more ways to use their rv which all of those things are good for us. >> i want to go back to that idea of camping. one of the smart people working on our team show why more women are rejecting black friday in favor of campsgiving. this again that same secular theme, right? [ laughter ] >> yeah, yeah. definitely. spending time with family is, you know, still a great time of the year that they can go out and enjoy the outdoors with an rv it is a little bit different
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than even a with boat because you extend the season. there aresome things in our camp that are doing well for us. >> is there a way to have more camp ground places where we could stay that are brilliant? i mention this because a bunch of us are thinking about renting one of yours, okay? and we were trying to find if there were luxury places around the country we could stay. there are some but not as many as we thought. what can you do about that? >> there are some but the camp ground association, they are conscious of that and they are continually looking at how they can upgrade camp ground. we fortunate we have a wide array with the national park system. they can be very basic. but there are some luxury camp grounds that have very nice sites, pools, shower facilities. but it's something that there aren't as many. more campers are simply basic sites. people that want to sit outside
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with a campfire and really enjoy the outdoors. i've stayed at a very nice one down the smoky mountains, so i know that there are several out there, but you may see that growing popularity just as, you know, younger people getting more involved. >> all right. one last question. president-elect trump really wants american companies to make things in america. has he been over to see any of your fantastic factories? have you been in touch with him at all during the campaign? >> we have not. this is something that obviously governor pence is from indiana and he has been to several factories in our area, and he actually was at the ribbon cutting of one of our facilities. so they're known entity and we make take that opportunity in the future. >> all right. thanks so much, bob martin, president ceo of thor industries. congratulations on a great quarter, sir. fantastic. >> thank you, jim snpz that's
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bob martin from thor, tho. stock is not done going higher. it's got room. "mad money" back after the break. >> coming up, epr properties owns theme parks to movie theaters. does epr expect a blockbuster year ahead? >> this makes us a premier player in the recreational space. we understand na demographic group. we understand that. >> find out when "mad money" returns.
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what's critical thinking like? a basketball costs $14. what's team spirit worth? (cheers) what's it worth to talk to your mom? what's the value of a walk in the woods? the value of capital is to create, not just wealth, but things that matter.
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morgan stanley in this business, few things are more rewarding than taking a stock recommendation off the table after an enormous run. we just had one of those runs, and can you hear the analyst taking the victory laps with their down grades every single
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day. sim will down grades, yesterday and today, both large and small. what is the point of them? sure these analysts might have liked them a fau weeks ago and that's terrific. about 14% gain. but the problem is, how do you get back in after you've downgraded? do these guys think a city or key both having great runs, are finished? do they think stocks will fall 10% from here and upgrade them again? there are other times we have experienced huj compressed rallies like the one in the banks stocks since the election. and you know what? you had to switch your kind of discipline midstream. rather than sell the rips, let our gains ride. you have to say these levels be blown through and we have blown through a ton of levels. they are going to last. these moves are not going to be repealed on mass because we've add full crumb moment here, people. the president is pro growth and will cut deals to make that growth work. that's what market's saying.
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this is a new environment, everybody. as opposed to the toxic gridlock situation we've had over the last six years where every spending bill and debt limit became an opportunity to shut down the government, he had to do our best to anticipate issues in washington and sell stocks only to buy them back once the situation was resolved. there are very few times where it was worth the pain. >> the house of pain. >> of watching the disarray in washington as obama and the republican congress locked horns and got nothing done. regardless of your political r persuasion, we have to know that one party rule gets more done and the growth of the economy isn't by government shut downs. in this scenario, not business as usual, everybody. it's about being disciplined enough to stick around for a bigger pay off than we've had. not about getting 44 to $57 move from cii. it is about good getting to 770.
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it is about through 120 or 160 or ibm to 200.0. it is about through 120 or 160 or ibm to 200. those are all big moves from here. you need to know this cuts both ways. sometimes it is important to know when to trade and sell stock ahead of the big bad event. some go right back in. yeah, right back after you left. sometimes it is important to be ready for a giant sell off. and sometimes you need to keep stock on the sheets. that's what they call in business and hardest discipline is to not sell, sell, sell, sell. right now to the end of the year you have to have moments where you keep hard to keep your positions on, not to sell. simply because they've gone up. that doesn't mean you shouldn't take profits of less deserving merchandise or stocks that have gotten way ahead of themselves that might be pure commodity. let me get to the bottom line, i'm saying the hardest course may to be the stay the course rather than ringing the register. to stick around. especially when taxes may be
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lower for stocks in 2017 courtesy of trump's pro capital policyes. it might have been the exact opposite under hillary clinton and that's why you need the courage to let your gains ride. yes, this is a different sourt of discipline. but it's a discipline nonetheless. to clay in california. clay? >> caller: good afternoon, jim. i want it thato thank you for a do. i understand the show needs to be entertaining which it is, but most importantly you provide helpful valuable information for our financial well-being. >> thank you. >> caller: thank you for that. >> thank you. i appreciate that. thank you so much. >> caller: my stock is boeing. last month i woke up early on earnings elite day and stock was down $it. i started to to panic and said wait, listen to what jim says. listen to the conference call. listened to the conference call and stock finished up $7. important to what you say about conference call. i'm looking at boeing now. i love the cycle they're in. a lot of older planes out there.
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defense is improving. they've got to execute on 787. what's your take on boeing? >> i think beauing is 10,000 plane owns order. they've got the right planes. some bigger ones are winding down. i think boeing should be held. sat out to rally last couple years. good for boeing. thank you for the nice words. devon in missouri. devon? >> caller: i'm considering buying u.s. concrete. do you think the residential and nonresidential cycle can continue doing well in spite of rising interest rates? >> i do. by i preper martin marietta materials. i know is a $200 stock you you may be reluctant to do it but that's a better situation. i have much more conviction and management there. stephanie in ohio. stephanie? >> caller: hi, jim. >> hey, steph. >> caller: i'm calling about duke energy.
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we've been consistently losing money on duke energy until yesterday. and i want to know wrb do i sell it or keep it? >> no, no, you're in for 4.5% yield. true that could be headed higher but i'm not telling anyone to sell duke energy now. particularly in an environment where the epa may be denuted. these are interest rate sensitive. when interest rates go higher, these stocks go down. all right, this one trumps all. even the trump rally. hardest course may be to the stay the course and hold on to stocks that could have more room to run after an already fantastic gain. watch more "mad money" ahead, including my interview with a big winner for us. as asth asth as millennials choose to spend money on experiences rather than things. every few seconds someone in the u.s. has a stroke. med tech play is introducing a new treatment that could help
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patients recover when i turn in tonight's homework. and rapid fire in tonight's edition of the lightning round. tomorrow, kick off the trading day with squawk on the street. live from post 9 at nyse. >> may you never ever go shopping with me because it may be like a twilight zone experience. >> good for you. >> it could be like "the walking dead." like you walk in and like -- >> i have to admit, we are curious about the whole thing. >> it all starts at the ok9:00 eastern.
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ever since interest rates started climbing over the summer, the bond market alternative stocks got slammed. especially a real estate invest in trust. entertainment recreation and education properties from mooif theaters to retail centers, golf complexes, ski parks, casinos and charter schools. at the beginning of the month epr reported a solid quarter. the company announced it is selling out $700 million to beef up the recreational site of the
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portfolio. what has people worried is that some form will be in stock. and the sale of the stock which is expected could create a serious overhang, given that the epr has $4.5 billion market cap. how do they spend money? buying the north star california ski resort near lake tahoe with 15 amusement parks and entertainment centers for $456 million and offering $244 million in debt financing to oxif real estate in order to get their hands on 14 ski properties. they are winding itself down but epr didn't want it buy all its assets so they brought in a jumbo mortgage to buy the properties they didn't like. they like the high quality assets to help boost their exposure to the experienced economy but the reaction on wall street is mixed because shareholders don't like solution. it is confusing. we have to find out more about it. i like the 4.5% yield. you have to remember that rates
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are rising. stocks are less attractive. what do we do with a company like this one that's been such a win over a long period of time? let's take a closer look with greg silvers, president and ceo of epr properties. welcome back to "mad money." good to see you. >> good to see you. >> it is hard one. it's hard because the assets are terrific. but the stock is a huge chunk of stock and the company you're buying it from is in liquidation mode. presumably that stock will hit the market and your company doesn't have like a big buy back or anything. doesn't have big sponsorship. what happens when that stock hits? >> remember that we're actually issuing a stock to cnl and they have an obligation to transfer it down to their retail holders. we have a strong relief that these retail holders this will become part of their portfolio to the extent that we need to consider if there is some kind of overhang we're going to consider that with our board. do we need to institute some
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sort of buy back. but this is a highly creative transaction that will drive our growth even this transaction is 17 sent of accretion on ffo basis. very strong. we have structured this very well. we were very disciplined in our approach and we think this will be a positive for the share holders that stay with us and future shareholders. >> who do you -- do you think they will understand it? >> we hope so. woor r we're going to spend time. we got out an investor deck that explains our thesis for doing this. why we like these assets. also about our company so they can understand that we've, you know, we've got 14% total shareholder return. compound average return over our life span of 18 years. so this is a good stock to hold for retail shareholders. we think it's a strong with a monthly dividend should be part of anyone's portfolio. we think we've got a real good chance at keeping a substantial amount of these. >> how about the deal with oxif? that is not necessarily something i've seen you do
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before. but maybe over some point you did it? >> for us, it was about we made a decision in terms of o controlling our exposure to ski. we want it keep that at about 10%. to do that including the value of the mortage our ski portfolio is about 10% but it allows us to create that extra level of credit. we have 3.5 to 4 times coverage ratio on this so we took an asset that has volatility and strengthen the credit behind it and created more cushion so we think this is a far superior transaction. >> so now the different operations is a little skewed more toward skpeerens, something you understand better than anyone. >> yes. as you look across our portfolio, this makes us kind of the premier player in the recreational space, doubling down on that experience economy whether that's our entertainment or recreation and we feel as you say, we understand that demographic group and what are the drivers of that and we've
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been very successful with that p. >> new administration coming in. secretary of education, has to help your charter school business. >> i think we would believe that with 3 million kids in charter schools we were a little bit past political but these are tail wind. when you talk about her sponsor ship and her belief in school choice, whether that be on charter school or school we like that situation very much. >> how about the casino situation? >> we are under construction and on plan and no doubt the new jersey vote or failure to improve is going to help this situation. but again we're looking at the progress continues and in fact we're probably a little bit ahead of progress. >> let's go back to cnl. what is the actual timeframe? they have said that they are going to liquidate. is that over series of guys, weeks, monthes with be years? what is the period? >> the period will be, they are going tore shareholder vote and
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filed shortly at a proxy to vote. and again we didn't buy everything. they will continue to liquidate and we think end of first quarter and end of second quarter and we vote. >> there is time for everybody to understand. >> absolutely. >> and how is top golf doing? >> continues to do incredible with every opening they continue to set new records. so again we are actually getting closer to you. we had a recent opening in mount laurel. >> oh, sure. all right. >> so as we move closer to the east coast people will experience that and understand it even more. but it is done denominally well. >> and we have disney, you mentioned it in your call, we do have a big problem in the sense of for star wars but the 2017 slate looks good. >> 2017 slate looks good. i would say 16 we were worried but the star wars, but we're coming into the holiday season up about 3 to 4%. so we will finish positive for
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the year h coming off after record year -- >> that is surprising. that was just an incredible year last year. all right. i'm glad we understand. i want everyone to understand. there might be a dip in the stock. we know that. you're very candid about everything that can happen. i really thank you. that's greg silvers, president and ceo of epr properties, a big win for us. but i want to you do your homework. i love the monthly dividend but there might be a better time to by. just have to put it out there. "mad money" is back after the break.
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♪ ♪ it is time. time for lightning round. are you ready? time for lightning round starting with susan in washington. susan? >> caller: greetings from the nation's capitol. >> nice. >> caller: my question, i'm looking for utility stock and i saw aliant energy. >> oh come on. we follow closely here, let's go with american electric power,
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aep. that's what you want. to mike in wisconsin. mike? >> caller: jim, boo-yah. >> boo-yah. >> caller: i watched the game last night. i was so disappointed that you didn't win. carson wentz will be a pro bowl quarterback. >> yeah, just a bad night. congratulationses to wisconsin. >> caller: hall of fame some day. >> but i was bummed. all right, we got to go ahead. i'm trying not to dwell on it. good ahead. >> caller: i know. but i go back to sue herera originally on fsn and they told me to save her day job. >> all right. what stock? >> caller: i'm looking at insy. >> you are so spectacular for that. too speculative for me but i appreciate the kind sentiment.
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so elijah. >> caller: so going to -- >> no, even though trump likes that call, too hard for me. >> caller: thanks for taking my call. >> doing my best. >> caller: my he question is about zbh. >> oh, i like it. we have this new guy, head of health and human service, secretary price. but i will tell you this, the quarter was not a good one and ways looking for a good quarter. i would own it and if it gets back higher you might have to trip p.m. i did miss that one. i thought the quarter would be better. to vince ent in new york. >> caller: hi, jim, vinnie from brooklyn. amgen? >> hold on to it. frank in new york? frank? >> caller: kkr. >> i think the stock is doing
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better. they have the opportunity to get out of stocks. i like kkr. to maria mr. washington. maria? >> caller: hi, jim. thank you for taking my call. >> of course. >> caller: i'm on the fence for pi. >> yeah, we like that. we like that. i got to tell you, so many stocks are down so low, i'm looking at splunkator which is good. i do prefer nvidia. i'm sticking with that one. bob in louisiana. bob? >> caller: hello, jim. >> bob. >> caller: merging with chemicals -- >> oh europeans will hold that deal up forever because it involves merging sea companies. if they walked away the stock would go higher. i didn't always think that. but travel trust ownes it. we will have a resolution. i would own the stock. to ken in florida. ken? call first-time caller from miami. love your show, jim. trust your advice even if you were to tell me 5 and 6 is better than 7 and 4.
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took a schnitzel at 76 for main holding of hika but keeps going up. what do you think? >> boy, everyone has my number on these, don't they? howie, dumb come on, make it better.come on, make it better. those are the guys from the front office. i think you're in good shape with that. one more? to mike in new york. mike? >> caller: now with commodities, what's the play? long or short? >> which one? >> caller: wazel. >> they rang opening bell this morning. stock doubled. i don't want to deal with a stock that already doubled. up too high. one more. clark in california. clark? >> caller: boo-yah, professor cramer. >> boo-yah. which one? >> caller: just saying greetinges from sacramento. >> oh, i love sacramento. sacto as we call it. what's up?
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>> caller: i own a stock i would like to love. but it seems to be a charter for short sellers. what is your long-term take on oled, universal display corps. >> i've done a lot of work on that. you're absolutely right. huge target for short-sellers. think it is a battle royale. i don't like battle grounds. i say stay away. but i do come down just like you are. like that, ladies and gentlemen, that is the lightning round. >> the lightning round is sponsored by td ameritrade. y ga. oh. what's with the dog-sized horse? i'm crazy stressed trying to figure out this complex trade so i brought in my comfort pony, warren, to help me deal. isn't that right warren? well, you could get support from thinkorswim's in-app chat. it lets you chat and share your screen directly with a live person right from the app, so you don't need a comfort pony. oh, so what about my motivational meerkat? in-app chat on thinkorswim. only at td ameritrade.
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♪ ♪ as much as i may act like a know it all, the truth is, nobody knows everything. whenever i get a question about a company i don't know well enough to give you a good answer, i always put it on my list, do additional research and get back to you with a reasonable response. that's part of my mission to make you a better investor. with that in mind let's do some homework. on october 26, ike in new york called about tetri tech, tetk, which i hadn't looked like in a long time. i said i needed to do more work on it. they are a provider of con sumting and enjie here inning for companies and governments tackling complex items like water, government, energy, infrastructure and resource management. they don't actually build
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anything, instead they do all the things you need before you can start building. assessment and planning, modeling, surveying, mapping, laboratory service answers civil engineering. if you build a dam or reservoir say for example or maybe a wind power station or water treatment plant, tetri helps you get your project off the ground. this company has made a series of acquisitions that helped expand overseas, as well as more exposure to customers like the epa. tet tetri tech has become a play on the rise of regulation worldwide not just here in america. as governments around the globe make more rules, companies that built these need to spend more on consultants to make sure they don't run a foul on regulators. where do i come down on tetri tech? i think it fills an interesting neesh. i have two concerns. first i worry the upside is baked in because the stock has run up 65% year to date and currently within a point of an all-time high. even as it is only trading around 19 times earnings which
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isn't particularly expensive. other fear is on point. this may not be the best way it play the trump administration. sure they might benefit from trillions in infraspending over the next decade but we know trump is a believer in deregular racing especially when it comes to the environment possible they could tap down for demand for some of tetri services. especially because they get a quarter of its sales from the government. i think the future is too murky to own tetri tech. if you own it, ka ching, ka ching. at least until it pull beaks it lower levels. next up, when christopher in colorado asked me nevsun resources. simple nsu. i wanted to do some digging before i got back it him. tiny mining company. $3 and change stock. specializes in copper, gold, silver production. they have two minees. one in development in serbia and
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another operational. this past year nevsun is diversifying from copper, getting more exposure from zinc and precious metals. they add rouhad a rough time si 2011. they have gone up more than half its value but is on the mend since it bottomed in january. they have a pristine balance sheet. no debt. over $200 million in cash and impressive production growth. plus for any attractive take over opportunity they could use the growth rate. meanwhile, it's paying. terrific 5.1% dividend. my verdict, nevsun performs well when the economy is spanning. rising prices are very good. however i am concerned that many people own nevsun for 5% plus yield which is less attractive as interest rates rise. i don't dislike them. i think can you do better. which is why i prefer tech sources for other metals.
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but it's been good. next, on november 11, collin of south carolina, totally stumped me. he asked me about pen. i said i need to familiarize myself before giving an answer. pen is a small cap medical device makers focused on neuro devices, think aneurysms and stroke victims. for example when it comes to stroke the product allows doctors to perform minimally invasive procedures to remove blood clots that might block the patient's circulation. this business has been on fire. the way this quarter the company's neuro vascular division grew at 31% clip. the number has peripheral vascular business where devices remove blood clots and remove blood flow in areas of the body other than the brain thp in the latest group, grew by more than 40%. the stock more than doubled since it became public 14 months ago. they beat expectations.
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stock is far from cheap. but the business is growing like a weed. one problem, whole medical device cohort went out of style on the washington fashion show. as other stocks became investable now that we get a new president wh doesnwho doesn't wt put the pharma industry in its crosshairs. so be patient and wait for a pull back before pulling the triger. however with congressman tom price, orthopedic surgeon, appointed secretary of health and human services, i think there's a lot of opportunity. i like the stock. finally last year, i was asked about avanisix with capital s. i needed to coroner homework. honeywell spun off the rusins as a separate company. and the spin off happened at the beginning of october creating advancesix. as independent enterprise, leading manufacturers of nylon
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six. here's the thing. honeywell has been trimmingity portfolio to high margin businesses. add vansix is neither. which is why it was spun off. increasing competition pr the chinese. i think these guys have their work cut out for them. i like honeywell a great deal and i think its value enhanced by the spin off of add vansix. stick with honeywell. though with cramer fave dave cody retiring from ceo job soon we have to stay focused to honeywell through the transition. if you got some because you own honeywell, my suggestion is take this opportunity to sell something in the strength. and congratulations for making some very good money by holding on. homework complete. stick with cramer. ♪ ♪
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i would always like to say there's a bull market somewhere. i will find it just for you here on "mad money." i'm jim cramer. see you tomorrow.
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ is a unique way to illuminate in an emergency. hi, sharks. i'm anna stork. and i'm andrea shreshta. and our company is luminaid. we're seeking $200,000 in exchange for 10% of our business.


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