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tv   Mad Money  CNBC  October 23, 2014 6:00pm-7:01pm EDT

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the pressure's on. >> the pressure is certainly on. thank you. thank you to our super panel. that's all from the cash crowd. "mad money" starts right now on cnbc. 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 money. my job is not just to entertain you, but teach you how markets can go off like they did today. call me at 1-800-743-cnbc or tweet me @jimcramer. the s&p shot up 1.23% and the nasdaq rocketed 1.6%.
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♪ hallelujah ♪ >> it's tempting to use the broad data to explain the performance. why not? it's easy, spoon fed and never sounds wrong. for example, we got jobless claims this morning that when lumped with the other numbers from the last four weeks results in the lowest unemployment filing since 2000, that's right, not since the great recession, but the year 2000, 14 years ago and that's extraordinary. good reason to buy stocks. buy, buy, buy! or talk about positive data that came out from china and europe last night both of which indicate that all is not lost. i like these ideas. i like them because they comply with my checklist for an investable bottom, and the checklist, despite the na saying negativity of jim cramer on twitter has nailed this one nine ways to sunday. or we could say that the issues that brought us down yesterday, the decline in oil and the
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shootings in ottawa did not impact us today because oil was higher and there was no further violence in canada, making it clear that the fluid situation which panicked so many in the last hours of trading yesterday, was indeed behind us. i like these reasons, too. there was a ton of short selling yesterday and the the usual hedge funds and doing the usual things about bringing down the market to make their years which have not been so great and these people had gambled like mad to switch directions. you know what they were? they were offsides and they were yellow flagged for it by losing money today they can blame the fed as if a rally needs to be blamed on anyone. after all, i like it when stocks go higher even if it makes the sellers angry and you might, too, if you have a 401(k). if we have a growth in the country with no inflation, it's clear the endless focus on the the fed is a dodge for those that don't want to do homework on the individual stocks leading the rally. you might have to set your alarm for 3:45 a.m. and maybe you have
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to turn off the world series or thursday night football. it's a lot more if fun to mouth the same old same old about the fed or do what i do, find out why the leaders are going up and what's the impact on the market in general. remember, when i said all of the concerns on my checklist were settled we could then return to actual performance of individual companies. as measured by their earnings reports and that's exactly what's happening rid now and it happened all day today. if you want to know how this period is going in general, in other words, do that aggregate thing that i don't really care for. sales are up 5% and earnings are up 11% which are not bad, but as is often the case in the war between the bulls and the bears, small unit combat is what really decides the battles. that's the action in individual stocks and i've got ten of them that i think define today's action and are the real reason why we could run so much, and so
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you know what? let's do this. take them down in alphabet cal order. the ten stocks that ignited today's rally with news that shocked people into recognizing the strength of this earnings season, drum roll, please. ♪ ♪ >> first is american airlines. this is the bellwether for the airlines and one of my favorites ever since the merger between american and u.s. air which has brought tremendous consolidation and many have seen profits to the group for the first time ever. american's earnings reports basically said. >> buy, buy, buy! >> because of great visibility and remember the lower oil price? lower jet fuel costs! this was an amazing quarter and i have to tell you the whole group was taken up. a week ago the stock was knocking at death's door, $28. today it was at $38. talk about a move.
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next caterpillar caterpilland m everyone who owns it feel bad. [ crying ] funny thing happened, though, when caterpillar reported you got a major upside earnings surprise. the bears were all over me to say negative things. hey, jim, you don't know what you're talking about emails, oh, i treasure them. anyway, here's what i have to say that's negative. bears, pound sand. can you imagine what number it can print when things are good? no wonder they keep buying back stock. it's cheap. celgene had had the flagship anti-blood cancer drug up 19%. and it was a breathtaking quarter with fabulous commentary about the success of some of the company's new cancer drugs that i didn't even know about right on top of some encouraging news about the breakthrough crohn's disease. rallying $5.64 as it plowed through $100 a share. it also cost the rest of the
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biotechs to roar especially regeneron which hit a new all-time high. diamond offshore, symbol d.o., and i don't talk about it much. this cohort of offshore drilling companies has been in its own personal horrendous bear market. for one of the weakest players delivering an upside surprise that aloud the heavily shorted group to bottom. it looks like brazil is about to go full board of drilling, i didn't know that, and it may not be just a glint in the eye of the bear's beholder. fifth, lots of people expected 3m to blow up because of the heavy exposure to overseas markets and the weakening international jog raves guaranteed a disappointment, i mean, didn't they? oops! didn't happen. as a matter of fact -- ♪ just the opposite. 3m reported a picture-perfect number and caused all of us to scramble and it is a big-cap stock and rallied six bucks in one session.
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thulin, the ceo of 3m being gets my word as best ceo of the reporting period so far. that's a high honor. o'reilly automotive is a company i don't talk much about. this is a special retailer of autoparts and reported gigantic increase to same-store sales. o'reilly is a reminder of the resilience of the american consumer. what a blowaway number. ten-buck rally. seventh, the big industrials have caught a bunch of downgrades this quarter and everyone's gotten so negative on them which is why parker-hannifin shocked the market by announcing a $35 million share buyback today and then gave you an astounding 31% dividend boost and no one was looking for that a week ahead of when it reports. people went ga ga sending the stock up $7.25, you thought the industrials were helped by europe, china, whatever, p.h., they say you're wrong. symbol n.o.w., it helps
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corporate i.t. departments, information technology, run. we brought them on in april after the company reported a stellar quarter, but its stock got stung because the cloud cohort was out of favor. today it delivered a similarly fantastic quarter and the stock soared 10% and it was ready to run again and that's exactly what happened to the rest of the group including sales force.com and work day, my two other fifes. 9th, i have adored union pacific for so long that i've come to take its amazing earnings for granted and today's numbers with net income up 19% and that includes coal and it includes some amazing industrial carloads and intermodal, just astonish me. u.s. commerce is on fire, people. you couldn't get the unp number without it. finally, a funny one, tractor supply, and this is a darling of the retail midway shocked those up on it. it gave you fantastic same-store sales numbers. why does it matter? because tractor supply, i use it as an analog.
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it's an analog to home depot, lowe's and costco and many other retailers and different housed goes sold within the store and it's a fabulous sign. i could have selected many others and we had alibaba at barclays that tells me the stock is going 110, taking yahoo with it and courtesy of an amazing positive presentation, and simmerex, reassured many who worried about a decline in oil as to one that we'll speak to later on with the show and tomorrow we'll be back with the battle site with the semiconductor equipment giant kla, up 11, 12, whatever after the close going hammer and tongues with another loiz amazon report, but the bottom line is that the troops who fight for the bulls crushed for the bears today in vicious hand to hand combat and that, more than anything else, really did cause the stocks to rally. how about saul in florida? saul! >> how are you? >> i'm real good because people when watched show probably made money today except for the short
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sellers. how can i help? >> with the holidays coming up, how do you feel about macy's. >> jc penney said things aren't that bad -- aren't that good. i hoped the macy's sflagship tor is under reconstruction. that doesn't matter and a huge part of the sales and i think macy's is good and i like the stock and you should own it. frank. >> boo-yah, jimmy, how are you doing? >> i've been real good. how about you, partner. >> okay. hanging in there and thanks for all you do. >> thank you! >> my question is on boulder brands, i know the stock is doing bad. your opinion, should we hold? >> no. this is no. i know this -- we had them on, you know. i've been skeptical, but i have to tell you, this is no white wave and hain, both of which i reiterate my buys. hain and white wave. lou in michigan. lou. >> jim, boo-yah from the great lakes state.
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>> we love michigan here. >> i've been holding on to discover financial for about a year now and they've done really well, but i've got two questions. first off, are there any plans on discover being included in apple pay and if not, should i be worried and maybe err on the side of caution, sell it and take my profits? >> you know, it's funny. that was not the quarter that i wanted and i do prefer visa and mastercard to it, but it didn't really -- it got hit, and then it bounced right back and that's why i am going to tell you that i want you to hold on to discover because it's much cheaper than visa and mastercard. the one that was a real stinker was capital one and i thought they would have a good quarter. you're fine with discover. how about donny in florida. >> boo-yah, jim! >> boo-yah. >> i'd like to know about mankind. should i hole, sell, buy? >> here's what people told me that i shouldn't get too excited about it and i felt it would be
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this inhaleable diabetes and people told me, listen, it will not be taken up by doctors that much. here ate way i look at it, mankind. i have so many celgenes and so many regenerons and so many agos, have you guys been watching that one lately? i don't need no mankind. it's easy to attribute today's rally to unemployment or the fed, but welcome to my world. i find out what is actually happening, what's going on, why and the impact on the overall market. the bulls crushed the bears in hand to hand combat and that's why stocks rallied. "mad money" tonight, from crock pots to machines, you're using the brands, but should you own the stock after percolating today. while the buzz continues over apple pay, the street is still stunned by ibm's tech, and the winners and the losers and your morning cup of orange juice and fluid, what do they have come common? a stock that soared today.
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i'm revealing it. stick with cramer. don't miss a second of "mad money," follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an email 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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♪ ♪ can the american oil and gas renaissance really continue now that the price of crude has come down to the low 80s? this morning we heard from flow tech, ftk, one of the leading manufacturers of environmentally friendly, and they have completion and production. the company has engineered a complex nano fluid that improves hydraulic fracturing while reducing the need for horsepower, water and propane. in short, it it makes the whole darn process more efficient and helps producers get more out of the ground. it has a drilling technology business that improves while drilling technology that increases the speed of hor zont
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issal drilling. by the way, they also use citrus in the chemicals. flow tech has seen the stock come crashing and the price of oil came down and they reported this morning and the results were fantastic and sending it up 10% single session. >> they delivered a high er tha expected revenues that rose 19% year over year and it was 21.2%. even better, the injurement said october is trending well with no negative impact from the volatility of commodity prices and that's huge and it makes me think the stock can have much more upside. don't take it from me, the chairman, president of flotek industries. welcome to "mad money "qwest. >> good to see you. >> we talked about the technology of oil drilling and we can take oil out of the ground must faster and what we're really thinking is it's flotek. >> we have patented technology
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and put emfas oits intellectual portfolio, but you hit it right on the head. >> you talked about something that i was a little, say, in disbelief that you're using citrus to do the job. >> sure. so a part of that citrus oil is a product called delimony and it's a solvent and we put that into a complex nano fluid droplet and it goes into guys like halliburton and it creates the opportunity for the larger oil molecule to come out of the hard rock in the horizontal wells and have a chance to get more production. >> do you think if the environmentals would be more inclined to think that fracing is not the worst thing to ever happen in our country. >> we're getting ready to work in california and i believe that's part of the reasons and i believe it's part of the citrus component of the product. >> oil has come down. a lot of the people feel the product was cancelled and you were quite bullish in the call, even including the numbers we've had had now. >> we've had a consistent
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message whether the hoil is at 105 or 85. you don't people back then that you don't do it just because you can afford to do it. you need to use the technology because it's the right thing to do. >> this industry as been at all costs, cut costs. >> right. they have a code for that called on optimizing. if you can validate value, you should consider using value-added technology. >> look, as oil goes down, they're forced to use flotek, to save money. well, as you know, a lot of these independents have got this break over between what the cash flow is and what the amount they have to spend to keep drilling. so we really believe at $85 you can even make a stronger case for using the flotek, technology. if i'm a guy, i'm not using flotek and then i hire you, how much more can i get out of the ground and how fast. we looked at over 66,000 wells
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with completion data and production data and 15% of those in the last three years have used that complex nano fluid technology you recommended and on average it's what the data says and this had is data provided by the e & p companies that you will get a 20% uplift and the traditional technology. >> even if oil was at $82, we shouldn't think the renaissance is in jeopardy. >> no, not at all. >> tell people about the actual companies that you work for? because we like them and people are trying to figure out where flotek fits in and you do list your biggest clients. >> sure. it's the distribution business model and we sell into the business companies like the schlumbergers and the bakers and they rebrand it and they push it out to the anadarkos or the nobles and the apaches and those are the folks that use the technology. >> it's an engineering company and it's a technology company and why do people not understand
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this is american engineering. look, you and i when we did go out to dinner, we talked about the idea that this is an industry that we have revitalized and that a flotek has revitalized and you know the numbers of how much employment has been created because of the shale revolution and they've gone in the last year and a half for about 400 people to 530. we talked about this morning how we have the highest number of revenue per employee and operating income per employee. we think in the industry. >> you do? >> yes, we do. it's all because the people of floparticular ek that have driven the performance of flotek. one last question, you're moving to california, and i know you know the shale business. have we found all of the oil we'll find in this courtry? >> i don't think so, jim. i think the environmental effort has curtailed finding more and more of that california, and your state here, new york, is another that property exploited and there is an opportunity to
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improve what we're doing right now. >> i have to tell you, it's a great story and i feel very strongly that you are, the environmentals will be stunned and i mentioned because we also had a drink at work, that i did drink fracing fluid from halliburton. >> yes. >> jim brown gave me some. >> he's a pal of mine. >> let me ask you, does yours taste better? >> i would have to say that it does. >> who have the orange juice tang. >> i'll be drinking your stuff and telling people to buy your stock. >> the chairman and ceo of flotek industries. when i say it's an engineering and technology business, this is the guy who is powering the engineering and technology that is doing such a great job with the country. stay with cramer.
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when you get a 12-point swing from top to bottom in a $29 stock in a single reporting day as we got yesterday from
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boeing. five up and 12 down to be specific and then you don't have to investigate further because it means something's gone wrong with the reporting process in general and maybe the stock in particular. it typically means that someone has misled investors creating a false sense of positivity and reality drove it back down and that's not always the case and it certainly wasn't the case with boeing which had a shocking decline yesterday and barely a bounce on today's amazingly positive session. to be sure the swing of boeing's stock is a cautionary tale, and about the way that analysts perceived boeing which led to credit suisse downgrading the company today and the way after-market trading is something you shouldn't be involved with. first, when boeing reported early yesterday morning it raised the guidance substantially which was important because the previous quarter was considered a major disappointment. go look at the headlines and they were jumpily positive on every line-item and truly seemed
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to rebut the cash flow worries from the previous quarter. investors immediately breathed a sigh of relief and pushed the stock up five bucks from the $129 level in pre-market trading and it all unraveled shockingly on the call and just a few minutes into the numbers and the subsequent questions and neither of which could be reflected in the actual earnings release. going into the quarter, boeing had experienced a very nice rally from the low at 120 and we were excited after last quarter's disappointment and the stock ran out after the airline stocks had had rallied dramatically. that's important because boeing trades with the performance of the airlines. one look the at how boeing's stock traded during the sars epidemic tells you why it is so virer vital to get the panic under control. from the sars, from the 18% of the world hardest hit by it, asia, boeing's stock fell $35
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down to $27. when the sars epidemic got under control the stock recovered that much and then some. so the post-ebola panic rally is real, substantial. however, when we got into the nitty-gritty of boeing's numbers it was pretty clear that it all came from a wide range of boeing planes and it very specifically did not come from the brand new 787. in fact, we learned in the q & a and only in the q & a that the dream liner wasn't making any money. boeing apparently is still losing money and some would say gobs of money from every single plane and it's much harder to calculate and it didn't matter and the stock got crushed and i'm sure that the people who work at boeing were somewhat surprised at the action in their stock. remember, everything else was pretty darn great for boeing and most especially the amazing demand for planes and the company assured analyst that
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2015 would be the year that it would have assemble the release which brings me to the crux of the issue. i don't know what boeing really could have done more right, so to speak when it reported. was the company supposed to say in its headline, raised earnings despite dream liner? was it it supposed to fly how the plane is still in deficit something that would have been disingenuous because the earnings and cash flow are real regardless of how they're made. >> the answer relies in the process, if you trade the stock, then you run the risk of being annihilated on the conference call that you haven't heard before you trade and that's what happened with boeing and let me give you the bottom line. the 12-point swingdown wasn't the fault of boeing at all, but you should blame the process of gun jumping for the losses. you can't presume anything with the company with as many moving
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parts as boeing and people did and they paid a steep price as the stock got slammed yesterday and barely participated in today's magnificent rally. norman in california. norman? >> hey, jim, a big north hollywood boo-yah to you. i like that. how can i help? >> jim, i have a few momentum stocks that lost their momentum, but when they were up i sold enough to have a small number of shares. i don't have enough shares to make sense to sell off some of them, so i wonder, should i sell or should i hold for possible future upside surprise? the main one is cree, but the same question applies to pandora and zynga. >> you just named three that really had it. that's terrible. i would not only that stock. i'm glad it's up. i would not own it. zynga's got new management, and i kind of like it. the third one was -- cree -- pandora, i can't stand. all right? i mean, it gets taken over and i never recommend stock on a
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takeover basis when the numbers aren't that good. i have three that you i prefer you not to be in. let's go to brian in pennsylvania. brian? >> hi, jim. >> how are you? >> i'm watching k latin america a 10 cor go up ten points and i'm glad i told people to buy it. what's up? >> i bought southwest airlines, one year ago at 17. it's doubled in price since then. i'm not so worried about the ebola scare, but i would like to know if now is the time to sell and if so what stock should take the place. >> this is really important because first of all, there are two different disciplines you've got here. one is a core position and that you wouldn't sell, but the second discipline is bulls make money and bears make money and hogs get slaughtered. play with the house's money and then let it run. southwest air did not run today and people were presuming it wasn't good. it is great and it's the strongest performer as opposed to american that had a monster good number. play with the house's money and play forever. never presume, you pay the price if you presume anything
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especially when it comes to a complicated stock like boeing and much more "mad money" ahead e special he one on the mound of the world series and in the kitchen. from baseball to baked goods in one hot stock and one of the world's largest tech distributors. want to know who is cleaning up? you're any to find out. i'm fired up in a brand new edition of the lightning round. stick with cramer. ♪ the all new, head turning cadillac ats coupe.
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it's irresistible. ♪
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er year as we head into the holidays i like to take the pulse of the consumer, you know that. the best way to do it is by talking to jardon, jah. 120 different brands and many of them are household names, crock pots, oster blenders, toasters, yankee candles and my favorite, margarita, and jardon has a long history of finding these small niche markets and making itself the number one player in each of them and savvy acquisitions or by technology editions, but after huge run-ups the stock has been flat lately and year to date and that is until this morning when jardon had higher than expected revenues that rose
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19% year over year and an astounding 6.4% sales growth and the company that i've been dealing with launched a 280-basis point increase and they made it after the sales in response, $3.29 jump, 5.6% and jardon had had been given a gain and it rallied 75% since we told you to buy it after checking in with management two years ago. the stock is still cheap at 14 times earnings and the the long-term growth rate makes no sense to me and let's take a closer look with the co-founder, chairman and former ceo of jardon to hear more about the quarter and his company prospects. welcome back. >> thank you very much. >> good to see you. >> nice to see you, too. >> i was looking at a very good analyst, j.p. morgan did an alert yesterday and did what we were looking for, was looking at a 3% growth and it's one of these things where i can say -- tell me how you did it. i don't know how you did it.
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it's across the whole group. >> resilience. >> and the fact that you said it yourself, market leadership in niche markets where we've got products that have a good value proposition and when people are in the mood to buy, the night thing is they tend to want to buy our product which is great. >> 3m was huge today and i feel like you're the 3m of your brand business. how many of these products existed five years ago? >> well, in general i will tell you without picking individual products i can tell you that this product's been around for 100-some-odd years. the reality is about a third of our products have been introduced within the past three years. so a new product introductions, this is a brand new invention and skis are brand new. >> the rfid technology. your idea? >> no. if it had been my idea, we're on the wrong team. >> but these are basically what you're taking as old-fashioned brands, ball jar, coming up with a new twist.
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>> yeah. >> that makes it so it's not prosaic. >> it's products people use in their everyday lives that we like to improve every year. the gross margin improvement and you were talking about onshoring and remember about the raw costs? >> some of it is a shift in mix. it does include an anniversary yankee candle. it's a high gross margin business. >> you yourself wasn't happy with the quarter of yankee. >> the reality is overall we look for businesses that will enhance the organic growth levels as a whole and that can improve our overall average ebitda margins and we've been building our portfolio that way. every time we introduce a new product the gross margin criteria has to be higher than the product it replaces. >> let's talk about real gross margins and this had is something -- this had is a -- this is actual fashion. >> it's function that's becoming -- i wouldn't say fashionable, but i would say because it's functional it
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doesn't need to be ugly and that's the great thing about marmot. what it's doing is creating a product that's pleasant to wear, very comfortable and has great functionality and they've really hit home runs with the product design and it's showing in the numbers. we're growing mid-teens on an organic. >> i thought this was incredible to do mid-teens. as much as i love northface and columbia, they're not putting up those numbers. >> we want to be that company in the years to come. they've had a struggle for a long period of time. >> the numbers for this, i'm looking for you guys to turn this on. is this going to be more holiday? is it a strong quarter for yankee candle coming up. >> q4 is yankee candle. it's consumer solutions and the appliance type businesses and the ski businesses and they're locked and loaded because we take order pretty big in the
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business. >> you're in all of the major retailers, but you're also 40% overseas. >> yes. >> you use the term europe is not a disaster. i wish, can you give me more color. we doubled our business in spain. we're not a huge player in spain and there are economies that have been hit so hard that as they recover you're beginning to see comparative improvements. so the comps are pretty easy if you want to think of it that way. i think at the same time a lot of our products in europe are much more staple type of products. for example, our baby business from the map of gloves that we make and they're here, but basically, products that are used whatever the economy so we didn't get hurt that much in the downturn and we tend to get a bit of a pickup. >> one, because i have it, this is the hottest drink. >> the margaritaville?
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>> the margarita is the best drink in the world. sell well? >> this is the highest price point item. >> right. >> the margaritaville line has been from nothing to being a significant business. >> and then we have the world series numbers so far that haven't been that good and we have rawlins and sports. >> versus video games where people sit inside and get fat. how is outdoor really working in sports? >> the outdoor business and there's outdoor sports and team sports and you see how the companies that have been performing pretty well in the outdoor business, wear that for the long term and some sports go in in some cycles and baseball's had a tougher period, but the reality is we're in lots of different sports. when it snows we sell a lot of skis and our winter business has been doing quite well with marmot. so it's all about diversification for us. >> remarkable quarter. the stock is going higher. this was the best quarter in all
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of the years that i've known you. this is the best one we've talked about. martin franklin, the co-founder and chairman of jarden. this is smoke. "mad money" is back after the break.
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it is time -- it is time for the lightning round on cramer's "mad money," what is that? that is about rapid-fire calls. i tell you to buy, buy, buy, or sell, sell, sell, my staff prepares it. play until we hear this sound and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money," let's start with maxin in puerto ri rico. >> boo-yah from puerto rico. >> i love puerto rico, so much, i go there every holiday. >> i want to know about cove iedian, cov. >> we have to apply that to e.w., life sciences and i think the stock goes much, much higher. edwards life sciences. how about we go to tom in arizona, tom? >> hi had, jim, how are you
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today? i'm doing good, how are you? >> i bought it prior to the earnings and dividends. if it comes back down, should i buy more? >> they'll have to get the new ceo on and we'll get it from the horse's mouth and we'll be able to make a decision. until then, no, don't buy more. let's go to mark in wisconsin, mark? >> jim, a while back i called you and asked about a limited partnership, cvr, the ticker symbol, uan, at the time you were noncommittal because of the high dividend payout just a little less than 12%, i was wondering if you'd had a chance to form an opinion. >> it's not for me. it's got some others, too, but that's right now a business in a think if. i just don't want to be there. let's go to anthony in new york. a nth me? >> bah-bah-bah-bah-boo-yeah
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professor cramer there's someone who has real game. you should be in our fantasy league. this is anthony from home of the famous bar san miguel, and what i want to know, mr. cramer, skechers, beat on the bottom, beat on the top, buy, sell or hold, where is this thing going? >> i was trying to get to people on jim cramer on twitter. is that my bad? absolutely. i've been inundated and doing a lot of other companies and the dow stocks and so many others. i've not had a chance and the quarter looked good and the people didn't tell me the guidance was a blowaway and i would love for the company to come on, too, but the stock is heightened. i want to go to celeste this connecticut. celeste! >> hi, jim. i'm a beauty and facebook is my beast and i want to hold and own and not take the profits like
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your alert said, can i do it? >> no, stephanie and i were going over that this morning and we did a video together and she's corporal fund manager of the charitable trust and we both feel its run up so much in advance that you have to take a little bit off the table and if we were not restricted because we mentioned it we would be selling this amount. facebook is very heightened and that's a little bit worrisome, and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by t.d. ameritrade.
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last week right into the teeth of the hideous sell-off i made a checklist for what had to go right, and boy, oh, boy, are we rallying now. the tech had a rebound and remember, this was shortly after microchip, the semiconductor company had disappointed in a big way. since then we've seen a bunch of positive report froms all over the tech sector including the semis like kla tencor up 13 and microsoft, too. this morning the newfound strength in tech was confirmed what avnet, avt, reported a terrific quarter. for those that don't remember, avnet is the supermarket of technology in the world. they're the distributor of semican conductors as well as information technology hardware, software and services, huge business. in short, this company can give you a read on the state of the technology business and they delivered a five-cent earnings beat and it was higher than
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expected revenues that rose 7.7% year over year. what's more, the market loved the results and the stock jumping $2.7% response and take a lowser look with the ceo of avnet to hear more about the quarter and what the future looks like with the whole technology complex. welcome back to "mad money," thank you, jim, a pleasure to be back. >> i'm confused because this quarter you had one of those businesses do poorly and i looked at it last august and it was terrific. you had the united states strong and most important you were buying back your stock more aggressively than i've seen in a long time and i figure that you like the mosaic of what's happening right now or you wouldn't be buying so much stock. >> jim, that's absolutely correct. the overall growth that 7.8 reported was supported by 5.6 and that's been the sixth quarter in a row of solid, organic growth for overall businesses and there are always puts and takes and the computer business in asia was more
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disappointing than we expected and overall, the six quarters of growth i talked about are computer business on the global basis got back in the game with solid, organic growth even on their number, so put that all together and when you take a look at the buyback, we talked about 18 million we had executed through the end of the september quarter, but with the recent dip and the gyrations in the market with the disciplined approach and our standing schedule of participation and current authorization we were able to take advantage of the recent dip over the last week or so and stepped up to another 55 million of buyback just through the first three weeks of q2. when you see a microchip saying things are in disarray and you see the other companies doing well, my take is that there are pockets of real strength and not just strength, but real strength that you wouldn't get that high organic number, is the united states right now leading in this world in terms of development for technology? >> so, jim, in our computer business it definitely led the september quarter with the strongest year on year growth up
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about 11%. we're still seeing rell atively stronger growth followed by europe and we talked about that the last couple of quarters and we did have positive growth in the americas and of the three regions it was not the strongest growth. i know in the conference call you said our version is to buy our own stock. is there not much for sale or is the consolidation done in your industry? i don't know if it's completely done, jim, but the big drivers of a lot of our activity in the 2000s were in our consolidation and building out our geographic footprint. neither of those plays is 100% done, but a lot of the consolidation has been done and now the nature of our m & a and we're interested in promoting capital and the nature of it has changed now for opportunities for us with such a large, consolidated market share, how can we advance in adjays enzis
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and this was the driver behind the msc deal that we talked about the business over the last year. the nature of the m & a is changing, but we remain very, very interested in deploying capital into those types of opportunities where we can find all of the pieces coming together. >> we don't talk about the technology solutions business which is so huge for you. minus 15% which you said you would try to put a task force to find out what really happened and it was very honest in the call and you were forthcoming and america's 11.2%. are you at liberty to say who those clients are or one or two of them that are doing so much business? >> even if i had them, jim, i don't think you would recognize them and they're servicing a broad section of medium to large businesses for our suppliers. the overall business for us is about 15% of overall global t.s. revenues and that 15% miss there primarily concentrated in our markets of australia, new
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zealand and we have determined where some of those pockets are and there wasn't one particular vendor or one trend that we can say this was a letdown here and this was a broad base overall and we're making sure we adjust the resources to keep in touch with the market realities. >> one last question. are we too gloomy in i watch us and i watch everybody and then i read your numbers and you're the biggest mosaic of technology that i watch and you shot the lights out. are we too gloomy? >> i don't know if we're too gloomy. we have to separate the world into things we can control and into things that we can't and stay focused on those that we can and have the issues that may come up and arise and we just keep doing the right things and over time the rest takes care of itself. >> congratulations. we talked about buybacks that are wasted and this is a buyback that is working. thank you so much, sir. >> thank you, jim. >> this company buys back stock when it has a great visibility
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after the close, kla 10 cor,
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semiconductor equipment announces a 1650 special dividend, a while since we've seen those. microsoft with a big beat and amazon, horrendous, two out of three ain't bad. there's always a bull market somewhere and i promise to find somewhere and i promise to find it for you on >> narrator: in this episode of "american greed"... arthur williams jr., a south-side chicago street-tough turned counterfeiting craftsman. his bills -- impeccable. >> the case agent testified at art jr.'s sentencing that they were probably the best quality he'd ever seen. >> narrator: he rolls millions off the press, but makes the mistake of turning it into a family affair. >> his dad asked him, "so, son, what are you doing for a living?" art says, "well, dad, i make money." "okay, how do you make money?" "i make money. i'm a counterfeiter."

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