Skip to main content
Internet Archive's 25th Anniversary Logo

tv   Mad Money  CNBC  January 10, 2014 11:00pm-12:01am EST

11:00 pm
if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. 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. i'm just trying to save you a little money. my job is not just to entertain but to educate and coach you. call me at 1-800-743-cnbc. it's like people stopped hiring altogether. when i saw the nonfarm payroll murms -- numbers that showed
11:01 pm
about 74,000 jobs created. dow instead declining just eight little points, s&p rising .23%. what an affront, right? nasdaq climbing .44%. the answer as i always try to tell you is the very notion of the market has become totally passe. we have whole groups of stocks that go higher on slow growth. because slower growth means lower interest rates. and they were pushed down so hard today that, you know what, i can see mortgage rates -- that's right the posted mortgage rates actually dropping next week for you. that caused the utilities, the real estate investment trust to soar. seems like i should start my game plan with a simple admonition. go house hunting this weekend. i'm not kidding. so many of you have complained to me that you missed the bottom in interest rates. right now you're getting a momentous and unexpected u-turn, and that means a better rate. no wonder the other home builders including pulte went
11:02 pm
higher. this jobs number is a home builder's dream come true. there are always some stocks that weed in any bond scenario. these kinds of signs make me cautious for other portions of the market. and i've been abject to the notion that a slower economy coupled with the down tick in chinese growth could cause a recalibration away from the more industrial related stocks i've liked to much. only the fact that the transports a key index from me hit an all-time high today, keeps us from growing more cautious about cyclical exposure. you know what other stocks go up traditionally in a slowdown squall like we had today? the biotechs. how fitting that most influential biotech conference starts on this week. we've got the jpm health care conference. this is a mover in san francisco. this is the best of the best, they're going to strut their stuff. they have stalled as of late.
11:03 pm
the big biotechs not going up, not going down. but the empirical data i've seen shows conclusively that these biotechs tend to run after this conference. you know my four faves, right, the four horse men i write about in "get rich carefully," which i urge you to buy after goldman took to a sell earlier this week and so far, let's say i seem to be on the righter side of the page. after the rise of intercept, a biotech until this week when a test was running for a liver disease showed conclusive results that the studies were stopped so people could switch from the placebo. i'm going to pay attention to the companies i've never heard of hopefully finding the next intercept. who wouldn't when this one stock could travel to $445 in one week. can your paycheck do that?
11:04 pm
it's now exhibit "a" in speculating in one security, not only to keep you interested in your own money but also for the potential for a true home run. it's a grand slam. remember that's how regeneron started out, went to $274. and i can't tell you how many people at my book signing last night in new jersey thanked me for sirius, sprint, rite aid. and, hey, try to find your way to the costco tomorrow at noon, get a signed copy of "get rich carefully." can intercept still be bought? i said last night you should take half your capital out of it if you own it, play with the house's money. i can understand how a growth strapped company mick merck or ely lilly might make a tender offer. back when they had no earnings or sales to speak of. these growth challenge dinosaurs could do worse than paying $11 billion for the $8 billion company if the drug turns out as
11:05 pm
miraculous as it sounds. gilead's stock went up. these stocks, i'm telling you, if their ceos picked up a phone and bought intercept this weekend, their stocks would go up, too. not down, but up. lots of people think the official kickoff for earnings season is not alcoa. it's reported yesterday. but actually with the banks. i think it really does start when jpmorgan and wells fargo start talking next tuesday. these two banks pretty much define the financial universe with jpm being the quintessential investment house. wells fargo is a mortgage machine. and in truth, they all do a little bit of everything. but they do one thing really well. they make a ton of money! which is why i like them so much. that will be obscured in the case of jpmorgan and charitable trust name by the myriad of lawsuits it's involved in. memo to jamie dimon ceo, settle more lawsuits, write more checks and make it so one day, please, in the year 2014, all we care about is your quarter. don't wait until the year 2525,
11:06 pm
which seems like you are. wednesday, we hear from my new favorite in the group. we hear from bank of america. and they should be crowing because they had the foresight to settle with the government long ago or otherwise they would be in jpmorgan's considerably beat up shoes. i expect to hear it'll be the year of the dividend and the buyback. the company is now brimming with cash. thursday, we got a bunch more financials and two i'm focused on are citigroup and goldman sachs. they seem to be ready for real breakout moves. both of the stocks have been roaring lately. you know i think 2014 will be the year of the banks. they have to start catching up with the rest of the averages. i believe we'll get good news from the vast preponderance of them, including capital one, the credit card company that reports later that day after the close. admittedly, we might have bank fatigue by thursday. i'm looking forward to hearing from united health group, unh, which i believe will declare itself a winner when it reports and people will accept it with
11:07 pm
acclimation. we also get results from ppg. now, ppg is something special around here because it's run by chuck bunch from "get rich carefully," the list of ceos whom you want to invest with and we've stuck with bunch forever and it has been right. he has made us money for ages. and i don't think thursday when this chemical company reports will be any different. for you sports addicts out there, bunch is to ppg as belichick is to the patriots. how's that for alliteration? finally general electric and morgan stanley, two companies in our news letter that goes with the charitable trust, these could be terrific quarters for both. i expect outlooks raised. we also hear from schlumberger, the oil service king. and here i'm less certain what the company will have to say. because oil's been coming down. i'm going to listen for the outlook and less for the quarter as this company's the best predictor of all things oil out there. here's the bottom line. we need to see if the weaker
11:08 pm
jobs report changes the landscape next week. or whether individual earnings from individual companies like these can trump everything, including an economy that suddenly seems to run out of jobs to create. how about jim in michigan, please. jim? >> caller: hi, jim, boo-yah from mt. pleasant, michigan. >> wish i was there right now. what's going on? >> caller: my question is, what do you think will be the impact of all the weather-related flight cancellations we've had recently on airline stocks such as jetblue? >> well, i have to tell you, we heard some really good news from continental, united airline -- remember, i'm recommending every airline stock. every single one i'm recommending. and i'm not that concerned. boy, i tell you, i would buy some aal, it's lagging the group, delta's had a big move. and honestly, i would double down on american air if it did say something bad about the weather. because, wow, the airplane
11:09 pm
companies are printing money. can i go to paul in virginia. paul? >> greetings from the historic northern neck of virginia, jim. >> yes. it is. like jefferson, you know. >> caller: actually george washington was born here. >> oh, yeah. definitely, i'm all over that. what's up? >> caller: i inherited some texaco stock which is now chevron, and i held on to it through the bankruptcy after pensoil, i think it's a good stock to hold on to even though they're having some problems right now, maybe, or concerns about their quarter. i just wanted to ask you about long-term holding. >> paul, i think you're exactly right. i was discussing chevron this morning with someone who works on this show and helps with "get rich carefully." we both said the same thing. chevron is pretty darn good. not great, not going to shoot the lights out, but it's going to deliver quarter after quarter and you have to say, listen, it
11:10 pm
has these little moves, but overall it's pretty darn good. lousy jobs report. no way around it. could it change the landscape next week? or will we start hearing from individual companies that will be in control? you know what, i think earnings are going to triumph. "mad money" will be right back. >> coming up -- power of innovation. sure, there will be bumps in the road, but cramer's here to help you win over the long haul. innovation is coming from the most unlikely of places. don't miss cramer's take on how it could spark a whole new future for your portfolio. and later -- cracking the code, 2013 was the hottest year for ipos in more than a decade. so who's next to take the public plunge in the new year? from rising players to rising stars, crammer is scanning through the potentials with the
11:11 pm
president of buzzfeed, all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again. and now i've got to take more pills. ♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve.
11:12 pm
♪ [ male announcer ] look for the easy-open red arthritis cap.
11:13 pm
11:14 pm
in the wake of a seriously disappointing jobs report. >> the house of pain. >> i think it's worth going over what you can fall back on the moments where the economy may not be as strong as we thought. we were spared a real broadside today. but if the data continues to be weak, we're going to have a couple percentage point decline. it's not in sync with the stronger economic picture many were operating under coming into this number. and the next time the market gets hit, not if, mind you, but when. these can be terrific buying back opportunities for the big picture long themes i often talk about. the ones that long-term, many years, not many quarters and many days in my new book "get rich carefully," i highlight seven different long-term themes
11:15 pm
that i think are built to last. you can keep going back to the well with these trends every time we get hit because they're not going away any time soon. tonight i want to single out one of those themes. the domestic oil and gas renaissance or the holy trinity tech of social, mobile and cloud. if you want to know the rest, you have to pick up a copy of the book. for tonight, let talk -- let's talk about stealth technology stocks. these days everyone believes in the power of technology, but as i tell you, i think we often look for tech in the wrong places. we want to find it in service, cell phone, tablet. these days, the real innovation, innovation is the heart and soul of technology. it's happening where you'd least expect it. hence the idea of stealth tech companies that are inventing new products to serve needs that old retro tech simply doesn't hold a candle to. what's the difference between the tech stocks and stealth tech stocks? easy. the market has no trouble spotting innovations at traditional tech companies, but it does have a lot of trouble recognizing the innovation for
11:16 pm
more humdrum areas. areas like apparel, restaurants, consumer packaged goods, and because the market doesn't recognize this innovation creates an unjustified discount in these stocks. they have real innovation fueling their growth. and it's why i think you can keep coming back to these stocks even if the market takes a dramatic turn for the worst because i believe they will bounce back first. when i talk about stealth tech, i'm referring to companies using proprietary technology used to invent new markets and dominating these markets giving them faster growth, expanding margins and higher priced to earnings multiple and higher stock prices. so who falls into this stealth tech category? who's innovating like crazy but not getting credit for it? how about -- colgate. this consumer staple play is not a hot bed of innovation, but you'd be wrong. it trades at a premium.
11:17 pm
why? it uses technology to create products that are generally better than the other guys. they're all on a war, it's winning it with tech. that's why despite intense competition, colgate is gaining share in many markets around the globe. the thing about colgate, its innovation is driven by insights the customer gleans from you. colgate's been winning the toothpaste wars giving people whiter teeth in just a week. they've got a new dish washing liquid that cleans not only dishes but the dirtiest instrument in the house, the sponge. washing away any sort of lingering residue. they sell science diet, that's a wellness food exclusively from veterinarians. different regions have different tastes, different preferences. which is why they have nine locations around the globe tailored to specific countries. that's how they manage to grab a 69% share of the brazilian toothpaste market. whoa!
11:18 pm
who else falls into the stealth tech category? these days perhaps the most fertile ground can be found in clothes. the apparel space. yep, in recent years, the apparel segment has become a hot bed of innovation with new technology moving the needle for a number of these companies. and the most aggressive innovator in the category, how about long time cramer fave underarmour. ua. remember, ua first became a household name by inventing an entirely new category of sportswear. moisture wicking compression fit apparel made from advanced synthetics that keeps your body at a healthy and comfortable temperature while drying out faster than traditional athletic wear. underarmour didn't stop there. the chairman and ceo doesn't just mouth platitudes, he devotes a huge amount of time on his quarterly conference calls
11:19 pm
to explaining the company's scientific breakthroughs. highly unusual behavior for any consumer goods company, you have to admit. most conference calls go through the numbers, but they know the numbers are driven by innovation and wants the shareholders to know it, too. in 2011, underarmour launched charged cotton. it's an alternative to synthetic fibers used in sports apparel. but this wasn't regular cotton, charged cotton dries five times faster and has the kind of durability you typically associate with itchy polyester. plank believes this one invention could quadrupled the initial investment and that's huge. how about storm, the water resistant hoodies. on top of everything else, they've got a lightweight running shoe that uses technology to keep your feet dry while also allowing them to flex naturally. i've tried them. they're kind of cool. i wear them at home internally
11:20 pm
in the gym. and lately, moved into the fitness monitoring space with the product that measures athletic activity. remember fitbit? we saw them at these are the kind of innovations that give this little $9 billion underarmour a fighting chance against the colossal $68 billion nike. without this innovation, i don't think they could take on an entrenched player like that or be featured in so many sporting goods stores. underarmour can charge premium prices for the goods and stock can trade at 49 times this year's earnings estimates. i bet it's also a major reason why notre dame is posed to switch from adidas to underarmor, a big deal because the fighting irish are on tv every football weekend. but even up here, growth stock investors have only just started catching on to the real story that it's basically a technology company, they just never expected there could be anything so different about sweat pants, hoodies and sneakers that would move the needle. it's had a vicious bounceback after the most recent quarter dubbed disappointing by people who aren't in the know, who
11:21 pm
didn't realize this is a technology franchise that's spending to stay ahead of the competition. you need to consider the stock of rpm, which we just had on yesterday. it's developing revolutionary plastic fibers that could be as strong as the steel and rebar, a remarkable accomplishment because it's lighter and cheaper. rpm also has a special tech spray formula. last but not least, i want you to consider the incredible success of dominos pizza, rallied from $10 and change to over $70 in four years. that's given you a magnificent over 600% return. dominos under the leadership of one of my bankable ceos from get rich carefully recognized that the system of ordering pizzas could be replaced by social and cloud applications. the company switched from a verbal telephone based system to a terrific web-based system, to the point where you can actually
11:22 pm
order from dominos on your facebook page. me, the girls, we do it constantly. that's how they've been able to pressure the local competitors which simply don't have the scale to compete technologically. that's why i believe the stock keeps roaring. here's the bottom line. if you're worried the market could be about to take a turn for the worst, remember what i tell you in "get rich carefully," you can fall back on in moments of weakness, you'll have to pick up a copy of the book to find out about the others. and if you want a signed copy, stop by and see me tomorrow at costco in long island. okay? it'll be at noon. what can i say? i'm a tease. linda in new jersey, linda? >> caller: boo-yah, jim. >> boo-yah, linda. >> caller: i'm calling in reference to darden. on august 5th, i purchased 300 shares of darden and it's the first restaurant stock -- i heard it's not going to be doing so well. i was wondering if i should keep it or if i should sell it.
11:23 pm
it does pay a 4% dividend. i thought it might be good when i was purchasing it, but now i hear that the company is not doing as well as it can be. >> well, and it's not. there's a lot of pressure on management to bring up value. they're talking about spinning off red lobster, i don't like that plan. i think they either need to sell the company or get some new leadership in there. there's a lot of ways to win, and i do believe the dividend seems to be safe, i'm not going to say is safe. i don't think you need to sell it here. but if it goes to 55, i would ring the register. can we go to texas? >> caller: hey, jim. this is deepesh from texas a & m university. >> how are you? >> caller: i'm fine. how about you? >> i'm doing fine. how can i help? >> caller: i want to know what's your take from blackberry from trading point of view. would it be a buy or short sell? current level is 76. >> i don't want to short it.
11:24 pm
i'm getting too many positive feedbacks from the new management. is it nokia at four? no probably nokia at six. but that gave you a little money. i'm impressed, the chatter's going positive. maybe it's time for me, too. i know it was much lower, but i believe there are good things happening at blackberry. stealth, technology stocks are dominating and they're not getting the credit, which is why they can go higher. after the break, i'll try to make you more money. coming up -- cracking the code, 2013 was the hottest year for ipos in more than a decade. who's next to take the public plunge in the new year? from rising crowd players to streaming music stars, cramer's scanning through the potentials with a president of buzzfeed.
11:25 pm
11:26 pm
11:27 pm
♪ it's a new year. and even if 2014 turns out to be different from 2013, which i think is far from a sure thing. there's one powerful trend from last year i expect to continue in this one. the red hot ipo market. 2013 was the best year for the ipos since the dot com bubble. i hate to even mention that. we'll talk about it though. the average newly public stock giving you a 35% return according to renaissance capital.
11:28 pm
right now it's looking like 2014 could be potentially better, can you believe that? which is why we're going off the tape with the president and chief operating officer of buzzfeed. brilliantly fused social media with journalism and, yes, cracked the code for creating viral content on the web. the last time we spoke to steinberg was back in september, we talked about the twitter ipo. we nailed that as being a hot one. this time, we're looking at the upcoming social, mobile and cloud-based deals that could be coming later this year. drop box and ever note which does cloud-based note taking and uuber, or air b & b, matches up vacations when people want to rent out their properties or square, an electronic payment service lets you use your phone for credit card transactions, not bad. and i've conducted some with that. then there's glam media, the network of female oriented lifestyle sites.
11:29 pm
and of course, spotify, the music streaming service that carl quintanilla loves so much. buzzfeed understands the game-changing technologies better than anybody else out there and they've got a keen grasp which matters to the social, mobile and cloud plays. so let's check in with john steinberg, president and c.o.o. of buzzfeed, who also happens to be a cnbc contributor. welcome back to "mad money." >> good to be here. >> before you sit down, are you @johnsteinberg who tweeted on january 2nd i'm watching "mad money," told her jim cramer is the smartest guy in stocks. she says, the button guy, buy, sell, roar. >> yeah. >> oh. >> go ahead. >> where's buy? she wanted me to hit "buy." she'll love this. this is for you. >> buy, buy, buy! >> let's go back to work. a guy's nice enough to do a little tweeting of the show.
11:30 pm
>> she watches it every night with me. >> when i talk about my kids. what they tell me is, look, dad, we netflix. >> yes. >> we amazon. we google. what are we going to do next? >> i think what's amazing is how few pure play stocks are being traded right now about how we live our lives. there's yelp zillow. >> we yelp. >> why not everything else? soon we're going to uuber for our cars, ever note our notes, these are transformative to how we're living our lives. we need people to buy these stocks. >> when we speak of social, mobile and cloud, we think the ones with all three are the most powerful. if you look in your crystal ball. i know it may not happen in 2014, but who fits that parallel? >> cloud is sort of the easiest. i think those are the closest to going public. box and dropbox are clearly ones that have been talking to bankers. >> stop right here. i've met with dropbox and people killed me @jimcramer on twitter saying you don't even know that dropbox is not taking the
11:31 pm
enterprise by storm it's box. they were educating me. >> they're coming from different sides, right. so box started out more of an enterprise play. their penetration in the fortune 500 is absolutely enormous. >> where the money is. >> now they're trying to go to consumers. dropbox is more of a consumer play for individuals to store their pictures. buzzfeed, dropbox for business. we're 100% cloud. we use salesforce, dropbox, ever note, every enterprise in a few years is going to be in the cloud. no reason to have any servers. >> let's go back to drop versus box. when i interviewed drew, okay, the ceo. he's kind of a renegade and reminded me too much of the 1999/2000 period where he seemed antiprofit. you think this period is not like that period. >> no, not like that at all. these are real companies with subscription revenue. most of them operate on freemieum. then when you're hooked, you love it, they say if you want to
11:32 pm
keep going, keep using, now you've got to pay. >> not just closet capitalist but will be a capitalist. >> we pay for it at buzzfeed. i pay for it personally. same thing with ever note. >> i don't know evernote. >> an application with about 75 million users, it's on iphone, android, desk top, i have all of my notes for you here, as well. you can store all of your files and images. and when you hit your quota, they start charging you, as well. the ceo there, he wants to build a 100-year company. he reminds me of benioff. we're going to see a lot of companies in that enterprise cloud-based operations. >> and mark is always telling me, listen, jim, you have no idea about the revolution happening, it's all happening. now, i'm getting a lot of heat again -- i get a lot of heat for things because people are able to go on twitter and call me a knuckle head and i actually respond. yelpification.
11:33 pm
i think it is one of the most powerful stores in the world. people tell me, jim, it's a short squeeze, you're trying to -- no. this is real. >> limited supply. limited supply. if you want to play the future, if you want to invest in the future right now, how many companies out there are publicly traded that how we consume and use media? >> it's a scarcity. >> you've got zillow, open table, only handful of these, right? i think yelp -- there's too few of them. i think when we see more go public, we'll have more of a separating. although i do like yelp, investors aren't able to select as much as they can. >> now air b & b, is this not part of the new generation where -- their parents are -- may be going to be wealthier. it is a concept for people who don't have a lot of money that went to get some money. >> and this is part of the whole sharing economy.
11:34 pm
if i'm not using something, let me go on the web, harness the crowd and be able to rent out, make a little bit of money on something i'm not using. instead of selling, you're renting out, you've got a spare room, put it on air b & b, car sharing services. it is a juggernaut in the leisure and travel space right now. they've turned the whole -- i think they're doing more rooms than hotel chains are doing. >> you still like google? >> still love google. i think youtube is a hidden asset. if youtube was public, what would it be worth? $25 billion, $30 billion? >> the profit -- >> $60 billion in tv. >> i watch youtube -- i watched a youtube concert this morning. this is john steinberg, president and c.o.o. of buzzfeed and cnbc contributor and the only man i have let punch a button in, i don't know, what, nine years of this show? >> means the world. thank you so much. >> thanks so much for coming on the show. stay with cramer. i need proof of insurance.
11:35 pm
that's my geico digital insurance id card - gots all my pertinents on it and such. works for me. turn to the camera. ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app. could save you fifteen percent or more on car insurance. everybody knows that. well, did you know that when a tree falls in the forest
11:36 pm
and no one's around, it does make a sound? ohhh...ugh. geico. little help here. of the dusty basement at 1406 35th street the old dining table at 25th and hoffman. ...and the little room above the strip mall off roble avenue. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored at a company that's bringing media and technology together.
11:37 pm
next is every second of nbcuniversal's coverage 0f the 2014 olympic winter games. it's connecting over one million low-income americans to broadband internet at home. it's a place named one america's most veteran friendly employers. next is information and entertainment in ways you never thought possible. welcome to what's next. comcastnbcuniversal. it is time -- it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, you say the
11:38 pm
name of the stock, i tell you whether to buy or sell. play until this sound -- and then the "lightning round" is over. are you ready, skeedaddy? i'm going to start with mike, mike, mike in new jersey. mike? >> caller: b-b-b-boo-yah, what's happening, captain? >> thank you. >> caller: fresh out of the bankruptcy, very quiet, kodak. could have some big gains on it. what are your thoughts? >> yeah, you know, we took a look at it when they rang the bell this week. i'll tell you the truth, i think it's too new to make a judgment. i feel like i couldn't get my arms around the new kodak, but i would invite them on the show. and i said that to the other people at post 9:00, i would like kodak to come on the show. may i go to jacob in new jersey? jacob? >> caller: boo-yah, jim. shout out to new jersey. anyway, i've got a question, jim. i'm looking to get into the biotechnology industry and wondering about amgen. >> it's one of my least favorite. they did buy some growth, but by
11:39 pm
buying a company called onyx, they went right smack against celgene. i don't think that's such a good idea. i like gilead, and i like regeneron and i'm liking some of these new speculative stocks, we're going to listen to the conference next week and get new names. tony in ohio. tony? >> caller: big bobcat boo-yah to ya, jim, from athens. i have a question about isis. i recently bought it about a month ago and i want to get your view take on it. >> well, we thought that crohn's disease formulation was a new take. i think it's good. you're getting it cheap, but i do think it's good. joe in california. joe? >> caller: boo-yah to ya. my stock is xoma. i got a double last year, took some off the table, playing with the house money and still up 15% the last few days, should i buy more? >> this happened to have been karen cramer's favorite back in the 1980s.
11:40 pm
my problem is this has moved too much. i think your judgment's right. some of these stocks are getting overheated. this one has been around for a long time. i don't know, let me give you a better judgment, i could not believe it surfaced after so many years in the wilderness. let's go to gerard in georgia. gerard? >> caller: boo-yah. hey there, jim. i watch the show every day and learn just so much. >> thank you. >> caller: so advance micro devices versus nvidia. in -- the devices like the ps4 -- >> that's the problem, amd has had a history of missing the quarters. i told people to buy it in the threes, i'd rather sell the stock and move into a stock that my charitable trust is buying with a yield and that is intel. i think it's cheaper.
11:41 pm
let's go to adicha in ohio. >> caller: boo-yah, jim. >> hi. >> caller: i have a question about halliburton. what do you think about it? >> it's one of the weaker companies. if you do like halliburton, wait until schlumberger speaks on friday. i think they're going to speak negatively about the market. be very careful. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. >> hi, jim. >> yo, what's shaking? >> caller: i'm reading your new book "get rich carefully." >> jim, i'm going to try to make it to costco this weekend and get a copy of your new book. >> i'm enjoying your book. >> holy cow, that was unsolicited. thank you so much. that was the point of the 440 pages. let's go to work. >> it is warm, yes.
11:42 pm
>> why don't we go to mike mike mike in pennsylvania. >> hey, jim. >> mike. >> sorry about the eagles. >> yeah. okay. who's next? tonight i want to take a look at a pair of retailers who have come public through incredible enthusiasm in the last three months. the container store tcs, the place to go if you need storage, right, organization products, women's shoes fit right into -- and boots, they fit into these shelves. they swing. then there's zulilly that offers deals on baby wear for moms. what do you think? i think this is a terrific time to be in the uniform rental business. the companies that rent all sorts of uniforms to other firms.
11:43 pm
more jobs equals more needs for uniforms. get a little more room. oh, man. oh, nasty. yeah, can we order like a bigger one? good job, kyle. on the trading floorning in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being get live squawks right in your trading platform with think or swim from td ameritrade. when i first felt the diabetic nerve pain,
11:44 pm
of course i had no idea what it was. i felt like my feet were going to sleep. it progressed from there to burning like i was walking on hot coals... to like 1,000 bees that were just stinging my feet. i have a great relationship with my doctor... he found lyrica for me. [ female announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores from diabetes. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. having less pain -- it's a wonderful feeling. [ female announcer ] ask your doctor about lyrica today.
11:45 pm
it's specific treatment for diabetic nerve pain. to hear more of phyllis's story, visit
11:46 pm
no two ways about it, we got a number, a disastrous unemployment number from the labor department this morning. it was terrible. 74,000 gain in payrolls? i mean, even after discounting whatever you may think is right for holiday retail sales, this is just unbelievably disappointing. it's also out of sync with pretty much everything we've been hearing, including the adp unemployment report which came out yesterday which showed 238,000 jobs created last month. throw away the number, do something to make it look better. or maybe the survey wasn't accurate at all. my view, i don't care. these numbers do matter because the bond market said they do and interest rates pulled back pretty dramatically today with a yield on the ten-year treasury
11:47 pm
falling from 3% down to 2.86%. the jobs number wasn't pertinent. believe me, you wouldn't have a big decline in interest rates levels not seen for a month. more important, this number matters tremendously in the stock market, my word for get rich carefully, i spend a tremendous amount of time of analyzing the impact on the market versus other indicators. and i have to tell you that you can throw out every other data point, retail sales, durable goods, housing. doesn't matter. the only stat with lasting impact is the labor department. it's the job creation number that matters, not the household survey, which is heavy skewed by people who drop out of the labor market for whatever reason. while we're at it, my data shows you should never put any stock again in this adp number reported yesterday. it has proven worthless as a predictor of next day's report
11:48 pm
making it downright irrelevant. it doesn't correlate so stop emphasizing. this is the number that matters. what does the number mean? first, it signals a rotation, the cyclicals and banks which need higher interest rates, the industrials because rising rates not the falling rates we got today are a sign of robust business activity and the banks because allowed them to generate bigger profits. and the bank stocks were weaker today. the money flowing out of these groups will head to the classic growth stocks, something that's been happening underneath i told you about earlier and was accentuated all day today as stocks tend to be more pressured than you think. for the next three weeks, the earnings will be in control. plus, you need not one, but two back-to-back employment numbers to signify a real trend. another weak one and look out. still, lousy jobs figure makes sense when you figure all the weakness in retail. it can't all be weather related. as well as the decline in the index they use to monitor the chinese market. this adds up to a mixed bag where bulls have to hope bad news is good news at least for the higher yielding stocks, the utilities, anything with a yield over 3%, which pretty much
11:49 pm
describes the cohort that had been pounded over the last month or two but really sprung back to life today. in the meantime, there's no way to call it good news for the industrials, except for those connected to the domestic housing market which will benefit from the lower mortgage rates and i actually believe it's so powerful we could start seeing it next week. all in all, a larry david style curb your enthusiasm number and that's what i'm doing. and until i see something that tells me definitively that things are getting better, not worse, since december, i'm sorry to say, i don't have any indication that that will be the case any time soon. "mad money's" back after the break. ♪
11:50 pm
♪ [ male announcer ] old el paso frozen entrées. now in freezers.
11:51 pm
[ male announcer ] old el paso frozen entrées. it took a lot of juggling to keep it all together.k. for some low-income families, having broadband internet is a faraway dream. so we created internet essentials, america's largest low-cost internet adoption program. having the internet at home means she has to go no further than the kitchen table to do her homework. now, more than one million americans have been connected at home. it makes it so much better to do homework, when you're at home. welcome to what's next. comcastnbcuniversal.
11:52 pm
before we get to your tweets, we have to take some homework off the table, it's been piling up. first up, back on december 2nd, i was asked about united therapeutics, uthr, i said i'd get back to her. this is an emerging firm that is actually profitable, specializing in drugs for hypertension, particularly life threatening type of high blood pressure. united therapeutics spiked hard last month. the fda approved its oral treatment earlier than expected. there are a lot of naysayers out there wringing their hands about potential competition, i like the company's prospects. however, if you owned the stock before the monster move higher, maybe take a little money off the table. and if you think of buying it, take a step back. talking about anik, had a
11:53 pm
monster run last year, up nearly 300%. developing products that repair all kinds of tissue based on a chemical that acts as your body's shock absorber. anika is super speculative and hardly any coverage on wall street, but the company is profitable and trades at 24 times this year's estimates which is cheap given the 30% growth rate. it's a risky stock. so it is absolutely not for the faint of heart. although after watching another $500 million stock, give or take a few hundred million, intercept went up 370 points over a couple of days. anika is intriguing, but i give it my blessing only for spec,
11:54 pm
okay, and only if you use limit orders, wait for weakness if you think of buying, always the best way. guy in georgia wanted to know about rhp. this is a niche real estate investment trust that owns four convention hotels, run under the gaylord hotels brands, like the vast majority of reits, got crushed last year as investors were driven away from alternative stocks. on top of that, the company lowered numbers last summer. ouch. bad news, bad timing. since october, they've been bouncing back after reporting better numbers, i could see why this stock would benefit if we start to see stronger convention bookings and lower interest rates diminishing the competition. honestly, they do only own four hotels. i'd much rather go with best of breed starwood or wyndham worldwide or hilton. a stock that was shouting at me last night after my book signing. why not come to the wesbury long island costco tomorrow at noon to see what i have to say about your stock after i sign your copy of "get rich carefully."
11:55 pm
last but not least, on december 7th, cvlt, this is a provider of data and information management software that got pole axed in the fourth quarter after a slew of negative data points. even after the flashing, it's far from cheap, sells for 35 times earnings. if the company can put up a couple of decent quarters, maybe i'll change my mind. not until then, now your tweets. okay. let's start with gary bin nyc. i'm buying lunch tomorrow for the signing, what you want? now we're talking about going to costco at 12:00. gary, don't because i'm telling you, i am not going to eat anything tonight or tomorrow morning because the samples at this wesbury long island are the best. and if they have that crab dip, you're not going to have to fight over those crackers. @emilykingrocks says what do you think of whole foods?
11:56 pm
there was a reiteration today. a lot of people don't understand how they trade. they talked about cannibalization, competition, then the stock got crushed. stock gets crushed, buy. i'm not varying, i don't think fareway or sprouts can hold a candle to whole foods. up next, he asks, jimmy, can i feel good about buying five shares of goog to start the year? yes, one of the things i try to teach and talk about in my book signings is the notion of buying a large dollar stock, not capitalization, but a dollar stock and buying a couple of shares. i think google's perfect. it's the largest position in my charitable trust which you can follow along who wins the nfl games this weekend? i like the broncos, okay. i like the niners, i like the pats, and i like those beasts with the 12th, 13th, and 14th and 15th man the seahawks. oh, i wanted to -- i want to sell ddd -- no, i was going to say take profits. stick with cramer.
11:57 pm
over the pizza place on chestnut street the modest first floor bedroom in tallinn, estonia and the southbound bus barreling down i-95. ♪ this magic moment it is the story of where every great idea begins. and of those who believed they had the power to do more. dell is honored to be part of some of the world's great stories. that began much the same way ours did. in a little dorm room -- 2713. ♪ this magic moment ♪
11:58 pm
11:59 pm
there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male announcer ] introducing fedex one rate. simple, flat rate shipping with the reliability of fedex. all right. i hope to see as many of you as possible tomorrow at costco, wesbury, long island, at noon so i can sign your copy, your own
12:00 am
personal copy of "get rich carefully." we had a lot of fun last night at barnes & noble, i'd like to see you at costco. there's always a bull market somewhere, i promise to find it for you here on "mad money." i'm jim cramer. and i'll see you monday! >> narrator: in this episode of "american greed"... could this man be brooklyn's own bernie madoff? >> people who lived in that neighborhood never conceived that this schlubby-looking guy was going to hurt them. >> narrator: because, unlike madoff, philip barry's no fancy billionaire flaunting the high life in front of his victims. he's one them. >> he was wrapping himself in the mantle of the hardworking work ethic of that neighborhood and using it to lure people in. >> narrator: and he's quietly building what may be the longest-running ponzi scheme in


info Stream Only

Uploaded by TV Archive on