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tv   Mad Money  CNBC  July 27, 2017 6:00pm-7:00pm EDT

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i give this a b plus so you can see that 950 that dan just flagged. >> an interesting session tomorrow to say the least given the bigger picture sessions. >> thanks for joining us scott. >> been a pleasure. >> you can catch fast money again 5:00 p.m. 5:00 p.m. eastern tomorrow "options action" right after that "mad money" with jim cramer starts right now. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm just trying to make you some money my job is not just to entertain you, but educate you, but teach you. call me, or tweet me @jimcramer. look, it happens stocks rally too far, we get a reversal the market starts hating everything it loved. and loving everything it hated
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that's exactly what happened today. where the dow advanced 86 points, while the s&p backslid the nasdaq tumbled 6.3%. with a session like this one, all sorts of people will come out of the woodwork and say the rally in the tech stocks, the clear market leaders is now over you're going to hear some commentary, some very scary commentary about how everything that's expensive is now out, and everything that's cheap is in. because after all, the best performers this year with a handful of exceptions were slaughtered today. and the worst ones, especially the oils, rallied. i expect there will be a ton of bears trying to make you feel like an idiot for owning the best performing stocks i'm talking about stocks like that of amazon, which is trading down tonight after reporting disappointing earnings, even as the revenues were super.
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they'll say this is 2000 all over again if you haven't heard that already and that you need to get gains right now or go home is what do you do? should you jump on the panic get the heck out of dodge? should you plow into this year's losers and bet that this is the real deal, and at last to faang? facebook reported a fantastic number but spent most of the day giving up a huge gain amazon, which i mentioned is selling off badly, after it reported, netflix plummeted 3%, even though it was up one point and did what is known as a pirouette. alphabet, formerly known as the stock we liked call google, which peaked a few days ago. still considered to be disappointing. no, you don't do that. what you do need to do is take a deep breath and remember that
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there are all sorts of high-quality stocks of great companies that we've been saying wait for a pullback. wait for a pullback. wait for a pullback to do some buying and this is the pullback that's what this sell-off is all about. it's the shakeout of the we-cans. the sunshine soldiers who really didn't know what they owned but knew it was a hot. also a chance to identify red-hot stocks that may have gotten away from you but you didn't want to chase them because you had discipline and are now cooling off. to give you a chance to scale into them gradually. emphasis on the word gradually, because with the pessimists feeling empowered, there will still be some pain ahead the bears are trying to show this as the biggest correction in history i heard it all afternoon, so did you. talk about things like outside an island reversal say the market's rolling over.
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that the stocks are the worst wonder now while those who haven't run at all have negative value. that this is 2000 all over again. when we peaked back then there was a dramatic rotation out of what was doing well. the red-hots is what i used to call them. and the old s&p names like verizon, like at&t they'll have plenty of ammo, the actual winners of today. stocks like at&t and verizon that finally bounced back after months at that location. or the oils that performed so well today, remember they wrote them off when oil went to 43 okay i'll give you more on those later. they'll talk about invidia, lost $5.32 today. they might even bring up the semiconductor equipment maker who went lower after a blowout quarter. we'll speak to the ceo and find
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out more and the reversal of facebook before pulling back to close above 5. and amazon as the ultimate sign that it's over these bears will never mention in 2000 the leaders this time are profitable and doing quite well, and have good stories, with great balance sheets. they won't tell you that many of these stocks have reasonable price ratios relative to the growth rates they'll just make you think it's good for owning them the fellow travelers will be all over the place saying it's so obvious that things are off the rails. and unfortunately, when it comes to the rails, they do have a point. the railroads, like the rest of the transports, have been acting horribly of late i don't like that. that is a bad sign for the broader market i was hoping this group could pull back, from united parcel, but both failed to deliver they didn't please that said, though, the selling of the transports has been relentless now
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getting to be overdone still, i'm confident enough here that i recommend you buy some of your favorite names. the ones that are getting hit the worst? as long as you do it slowly, in stages, on the way down. why? first, the momentum of the sell-off is always strong. it tends to not last one day, but three days on day one, the stocks flying up the most get taken down to earth interday, and then some. the falling knives near the close, they tried to rally, and then they fall some more and you've got to be sure you don't get stuck. in the meantime, other stuks that haven't done well until today, this year's losers so to speak, they stopped going higher just when these grave diggers tell you that's the chance since tomorrow's a friday, it will be light trading, so it wouldn't shot me if everything gets exacerbated by that tomorrow i like to pick my spots and buy the stocks that have been haunting me because they've been up so much, and they've been on my shopping list
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i wouldn't buy all at once, though, particularly on a friday day three, we're talking monday, the hottest stocks tend to stabilize after being down for a while. then they start going higher the stocks start selling off on day two, they start running out of gas on the down side. the stocks that started rallying today, they just go down i expect any initial rally in this year's winners will fail tomorrow morning when the initial rally fails, the stocks go back to today's lows maybe they exceed them in some cases and that's when you start legging in be patient it's the summer. friday save some buying power for monday just in case the negatives go and yap all over the place this weekend and you read it in monday's papers if you want to buy some amazon, let's use that it happened after the close. you know what, don't be so anxious. wait a bit don't bite that first up because it will do that. wait for that rally to fizzle, and don't buy all you can. please leave some room for more stock on monday when the stock could start stabilizing.
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the bottom line here is that when we have a reversal day like today, the end of the worlders grab the mic and they won't let go of it until the third day of the sell-off when they say buy all over again and i say b-y-e, not b-u-y your first buy may not be your only buy john in texas. john >> caller: boo-yah >> good to have you on the show, partner. what's up? >> caller: okay. calling about constellation brands, stz. you had rob sands on last week he painted a pretty picture of their strategy, what's going on with the company. >> right. >> caller: monday, goldman sachs put out a two-step downgrade on the company. >> right. >> caller: just wondered what you thought about it. >> they told you to get out of -- there's been a big short squeeze tonight in boston beer,
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sam, and bud reported good numbers. kind of like right now we've got the losers are sending, which means stock -- which means to me, starbucks, which is disappointing for this evening, that you'll probably see a little bit of decline in constellation. wait for a decline and then do a little buying. nick in california >> caller: big jim, what's up? >> not much. how about you? >> caller: good. first time caller, longtime list listener i wanted to say that my twin brother from the season of the bachelorette and i are watching your show since 2005 in our fraternity house at cal berkeley never looked back since. >> good for you, man i like cal this year what's up? >> caller: hey, so the company which you've recommended many times, and i've personally done a lot of my own fundamental and qualitative analysis on is down
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15% since i bought it in may does this company slowly fall victim to the amazon effect or can it survive and thrive on its own given its retail focus, buy wholesale children's place >> i think she's doing a tremendous job at children's place. i think not everything that's in the mall is bad. plus, we've got the end of the border tax, that discussion is over maybe most important, i see a rally in retail off the fact that nordstrom is probably going to try to get its deal done. some of the worst stocks of the year that are heavy are rallying by the way, walmart's doing well, too. i would say be a buyer of children's place and thank you for the kind words. john >> caller: we love you out here in sacramento. >> john, i heard you, that you're long time what's up? >> caller: haven't talked to you in a while me and the cave men have got key px, therapeutic sealy.
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we got it in the 40s, went up six bucks today, the cave men are wondering what's going on? >> what's happening here, the mattress business has been soft so to speak, couldn't resist, and it turned out to be good numbers. the short squeeze going here let's let that one come down before we pull the trigger there. kyle in pennsylvania kyle >> caller: hi, how are you doing, jim >> i'm doing well, kyle, how about you? >> caller: good. good number one. >> yes, absolutely training camp next week. help me. >> caller: right quick question is bco, is it worth buying into or waiting >> today it hit all-time high today, which reversed. there will probably be profit takers coming in saying i don't want to lose my gain 76 is where i would pull the trigger. today we got what's called a reversal that means you've got to take a
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deep breath and remember the stocks that you wanted to buy if they ever came down, and this is your chance. but do not pay up until the sell-off cycle ends. how can you bank on a screaming video game how do you make money off of it? i'm talking with the ceo of logitech see if gaming can drive the stock higher and at&t and verizon, i'm investigating what's happening in the telco space i'm sitting down with the ceo to find out stick with cramer.
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right now we're in the heart of earnings season, where there are so many numbers coming at you, it's impossible to keep track of everything. the market oftentimes ends up overreacting logitech, you see it behind me, mobile speakers, tablet accessories, all kinds of expensive high-end gaming gear with a stock that's been totally on fire until recently i've like ed logitech since las
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december the quarter looked fine, modest top and bottom line beat the four-year guidance it keeps getting better. has the stock of logitech run out of steam or are you getting a fabulous buying experience in a company that is in the rapidly growing activities the ceo of logitech international. welcome back to the show >> thanks for having me, jim >> short and long-term concerns here short-term, i think there are people who say, wait a second, this isn't going to sell that well because i've got alexa, i've got speakers, and that means logitech has no place in my stock portfolio. >> if you look at this table, we're in a lot more than this. we're entering more categories this quarter we had three different categories that grew more than 50%. one grew 70% we're in the video equipment, we're in gaming, 40% this
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quarter. we've got a lot of things we're doing well this is one of the many things we're doing. they're really just cloud surfing these platforms. alexa is an opportunity for us in all of these spaces, including this one. >> a lot of people feel the last acquisition, too much, because you have negative cash flow this quarter. i was trying to understand the cash flow. but it didn't seem to be a problem. >> we actually paid the -- we paid an annual bonus instead of a half year bonus. the cash flow is very strong our overall performance is very good, up 13% at the top line, 14% at the bottom. at the end of the day, it was probably time for a breather our stock had more than doubled. >> i was going to tell you, that everything has to be uber perfect. facebook was down at the end of the day. i think many things are going right. 9 thing that is really going right, people who are looking for a way to play what i think
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is the hottest trend, and i credit you, i did not even know about it until you told me, east ports, have to know that your equipment is the preferred equipment for all esports gamers, and that business is still in its infancy. >> we love esports we started into esports back in the gaming, when i came into the company five years ago, i had kids that were in it it's been an explosion of a business for us. we're getting deeper into esports with every launch. we're trying to improve the experience for not only the casual player, the competitive player, but even the professional player. >> i'm glad you mention that we have a professional player on set, the professional gamer. he's the owner of team solomon without a gamer, i've got to tell you, nobody's going to understand this unless they're schooled by you. so welcome, andy andy, i'm going to sku the most elemental way, give us the arc of what you've done and how hot
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this is really for all the world, not just america. >> i started in esports when there were just a few hundred people watching. in the span of five years, from filling small theaters, we're filling stadiums like madison square garden. >> filling stadiums. the garden is hard to fill because there's a basketball team that plays there. you're telling me, people who -- who are these people they go, and -- what do they do? they watch >> so they go and watch in the stadium. >> they watch you play >> they watch us play. they interact. they buy our merchandise they chant our name in the stadiums over and over it'sreally exciting. >> there's a group of people who know you >> yeah. >> they cheer yu name? >> andy is a celebrity he's actually a celebrity. >> before wwe took off, could it be like that i never knew who those guys were, and the next thing it was a billion dollar industry? >> don't you think >> i think it's a billion dollar industry right now
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the revenues are in the hundred millions in the future i think it will be in the multibillions. >> what is it what everybody uses >> for our team specifically, we use logitech because they're really integrated with us. we go once a year to switzerland to work on the product since we started working with logitech, we get the work on the mic and headset that we use. we feel like we have a say in the product that we use. >> is it a split second that you gain >> everything matters. when you're competing, the prizing is in the hundreds of millions the prizing is insane. every click matters. you could lose in basketball based off one point. in esports, you can lose based on one second. using your preferred gear is extremely important. it matters more than just a paycheck you have to use the best products.
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>> what games are people playing? i know that's -- what are people competing on >> right now it's legal legends, cs go, doto. we're famous for owning the most popular north american esports team >> when you say that, you bought it from someone? you created it what happened? >> i was involved in esports really early on as a professional player. >> in your teens >> yes so i started my company when i was 17 i created a resource website that i taught players how to play the game. i create my team while creating my website as time went on i retired, stepped back, gave my position to another player. >> retired, what, 23 >> retired early at 21 >> in the meantime there are sponsors, big sponsors >> right now, we work with logitech, htc, geico.
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>> so warren buffett's in on it. can you imagine? >> of course. >> are there other teams you can beat because they're not using logitech >> we're known as the most winning team in north america. we've been to every single finals that's ever existed and taken a first five times. >> there are colleges now offering scholarships, right do you have like a -- they're like -- >> we are building an academy team we don't recruit from the college level. we look at the overall global ladder we recruit worldwide as a global sport. >> what's the -- the chinese bought the korean team >> no, the chinese are famous for recruiting korean players. >> korean players. >> yes. >> i know we don't have -- i have to do a whole hour on this, you know this. this is something -- what you're telling me basically, i want to finish with you is, this is not -- this is first year -- you've been doing it forever, the first year getting into the
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consciousness of people who run money, right >> it's going to be amazing. there are all these major esports now reorganizing, building permanent teams they're going to have a buy-in in activision blizzards building a league, a $20 million buy-in team, probably $10 million andy's going to have to pony up $10 million. and have a team like the nfl or nba. this league is about to completely change. >> what percentage of your company -- what percentage of the peripherals do you think are logitech, if i were to go to the garden and watch teams >> it's hard to say. we sponsor about 25, 26 teams. and so it's a dynamic thing. we intend to be a leader we've got great competition in there, too there are great companies making peripherals. we're a technology company and we're going to keep investing to make sure we can give an edge to the people >> i love your equipment i'm not a gamer, but hey, i have it and i use it, what can i tell
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you. and i have alexa that's ceo the logitech, and andy, thank you so much. during the break i'll talk to you about me buying the team it's a lot better than what i'm doing now. "mad money" is back after the break. coming up, an inside look at what's next in tech when industry insider lamb research. >> something incredible happened in the last couple of years.
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your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open.
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are the empires striking back verizon reported strong earnings with a new pickup in new subscriptions. shocked me that the company added 614,000 wireless post-paid
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subscribers, much higher than the 100,000 number they've been forecasting, to say nothing of the 307,000 decline from last quarter. what a clear difference. we now know that verizon's new unlimited data plan is working it's working to stem the losses. people leaving for other carriers was very low. this represents a pretty incredible 90-day turn-around for the telco titan. it comes on the heels of fabulously better than expected numbers from at&t from the day before very good total of 2.3 million users, even if the company still lost 89,000 net post-paid subscribers. still, all in all, at&t handily beat earnings expectations, earnings that's something you haven't seen from those guys in ages it looks like the acquisition of at&t is paying off at&t's been able to appeal to directv users.
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the company showed tremendous cost discipline. now it awaits the closing of the time warner company. just like it did with directv in the nfl package. that deal should take the stock up once again when it finally closes these are huge comebacks for two stayed old competitors that seemed like whipping boys for ledger t-mobile still showing astonishing growth, adding 817,000 post-paid subscribers which down slightly is double what they were looking for and far better than at&t or verizon. as ledger put it in a tweet to me, and i quote, if verizon is happy with these results, so are we that 3.5 years t-mobile leads industry in post-paid, end quote. all right. that's great after all, i've been buying t-mobile stock for most much its historic run ledger remains one of my
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favorite ceos. this is a big but, though, he's poked a lot of fun at verizon and at&t spoofing a hilarious movie, which one is dumb and which one is dumber. they may still be dumber than t-mobile what i find intriguing is if both at&t and verizon are both in growth here, they might be better buys than t-mobile at this level at this point, it might be time to retire the dumb and dumber joke john's got better jokes than that come up with something new right now, both at&t and verizon look like smart investments to me even the t-mobile is undervalued. at&t stock even after yesterday's gigantic gain, it's still 5% yield which is terrific for home gamers. again, after a grand 7.68% gain today, and for the first time in several years, i can argue that the yield could go higher still.
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not because the stock price depreciation, but because the company can handily boost the dividend i think the reason t-mobile stock didn't fly when they reported, is the empires of the old world are striking back. at&t and verizon aren't on carriers, cool in any way, shape or form. as investments, they're beginning to be among the best the stocks are open for business for everyone who needs income, and not just the capital appreciation that i think t-mobile will continue to give you. let's speak to james in missouri james? >> caller: hello, jim, how are you? >> man, i don't know i'm watching crazy action after the close. how are you doing? >> caller: terrific. fabulous day. >> good. >> caller: so, quick question for you. on applied electronics, i've had the stock for four months. it has more than doubled is it time to play with house money and where do you think the -- >> yes, it's time to play with house money. while i'm impervious to those
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who say that this is 2000, or 1928, this has been a stock that's up 317% and we're going to still exercise discipline even though i like its business. i like how it's doing. so yes, i want you to ka-ching, ka-ching, play with the house's money. i'll talk to you next year when it's higher. darrell in new york? >> caller: this is darrell, jim, how are you? >> i'm good, how are you, darrell? >> caller: boo-yah from hudson, new york. >> great restaurant scene up there. how can i help >> caller: i've got a question on frontier communication? should i sell it, hold it -- >> you know, remember, they did reverse split. it looks like it's doing better than it did. i've got enough companies, i've defending tooth and nail, hammer and tongs, i'm not going to defend a company with no growth whatsoever adrian in new york
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>> caller: adrian in florida >> that's even better than new york what's going on? >> caller: with the release of xfinity wireless, the rumor of a possible acquisition of verizon and positive earnings report, is comcast a buy at this level? >> i'm going to be very careful here i own the stock. and i work for comcast three, i think it's a fabulous company or i wouldn't work here because i don't have to. here's the deal. i think the stock was up dramatically, and then all these rumors came. can we just accept the fact they've got profitable growth and that's what we look for in stocks and leave it at that empire strikes back. at&t and verizon are back to being among the best stocks for those who want some income much more "mad money" ahead. looking for something in this market i'm eyeing unite in rentals. lamb research is up 13% over the last month alone what did drones and data centers and flash memory have to do with it my interview with the ceo.
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and tonight's edition of the "lightning round"! so stick with cramer tomorrow, kick off the trading day with "squawk on the street." live from post 9 at the nyse >> the issue with the -- what is it, the create of destruction of twitter that your guy has? they literally -- the average monthly user -- i speak to a lot of guys, big guys. >> a couple of girls. >> it all starts at 9:00 a.m. eastern.
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what do we make of united rentals? a stock that's been on a bit of a roller coaster ride here giving up some gains in the spring before bouncing back hard over the last month. what's going on? for those of you who don't know or remember, it makes its money renting out equipment for industrials, home builders, government entities, nonresidential construction. renting this stuff is so much cheaper than buying it outright. i think a lot of the reason this stock did cool off over the spring has to do with the fact
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that investors got too excited about a possible trump infrastructure bill that was never going to make it into law with this republican congress that hates spending money. united rail is doing really well last week they reported 8 cents earnings beat off the $2.29 basis, higher than expected revenue of 4.4% year over year plus it closed on the acquisition of nes, giving more exposure to nonresidential construction nevertheless, stock hasn't done that much since the company reported maybe this is the opportunity. let's take a closer look welcome back to "mad money." >> how are you >> let me ask you something, this to me was the inflectio quarter. it looks like that after some trending down, you're getting better rents, used equipment which i've always felt is the leading indicator, getting better the stock's not up that much
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that people may have missed it do you feel -- is this the fulcrum? >> i think, one, we had a great quarter. >> it was great. >> it was great. the team delivered as they should have. a lot of things are building momentum we saw -- it was very broad. it was all across north america and canada this time that we saw some positive growth and it was not just the east coast and west coast, it was very broad a lot of different verticals >> let's talk about what nes does for you it's doing very well, isn't it >> it's doing exceptionally well as you know, we've done over 275 acquisitions we know the playbook we've had our bruises but we have a good playbook the team's executed very well. within nine days, we had the company on our operating system. and we turned it right around. and we've really been focusing on driving those customers, also the employees. and, yeah, we're delivering much
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sooner than we anticipated on the -- you know, all of the synergies, both from a standpoint of cost synergies and revenue synergies as we build that into 2018. >> when i hear that, i've got to tell you, i'm actually hoping you do another big one because you're gaining shares. but if we've got the upturn, you've got to be all in. >> well, you know, as you know in our industry right now, you're seeing some of that play out. nes was one of our acquisitions. >> right. >> but our competitors are doing the same and they see the same growth that they see ahead of us one of the things i saw, caterpillar had a great quarter. that's a great american company. you certainly have your share of cat equipment. they said that this country is now driving a lot of things. you're pretty much mirroring that, right. >> there's a lot of activity out there. for caterpillar, it's a great company. as i said, canada, commodities
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seem to have risen not to the level it was before, but much better, and we think it's behind us. >> i think it's important for viewers to know why canada is important for you. a lot of people, it's an after-thought, but not for united rentals. >> no, it's not. we're a national company our customers travel we're in all ten canadian provinces. we're in 49 of the 50 states to serve that customer base, you have to be there that's why canada is important to us. >> a lot of your competitors are uniquely located in the sun belt what's your advantage over them? >> we have a broad range of products our specialty businesses but again, it's also our footprint. it's bringing in that customer, being able to touch that customer, wherever we are in north america. >> okay. oil and gas has never been that big a part of your business. at the same time it was so bad it could have sunk a battleship. how is that business doing >> it's doing better obviously as you see the land rigs have improved our business has improved.
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the pump business that we acquired 18 months before the oil dip, has come back reports to 37% growth in the last quarter. >> how much of your business has to do with companies that are building pipelines >> it's de minimis it's going to be 2% to 3%. >> that's what i see under this new deregulation era, with ferc moving things, that could be one of the things understood trump will have more activity. >> sure, not only with the standpoint of the pipeline being under construction, but the infrastructure that it brings around it. you know, the wages, the employment, you know, bringing people into those markets. absolutely >> do you think that there is kind of an industrial renaissance happening? we had this conference in wisconsin. they're building like mad in the southeast. are we seeing actual plants being built again? >> we have been. we do see that i mean, you know, last year i think that the industrial sector
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went to a pause. >> yes, it did >> and now it's coming back. we started seeing it in the fourth quarter, and in the first quarter and it continues into the second quarter. >> explain to people why the used equipment matters >> used equipment is, to your point, it is the underlying about the demand that we see in the marketplace. so as used prices hold up, and recover, it shows about demand we rent equipment. we keep it as long as we possibly can and then we turn around and sell it and generate a lot of free cash flow. >> another question. on a month-to-month basis, it looks like it got stronger even intraquarter, is that true >> it did. every month, our utilization was a record every month of the second quarter. so this was a great quarter by all standards. >> you get momentum, and this is the beginning. this could be the beginning of the momentum. >> we love a momentum. we have to remind we are a cyclical business. things are looking pretty good.
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>> michael, with more caution than i have, which i think is probably right, because it's his business, not mind president and ceo of united rentals, uri "mad money" is back after the break. when this bell rings... ...it starts a chain reaction... ...that's heard throughout the connected business world. at&t network security helps protect business, from the largest financial markets to the smallest transactions, by sensing cyber-attacks in near real time and automatically deploying countermeasures. keeping the world of business connected and protected. that's the power of and. we're drowning in information. where, in all of this,
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even made custom donut cutters. wow! all with points. that's how i created the ripple: the doughnut in a doughnut in a doughnut. suddenly it's everywhere. i mean, it really took off. what will you create with your points? learn more about the ink business preferred card. it is time time for the "lightning round" are you ready? grace in virginia. grace? >> caller: hey, jim cramer double boo-yah.
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>> boo-yah how can i help >> caller: i am eyeballing freeport mackmoran. >> it went up two bucks. i think the stock bottomed at 12 see if you can get it at 13. i do like the idea buy, buy, buy! james in virginia, james hi, james. >> caller: hello >> it's jim. what's up? >> caller: hey mr. cramer, thank you for taking my call. >> of course. >> caller: my question is regarding nasdaq symbol twou >> i don't know it i do not know twou i'll have to take a pass and do homework on that one tom in georgia tom? >> caller: hey, good evening, mr. cramer thanks for taking my call. >> of course. >> caller: so, ahead of the august 1st earning report, i'm considering selling my long-suffering position in rr donnelly. >> why don't we wait to see what they do. it's been such a disaster.
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we've done a whole show about what a disaster it's been. maybe they can come up with something that it would be a mistake to sell. let's see what they do it's been a traf esy, i agree with you let's go to james in virginia. james? >> caller: boo-yah from virginia thanks for taking my call. i've had a good ride on the drug pharma, and they highlighted papers where they had about 56 months on their new therapy on patients with progressive nonhodgkins -- >> a mouthful but true >> reporter: also, i see where novartis panel voted unanimously to recommend -- >> right, novartis deal. i think it's a good speculation. very, very high. if this sell-off of the high rollers continues, that stock will get hit and that will be a better chance to buy it.
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let's go to lauren in florida. lauren >> caller: three out of the past four calls being good, do you think hsbc will continue the trade? >> i actually questioned that dividend it's such a high dividend it makes me nervous i would rather own a jpmorgan than hspc. but you know what, stock has had a big move and i do like the banks worldwide. let's go to rick in new york rick >> caller: a new york boo-yah jimmy! >> okay. >> caller: i want you to know not only do we have the new york yankees here, but we're the home of donald trump as well. don't hold that against me i watch you every evening. on "mad money. i also watch you every morning on "squawk on the street." >> thank you. >> caller: you're fantastic. >> thank you. >> caller: thank you for all your input tonight i'm calling about apple reit i have a significant position in that stock and it makes better than 6% on
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the dividend it's had solid earnings. it's been a good industry, the hospitality industry but the stock doesn't go up. >> because it's part of a cohort that people don't like right now. but i do there's not a lot of new things in that industry i'll take the 6.5% yield that's a good idea that makes a ton of sense. let's go to albert in new york albert >> caller: boo-yah cramer! >> boo-yah. >> caller: i'm 19 years old and junior at nyu. mr. cramer, i'm calling you because i need help with pfizer. >> pfizer, it's kind of like a bond it doesn't have a lot of exciting new products. yields 3.88. i would think a younger person would get a little bit more risk, i would buy abbott, abt. i think that's a better buy after the last quarter one more susan in florida susan? >> caller: hey, jim, hot boo-yah
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from west palm beach. >> thank you. >> caller: is it time to buy some tupperware? >> the weakness in that quarter did concern me i can't just tell you to buy that weakness. i did see some things i didn't like so i'm going to hold off on that and that, ladies and gentlemen, concludes the "lightning round"! hey gary. 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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what the heck just happened to the stock today this company which is the best equipment maker i know had been on fire. and the stock rallied roughly 60% for the year going into last night's close. demand for chips is off the charts, semiconductor companies need lam's equipment they reported last night, i loved it the quarter seemed very strong stock never got knocked around today, sinking $3.58, more than 2% after being down six bucks at one point. is this the confusion we should be worried about higher than expected revenue up 9% that's amazing very robust guidance for the next corner. they also repurchased more than half a billion dollars worth of stock during this period
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the whole technology went into a tail spin this afternoon could this be the pullback that makes for a total gift for you let's check in with martin, the fabulous president and ceo of lam research, to learn more about the quarter and where the company is ledded. welcome back to "mad money." >> jim, thank you very much. pleasure to be here, as always. >> i've got to tell you, today was the first day where i was saying something really good about your company and they said, i'm in the tech business, that is the most cyclical company on earth, don't you see you'll get caught at the top? i argued that your equipment is what you need to make chips for internet things, for artificial intelligence, for autonomous driving. can you settle the debate for me >> i should begin today, because to your point, the performance of the company in the last several years, the most recent quarter certainly, and guidance for the year is truly outstanding. we're super pleased.
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i want to say thank you to all of the employees that work extremely hard to make that possible and for the customers for giving us an opportunity. i think relevant to your cyclicality statements, in the last five years we delivered pretty healthy growth, 20% or so on average each year the outlook for the december quarter, we should have growth around the 50% level for shipment so super performance and relative to sustainability, this is a demand statement and so best as we can tell, when we look at our customers and the actions that they're taking, investments they're making, it looks sustainable and super exciting time for the world of tech. >> can you explain to people the demand for flash, and why it's not just for the kinds of things that it's not just consumer flash that's driving everything? >> yeah. something incredible happened in the last couple of years the semiconductor industry
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delivered to the world a level of connectivity, a level of storage and memory, and advanced computation to really harness the value of data, the new currency of the world. and the world of flash memory particularly is a major contributor to that. and as i said yesterday, in the context of the vertical structures, the high-rise str k struck, that are relevant to that memory, it's a sweet spot for the company. that's one of the fundamental reasons why performance for lam is as strong as it is. that supports a very diverse set of applications, whether it's autonomous driving, augmented reality, the world of ai and ml. there is a huge amount of innovation and the world of silicon, the semiconductor industry of lam is sitting right at the center of making that possible. >> there are not a lot of companies that directly compete with you anymore the equipment is much more complex. the chips that they make from your equipment is much more complex. is it possible that what's happened is that something like a flash which we thought of as a
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commodity is no longer a commodity because it keeps getting better and better and more specialized >> no, i think that's absolutely true these devices are truly extremely complex technology solutions, with great economics. and, you know, the world of vertical scaling which is really kind of, to use a real estate analogy, a transition from a single-level structure to a high-rise. it's all about awe tomic level scaling, and aspect ratio scaling, tall and narrow structures with hugely complex yields, and defects, challenges, pattern collapse challenges and lam research is a real specialist at responding to all of that. and we feel delighted with performance and really proud of the opportunity for the company in the years ahead. >> all right i hate to have you be the foil, but you're the best i know if people come back and say it's 2000 all over again, and the
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companies don't make that much money, they're selling at 40 times earnings, their balance sheets are bad, you are selling at 13 times earnings if i'm not wrong you've got something like $30 a share offshore that you can't even do anything with because we have such a bad tax code. and this is the most flush that lam research has ever been. >> well, you know, i -- as i said probably a couple of times before, we focus on the things we can control, we focus on the differentiation of the company, the trust we're building with customers, the fit of the product portfoliowith our customers, that's why our focus and energies are operational execution and scaling and we trust over time the valuation takes care of itself relative to public policy and tax code obviously, repatriation, tax reform are high on the form of kind of interests for us certainly i think lamb is highly leveraged to that as it plays out. >> congratulations
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it was a monster quarter i just felt the pain today i thought, i've got to go to the guy who really understands the business, because your numbers were just superior thank you so much for being on the show. >> super, jim. thank you very much. >> the president and ceo of lam research can stocks go down that are doing well of course they can but lam is inexpensive, doing a great job, and martin's one of the best there is. stick with cramer. tomorrow we'll speak to kevin johnson, the ceo of starbucks. frankly, to find out what the heck's going on. the stock was all the way up, and then all the way down on
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what looks to be very weak guidance this is a stock that has been under pressure for a while we've got to find out whether that is being too conservative, or just the new starbucks that we may not like. there's always a bull market somewhere. i'm jim cramer see you tomorrow they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is nick romero. i'm 30 years old, and i live in venice beach, california. ♪ venice is such a creative place, and my store is completely based off creativity. ♪ my store is called the ave, and there's no place like it in the world. what we do is, we allow for people to come in and custom create any article of clothing--

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