Skip to main content

tv   Mad Money  CNBC  May 31, 2018 6:00pm-7:00pm EDT

6:00 pm
buy mexico >> that's the theme. >> i'm long the wall no, i'm kidding. you see what i did there >> i'm melissa lee thanks for watching. see tomorrow "mad money" starts right now my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to then 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 save you some money my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer when it comes to trade wars, you need to understand that there's not just two economies, there's now three. that's the best way to get your
6:01 pm
head around how there could be such a disparity in the stock market today with the dow plunging 252 points, s&p plummeting 0.69%, the nasdaq barely blinked down 2.7% we have the domestic economy and that will not be hurt that much by tariffs and it's overrepresented in the nasdaq. we've got the international economy which is genuinely at risk and is overweighted in the dow and s&p. >> house of pain. >> and then we have technology the technology stocks which seem like they would be relatively unscathed by the retaliation we got to expect from the countries president trump hit with aluminum and steel tariffs today's decision to hit even our allies with those tariffs which are meant to combat the effect of chinese dumping on the global market rocked a lot of stocks. now, this actually makes sense
6:02 pm
you hit a country with tariffs they're going to hit back. that's what they do. they don't just take it lying down come midnight their steel exp t exports hit by a that% duty. now, this came as a surprise because these countries are our allies and we have free trade treaties with them the administration has been debating whether to make their exemptions permanent but didn't pan out. our stock market got hammered when our president first rolled these out. stands to reason we roll back the gains now that they're going away and industrials are the most obvious targets for retaliation. again, our bank stocks got hit because of the reduction this world trade will produce less commerce, something the banks need for more business i have written about how it made no sense for our market to get slammed by this latest crisis in
6:03 pm
italy even though as i heard and read people over and over again tell me to really worry about it i wasn't they have a new government but that's not the point the u.s. economy has little to do with italy and probably end up generating more business for our banks. tariffs are the opposite okay, they very much matter to our economy and they are worrisome. if you're fretting about tariffs, then i have to tell you you're being rational. i understand it's not a policy question if you support the tariffs as i do, the fact is they're going to impede trade that's just plain bad for stocks except the steelmakers why does anyone support them because some industries are essential like the steel industry and for a variety of reasons they need to be protected because of defense especially when countries like china subsidize their own steel producers making it difficult for anyone else to compete even our best companies and that's why the banks and
6:04 pm
industrials are getting hit. one part of the equation we know domestic stocks have been strong. retailers more on those later. the professional service entities that support businesses, if their stocks are in the s&p 500 they may have gotten slammed but i bet they bounce back pretty fast by tomorrow afternoon this domestic international dichotomy plays every time policy takes center stage. always has this time there's both new and, frankly, i have to tell you astonishing. technology stocks tethered to the cloud and internet are going higher, not lower. as if investors have decided their wares won't be retaliated against or maybe they're too of import to make it happen because of those rules they're acting incredibly well the performances are stark first alphabet and facebook. the europeans put through new
6:05 pm
privacy rules and they require the reader to see ads online you can't trust smaller sites who happen to compete with the companies in google's vetted marketplace and can't link to sites that don't comply so to google, facebook is an analogous situation. the big guys figured it out and know how to comply this is probably the last thing the european regulators want to have happen but have given web web companies a huge break and there are no tariffs to be found on google or facebook. huge wins for these stocks then there are companies that are involved in on boarding enterprises to the cloud, you know we talk them about, cloud kings, remember salesforce the other day. adobe, red hat, vmware which reported an incredibly strong quarter. that said i don't want to be too glib about the positives canada right out of the gate said it would retaliate against
6:06 pm
the u.s. dollar for dollar canada is our friend true i expect europe to do the same thing. american exporters will see numbers cut as goods will no longer be competitive and it will hurt. our president swaps wide-ranging tariffs they a price increase on everyone who consumes steel or aluminum so more number cuts for them too i want to make something real clear. the tariffs that just came down aren't big we as consumers will barely notice the cost. that's true. wilbur ross is right but once you start a tit for tat trade, that's what we worry about trying to make up for pool policies he believes hurt the american people, the president said it's a little more complicated many benefited from free trade while others have been hurt. if you care about consumers paying less for goods in the
6:07 pm
aggregate then you're against tariffs and make it more expensive. if you work in industries that have been destroyed in part by government subsidized foreign competition as was the case with my late father's business, well, then you're pro tariff the former group is a lot bigger than the latter so obviously the market will go down on the news not up but forget about the aggregate. this is "mad money," not mad trade. if you want to profit from the news because that's why you come to the show talking about the future, not the past, the single biggest beneficiary in the whole country from this tariff is a company that you know well from watching the show and that's nucor, the nation's largest steel producer for years china has depressed the price of steel by subsidizing it, its own producers and then glutting the world with excess supply that ends up here nucor has done everything it can to lower the cost of its raw product. it's the most efficient
6:08 pm
steelmaker on earth but even after that, there's still no level playing field because the chinese government subsidizes its own steelmakers as a make work program destroying the profit margins of nucor and keep them the way they can't hire more people and in the same world we sub sigh diezed nucor right back and congress wouldn't authorize that if the president warrants to protect our industry these tariffs are the best thing to do yet the stock was barely up and that's insane. my travel trust owns it and telling owners nucor, buy it all the way down it's the winner. bottom line, whatever else president trump's tariff decision means i think you're given a gift and buy the stock of the one real corporate winner, 499 basic losers unless you count u.s. steel so winner is nucor i suggest you take it before someone else does. ann in new york. ann. >> caller: jim, boo-yah.
6:09 pm
>> boo-yah, ann. >> caller: calling about gilead sciences, long-term holder they had news, 10 million, approved in china. what's your thought? >> gilead is what we call dead money. it's 67 bucks. is it cheap? they got a lot of capital. i cannot think -- i can't think of a reason to buy it. i can't. selling at 67 seems wrong but i have no catalyst to buy the stock. what can i say i want to go to bob in texas bob. >> caller: jim cramer, how are you? >> having a fine day how about you, bob >> caller: hey, jim, if i was doing any better, god would be jealous. >> whoo. now, that is a statement and a half, my friend. >> caller: listen, jim, my question is about las vegas and dell vf, earnings have been good and dividend has been over 20% and overseas business has been a
6:10 pm
cash macaw so to speak with the potential of gambling being negotiated in brazil is it a good long-term plame. >> lvs, the problem with it, the industry is rife with good managers although steve wynn was the best manager i've ever seen. mgm is great and would hold on to lvs and, yes, you can buy it. that good a company even up here at by the way its 52-week high when it comes to tariffs three economy, yeah, there's international, there's domestic and there's tech and, by the way, what do you want to buy who is the winner in the s&p 500, it's nucor. "mad money" tonight, knew tso it time to circle back? i have the exclusive 3m has been one heck of a sticky situation but pitting the bulls with the bears to tell you where i stand. and from gaming, this company
6:11 pm
has hot properties in its portfolio and a nice yield i'm sitting down with the ceo of vicci properties so stick with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter if you have a question, tweet him at #madtweets. send an e-mail to or give us a call at 1-800-743-cnbc miss something, head to ♪
6:12 pm
how do you know you made the right call... just do. the light beer you've been waiting for has arrived. lower carbs. lower calories. higher expectations. corona premier. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at
6:13 pm
hey, want thedone.est internet? save up to 15% when you book early and now, xfinity mobile is included. you can get up to five lines. you can save 400 bucks or more a year, which you can spend on a funk-tastic music video.
6:14 pm
♪ dance party boom. ♪ simple. easy. awesome. come see how you can save $400 or more a year with xfinity mobile. plus, ask how to keep your current phone. visit your local xfinity store today. i talk point endless rise of cloudless computing. there is a lot more to the story. they use hybrid infrastructure where they use some old-fashioned on premise software and private cloud solutions and public cloud networks have a hodgepodge information technology to put it politely which brings me to nutanix it's a company that deals in hyper converged system, plain english nutanix has a cloud
6:15 pm
platform that combines them all, storage and virtualization into a single package allowing clients to run servers more cheaply and more efficiently with this you can roll out new technology a lot more quickly. for the last year nutanix has been on fire and nearly tripled but stock has cooled a bit when they reported last week better than expected revenues up 41% yore over year but gave us a wider than anticipated earn lgz loss and while management raised their sales forecast they lowered their hiring forecast. stock industry got hit on the news since then it made up most of its losses makes sense to me. as far as i'm concerned hard to punish them for spending money when they're rolling stock is up 51% for the year let's check in with the co-founder, chairman and ceo of nutanix. has a better sense of how the great company is doing
6:16 pm
welcome back to "mad money." >> thank you, jim. >> you guys are doing so well. i downloaded -- i get pushed a lot of stuff by you and the only reason i understand it, a little hard to understand explain to people the idea that your mission is to make infrastructure invisible because it's a constant theme in what i read about you guys. >> yeah, i think it's got through modernization and the last was more than ten years ago with this add vent of software and with that came sprawl and inefficiencies that's how nutanix was born. when you look toward the inefficiencies with a lot of computing sprawl that is going on so we had to rearchitect everything for the world of hyper inversion infrastructure came about going forward there is another
6:17 pm
modernization about to happen with the cloud and that's another opportunity for us to really go and improve efficiency and reduce the sprawling cloud people are thinking about what does it mean to go towards cloud. there's a huge issue of cost governance and security compliance that in this world nutanix will solve so act one was we modernized infrastructure first time ten years ago, act two is starting as we talk about hyper convergence of clouds and hyper convergence of boxes which is what we did in the last eight years. >> big fan of mware and nutanix. you do go at it. enough business for everybody? >> yeah, there's enough business for everybody. obviously we are taking a different design point more about consumer grade infrastructure and saying what does it mean to uplevel the consumption rather than thinking about specialists, can we have cloud generalists go and manage
6:18 pm
the clau the cloud so it's really about bringing an apple and amazon simplicity and e-commerce like consumption model to infrastructure itself and that is a level playing field when it comes to the public cloud. >> we hear executives come on in your position and say we have a land and expand philosophy then i hear nothing about how they expand you guys have done remarkable once you're in, haven't you? oh, yeah, absolutely you look at our customers like jetblue and amgen and northern trust, many of these companies really started small because that's the essence of cloud is to start small and pay as you grow and we bring thaw kind of a consumption model and you see us do it. in fact, there's not just about consumption but how do you make it delightful for developers you know, home depot is one of our customers and recently
6:19 pm
started doing a lot with us and recently wonnen award at our conference and to building containers and the next generation of compute technology on nutanix it several. >> it's a festival that conference we said it was standing room only, anthony bourdain what does it do for your brand recognition? >> well, i think the biggest power of the conference is really about the power of social proof and customers talk to customers when they -- when prospects talk to customers and partners talk to customers, i think that's where yousee the ground swell appear and there is a movement around nutanix right now that i feel really good about. in fact, you it is very unique because they're a pure play cloud company and stodgy hardware companies and the last generation virtualization software championship and here we are talking about a new design point of blowing the lines but owning computing and renting computing and a lot of it is about how do you make it radically simple for a customer
6:20 pm
so people love it when they share the notes and success story and we learn a lot the company, they are all about constant learning and evolution. we learn a lot about what's going on with cloud itself there's a massive sprawl and wastage. people don't understand security and that's how a lot of our new sort of product ideas come about in this conference. >> terrific. i know people should go and download it. click on the ad and click on the website. you have good graphics i can see why you say it's delightful you do a lot of teaching that's dheeraj pandey. thanks so much good to talk to you. >> pleasure. >> "mad money" back after this
6:21 pm
- i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
6:22 pm
when a once beloved stock
6:23 pm
gets put through the meat grinder we ask ourselves if we're dealing with a broken stock or perhaps something much worse. a broken company if the underlying business is fine, a broken stock can bounce back no problem but if the business itself is broken, well, then let's discuss say it deserves to be in the meat grinder and it's a different story. so how do you tell the difference i want to you consider the case of 3m. that's the big diversified conglomerate that we own for my charitable trust here's a company that's a longtime cramer fave for years they worked hard thanks to the their leadership and powerhouse of innovation and rolling out new products against different markets, safety, graphics, health care, energy and the kind of consumer products they're best known for like post-it notes and the extreme ones you have to put on your head when you do something like i did buy it much higher.
6:24 pm
when it started tanking, we decided to start building a position in it from for our charitable trust i believed in the company's ability to drive numbers that would get its share bryce roaring again. it kept getting slammed and slammed and i can't blame anyone for worrying that 3m might be starting to look like a broken company. what happened? first the bank's ceo is set to step down as chief executive and staying on as executive chairman but the chief operating officer is taking over as the next ceo a real issue and we can't afford to be too dmrib about it it's an international company and do a ton of business in china. a lot of their growth so when the president started cracking down on trade people freak out and dump this stock almost as much as they do, say caterpillar. today's tariff announcements leave 3m open. third, the last quarter was widely considered a disappointment but this is a big but. the company is still doing okay.
6:25 pm
the decline in the stock is down 24% from its highs shedding $40 billion worth of market capitalization to me it seems excessive so is it a broken tock or broken company? is it something that can bounce back or are there real reasons why it deserves to go lower and i'm wearing it you know what, it actually depends on who you ask the thing about 3m it's become a pretty controversial stock and that's not the norm for this amazing company. but before we get into the bull/bear battlefield we need to talk about why it's been owe split rated. it started with the marketwide breakdown which requires no explanation whatsoever then it march we got the one/two punch that was the original and the leadership transition. the real problem with the tariffs from 3m's perspective. less they can cost money although they do and more than investors are worried about what a larger scale trade war could do to the business with 3m getting less than 40% of its sales could be a real
6:26 pm
problem. on top of that the ceo will step down i can't hide it. it will make the bull case weaker to make matters worse, in late march 3m warned investors its local sales growth would come in at the low end he told us while january and february were strong they saw real weakness in march across a number of their industrial business line, not the kind of thing that makes the market happy. now, fast forward to late april and 3m reported and while the headline results were okay, a top line beat with one penny earnings, the or bannic local earnings was worse than the company's warning a month before up 2.8% and they shaded down the high end of full year guidance because of rising raw costs and slightly slower growth it's been slammed and languishing in the 190s for the past couple of weeks what do we do? let's start by entertaining this
6:27 pm
bear thesis. because right now the bears are ak asce asce ascendent in the stock jpmorgan's industrial analyst told them to sell it and like autos and electronics as well as in china while he was early with that call missing out on a big run from 210 to 259 the last quarter saw a softening. his thesis, more risks here than most investors were willing to recognize. he thinks it's sensitive to a bunch of cyclical markets which means numbers could deteriorate more rapidly than many expect. still even this uber bear only has a $190 price target. that's 6 bucks more than it's currently trading. remember, though, he told people to sell ge nine ways to sunday when it was at $28 and that was
6:28 pm
a pretty great call given that it's been cut in half. plus, i got to -- the guy has character and panache. okay, earlier this month rbc dap tall -- capital upgraded them and more important given the way it's traded they argued it had come down too far too fast where it's too cheap to ignore this morning we got another note after they met with 3m's financial officer. let me read you a snippet. i thought this was important and pulls the bull case in front of the bear case. management remains upbeat about its growth levers, pricing power and capital allocation with buybacks and m & a and predict they will have a $4 billion buyback. rbc continues, we did not hear any new worries crop up. on the contrary the underlying
6:29 pm
macro means favorable, end quote. where do i come down 3m is a well run company doing a great job of improving itself. if you think the global economy is going to run into a wall, or you think the recent softness is in a few of their business lines including those related to auto will spread to other parts i can understand hating the stock. it was at 250, 220, 230 but, you know, $197, no at these levels 3m's stock is selling at 17.5 earning estimates virtually in line on average with the other large cap diversified industrials except unlike that 3m has more exposure to health care and let's just -- let's be honest. 3m is a much better run company than almost all the other average companies that sell. it's almost insulting to lump it in with the bottom line. look, we blew it which is why i'm wearing the post-it. that's what i remember you wear the post i have it when
6:30 pm
you have the stock wrong and wear it all day around the block. i got it wrong, okay bought it too early for the charitable trust at the end of february big mistake before we found out he is retiring and the business turned soft the next month i thought we were getting a rare buying opportunity instead we were staring down the barrel of a much larger pullback at these levels it's too late to sell the darn thing is just too cheap. the stock has been after the recent decline -- if you believe it was a temporary blip it could be terrific when they get their act together if you want to dump it i believe you'll get a better chance to sell no matter what. i can't believe i'm wearing the post i have it for the company that makes post-its. jeff in pennsylvania, jeff >> caller: hey, jim. great to talk to you. >> same. >> caller: hey, very interested in boeing. i got a little dry powder. should i wait for a pullback after the recent run-up or just jump in now and go for it?
6:31 pm
>> saw dennis today. he was at the and a terrific interview he did with the editor in chief. my take, i think you buy some 3m now and later. let me make it clear i want to be clear about this, china needs 3m -- china needs boeing more than boeing needs 3m -- 3m 3m on my mind. boeing has a lot of business they don't need the china orders china needs boeing so my take is if you're selling boeing stock because you're worried about china, you're making a big mistake the chinese are not going to cut their nose off to spite their face and i am talking about 3m now. 3m on the other hand, well, i don't know i think it's finally time to buy but then again you could say i said much higher with boeing i did say boeing much lower to buy. all right, let's go to brian in florida. brian. >> caller: hey, jim. thanks for having me on your show >> not a problem. >> caller: in the last couple of
6:32 pm
months u.s. concrete reported earnings and spruce account capital released the call to short the company, 60% to 90% downside does u.s. concrete's rapid expansion by acquisition and large debt concern you and how do you feel about the short call by spruce? >> look, it's a thought out short call i happen to like u.s. concrete but we didn't get the big infrastructure bill and i liked it for that so i mean until you get that i think you have to mark time but, boy, i think if you think this company is not -- it did have some accounting issues and cleared that up the stock is down a great deal but you need the infrastructure bill to get the thing going. without it you won't get it going, period. end of story to alan in maryland. >> caller: how are you doing i have a question for you. can iep, a nasdaq listed stock maintain its $7 a share dividend given it's the largest investor in herbalite and has roughly 2%
6:33 pm
net margin >> we're dealing with icon investment properties, i have to tell you candidly i don't really know exactly what's in it that always makes it very difficult and the dividend can fluctuate. but am i ever going to go against a company that has done incredibly well and made a huge amount of moneyincluding 30% this year, no, i'm not if you want to own it, that's fine let's go back. boeing i think the chinese need boeing more than chinese needs the boeing and 3m which bought it i needed a hole in the head go check "confessions of a street addict. i'm wearing the post-it but i like it. i'm wearing the post-it. all right. listen, up 3m could be a broken tock or broken company it's gotten way too controversial. still, i like it here. all right. we're always looking for
6:34 pm
opportunities on "mad money" so tonight highlighting a new name. vicist properties and all your calls in "lightning round. so stick with cramer t propertie calls in "lightning round. so stick with cramer propertiesr calls in "lightning round. so stick with cramer >> announcer: tomorrow kick off the trading day with "squawk on the street." live from post nine at the nyse. >> what is it? i came, i saw, i vici -- >> just unbelievable you are unbelievable you can use my tuscan house. >> i can >> yeah. >> announcer: it all starts at 9:00 a.m. eastern. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business.
6:35 pm
& so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered...
6:36 pm
6:37 pm
benchmark ten-year treasuries pull back dramatically from its highs. is it an opportunity to own dividend stocks like the real estate investment trust to help answer i want to introduce you to vici properties a casino and hotel reit that owns properties in vegas and the rest of the country. after the old caesar's declared
6:38 pm
bankruptcy they spined it off as vici and this company became public regular viewers know i like the domestic casino place. how about a casino reit? this one yields appoint 4% well, when vici reported earlier the company gave us a clean top and bottom line, business is good here. so, let's take a closer look to learn more about the company's prospects? welcome to "mad money" good to see you, sir. >> we are intrigued by your company. have a seat. having been to both the caesar's properties in atlantic city and in vegas, you got some real high quality real estate. tell us how it came about because this should be multiple years that you make a lot of money from these properties. >> that's absolutely right so this came about, by virtue of a bankruptcy process that an entity that visaer's did go through and they decided to get their credit satisfied by taking
6:39 pm
the real estate of those as their consideration and put together a board and management team of which i'm now obviously part to create what we believe can be and is becoming the next great american reit built around these incomparable assets. in terms of my background i've been at beach resort operation, desert, run two hotel reits. i've never been privileged to work with assets that are as economically majestic as assets like caesars palace and las vegas and the assets we own and our great partner caesar's operates only theme parks exceed them. >> we've seen six flags and great for our viewers. jim is a friend of the show and when i used to be a hedge fund manager and has mgm as mgm tell us the differences and similarities >> well, mgp has great assets. jim runs a great company our business is built around
6:40 pm
being an independent reit. there's no overlap between board and management teams of our 110 and eventually multiple tenants and ourselves. we have -- we really like the distribution we have between las vegas and the regions and think they give us resilience and stability. >> you have diversification and it's at arm's length there's no -- you are not on the board of -- your president knows caesar's well because he came from that because we want. but we also know that you are not limited to caesar's. you have this experience tial result >> when you look at the value, lee zhuszh focused especially over the last 10 or 20 years, ian schrager recognizing where is the culture going and we think the next 10 to 20
6:41 pm
years are an awesome period for this given you have millennials who invented destination blank, whatever that is, fill in the blank and the baby boom going into semi retime and retirement having the greatest amount of leisure time and will be about the seeking of experience, not of things. >> is there anything you can do with some of the properties that -- where you maybe own the land too that's a beautiful property. >> yes. >> and they remodeled it recently it's great you just own the buildings or adjacent land. >> we own the adjacent land. with caesar's is go through an envisioning process that reimagines and refreshes the experiences. to trach one moment, i've never been exposed to operators that are as ingenius at constantly reinventing the guest experience as gaming operators are. >> totally amazing. >> now when you look at other
6:42 pm
experien experiential and golf is a terrific business, on fire would you think about doing something like that. >> we have own four golf courses. >> i saw that. aren't they part of the -- >> trs taxable reit subsidiary within our entity and we'll see how we do there i agree. there's tailwinds reviving behind this board and the golf industry deserves credit for recognizing they had issues in the experience that they're addressing to fix whether time commitment or shared difficulty. >> okay, so i wondered if that was going to bubble up from being in that subsidiary last thing is that we're quite intrigued by gambling and what it might mean, resurgence, new visitors, whatever particularly you've got heartland casino, places do you think that might be hubs of gambling >> absolutely and, you know, sports gaming we think is a positive for the entire country where it takes place we think it potentially
6:43 pm
introduces a new generation and gives them one more reason to visit. a generation that loves the shared experience. there is no rational reason to explain why hundreds of thousands of people go to las vegas in march to watch basketball games on big televisions. they do have televisions at home but it's the sharing of the experience we think is what is bringing people together and we think our regional asset versus a chance especially with stronger economy between the coast to benefit from that and offer shared experiences whether through sports betting or other experiences that make them the magnets they can be. >> all right well, look, i think it's terrific i'm glad you explained the difference between that and mgp. they are very big differences and i want people to know that ed pitoniak, owner of vici
6:44 pm
♪ (daniel jacob) for every hour that you're idling in your car, you're sending about half a gallon of gasoline up in the air. that amounts to about 10 pounds of carbon dioxide every week (malo hutson) growth is good, but when it starts impacting our quality of air and quality of life, that's a problem. so forward-thinking cities like sacramento are investing in streets that are smarter and greener. the solution was right under our feet. asphalt. to be more precise, intelligent asphalt. by embedding sensors into the pavement, as well as installing cameras on traffic lights, we will be able to analyze the flow of traffic. then that data runs across our network, and we use it to optimize the timing of lights, so that travel times are shorter. who knew asphalt could help save the environment? ♪
6:45 pm
welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at
6:46 pm
>> announcer: "lightning round" is sponsored by td ameritrade. >> it is time, time for "the lightning round," what is that >> buy, buy, buy >> play us out and then "the lightning round" is over. are you ready, skee-daddy.
6:47 pm
time for "the lightning round. let's start with joe in illinois joe. >> caller: thank you, jim. i love listening to your show. before i ask you i want to ask about american brands. i bought it when it was smith & wesson but before that ask you how did this bull -- >> i'm sorry >> caller: bull dock. >> all i know in the dick's sporting goods they actually talked about this category being so weak and just happened. charts turning up. maybe you can get out higher but i didn't like what dick's said about the group. cameron. >> caller: boo-yah, jim. >> boo-yah >> caller: how much higher is lulu is going. >> do thought trade until you listen to the call i have to listen to the call tonight. obviously the headline numbers are fabulous
6:48 pm
>> norma >> caller: okay. yes. >> you're up. >> caller: yes hello. >> hi, norma this is jim. what's up? >> caller: i want to know what's with henry shine i'm down 8%. should i take my lumps >> i don't know why the numbers have not been strong there they just have not been strong the dental category is very challenged i know that from 3m and know it. we have to find out from the source ralph in new york. ralph. >> caller: yes, how are you doing? you know, i'm talking about regeneron. it's getting very little respect. you liked it at 5:you liked it at 400 it's about 300 why don't they just go private >> no, well, more likely the scenario would be that sanofi which owns a gigantic chunk might buy them that's not what len wants to do.
6:49 pm
i think it's bottoming and the group is bottoming all that said, i know, it has been one painful ride. sanofi owns 22%. i wouldn't be shocked if they want to buy it all but have to get len's approval larry in florida larry. >> caller: boo-yah larry from singer island, florida. i try to watch your show five days a week. you have a great show. >> thank you, i have a great staff. go ahead. >> caller: you betcha. jim, i'm calling about box selling as much as 11% what happened? >> you know, this stock has been straight up. the company has been doing incredibly well. i know there's a lot of hot money in the stock and come back down can you pick some up in a couple of days. let's go to adam in florida. adam. >> caller: boo-yah, adam from miami beach. >> nice. >> caller: is it time to buy opco health? >> i don't know what to say.
6:50 pm
the buyer reference lab. is that such a bad decision to buy? i don't think so i think the stock down here just too cheap. i hope i don't have to pay for that comment and that, ladies and gentlemen, concludes "the lightning round. >> announcer: "the lightning round" is sponsored by td ameritrade td ameritrade lets you trade select securities 24 hours a day, five days a week. that's amazing. it's a pretty big deal. so i can trade all night long? ♪ ♪ all night long... is that lionel richie? let's reopen the market. mr. richie, would you ring the 24/5 bell? sure can, jim. ♪ trade 24/5, with td ameritrade. ♪ with tripadvisor, finding your perfect hotel at the lowest price... is as easy as dates, deals, done! simply enter your destination and dates... and see all the hotels for your stay! tripadvisor searches over 200 booking sites...
6:51 pm
to show you the lowest prices... so you can get the best deal on the right hotel for you. dates, deals, done! tripadvisor. visit
6:52 pm
how the heck does a stock rally 25% in one day without
6:53 pm
getting a takeover bid well, how about we ask dick's sporting goods which did just that yesterday after reporting a quarter where the company's really firing on all zillion cy. enough to get the bulls going. if you don't know them, 62 bucks and change in 2016 but then in 10 short months it plummeted to $24 as everything could go wrong did go wrong. the stock, the company, the whole category, they all went bad atonce how horrendous did it get? yesterday dick's told us same-store sales decline the by 2.5% that was considered amazing enough that the stock still rocketed up 25%. [ applause ] can you imagine what happens if the same-story sales go positive well, you don't really need to imagine because after the conference call it was pretty clear that's exactly what is coming which is why it caught fire still a buy. yesterday dick's put on a clinic and when an ailing retailer needs to do to send stock into
6:54 pm
the stratosphere in the modern day brick and mortar companies first up, this stock should never have gone up to 62 bucks to begin with. at the time investors got all bulled up about the fact that dick's principal competitor sports authority went under. they didn't just set down slowly, just bang shut kind of like what happened to toys "r" us this year and figured dick's had the category to itself. coin money, right? but what dick's really had was way too much inventory because the sports authority bankruptcy ended up flooding the channel with supply. excess inventory is the bane of a retailer's existence because it means a whole lot of sale merchandise and even losses on merchandise which few in this razor thin margin business can handle if you want to understand the enthusiasm about this latest quarter a lot boils down to what the ceo told us on the call. quote, our inventory was down and our sales were up. helped drive the margins positive and expect that to continue through the balance of the year
6:55 pm
bingo! ♪ hallelujah >> it's gotten back on track and dick's will be the biggest beneficiary. we know from the ceo of pvh came on the show last night, best moment he's ever seen for the company, i don't know, more than 20 years though wonder his stock rallied almost 3%. so dick's is part of an even larger wave of consumption, glorious consumption as pvs touches more doors than dick's does easing promotional controls or consumers are spending and dick's made fudd -- some changes. they did seem to understand christmas of 2016 which we know now was the holiday of death for most brick and mortar outlets. most begin to make purchasing decisions online now it's when it dawned on most retailers including dick's if you didn't have the lowest prices on or offline the most
6:56 pm
inventory handy when the customer wants it a superior private label offering as well as real expertise and loyalty program and amazon would destroy you. one by one over a very short period of time dick's checked every single box plus, everything to control all aspects, very smart. consider the retail and power companies thriving, tiffany's, ralph lauren kohl's, macy's, lululemon, under armour, home depot, these are companies that checked off the identical boxes. those that have only partial checks, target, walmart, lowe's still has work to do target is further along than wall street does and those that failed like jcpenney and sears, i don't see any way back retail is brutal but this christmas will be known as the resurrection of retail at least for those who recognize what went wrong pivoted and got it right like dick's.
6:57 pm
the stocks are now headed higher and should be bought any time they get hit where they rally in 20% in a day, it's great. i think that lean inventories are far more important and a much better predictor of where their stocks are headed. stick with cramer. hotel, car and activity all in one place. ♪ with a $500,000 life insurance policy. how much do you think it cost him? $100 a month? $75? $50? actually,duncan got his $500,000 for under $28 a month. less than a dollar a day. his secret? selectquote. in just minutes, a selectquote agent will comparison shop nearly a dozen highly-rated life insurance companies,
6:58 pm
and give you a choice of your five best rates. duncans wife cassie got a $750,000 policy for under $22 a month. give your family the security it needs at a price you can afford. welcome to holiday inn! thank you! ♪ ♪ wait, i have something for you! every stay is a special stay at holiday inn. save up to 15% when you book early at
6:59 pm
i want to cone great late the good people at general motors who got a gigantic cash infusion they didn't need it by the way for what is basically their cruise division which is now probably going to be valued north of $12 billion do you know this was the cheapest stock in the s&p 500 until today? what does that tell you about how value is finally coming out? i always say there's a bull market somewhere i promise to find it right here for you on "mad money. i'm jim cramer i will see you tomorrow.
7:00 pm
male announcer: america is struggling to shake off the recession. public distrust of wealthy ceos remains high. but more and more bosses are looking for radical ways to reconnect with their workforce in order to find out what's really going on in their companies. each week, we follow the boss of a major corporation as they go undercover in their own company. this week, kevin sheehan, the ceo of norwegian cruise line, one of the world's largest cruise companies, is recognized by one of his employees. - oh, my gosh. announcer: how will he complete his undercover mission?


info Stream Only

Uploaded by TV Archive on