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tv   Mad Money  CNBC  September 29, 2017 6:00pm-7:00pm EDT

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i'm melissa lee. thanks for whapping. for more "options action," check out our website. see you back here next friday at 5:30 p.m. eastern time "mad money" 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 work somewhere and i promise to help you find it "mad money" starts now hey i'm cramer, welcome to "mad money. welcome to cram america. other people want to make friends i'm trying to make you money. my job to ed katd and teach you. call me at 1-800-734-cnbc or tweet me @jim cramer holy cow, we got through some -- scott free
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somehow we didn't get with some tit title wave of selling including me i thought it would be bad the sure -- of congress or trump's tweets, that often seem out of step with folks like washington, jefferson, lincoln today three of our more presidential presidents. here we are after one more whole hum day after we hit multi entry level highs. nasdaq tacking on, it's worth noting we did make it out of here unscaved. why? why was i so concerned because historically september's the worst year for the market. since 1928 the s&p had climbed to 1.14% since september
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this year up 1.1%. september's different, it's a month i feared every since i got in the business, that's because of the -- not because of the big picture in history but from my personal history when you run a hedge fund like i do, discipline says you should sell everything, lock in your performance, lock in the term and only day trade for the rest of the year. i did it many times in my hedge fund that always breeds automatic selling. if your hedge fund is underperforming, this is the time of the year when investors tell you they're pulling out when money managers know their investors are closing on them they shut up stock think about it, in september, did you hear any, not bad.
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finally september's frightening because we had two really terrible crashes in the month of october. the crash of '29 and '87 they've been seared into our brains, tattooed of course october tends to be a plea sit month -- placid month. the month gets a real bad rap. we see september selling as people try to get out in front of october crash fears, that didn't happen this year. still, i can recall many september where i camped out at the hedge fund office, trading in europe to try to get an edge. if you want to know why i'm so scared, i lived on a whole chapter in september of '98. i sold my sales for the last quarter of that book, it's really strong. as we escape from september and turn the page to the last quarter of the year what do we
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see? isn't that a great segway to go to the game plan turning my back to you for a second not bad. all right, will people who subscribe to also tease cable big in new york have their espn on sunday? will they get their yankee game? not that i care, i live in new york it's a big deal a lot of met fans don't care but a lot of yankee fans do care on sunday, disney the owner of espn is set to block out this also tees network, which is one of my cable providers if the cable network can't come to an agreement with them. normally i didn't care about those kind of things sports program, i believe is really important i think disney has a better hand let's see what kind of agreement
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they reach i bet people buzz about this all day monday i like the stopped of disney long-term. i think they will overcome the problem of cut cutting and grow. i don't need to pound the table here right now, however i think this is a terrific moment to gauge the value of disney's program, we'll see whether people can live without. i could not live without chefter for my fantasy league. i'm just going on record, okay tuesday morning, lenore reports and the home buildings have been singing a great unsung heroes of 2017 florida base enterprise so it's been hampered by the storms. i think it will tell a compelling story speaking of compelling stories, analysts are now tripping over themselves to praise kv homes of a surprise of soaring numbers.
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why do i mention this, because i would have really rub some of these analyst that follow it the same way i got a ton of push back in ink by analyst saying i didn't know what i was talking about when it came to the home builders. now this $14 stock has gotten to 24 and i have to ask, do the analyst know anything about home building sure, i still like the stock but others i like too, including lenore we also hear from paychecks and last time the payroll process reported stock got shefled a slew of analyst don't go over. i came out and said there were a bunch of bozos and the stock has buy. beware the negativist are still lurking.
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if you're done on paycheck let paycheck report. let the analysts come out and dunk on it then you buy. pepsico reports on monday. i think pepsico is the best of the best and the ceo is doing a remarkable job just be ware doing -- is a lot more worse about best home in a fabulous neighborhood. very few stocks in the industry can withstand a gravitational pull of the negative supermarket. one company i just adore, costco and you mean china after the close. constellation brands own the best ones too. rob sands is one of the best ceos in this country, a guy whose delivered, delivered and
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also delivered some people don't seem to realize the analyst, i say buy some before and after just in case they do their usual number on the company everyone's trying to upgrade and down grade the stock the company's got an understandable position. hey listen, just asked me. i sell more pacific koe than anything else, you know maybe if my address were blocked. we keep hearing costco hurt badly by the amazon food coalition, hasn't happened yet still it's kind of cloud over because of amazon so i'd be sceptical in going over the corner last two reports have been great and still got hit. china's been a huge winner up more than 50% and stays a huge
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winner now that it's been spun off by yum brands yum china has been -- finally we got the payroll report and i'll tell you no one's going to be able to figure this one out it will be impossible because of the hurricanes i believe you'll get a positive spin on the report and that reinforces the idea of the report the week after next this report is going to be strong because of everyone's going to be buzzing about a december rate hikes. i'm sure we'll hear plenty of talk next week about october crashes. all i can tell you is that we had plenty of talk at the end of august about how difficult september would be and it didn't amount to a hill of beat you pay attention to fundamentals not the calendar and october could turn out to be another month like september, where you can buy stocks when they come down because of unjustified worries given the
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strength of our companies, the united states and the global economy. i want to start the questions by going to michael in florida. michael. >> caller: cramer what was going on >> not much. tom price is out at hhs because of that jet thing. what's going on with you >> caller: i need your feedback on sin cronnized texted. i really want to get your suggestions for the long-term. >> i didn't like what happened that last quarter. it's impossible to understand what's really going on and i am going to have to saying sna big time on that one it's way too hot, do not go. do not touch do not -- listen, there one way be worse than shell. go to daniel in new york daniel >> caller: hey jim how are you >> i am good how about you >> caller: i couldn't be better. i have a question a company
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haynes celestial now that the company has gotten together with their accounting what do you think east goi's goo on >> i have to tell you while they were under that cloud the earnings tax depreciation did go down i believe and i know that erwin simon the ceo has made a good case, there are questions just what's going to happen with amazon foods if you own it you own it because you think long-term is beginning to be good but short-term i think it's going to be choppy. too many people expected to take out and there may not be one as october begins i'm sure there'll be plenty of talk about crashes but don't pay attention to the calendar, pay attention to the funding, the fundamentals on "mad money" tonight, it may feel like we're living in the
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matrix with artificial intelligence then in a crowd contents streaming sector, could one company be in a position to bank on a cord cutting trend. and hoping to help brick and mirror for withstand the wreeps of amazon. stick with cramer.
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for years, at&t has been promising fast internet to small businesses. but for many businesses, it's out of reach. why promise something you can't deliver? comcast business is different. ♪ ♪ we deliver super-fast internet with speeds of 150 megabits per second across our entire network, to more companies, in more locations, than at&t. we do business where you do business. ♪ ♪ data many people talk about is similar to oil, oil is no value unless you process it and put it into something like an automobile same thing is true with data, you have to have high-performance computing to turn that data into value. many people talk about this
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influx about the biggest in our life times -- >> the future belongs to artificial intelligence. i'm not talking about sky net taking over the world, it could be a possibility, artificial intelligence will likely end up being far more important to business than people realize which is understandable. ai confusing people. that's really just the tip of the iceberg. if you're sitting down with the unbelievably animated fantastic andy dickerson, ceo of artificial materials, i get is sense when it comes to the power of artificial intelligence we're thinking way too small and that oil analogy, i had to play again because it's brilliant. we don't understand ai may hold the key to all the sales, we know there's a monster amount of
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data out there, collect grouping all the wants and needs of desires of human kind. with the right software companies can use data to figure out how to do things much more better for you than if they relied on human intuition. we all marvel at ted williams because he was the last ballplayer to boost his batting average above .400 for the four seasons. batting .400 you're only up most of the time, 60% you're out. what would happen if we had artificial intelligent baseball players? i'd argue they'd bat .1,000. to translate that back into business terms, artificial intelligence is allowing businesses to bat .1,000 right now only a few company
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haves really hard necessary ai in a way that can make them perfect hitters. i'd argue that netflix, amazon and the privately held spotify may be the only ones using this technology to predict where the next pitch is coming and prepare for it in other words they already know what need to be done well before the pitch hits the plate you can make the case it's game set match for these companies, i pick on netflix, amazon and spotify simply because it's bills i'd pay without thinking about it in fact, it can't be game set match, the total markets of these companies are too big for the other players to roll over and play dead. the existing competitors have an incentive to fight back and the only way that can do that is buy and praising artificial intelligence themselves. to use another baseball analogy
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it's liketer roids artificial intelligence is like steroids for your business to compete these companies needs more chips they need more equipment like the kind that's made by implied materials. walmart needs toto bat a thousand against amazon. p&g needs to bat a thousand against inlever, get the picture. on and on. that means it is different this time artificial intelligence isn't cyclical it's a secular long-term transformation which makes owning anything in the big data space related to what ever in any way shape or form the place to be. not for now or next quarter but for years to come. much more "mad money" ahead. can roku rock your portfolio
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online then is the mall thesis overblown? and with u.s. stocks hitting highs this past weekend the calendar is about to flip to october. is your portfolio prepared for what's next? i'll decide that so stick with cramer
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public at $14 a share. stock opened at $15.78 and rocket up to $23.50. a 68% gain and today it kept climbing today it's up 13% with $26 and change what a rocket. judging by the strength of the po it's something to like here roku has been growing and a number one stream of platform. roku makes a little box that plug into your t.v., let's you watch 4500 different streaming channels including netflix, amazon, and many many others if you do a little digging, serious reservations about the stock. allow me to explain. roku is two different segments there's the business where they sell streaming video players then there's the flat form where
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roku licenses its operating system to makers of smart t.v.s. 20% of smart t.v.s sold in the u.s. and canada had roku's technology in them even some cable and satellite companies use it roku sells a lot of advertising, 50 or 13 seconds spots or during the break and they also have sponsorships in the first half of year roku sales grew it was down 20 points in 2016. meanwhile roku is exploring higher in the first part of the market it increases versus the year before roku's operating margin, the percentage of sales left over as profit before taxes is still in negative territory the first half of 2017 improved.
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however, all of roku's margins det deteriorated in the most recent quarter versus the previous one. maybe it's just a one off, given the underlying dynamics here and how hot the stock's been, i wouldn't be so sure. if you look at roku's user base the numbers are very encouraging t. in the most recent quarter the company saw an accelerating user accounts climbing to more than 15 million those users keep watching a tremendous am of content the total number of hours stream rocketed up to 60% most important roku's average revenue per user was up 35%, down from the 39% growth in the previous quarter in short, roku's got a vast and varying gauge user base. one that encourages to nelson data accounts for half of t.v.
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digital connecting streaming explains why the stock wen up yesterday and again today. where do i come down on this one though the positive and negatives on the plus side everyone's looking for one of those it's a secular trend and we talk about it here all the time this is really the first pure play other than next flicks. skpurs don't want to pay for cable bundle networks, many of which they don't want. when hthey come and pick and chose from services, especially now you can watch more and more sports over the weapon, this thing makes it happen. while roku have competitors, all these companies are focused on other aspect of the business i'm a big believer in apple but if you're buying it as a kor cutting play you're out of your mind second like i mentioned earlier,
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roku's me tricks they're phenomenal what's there not to like here. even though roku competitors aren't focus like a laser and streaming they don't need to be. amazon, apple are all great at multi tasking, you never want to be in their cross hairs. as streaming becomes more popular there's not much stopping other players from getting in the game. it's not just the box, rokuhav their platforms installed into smart t.v.s. lots of t.v. makers are doing the same thing of their own. if you got a playstation, ex box or nintendo switch you can stream video content through them isn't it a lot of competition? especially since amazon and
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netflix unveiled streaming devices this month aside from the competition, the thing that worries me, pat the profitability or the lack. despite posting some revenue growth for the past few years, roku still moves in money, it lost $22.4 million in the first half but it hasn't improved the streaming applier business where they sell boxes and a platform business where they sell their operating systems into television. think of this as hardware versus software the platform side has been growing like wheat pretty soon it will make up a majority of business borough cue's player business is declining. player sales decreased by more than 15% from the first quarter to second quarter. basically half their business has already started to shrink, i don't like that. what's worse, while roku's
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platform revenue growing like crazy it's down from 120 to 130% groet clip at the same time last year the platform business keeps getting more and more profitable, on the player side the margins are evaporating. roku's going to need to sell its players at a lost it's going to make it difficult for a company to turn a profit any time soon so there are a lot of question marks about the company, but as for roku the stock, i don't want you to buy it up here. why? it's a classic slimmer deal. company only sold 15% of its sales. six months down the line when there's a lock up or insider selling expiring or even before at some cases tend to get a massive sell off why don't you ask the people who
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owned communications, and got crushed by inspiring lock ups. here's the bottom line, if you got the amazing roku ipo, good for you you made a fortune whether you dig deeper there's a lot of things that can happen with the investors if you got some of the deal congratulate yourself but first ring the register in half monday among and let the rest run let's go to say tree in virginia >> caller: hi jim. i'm calling about best aim, what do you see for this stock and for the next five years? >> a five year view on bs ti, five year view we love supply chains solutions but why not buy ally bob you foe that's my favorite chinese stock.
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it continues to be my chinese stock. we're going with ally bob here chris in california. chris. instead of chris let's go to john in virginia >> caller: hey jim my brother and i love your show and i'm now the proud owner of get rich carefully >> yes,! >> caller: my question is on atnx it's done well since it's initial offering and is this a company worth owning >> we have not been able to study that one, it's only a billion dollars company. we're going to come back, as is often the case with these bio tech companies if it is an early stage company i cannot say fine. i got work today if you got in on roku i say kudos. if you haven't, i say a period take a pass. upon further review in the "mad money" ipo zones this one can
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trip up investors. i got the exclusive on one of the mall's landlords and there's a big yield here do you stock has what it takes to survive the unknown in the markets? i'll be the judge of that. and all your cause and rapid fire and the lightning round stick with cramer. (baby crying)
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(slow jazz music) ♪ fly me to the moon ♪ and let me play (bell ring)
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we keep hearing that brick and mortar malls is hurting here just a couple days okay "the wall street journal" posted a piece about a mall most are struggling in the face of ecommerce i want to talk about
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pennsylvania real estate investment trust pei. it owns 25 million square feet of real estate space in the mid-atlantic pei stock has been hammered here, down around 45% year to date it supports a 8% yield pei has been vocal about the idea there's a lot of market hysteria by the way, i can also say they pay higher rents let's check in with joseph kor dee know, here's the chairman and ceo of pennsylvania real estate welcome to "mad money. good to see you. >> honor to be here. >> thank you i know yourproperties well, i know the vast majority of them and what i can say and what i want to ask you about, there's been a big change.
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you sold a lot of properties that i didn't know, maybe weren't so good. the ones left or properties on which you're getting an upgrade when a tenant leaves >> yeah, we think the retail armageddon is way over done and certainly for pei. you were right on point. we were very early to the disposition game we sold off over 42% of our malls, all lower quality malls today we own malls and in great markets. to name two, philly and d.c., where a retailer, if they wanted to ploy a strategy in the u.s. they got to be in philly and d.c. there are great examples of where the retail head winds, they've been a bonus for us. >> talk about that because what i see is some lower rent retailers who are also not so
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nice leaving, guys coming in at higher rents that are very exciting to people >> if you think about the traditional department store, if you will many of the traditional department stores are struggling we're able to take that department store out and to date increase rents 8 times, bring in new exciting -- >> eight times over what you were getting >> over what we were getting bring in new exciting retailers that's going to bring more traffic, consumers and sales to the property and enhance the success of the property. i was in a mall in pennsylvania about two weeks ago where we took back a department store and we added a dick's sporting goods, home and goods, we've seen twice, doubling amount of traffic coming in through that entrance the retailers in the mall are
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performing better. dick's as happy as his home goods so it's all around the win/win. >> we've been talking to dave and busters, we've been encouraging to go in malls and take advantage of these spaces you've had dealings with them? >> yes, we love dave & busters, we put them in a number of our properties as early as 2009. we add one in springfield town center in our property in fairfax county and we're adding one that we've recently announced in harris berg we see the dining and entertainment component of retail being a definite direction where we're heading. if we were having this conversation five years ago, you asked me what percentage we had in dining and entertainment it may have been two or 3%. today it's over 20%.
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>> i knew there's a grater plymouth meeting it was the first mall that i kia came in into a lot of those are doing well. >> well, in plymouth meeting mall we have 45% of the space. in addition -- in addition to dave & busters and over half a dozen restaurants we've added a whole foods there. so we got new relationship with amazon at this point so, that's been a real win for us but in terms of european retailers, we certainly think that they -- in terms of fashion are a direction ahead. we have 18 h & m's in our portfolio. we just yesterday opened up zara, a fashion retailer that the millennials are very focused on we opened it up in cherry hill
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mall, 26,000 square feet big store. so, we think clearly fast fashion, off price, discount, dining, entertainment directions that we need to head >> we had the ceo of lulu lemon on this week, that was saying the lines between online and off line are blurring but he also wants a community feel at his stores do you have stores coming in that are less alien then say the hospital lightings that we don't like that are trying to get that community feeling and often do business on and off line >> lulu lemon do a great job with retailing, with yoga classes in their stores, there are a number of retailers doing that one of the things we're focused on is bringing new comes retailer markets to our companies. we have our first lulu lemon, we
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have atuesday me, we have a number of retailers telling out of the normal role and thinking about ex per yeshl retail. we have a tech room with technology and who would ever thought that would be in a mall so the whole model is changing, its evolving >> and you're evolving with it >> yeah. i use the word detoxing. it's a way to -- you know when you're done it helps you to lose weight, get fit. when you're done you feel better and you get stronger that's the way we think about the work we're doing at our properties we sold off the bad side and --
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>> "mad money's" back after the break. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances.
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it is time -- it's time for the "lightening round. and then the "lightening round" is over. are you ready? so for the "lightening round" i'm going to start with patrick in hawaii. >> caller: booyah mr. cramer, love your show >> what's up >> caller: with all the increasing tension in this world what's your take on the defensive stock general dynamic? >> i say one of any favorite raton's my favorite though let's go to mary in arizona. >> caller: hi jim huh row? >> good how are you. >> caller: good thank you. last month you said to keep an eye on nas tech and i'm wondering what -- it
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>> it's a rebuild from the hurricane. i think you can go further to them steve in new york. >> caller: hey jim wondering about ae eros. >> we have to do homework on that before i compliment math matt in new jersey >> caller: hey jim, goo ya what do you think about rpm -- >> i'm concerned he's the best there is, you have to be better about the quarter that's coming next week so i'm going to subscribe to the ceo's view david in texas >> caller: cramer i don't want to be friends just help me make some money >> what's going on >> caller: i know you like vehicle work what about about a small
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competitor and a lead in all things things. >> as i told members of the club. now we're going to jerry in texas. >>. >> caller: booyah jim from houston. >> all right >> caller: my question today is about also that, is it time to sell >> no no that yields 4%. this is the exact point i'd come in to buy the stock. ian in utah. >> caller: big booyah to you jim. >> what's going on >> caller: my stock today is uttt >> it's a red hot stock it's good as good as that is i'd go with
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supply materials and that ladies and gentlemen the conclusion of the "lightening round. >> caller: a booyah jim how -- i think it's terrific.
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your kids go to college and you start trading. >>yeah, 5 years already. 5 years, hmm. you ever call your broker for help? >>once, when volatility spiked... and? >>by the time they got me an answer, it was too late. td ameritrade's elite service team can handle your toughest questions right away- with volatility, it's all about your risk distribution. good to know. >>thanks, mike. we got your back kate. >>does he do that all the time? oh yeah, sometimes he pops out of the couch. help from real traders. only with td ameritrade.
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a made a comparison but let's have it all again. artificial intelligence is
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changing the game. compete in a ton of new ways unfortunately sports and investing not all of your stocks going to be home run hitters some may not be in the major leagues. that's okay. when you form a team, one that is successful you select players with different skills and strengths, your line-up needs to be diverse, and the same for your investments the best way to make a winning portfolio no matter what competition you may be facing will be in verse five. that's what we play in diversified. so, let's play ball. starting with a tweet from michael, he writes @jim cramer, hash tag alert johnson & johnson. three m, take two. bris toll myers.
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3m diversify doing great somebody put a sell on the list, forget about it. lockheed market we want that stock i prefer raytheon. bristol meyers and johnson & johnson that stock diversified but it's two drug companies. we're going to keep j & j. and we're going to get rid of bristol and what we're going to put in there -- because i happen to be -- when looking at whose invest the quarter, boeing goes in bridget in my home state of new jersey bridget. >> caller: love your show. bought your book >> thank you >> caller: okay so do you want me to stock? >> sure that'll be great >> caller: apple, amazon,
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celgene, chevron and west. >> that's funny i was just thinking, i picked a boeing on that last bone, i'm doing aerospace that's why it's moving up okay, so we got we're going to get rid of west. we have to because we're going to keep sell general. amazon we think social security going over a thousand. apple we own it don't trade. new guy at chevron, i want him on the show. get rid of west, what we're going to put in, i want to get something good here. we got this, that. let's adieu point, let
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let's go to jim in california. >>. >> caller: yes >> go ahead. >> caller: i'd like to know if i'm diversified. apple, td mer trade, bank of america, mike cron technology, microsoft. >> horrere we go. mike ron broke out but we can't can microsoft, i like microsoft bank of america and tb ameritrade, two financials, get rid of that. add united health. we're going to put unitedhealth in because i don't see any healthcare here and we're going
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to -- for micron, against dow dupont, the stock is down, it shouldn't be down it should be in a high. we repealed replaced and we were successful at it stick with cramer.
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we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. all last night and this morning i was bothering everyone about what dickerson said about artificial sblintelligence it's a how long thing and not going away i'd like to say there's always a mark somewhere i'll find it for you. i'm jim cramer and i'll see you monday
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