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tv   Mad Money  CNBC  December 10, 2018 6:00pm-7:00pm EST

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stick with it until all is clear in the market. >> joe, 12 hours from now you'll be back on. >> amazing, stamina. >> tremendous job. >> me and santoli. thank you. >> twitter. >> santoli and i. >> santoli and me. 's'll be there it been a real slice. slice. i appreciate it. thanks, everyone catch "fast money" again my mission is simple, to make you money i'm here to level the playing field for all investors. there is 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, but to educate you so call me at 1-800-743-cnbc i want you to understand this whippy market? read some william butler yates, because this action is right out of the second coming
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google it. the best lack all conviction while the worst are full of passionate intensity these days, condition makes you feel like an idiot on almost an hourly basis this morning futures were looking real good. then stocks plummet before rebounding dramatically in the afternoon. the s&p advanced .18%. the nasdaq climbed .47% led by apple. it was the biggest leader down earlier on it's not just the averages individual stocks too. this morning my colleague david faber broke the story that qualcomm had won a preliminary injunction against apple against an obscure court in china. apple stock plunged. then on scott wapner's halftime report, all said apple had an interesting level to buy actually. >> talked about a candlestick pattern. i talked about you shouldn't be
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trading, you should own it the other two guys, listen, man, this is the level. you know what happened you know what happened while we were talking about it? the stock turned on a dime. >> buy, buy, buy, buy, buy, buy! >> rallying 4 bucks from its lows while the show was on now i've scoured the wires nothing else happened during that period, nothing we suddenly liked it and this morning whole decline. the stock finished up $1.11, completely ignoring the china ruling something amazing, considering the ruling have teeth in it. it could take a real hit each as the battle between qualcomm and apple is fluid and murky, that's a very high-end way to describe it, our bullish discussion, or bullish discussion on a tv show we want to love turned around the stock of the second largest company on earth. what does that say you know what it means i think it's a sign. it's a sign that jittery, insecure, underconfident traders will take their cue from
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anything don't get me wrong everyone on that panel is worth listening to but the action here is a sign that the market's become way too ameri america kurriial on its peek on october 3rd, the stock traded at $233 came down to $775 billion earlier today before finishing at 8 ( 04 bilk >> fed keach jerome powell went off the reservation. basically signal thatting while he was willing to wreck the economy, but it's so strong, who cares. it was such a confidence buster that october 3rd may have marked the peak of the entire business cycle. the next day vice president pence gave a fiery speech at the hudson institute where he framed the trade wars as a way to contain chinese geopolitical ambitions. just about stopping china. if you didn't know any better, you would have thought he was
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talking about the soviet union between powell's commences and pence's speech, apple stock got hit a one-two punch that frankly, until today i didn't think was going to recover from, really, until today when we talked about it. even though the company a strong quarter at the beginning of november, it hasn't been able to get much traction. why? because it's no longer going to break out the number of cell phones it sells each quarter frankly, i'm not going to ignore it they were right. the stock got crushed. the stock continued to fall as we got pushbacks and cancellations from many of the big component players. maybe there is a slowdown in china. perhaps the chinese government wants to make an example of apple as part of a trade war communist party does control the court system there the result is very hard to have conviction in apple when there is so much uncertainty, and the only thing we know is the
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company' not going to disclose the number of iphones it sales the previous use guidance was too bullish. i don't know what's going to happen job does but i can tell you this. apple makes the finest consumer products in history. the devices are all part of a fabulous ecosystem, and thanks to that system, apple is a huge revenue stream i know i pay for it. you probably do too. they have an installed pa eed bf maybe 1.3 billion users. and those people will keep buying apps. right now the stock sells at a dramatic discount to the averages that are in the s&p, the s&p 500. let's call it 12 times, okay let's call it 12 times forward earnings, much lower than the average stock. and they slashed their price targets. it's hard to have conviction when this is so much noiegativi. i'll give you one. the upcoming federal reserve on tuesday and wednesday of next week if you have conviction, i think you may end up getting faked
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out. consider all the permanentations here since then housing has continued to fall off a cliff thanks to rising mortgage rates, auto sales continue to slow electricity use has come down. commercial real estate, cooled loan losses at regional bank began to climb and the stock market has shed trillions of dollars powell walk back his comments. why does he say this stuff why does he make his life so difficult? even last week's labor nonforeign payroll report was a clear miss remember, wage inflation caused by falling employment is the whole reason the fed wants to tighten. take that away, there is really no reason to raise traits. thanks to the plunge in oil prices, even opec's call for a supply cut hasn't been able to staunch the decline. cools the hottest job market in texas and puts more money in the pockets of consumers of course, the whole inflationary chain can be
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stemmed. in one way or another can be traced back to oil except when it comes to not having enough people to work put it all together and this would be the perfect time for the fed to say you know what we don't need to raise rates let's see what happens we'll reassess at the january meeting on christmas that's obvious thing the fed should do. however, there is much more to this there is psyche. there is ethereal issues because powell's been so sanguine about the economy and so adamant about this next rate hike, investors will freak out if he doesn't tighten. people will take it as a sign that there must be something really seriously wrong with the economy, lurking, lurking, lurking. so either the fed gives us an unnecessary rate hike that could do real damage, or they cause a panic that could do real damage. it's a lose-lose scenario. so it's hard to tell what powell will really do and that's just the biggest issue that's testing our conviction there are plenty of smaller niggling ones.
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it seems a day doesn't go by without revelation from the russia probe that president trump might have been involved in a nefarious, unsavory not a day goes by where we don't have a clue of what's happening with the china the very same day trump was all smiles with president xi when he was down in argentina, one of the largest peoples for violating their sanctions on iran we have no idea how that's going to play out. if the market keeps coming down, will our government release her and make nice with the chinese or will president trump stick to the more bellicose game plan bottom line, almost every issue has two sides right now, except those with three or four or five in this kind of environment, it's no wonder the market is unreliable it's no wonder it's treacherous, and it's no telling when it will improve. until then you need ice water in your veins to navigate through
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this thicket although we know you can't live long without some blood coursing through them yassin in new york, yassin >> jim, how you? >> man, i couldn't be better how you? >> i'm very good jim, i just have a quick question for you with what's going on with the volatility in the market, it's very disturbing. which sector do you think is the best sector to be currently invested >> i think health care work. health care, when the market turned around today, health care started selling off, and that's fine i think that health care is recession-resistant, and we have a lot of great health insurers that i really like and a lot of great drug companies and those are the ones that i think are really, really good. otherwise you can refer to some of the stocks. we put out a bunch of stocks in the last few shows of what works of which the archetype is mcdonald's how about tom in new york. tom? >> caller: jim, how you today? >> i'm not bad how are you? >> caller: well, i own alta and home so that's enough said, right >> yeah, it really is enough
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said >> caller: all right, listen i was wondering, how do we know if we're pigs waiting to be slaughtered or if we're smart investors going for a 700% ride with the likes of nvidia >> okay, that's a great question so what i like to do is always split the difference i think you do some investing that is just index fund. and then what your mad money, you look for the nvidias i think a lot of people who like index funds never, ever are willing to think you can find an nvidia but you, sir, are obviously looking. i encourage people to look i encourage people to do homework i encourage people to split the difference put the bulk of your money in index funds, and then find some mad money stocks like nvidia, and then you won't be greedy because they're only a small part of your portfolio but that's like how they could end up being a bigger part of your portfolio if i don't get them right conviction is being tested all around on everything from stocks to the fed to china, with no end in sight to the uncertainty. don't be surprised if this
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unreliable market continues to take us for a wild ride. on "mad money" tonight, splunk was in a funk over the past several months but have the clouds cleared after the latest quarter i'm talking with about the ceo then, while the market was melting down on friday, you may have missed the biggest ipo ever you'll like the answer and there has been plenty of talk about the health sector as of late. tonight i'm taking the temperature of the group of the ceo of one of the most important companies in terms of finding out how tech is doing, and it's called tech data stay 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 madmoney@cnbc.com, or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com.
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with analytic data when the market started breaking down in october, splunk was one of the worst performers as investors rushed to sell their high-flying momentum and big gains. we started hearing chatter about a possible slowdown in all things cloud-related, each as there was no data other than the plummeting stock prices to go along with it. then fed chief jerome powell reported some truly spectacular earnings and their stocks caught fire splunk in particular posted amazing numbers. just a week and a half ago, revenue% 40 and nearly 50% subscription pulled back to 108 as of today i think it has a lot more upside but don't take it from me. let's check in with doug murr who wears proudly, as we do, our splunk big data boo-yah shirts mr. merit, welcome back to "mad money." >> thank you, jim.
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very, very happy to be here. >> doug, i got to tell you, so proud of you this was a major acceleration, 40%. i need you to tell people, you're not a $500 million company. you're not an 800 million. you were a big company that kind of growth i have not seen of any big company this quarter. . >> we focus hard on customer and customer service and we've talked about that every time i've been on the show big data is everywhere people need to figure out how to take advantage of it so they can actually guide their companies' decisions and keep themselves secure and we were thrilled to see the overall revenue numbers. and while the 40% revenue growth was phenomenal, the almost 50% software revenue growth is something i'm equally excited about. we've got a. could plex model with on prem and cloud revenue and this is our cut-through metrics to help people understand the business it was a great quarter because of customer voting with their
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favoritism towards splunk. >> we have two on the show that you actually pointed out starbucks and carnival now we think that both of these companies are so technologically strong, it made me realize that splunk may be behind some of their prowess. >> we do everything we can behind the scenes. i look at us as the basf of software we try and make every company that uses us a little bit better in what they do. and we are honored to have arnold donald from carnival, their ceo, who has just done a spectacular job at the helm there actually join me on stage at our user conference in orlando just a few months ago, and talk about how they're using splunk in every aspect of the business, including the customer experience on ship and off ship to keep the data secured and make sure that they're able to understand how to get most value from carnival. so anything we can do to help any of our customers in their journey to become more
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data-driven and more outcome driven is something that we're proud of every single day. >> i think you have to -- just a little bit more on that. your company is so helpful in predicting from data when you're on carnival, they need to know what you might want at that moment when you're starbucks, they need to know if their new drink is going to work. you somehow allow them to ask questions to a database verbally and get answers. >> yeah. that's some of the study announcements we had at our user conference were on how to bring the power of splunk to everybody within the organization, including this natural language interface to splunk so that you can now talk to splunk through alexa, siri or other frameworks and have splunk respond back to you. but we also introduced things people wouldn't always expect with splupg. we have a whole nexgen platform so that customers like university of connecticut in
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their aquaponics lab where they grow fish they can use devices and walk through the lab to check things like uv light and balance to make sure this their businesses are being well and effectively using splunk. >> by no means do i want to slight an incredibly important business, which is your security business which of course is part and parcel with what we're talking about. but just describe to people how you've been able to really kind of -- you get people one bit of your business, and then they want and really are drawn to your security formulas >> yeah. what we see with every department, security is at the forefront of everything right now, because we're all going to the cloud. we're all going digital. and that means everything is now accessible through our itm infrastructure, and we've got to protect those assets what we've been able to do for our security users within organizations is the same thing for other departments. give them a unified technical capability that starts with
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asking any question of the data with our investigative data lake, but then marrying that with effective monitoring, detection and alerting so that you know what questions to ask when you want to do any type of real cause, and then also, coupling the monitoring piece with predictive analytics. i think the power of all three technologies coming together is really unique for our customers. >> can you tell us how industrial asset intelligence works? >> yeah, it's -- if you think about the security use case, we've got a security operations center manufacturing floors have got a manufacturing operation center really similar high-level constructs, but the questions manufacturing tends to ask are around the health of their shop floors including things how do i get in front of any type of maintenance issues given the maxim that seconds or minutes on the floor be million or tens of millions of dollars of revenue so the industrial intelligence app is another set of framework on top of the underlying splunk enterprise platform that helps
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manufacturers with all of those task, including helping them get in front of any predictive maintenance issues they might be facing >> one last question is kind of a variant that was asked in your most recent conference call. you're a $2 billion revenue company. some feel how you going to get to salesforce. do you need another act? and your answer is basically security and your analytics really could get you to where these other companies are. you don't need another app >> well, the acts that we keep working on are how do you expand the breadth and depth of this data analytics platform to power -- to make it easier to use your power in more use cases. the use cases that we lead with, given that these are completely digital landscapes tend to be much more security, application development, and i.t. operations driven when i look at the data that those three entities need across even the top 50,000
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organizations globally to do their job, that's a lot of market share for splunk to go after. but the true powers we've talked about before, jim, you get that data through splunk to serve those cases, that's a huge chunk of the data you need to go power these other use cases, customer analysis or predictive maintenance on the manufacturing floor or other line of business more centric use cases. >> well, lock, i want to congratulate you strongest quarter of any of the big cap ones and strongest of the cloud kings. thank you so much, doug merritt, president and ceo of splunk. great to see you. >> thank you, jim. honor to be here >> guys, what can i say? i got to give these guy, splunk, a big data boo-yah they deserve it. plus 40%, almost 50% revenue growth for software. wow. doug merritt doing a great job stay with cramer the cnbc app has new features just for you with real-time market data, get stock quotes, and get your own
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personalized alerts. keep up with top videos. get the latest podcasts. and now you can watch cnbc live with a daily free preview. >> let's just say it's your opportunity! hallelujah >> the cnbc app. download it today. who says our bank isn't tech enough? everyone, look at your phones. the design thinking, the digital engineering, security, blockchain, and we will be first to market! yes. when we do we launch? unfortunately, in 2 or 3, hours. why the delay? cognizant is helping banks use digital technologies at scale to advance speed to market.
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something happened on friday while the market was melting down that you may have missed entirely we got one of the most anticipated biotech ipos of the year i'm talking about moderna. mrma a lot of help, a lot of hype a lot of help from the street. after lot of hype also from the street but, man, they really could not have picked the worst day to bring this darn thing public as the averages collapsed, moderna stock got slammed too, ultimately plummeting nearly 20% from the ipo press a month ago you would have thought this thing was going to huge premium normally when a stock comes public and goes into a free-fall, that is noted a goo sign but this is not a normal situation. see, nobody was in a mood to pick at a speculative biotech on friday when nearly everything was getting hammered so does that mean you're getting a great buying opportunity here? tonight we're playing know your ipo. i think this moderna story is
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intriguin intriguing, even if that doesn't mean the stock is worth boying here unless you want to do a little speculation but if you're worried about an economic slowdown, this is the kind of biotech that could potentially thrive in a recession, because, well, the numbers have nothing to do with the gdp growth or global commerce behalf does this moderna do? this is an early stage biotech company with a revolutionary concept. a whole new category of medicines based on something called messenger rna for those of you who don't remember biology class, nearly all of your cells have dna, which is the blueprint for marking everything in your body, okay messenger rna takes the plans in that blueprint and then tells your cells what to do with it. plans in blueprint and tells your cells what to do with it. that's where modern that's platform comes in. they engineer messenger rna and hijacks your cells and tells them to produce different
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proteins if you have a genetic disease, moderna can theoretically correct that, just by giving your cells the right instructions isn't in incredible? why is it so important okay, there is a whole category of drugs based on recombinant technology it's a $200 billion business but your body is much, much, much, much more efficient at making the stuff, and there are still all sorts of things that we don't know how to synthesize. so being able to reprogram a patient's cells to make what ever is needed could be a huge step forward this is revolutionary, people. and moderna is trying to make the most of it that i have 21 different development programs ten of those therapies in clinical trials. treating everything from infectious diseases to cancer, to cardiovascular diseases and rare genetic disorders in theory, the possibilities are nearly endest. however, this is still a very early stage story as their most advanced clinical trial is in phase 2. remember, you have to go through phase 3.
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this means anything is years away from fda approval the drug is a treatment for of the one that's advanced to phase 2 myocardial ischemia, or reduced blood flow to the heart caused be i a blocked artery, unfortunately common see, rather than unclog the artery via surgery, they want to turbo charge your body's ability to create new blood vessels. again, it's almost in phase 2, but it's almost like fantastic voyage it's so exciting to me that if i were 21, 22, i got to tell you, maybe i'd put some this one away, even if it's 100 shares. on the other hand, the industry clearly believes the technology is worth betting on now. moderna has major partnerships they working with merck and astro zeneca among others. of course, moderna isn't the first biotech that's had the idea remember when we used to have this eye on pharmaceuticals? they have a platform that says a
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similar thing. so what sets moderna apart from the others it's about deliveries in technologies and manufacturing once they whip up an rna cocktail, the cocktail needs to get into your cells to do its work but if it runs into your immune system along the way, it can get degraded so the companies developed their own delivery technology to make sure they can actually deliver their mrna therapies to their intended destination in your body plus they're working on cell manufacturing so they can pump out the treatments once they get fda approval although, again, many years down the line sot how do i that make money it's in milestone payments remember, moderna sold these partnerships where larger companies are giving them funding to develop various drugs to harness the power of this message rna technology even darpa is doing it, the research division of the defense department astro zeneca likes the story so much, that they're moderna's fourth largest shareholder they own roughly 8% of the
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company. also working with merck for rsv and vzv. perhaps more important, they're helping merck with its anticancer vaccines that help your body's immune system target tumor cells. and you know these anti-cancer vaccines are really a fabulous frontier help with the financials they don't tell you very much because moderna has nothing to sell at the same time, the company is spending a fortune on r&d, because, well, they're in the r&d business fortunately, because moderna has been able to raise cash so easy will i in private markets because it's considered to be such a superior company, the balance sheet is incredibly clean. they have $1.8 billion in cash that's going to set them up for a while. unfortunately, they're probably going to need it because nothing is going to come to the market for a while. because of poor timing, the stock came public right out of the gate has the stock become cheap at the time of the ipo a $7.5
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billion valuation. now a 6.2 valuation. but with no sales and no earnings, there is noted goo way to value the stock early stages like this one don't trade on the numbers they trade on belief if people work that platform can work, that their mrna technology can work, then the stock could roar higher. if people don't believe, the stock will have trouble gaining traction so how do you play a stock that trades on belief in about a month, moderna's quiet period ends and the analysts will start rolling out their coverage if they tell a bullish story, and i think they probably will, the stock can rally. attend of the day, development stage biotech stories are inherently speculative and moderna has a few major things going for it it's recession proof it's got an exciting concept you can argue that messenger rna-based medicine is revolutionize health care. here is the bottom line. these speculative biotechs are a lot like juan carlos stanton
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when he stepses up to the plate. he can strike out or hit a home run. if you're trying to save for retirement, moderna is not the stock for you. however, if you want the take a chance with a speculative "mad money" portfolio, you have got my blessing to buy this one. i know it could probably still go lower, but you're getting a pretty darn good entry point and i like this company. john in california, john >> caller: hey, jim. boo-yah from out here in sacramento. >> hey, john. >> caller: such a place in our hearts for us out here. >> how you been? >> caller: i've been good. happy holidays i wanted to ask you before the end of the year one more time i'm long on gilead i'm still hang on to it. do you think there is light at the end of the tunnel for that thing? >> well, i've got to tell you john, the person they got as the new ceo is terrific. the guy came from -- his name is o'dea. he cage from roche the stock was up initially and then it go hit and then it was down badly don't take a cue from the stock. this man is a good executive
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i think this was a great hire, and i think it's probably -- i'm going to say it's done going down it's a really hard thing because this stock has been terrible but i would certainly not sell it here. how about that richard in connecticut, richard? >> richard >> caller: boo-yah, jim, from fairfield, connecticut thanks for taking my call. a long-time viewer, first-time caller since i just retired, i'm enjoying investing in this crazy market here is my question. doubled my money on aary and recently added too it. hold or sell, jim? and go eagle merry christmas. >> thanks for the comment about the eagles they may not be going anywhere i'll tell you how i feel about this one this is a situation where they discover drugs i like it. it's speculative you sound like you're having a great time with investing. i know people don't like to hear this i bless you having a great time investing because you do your homework, and i think you could end up doing well by holding this stock i would not buy any more right now.
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early stage takes like moderna are inherently speculative but if it's a spec play you're in the market for, i don't mind you buying moderna i think it could work, although i do think this one could even go lower if we have this crazy volatility still much more "mad money" ahead. if you're looking to get the real pulse on the overall market, well, the tech market, then there are a few company likes tech data. mmm, i don't think anyone knows as much as they do i'm talking with the ceo then there is a vanishing act happening in the market. it's causing the recent volatility i'm talking about the disappearance of the common stock buyer. rapid-fire in tonight's edition of the "lightning round. so stay with cramer.
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in a world worldwide
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slowdown, what happens to tech stocks we know the cloud plays are doing just fine. it's a huge part of a secular trend that will keep happening each in a weaker economy but what about the more basic stuff than the bolts and nuts of the economy? how is that holding up whenever i read on the sector i like to catch up with companies like tech data a terrific company largest wholesale distributor of technology products on earth tech data is kind of a supermarket of technology. perhaps the best pulse on information technology spending there is less than two weeks ago tech data reported a breathtaking quarter. we're talking spectacularly better than expected numbers excluding one-time items, the company delivered a monster 38 cent earnings beat, much higher than expected year-over-year and that strength was consistent worldwide on a constant currency basis, every region was up 12 to 14%. incredibly bullish guidance for next quarter that's why the stock pulled away
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in a single session. however, there is still an enormous amount of skepticism about the tech sector which is why the stock sells for less than eight times earnings. what do we make of these numbers? let's take a look at richard hume, the ceo of tech data mr. hume, welcome to "mad money. great to see you, sir. >> thank you, jim. >> have a seat. >> really appreciate it. >> thank you they reported an amazing quarter, one of the many cloud companies. you yourself have a cloud division i don't want to get to that yet. what i need you to tell people, in a time of very little confidence of tech spending, you have all three regions all three were much better than expected. >> jim, what i have to tell you, i think it's been an incredible year for the tech sector it's been strong all year. and as you said, all three regions performed well but as importantly, when we take a look at the product segments, all the big product segments had quite good growth. with esee strength across the board across the board in 2018 >> you're looking at your data at one point you said if anyone
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knew we could do this level versus what we thought a year ago, we would be jumping up and down i think there is some sort of shroud, some gloom, and i don't get it versus the percentages that you have. europe, asia, the americas >> yeah. i think that, again, it's strong all over if you take a look at the guidance that we've provided for the coming quarter, the mid point of our guidance is 7% growth we would anticipate that the strength would continue even as we look over the next 90 days. >> your worldwide partners, three of your vendors you talk about, 10% of more of your net sales. apple, 17. hp, 11 cisco, 10. good representation there of things. >> all very good representation. the list goes on we have the best names in tech and we've got great relationships with them. and we've got a great customer base that we are able to deliver all that technology to >> you're putting your money where your mouth you've made a big acquisition, but now you're starting to reap the benefits, cash flow gains,
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and you're putting it right to work. >> yeah. we've always been a company that generated really strong cash flow actually, we had acquired and finalized that acquisition maybe 20 months ago. >> right. >> with epaid down the debt well in advance of the schedule that we provided, and we actually just announced a repurchase in october to the tune of $200 million. so we're making sure our money is working for our stockholders. that's right the market is quite strong, and although will is some cycles, there are some really good opportunities. >> now you've got very expanding cloud business so you give us a read on that too. >> so if you look into the future, clearly hybrid cloud is the mode of the future you know, there will be strength i think in both the physical and the virtual. but the virtual will grow a lot faster this past quarter, our cloud business grew at 38%, nearing a
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billion dollars, and we see that strong trend for, you know, the public cloud side continuing >> so you would have a good read on amazon web services, on ibm's and azure, microsoft >> yes, we represent all three and then some. >> right. >> wie see great opportunities. not only we, they are investing heavily moving into the future they see a great opportunity to use the business partner channel and distribution to accelerate their business >> tech data has always been a great acquirer of companies. you've been buying some. is it possible you've maxed out? or are there still some guys you want to buy? >> look, when we look into the future, we're very interested in higher value technology right now. and there is always opportunities. we always have interest in engaging and looking for the right -- the right alignment with our business. and, you know, we're very disciplined in the way we think about using our cash and we think about the three primary paradigms, be it share
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repurchase, be it acquisition or be it organic investment. >> how is the balance sheet now? >> balance sheet is in great shape. our debt to equity is right where we think it should be positioned but it puts us in a spot where we can use all three of those levers now going forward we have quite a bit of cash on the balance sheet. as you said early, we're generating great cash flow, and we feel really good about the strength of our balance sheet moving forward. >> see, i strug with the price to earnings multiple eight times. given you are riding a lot of the great secular trends, less boom/bust. all you can do is keep buying back the stock and putting up the numbers? >> hey, we love to put up the numbers. we like to stay disciplined. we like to generate cash we like to drive earnings growth for our shareholder. we would characterize ourselves as being humble but hungry. >> well, let's leave it at that. >> all right. >> i think that's a great way to be that's jim hume, ceo of tech data
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it's time for the "lightning round. cramer goes -- buy, buy, buy, sell, sell, sell. >> buy, buy, buy sell, sell, sell sell, sell, sell. [ buzzer ] and then the "lightning round" is over. are you ready, skee-daddy? it's time for the "lightning round. going to start with michael in florida. michael? >> caller: jim, thank you for taking my call >> quite welcome >> caller: hey, i'm calling about zuora, zuo the stock is down about 45% since august the last couple of months it's traded in range between 18 and 20, and i want to know if you see any particular problems with the company. they're holding down the stock price. >> he delivered a good number. it is. it's just that this stock is violently out of favor this is when you put a stock like zuora away. i believe in the prescription economy. everybody kind of uses them without even knowing it. it's a good stock in a bad market let's go to bud in ohio. bud? >> caller: boo-yah, skee-daddy. >> boo-yah. >> caller: this is your
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long-time fan bud in beautiful, akron, ohio. thankful for taking my call. >> okay. it's good to have you on the show >> caller: thank you i believe i have identified a very positive catalyst for a stock you know well and i'd like to run my thesis by you. >> absolutely. i'm all ears. >> caller: cool. first off, i agree with you that there will not be an economic recession in 2019. i also believe that for a variety of reasons, a large number of working people never adjusted tax withholdings to account for the 2018 tax cuts. those people are going to be in for a very pleasant surprise when they find they are getting larger than usual refund checks, just in time for spring planting season. >> what are they going to do with the spring checks >> will it be a good catalyst for home depot >> for remodel and renovation and restoration? i think it will be but lowe's speaks on wednesday home depot had a remarkable turn under and today.
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but low's, when we hear that's going to control the situation you cannot believe it's going to turn tomorrow. ed in new york, ed >> caller: boo-yah, jim. it's ed from new hamburg, new york r new york. >> all right >> caller: i just became a street rating member. >> that is straight cash flow. i really love the rigor of it. how can i help >> caller: my stock is amd. >> this stock has paid its dues. it's time to get out of the wilderness i think the next quarter is going to be better than the previous one let's go to ace in new jersey. ace? >> caller: boo-yah hey, jim, you're my most valuable asset my stock is axon enterprise. do you think axon is overvalued based on earnings? >> no, no. bringing the conversation back, the stock has come down a great deal i think it's a good ecosystem. i think it's a platform. i like it. it's a -- look, it's a little speculative, absolutely, good. we've liked it from way low. let's go to norm in nebraska norm >> caller: good afternoon, jim yet to talk to you. >> same to you.
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>> caller: what's your opinion on principle financial group >> 52-week low 5% yield i don't know when these financials are going to be done going down if you tell me that that company, it's an accidental high yielder, thank you, matt for putting that in my head. 5% is where you buy some and then it goes to 5.5, you buy more we have to start buying these accidental high yielders with good balance sheets. it will pay off. rachel in florida, rachel? >> caller: hi, jim here is my question. should i invest in ge stock, general electric do you think those shares are unvalued thanks for your answer. >>ing okay, rachel, here is my thinking there are so many really unbelievable stocks that are undervalued right now, i don't want the take the risk $6 you can say jim, come on, it's only 6 of bucks. remember when it goes down it still hurts. you can speculate, but there are so many high quality companies that are going down, i rather
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you be in a really high value company. brian in louisiana, brian? >> caller: hey, jim. thanks for taking my call. >> of course >> caller: let me give you a new orleans saints who dat boo-yah from rest. >> we're playing them next week. what's up? >> caller: what's your thoughts on cisco systems >> i think cisco systems is the cheapest large tech stock there is in the market right now doing a fantastic job. i said the same on halftime today. and that, ladies and gentlemen, is the conclusion of the "lightning round"! [ buzzer ] >> the "lightning round" is sponsored by td ameritrade e you? had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills.
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♪ after today's roller coaster session, it's feeling more and more like this market is just broken and it's broken in both directions, because the buy is so darn thin anyway. the averages opened too high who are these buyers of the future who come in on quicksand as the futures had indicated a sharply down opening at 4:00 a.m. who are the people who feel compelled to buy when stocks are running and sell when they're sinking? and then the market turns on a dime and rebounds so everyone who sold looks like a clown this is ridiculous. big capitalization stocks are plummeting on nothing and not to right equalization level they used to. look at fed. >> on friday a very important executive at the company, david cunningham, 57 years old, a guy
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who ran fed ex retire. weerp at the height of the holly season when fed ex is at its busiest. then because of that personnel change, merrill lynch downgraded the stock from buy to neutral. it got hammered. so it makes sense the stock opened lower but what mystified me is fed ex was down $4.50. put this in perspective. the old days the stock would have been halted there would be an order imbalance and it wouldn't trade until that level was established, lots of volume, one that represented the collective buying and selling power instead a weird dynamic takes the stock down on nothing and proceeds to dribble it lower again. got down to 12 bucks they found out real volume the lack of volume tells you everything you need to know. there is simply aren't a lot of individual buyers and sellers here that means pricing is often irrational or driven by fast
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itfs oh, cramer, that's all well and good, but where were you when the stocks were roaring. the answer is i've been right here i've been complaining about this stuff for ages i didn't like it when the markets rallied this morning the problem is not that a thinly traded market can cause huge losses that's not the problem it's that these moves cannot be trusted up or down every tuesday we go off the charts and the volume is like a polygraph. high volume means it's telling you the truth. low volume probably means lying. it's a liar's market unfortunately, this is not -- this is the new dynamic. we're stuck with this. at least maybe until after the holidays, and there is not much we can do about it you can't make up players. you can't suddenly demand people step up and buy. right now what we have, what we seem to have are index fund buyers of stock, regular money coming over the transom, corporate buyers against etf sellers and regular sellers. individual buyers of common stock made an appearance this afternoon as the average rebounded. they didn't come out in very
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large numbers. i think these buyers had been abused, discouraged and they need the protection of the s.e.c., because i think they're being fleeced and driven out of the greatest wealth creator. worst, the funds that try to pick individual stocks are in withdrawal mode. that's what's behind it, okay? that's behind the volatility that's behind the ridiculous exaggeration of every move of this market, both up and down. i don't expect anything to change until we get a thorough investigation by the s.e.c. about how this is all happening and what's a better way to run a market that's fair and balanced for you to invest in stick with cramer. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast.
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here's the point the market's treacherous both up and down, not just down, okay? it doesn't matter what direction it's going, it's just plain treacherous. i like to say there is always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow rrator: in this epie of "american greed"...
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he was the sweet-talking son of a preacher man. bailey: he came out like a southern baptist, holy ghost-filled, fire-baptized preacher. narrator: ephren taylor ii is a big talker... taught myself how to program computers and making games, selling them to my friends, ended up in high school having a $3.4-million firm. ...but he isn't so sweet. what we find heinous about this crime is he was taking advantage of people in their places of worship. he came across as a man of god. narrator: taylor found success early... young and rich -- and we're talking very young and very rich -- ephren taylor. ...sharing his wealth-building, bible-based secrets with the faithful at mega-churches across the country,

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