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tv   Mad Money  CNBC  May 24, 2016 6:00pm-7:01pm EDT

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>> i don't know about the chill part, but netflix. i don't know where your head's at, sister. >> i'm melissa. "mad money" with jim cramer starts right now."mad money wit starts right now. my in addition is simple, to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. i promise to help you find it. mad money starts now. >> hey, i'm kramer. welcome to mad money. welcome to cramerica. call me at 1-800-743-cnbc. talk about out of nowhere, this rally seems to have snuck up on us nasdaq rocketing 2%.
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what has fueled this thing? >> we have a bunch of cattles. let's start with the obvious, the darn thing won't go down. we had a ton of federal reserve officials talking about the need to raise rates. be the market took it like a champ. the s&p finishing up for the week. that was a signal. signal that a rate hike can be handled without too much pain. >> the house of pain. >> another possi of fed guns. came back this week, and spoke incessantly about rate hikes. now we're rallying, and rallying hard. this market refused to go down on bad news. something broader than fanning rallies or the mini-bull markets i talked about every night. oil's not finished going higher. i can't stress enough how important this is. we heard that oil was moving up because of a short squeeze that came out of the canadian
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wildfires. production has been cut dramatically. guess what? the oil's back on line, and it didn't matter the price of crude is roaring back. this market has a hard time going down when oil's up. the market senses that the global economy is doing better than we might otherwise believe. stocks have already been softened, the higher dollar must be baked in, given that this is the highest it's been in 10 weeks. fourth, giant takeovers are become. monsanto responded to buyers rejecting that german company's bid. more important. they indicate it was open for their negotiations. you know what that is? that is just plain bullish. new home sales are soaring. ♪ hallelujah you know they hit the highest level in eight years this
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morning? their business has gotten very strong, maybe even strong enough to be able to handle a rate hike. sixth, they've gotten red-hot. this group has been an anchor to lee ward for ages. could be a takeover in the worst. it don't go up for no reason. finally, and most importantly, we have a magnificent tech brown. one we have to talk about right now. i think it's the real deal. tech is such a huge part of the s&p 500. this run in tech began when sales reported a fantastic cover last thursday. every metric was bigger than the last one. fellow cloud traveler adoe by. the next day, out of nowhere,
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cisco, the networking king, reported a bangup quarter. when she few money managers were expecting one. it was stellar on every line. it's too cheap at s&p 500 yield. then on friday. we heard from semiconductor equipment maker and we got our first real sign that things have turned up, not just in the cloud, not just in networking. but in the core micro chip business. until this conference call, they've been down so long that nobody seemed to care about them any more. management applied materials told you that semiconductor orders for all kinds of chip sellers. they make machines that make chips. coming in hot, especially chips that were used in the cloud. i urge you to read it, it really did trigger what we've been seeing. especially, the company talked about a dramatic pickup in orders from china. applied materials really does matter, it doesn't get a lot of orders unless there's real demand. these are massive devices, they
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cost a fortune. they are gigantic pieces of equipment. choosing to buy one is not an idol decision. it's a big deal. yale research, i interviewed the ceo after the company reported an amazing quarter a month ago. everybody yawned, nobody cared. it was off the charts fabulous. so what. the research is back in style. think confirmed the company's terrific orders. it's a karnen, it's going higher. i always liked it. this week, the tech rally continued. when a savvy paper in taiwan reported there are some big orders from chips coming from hahn high, also known as fox con. which is the traditional maker of apple iphones in china. i mentioned this yesterday, no one seemed to care. apple could be building as many as 72 to 78 million phones. that would be the largest phone order in two years.
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tells us apple may be seeing strong demand for new phones that very few understood. least of all, the brokerage who can predict the iphone can be a total flop. what do the analysts want you to do? >> buy buy buy buy, sell sell sell sell. >> they want to you trade apple? >> i want you to own apple. >> you get a company like fox con doing well? corvo, cirrus logics. and cramer uber favor an xp semiconductor. even momentum that they may be orders from equipment for implied materials. the i-phone in particular. broad com, an xp semiis my favorite. i think it's still the one even up here. today this tech rally expanded further. one of the biggest black holes has come from the disk drive
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companies. the disk drive company that's been on the highway to hell for ages. c-gate acquired sandisk. remember flash is among the reason why applied materials had so many robust orders. we hear that analysts are predicting -- they may talk up the combination. they may say good things. anything that shows there's a pulse in these beleaguered makers. all this is leading to the possibility that amd and micron, both of which have some flashes, might be doing better, even though they're burdened with weaker commodity chips. again, we don't know which semiconductor maker of implied materials is getting flashes from. meanwhile, qualcomm gave a bullish interview this weekend. emphasizing excellence for the new chip set. along with the resolution of their chinese licensing disputes. very visible positive story, it's been down for ages.
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then this morning, they upgraded microsoft. saying the company's cloud base initiative and the utility that is windows seemed to be better. it's incredibly important for tech. microsoft was a major driver of the decline in the tech complex after it reported a sub optimal quarter a month ago. where they weren't transitioning fast enough. microsoft might be back to leading this group higher again. >> we learned midday, zylinx received a buyout. can you imagine what would happen if we see the ink on that one? hewlett-packard enterprises announced a good quarter, said it was merging its enterprise service segment with the csc. right out of the blue. a lightning bolt. let's see. along with cisco hot for networking. applied materials. apple may be doing more units
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out there. qualcomm talking good. western digital breakaway. microsoft. possible takeover for zylinx. that sure sounds like a legitimate reason for the largest group in the s&p 500 to rally. there's tons of groups moving today. the leader right now is tech, when tech's at the vanguard, the market can give you a powerful and lasting move higher. paul in utah. paul. >> glad you got your voice back. >> i was scratchy. i feel like it was nails on a blackboard. >> much better next week. my question is about alcoa aluminum. creating a new company, will that company then be come an ipo and trade on the nyse. >> they're going to split the companies, it's going to be terrific.
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aa has come down. it's traded -- the upgrade yesterday was really good. they talked about the idea that it's more core lative. i suggest you read the piece, you buy the stock. john in florida. >> caller: thank you for taking my call. >> my pleasure. >> caller: i'm calling about eaten corp. i know they're going to have a management change shortly. i'm interested in your take on that, they have, it's pretty much been dead money for a while. >> is it ever. >> cut was wining all the time about the dollar this, the dollar that. >> the acquisitions they've made, they can't seem to asimulate anything. what are your thoughts on it? >> it does have a decent 4% yield. it's -- let's put it this way, it's no honey well, if you want to be in similar industries, you buy the stock of honey well, remember that song, and the no rally like a tech led rally? because a tech led rally don't stop?
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whatever. it could continue on mad money tonight. back up to $48 and change. i'm revisiting the stocks in the patch that have been roaring. what does steph curry have to do with the stock market? i'll reveal if the unanimous mvm could give your portfolio game. >> the zika virus has been around for decades, the race to find a cure is on. and research companies like -- i'm not going to tell you. that's a bad tease. thermo fisher are being put under the micro scope. i got the exclusive with the ceo, you're not going to want to miss this, i suggest you stick with kranler.
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pg&e, this is jerris, how may i help you today? i help customers with their bills. there's different rates to fit different needs, so listening is a huge part of my job. because customers want to know that you hear them. they have kids, they have families, they have priorities. i definitely understand that. i have three children, i was a stay at home mom, i didn't have money to pay the bills, and so i put myself in their shoes. and i'm going to do all that i can to lower their bills and to help their situation. to choose the rate plan that works best for your family, visit together, we're building a better california. ever since the price of oil
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plumbeted, i've been say we could increase supply here and in china. now it's back up to 48 and change. i think we have to revisit the stocks that have been roaring. we can't count on them to continue much lift. we're going off the charts with the help of robert marino. my colleague at real as well as being the publisher of right get a sense of what's happening with all the oil just a couple wreaks off the bottom, he looked at these charts and made some bullish, very against the grain predictions. exxon chevron and schlumberger were all poised to rocket higher. i have to tell you, it was the most anti-consensus call.
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marino's analysis made them positive. he totally nailed it. now that all these stocks have run, along with the price of i'll. what's the view of the group. three months ago when the oil co hort was down and out, he turned out to be right. up here, different view. in fact at this point, they believe the rally is overdone. even the best names of the group may be in for a pull back or a pause. why don't we start with the daily chart of exxon. the big dog. rallied nearly 11% from three months ago. as he has less confidence in exxon. they recently broke out above it's 200 day moving average. can you see that. on top of that, mack d. indicator had made a bullish cross-over. an incredibly reliable positive
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signal where the black line crosses above the red line. fast forward today looking at a different chart. they know the mack d line and the taking money flow oscillator which measures the buying and selling pressure remain in positive territory, they have flattened out. you look at the peek and the low. the stock price is pushing against the line it separates it from the uppermost quadrant. this is an important reference point. every time exxon has hit one of these dotted blue quadrant lines, that's the dotted blue line. the stock has tended to trade sideways for now. spent the next six odd weeks marking time. you look at the percentage price oscillator. exxon is currently trading at 10% premium. to its 200 in the average. the stock rarely gets that far
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ahead without getting weak. the last time we saw a pleem yum like this was december of 2013 put it all together, they believe marino is do for a pull back. >> when we last spoke to marino, he told us chevron was the best of the major oils. since then it's giving you an amazing 18% gain. how about chevron's chart. we checked in with marino late february he said that as long as the stock could hold above the key at $83. and break down above its trend at 89. we could catch a magnificent rally. marino worries it's running out of steam. 61.8% trace from the decline. this is one of those crucial levels. where stock trajectory often
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changes. sure enough, chevron has been trading sideways since then. marine know points out that the mac d -- they've been going lower. that's called a bearish divergence. it's not a good sign. the stocks are trading a 9% premium. the biggest premium we've seen in 2014. chevron could get slammed if the stock breaks down below the $98 level it's been supporting for the last month. sell chevron. how about pioneer natural resources. that's that big independent exploration company. this one you caught, i don't kid you, a 36% gain. back then marino could see you break out at 126. the sky would be the limit. that's what he said. the breakout in early march. since then the stock is moving
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up in a straight line. look at this call he made at least a few weeks ago. they're facing a ceiling of resistance around 168. that's a 50% detracement from the decline. the mack d and the taken money flow, they're declining. it's obvious, right? for the last three weeks, the stocks stalled out merino knows the stred line is still in tact. the pioneer came clear. 168, pulled back and consolidate finally there's schlumberger. this is the all service king pin merino was positive three months ago. before giving back most of those gains and seeking to 75 today. schlumberger looked poised toll
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roar higher. thanks to a bullish inverse head and shoulders pattern. the formation has played out. >> the stock has made a head and shoulders pattern look at that. that's like a person's head between two shoulders. one of the most negatively inflations in stock. the chart is a lot less positive than when we went over it before. the charge is interpreted by bob marino. they predicted a magnificent run he nailed this thing over three months ago. the group can be due for a near term pull back, we have to take them seriously. even the oils have much more room to run. remember, nobody ever got hurt. taking a profit. much more mad money. game four of the conference finals tonight 37 what do the
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thunder have to do with your portfolio. it's a company that's instrumental in helping biotechs for drugs. don't miss my take. how could a producer of natural gas and kolb up in 2016? the reason for its rise is just ahead. why don't you stick with kramer.
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what happens if the golden state warriors lose in the playoffs. in a moment of intense pain and anguish as they try to figure out the stock valuations. i find myself wonder iing what would happen to steph curry. the man who wears the hottest basketball sneaker on earth, the
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underarmor shoe. doesn't actually make it to the finals. what happens if kevin durant. russell westbrook and the oklahoma city thunder end up beating oklahoma state opinion would underarmor stock get hammered. if the valuation of a company stock is determined by whether a team wins and loses count me out. that's way too many variables. that in a nutshell is how i feel right now. about footwear apparel. while opportunities may abound, this group has become too hard to figure out. think about it, nike reported a lower quarter, underarmor had lots of resistance.
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foot locker reported a quarter they may have liked, but they're the only ones that did. >> there was an alice and wonderland feel to it. i found myself thinking, maybe i'm nuts, but how bad this number is versus what i was expecting. maybe i should ask alice when she's 10 feet tall, whether she would buy jordans or kobes or currys, or something from aidid as which which is making a comeback. the short sellers are climbing all over this group. yesterday, with so many people wondering why the stock of underarmor was weak, i said that's it, i went down to t.j. max and took pictures of the reminder of underarmor sox they had. the problem is, there have always been remaindered stocks in those racks.
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while we're at it the richest deal in college sports history. underarmor signed a contract with ucla, valued at $280 million, the deal used to belong to adidas. is that good? is it bad? is it too much? is it too little? who knows? what's really going on now? i think they've gone into show me mode. we need some clean quarters from all these players. and the bar has been raised not lowered by all this various negative chatter. as matthew boss put it, when writing about foot locker, three pointers and layups now required if the second half is going to produce upside. we have too admit that nike is having so much success. we don't know. maybe it doesn't matter if curry wins. underarmor is transitioning to a
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health and wellness company. any foot locker isn't being mauled with the mall. whatever, if you don't think a long term view on these companies, you're going to drive yourself crazy. they can't be judged short term. there are too many variables. too many shareholders are itching to run. best to buy the shoes, wear them, stay in shape. and wait until the company starts scoring three-pointers before you buy any of them. cameron in florida. cameron. >> boo ya, professor kramer. >> i'm in my 30s and i work for macys, like many businesses, macys does not offer a variety of 401(k) options. these low levels and a great yield, should i start buying some add in my 401(k)? >> you should diversify away. i think they have a good
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dividend. i like to think the cashflow will be no problem going longer term. don't double down here. i keep thinking of my patients, if they had had stock in gimbles. no, don't want to do it. jim in new york. jim? >> beau ya, jim. >> caller: i'm asking about coors. in 2013 i purchase d shares of coors. it went up $75 a share. and as of march this year the 11th, it was 58-50 and down to 41-86. i want to know which road to chose. >> i don't want you in coors. it can have a bounce it's too hard. we're staying away from hard stocks. i want jimmy in new york, jimmy? >> thanks for taking my call. >> of course.
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>> jimmy? jimmy in new york. jim my? >> following the stocks in the $40 range. i just recently bought in between 8 and $9 a share. >> let's start that again. >> give me your question again. >> okay. my question is, regarding go pro. >> go pro? >> i've been following the stocks since the $40 range. and i recently just bought in between 8 and $9 a share. i feel like i'm in a great spot right now. i want you to elaborate on that, the deal was red bull, and the future of drones with go pro. almost everybody was neutral. go pro's down low enough that it could bounce like that. doi want to own the dock? i want to trade it and trade out of it as rallies. underarmor, nike and foot
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locker. it's not four quarters, you have to be ready for a long season with these stocks and these socks. in the end they could be champions. much more mad money. can they are mow fisher boost your portfolio. could console energies lazarus like resurrection signal it's time to buy? all your calls, rapid fire, very special edition of the lightning round. stick with kramer. ♪
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less than a buck away from its all time highs. you can follow along -- thermal fisher had higher than anticipated full year guidance. plus the stock trades at 17 times next year's earning estimates. that's cheap. don't take it from me. the presidency of thermo scientific. >> you guys are doing some of the most amazing science in the world right now. you recently had a deal for metrics, where does that fit in your portfolio. >> a big part of our offering is in the area of genomics. to enable the world to be a healthier place. they fit right into that complimenting our next generation of sequence of
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products. >> we talk to people who are your business. we have a company called synovia. they couldn't do it without thermo fisher. you're more of a partner. >> our mission is really to enable our customers to make the world healthier, cleaner and safer. in the case of synvinio. we provide the sequencers, for the liquid biopsy approach. you're looking to be able to screen whether somebody has cancer or not. it's one of the real big breakthroughs going on. you. >> think this can happen? >> i do. i think it's one of these things where the technology is getting better and better. and with the right partnerships, we're seeing great progress in the medical. >> is there a possibility you can do zika? >> zika is another area where we're partnering with the public health organizations around the world. our technologies are being used to develop a test for the zika
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virus. >> an actual test? i know a lot of people could have it and don't know it. you think they could nail it down? >> we're doing it in the trial process, it has to go through the strict regulatory process. it's in development to work with those organizations. >> i don't want to get hopes up. do you think within the next couple years something good could happen here? >> i think there's great research going on in the field. i really do. >> that's fabulous. we've been doing zika stuff for months now. my doctor is saying this one is for real. >> i have to hope for the best here. strong markets. almost no one in this world says china's strong. booming. >> china is a great example of the advantage of scale. thermal fisher is the largest of the life science tools. in china, we have over 4,000
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colleagues working with our customers. the way i like to think about it, we give a developed market experience. and for china, second largest country for us after the u.s., 7% of our revenue, averaged over 25% growth since 2010. a great market. recently janney montgomery comes out and says, to thine self be true. who is tmo buying with $12 million? is that the right way to look at it? i figure you do what's right for shareholders at any given moment. >> we look at the future, we have a proven capital deployment strategy. we've been in aggressive returner to our shareholders. we've repurchased a billion dollars worth of our stock, we think it's very attractive. at the same time, won't active on the m & a front. our viewers will deploy about $12 billion while creating value
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for our customers and shareholders. >> the stock went down after a fabulous quarter. now told the subscribers, even though you're doing that, you have the highest r&d spend. >> we always start by -- we bring out products like the test for zika or the next oncology test we are ensuring we have a bright future. >> let's talk about the growth, you've been using 3 to 5%. what happened? >> ye, so the end markets have been good and our proven growth strategy continues to work. as i look at our growth outlook when we were with our shareholders last week. 4 to 6% is the growth rate for the top line, and that will translate into 12 to 15% earnings per share growth over the next few years. >> i said, well, geez, if there
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are no biotech ipo's, will thermo fisher be hurt? >> we serve every biotech company, also every academic lab around the world as well as industry. the funding in biotech is still good. planning cash on the balance sheets, they're doing good science. >> you don't have to worry -- lumina ge, very good competitors? >> we continue to gain share and we respect the competition out there as well. >> what a good story. >> that's mark cass -- big day from the analysts if you want to learn more. ♪ [crowd cheering] i could get used to this. now you can.
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it is time -- it's time for the lightning round. and then the lightning round is over. are you ready? it's time for the lightning round. joe in carolina. joe. >> what's the outlook for taser. >> i have liked taser for ages, and i reiterate i still like it.
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i know it flu up and came back down. how about chris in new york? >> i need dividend income. i wonder what you thought of communication sales and leasing. >> it makes me worry it shouldn't be a red flag situation. they shouldn't be that big. you want to come on and talk about it fine, it's not my cup of tea. >> how are you doing? >> the stock is alex ya pharmaceuticals. >> a lot of people like this stock the bare market in biotech is over, it will roar, it's always been considered an attractive takeover target. steve in florida, steve. >> after the huge runup, should i wait for a pull back? >> i cannot count as buying an all time high when we have janet
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yellin speaking friday. why don't we go to don in new jersey. don? >> hi, jim, how are you? >> i'm good, how are you? >> my impression before srpt. >> yes, it's a battleground stock. we don't know what's going to happen with this one. i'm thinking they're going to get approval. and that's how i feel. i don't have enough background that's what i feel. let's go to mike in texas, mike. >> howdy jim, and boo-yah. i've been looking at cmre. saw a couple buy ratings, it looks like the liquidity is too hot. >> you need that freight moving up. you don't have it. that's an oil tanker. >> how about josh in nevada, josh? >> boo-yay kramer. >> what's happening?
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>> looking at swhd. >> i love swimming and wesson. it spikes, an unfortunate incident. i say sell it, when it comes back down, i tell people to buy it. israel in new york, israel? >> hello, mr. kramer. >> how are you? >> okay. can you tell me a little bit about the roller coaster of -- >> i understand there are multiple suitors for this company. where there is smoke, there is fire. buzzi in maryland, buzzi. >> yeah. big boo ya to you, jim. >> what's happening? >> calling from the land of the baltimore ravens, baby. >> i bought in delta around 49. should i sell, hold or. >> remember we don't care where it's coming from, where care where it's going to. i would be a buyer of delta about that is the conclusion of the lightning round opinion.
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sometimes a down and out stock will rebound so hard it takes your breath away. that's how i feel about the miraculous. lazarus resurrection of consol energy. two commodities that were crushed through the summer of 2014 through this past january. i wasn't surprised when the console stock lost 90% of its value over that same 18 month period? man. what's shocking is how consol has managed to rebound over the past four months. the stock has triple d.
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after this market resurgence. i have to ask myself if the rally in consol can continue. is this merely an over reaction and it's done many consol energy is a pittsburgh based coal company that started over 150 years ago. when this old coal minor acquired old dominion and appalachia. they paid top dollar there. a couple months later, they stocked the remaining shares of cnx gas. with these two deals, consol transformed itself to a multifuel play on natural gas. despite all the efforts these guys put in to diversify away from coal, having natural gas didn't really cure the
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situation. after that stock went into a free fall. down to 4.54 cents at the bottom this past january. consol was annihilated. production in the u.s. seemed to be winding down heavily. even though the company had been moving aggressively into the natural gas business when 2014 began. consol was getting 50% of their sales. >> the bankruptcies in the cole business, let's take them off. james river cole and even peabody energy. they all filed for bankruptcy. look at it this way. the combined market capitalization plunged from just under 70 billion in 2011, down
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to merely 4 billion this january. that's unbelievable. >> the 90% decline in consol stock was pretty much par for the course. they managed to do better than any of their competitors. because the company remains sol vent. at the end of the day, it was consol's decision to diversify, it saved them from the fate of the other major coal players. when coal collapsed went critical. natural gas is coming too. the price of natural gas was cut in half. roughly 4.50 per million british thermal units, down to around $2 btu ace at the beginning of the year. even though that gas business was better than the cole business, it was pretty terrible. that makes con sol's recent comeback all the more remarkable. what has allowed the stock to rocket up to $13.98 as of today?
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first of all, we've seen some modest rebounds in the price of coal and gas. consol started coming back from the dead in january. higher than expected revenue, aggressive cost cuts and a lower capital expenditure budget. they gave a seat to the ceo of southeast asset advisers. an ago continuist hedge fund. and another seat to david einhorn's green like capitol. also a major shareholder. they were preened to take drastic action to unlock value. the supreme court temporary blocked the epa's coal power plant, giving a boost to the entire industry. at the very end of february, consol announced it was selling
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a coal mine in west virginia for $40 million. given that consol already slashed its payout from 25 cents to 4 cents, no one was owning the stock for yield. >> they were doing everything they could to shore up the balance sheet. coupled with the dividend suspension, was enough to take the possibility of bankruptcy off the table. which is why the stock managed to rally. in short, consol went from looking like another goner in the coal industry to seeming like a company that could stay solvent. lately, though, it's been climbing because business has actually gotten better. when consol energy reported at the end of april. they posted a big revenue miss. they saw the results of some major cost cuts and the stocks shot up above $15 the next day. where do i think? where do i stand right now? well, first of all, i think that
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consol's management deserves to be commended for keeping their company above water, during a period where virtually everyone else in the cole space went under. congratulations. the recent rebound on the stock makes perfect sense. consol thought ahead and realized the obama administration was aiming to put the coal energy out of existence. it's really tough for me to come out here and recommend consol, going-forward, the stock's already tripled over the last four months. it's not just the share prices run, it's a ton of political uncertainty. and there's power here. the trump administration would be more favorable to coal. do you want to play the electoral version of russian roulette here? consol is a little difficult to value without earnings, you can't get a price. the people running con soul
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energy have done an amazing job of steering their company. the time to buy the stock was four months ago not now. let it go. but congratulate management for pulling it off. stick with kramer. olay regenerist renews from within...
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i would be remess if i didn't cover the action. facebook looked really good today, amazon is on the comeback, netflix has been the biggest under performer in the group. it's really starting to percolate. google has come all the way back from where it was before the dollar started to get strong. i think that's hopeful. remember, it's a gigantic tech rally, and frankly, it just started. i'm jim cramer, and i will see you tomorrow.
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male announcer: this week on undercover boss, the ceo of yankee candle, the world's largest candle manufacturer, poses as an out-of-work chef looking to learn about the retail business. - i'm dan. - you're the guy, huh? - i'm the guy. should i put on my apron? - definitely put on your apron. - cool. - [laughs] announcer: by working on the front lines, this high-powered perfectionist will see what it's really like to burn the candle at both ends. - [laughs] - sorry about that. time to make the candles. [clank] oh, man. - that's the last thing we need, is customers to get hurt-- smashed jars. - the biggest pain, you know, kids are gonna get messy. announcer: but what will happen when he learns that not all of his employees share the same enthusiasm for their jobs as he does?


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