Skip to main content

tv   Mad Money  CNBC  September 17, 2018 6:00pm-7:00pm EDT

6:00 pm
she's the best >> that was believable l >> and she has yours >> i'm sure. >> final trades. >> philip morris >> fedex >> ge. >> guy >> kroger. >> all right does it for is my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to save you some money. my job is not just to entertain but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. maybe we need to take all these worries about the tariff president trump is slapping on chinese imports, with a grain of
6:01 pm
salt even on a not so hot day today, dow lost 93 points, s&p declined nasdaq did plunge 1.43%. it makes me wonder if this trade war matters as much as many think given what is rallying versus what went down today. well, i don't know, once it got hit the least, are the ones that should be hurt the most. this session is a good barometer of what i mean the stock market is a for cast much right now the market is saying china is not what you should be worried about. the stock is the industrials and lots of the exposure of the people's republic held out fine today. honey well, caterpillar, all
6:02 pm
stocks that should have gone down and down hard if we are concerned about the tariff war you know what went down? f.a.n.g. f.a.n.g has hardly any chinese exposure let's see what it tells us united technologies is the major player united technologies is tripling in china first the elevator business third, when it comes to the aerospace business, feel any stress in that relationship. you didn't expect this stock to be performing worse than it is yes, they had veto power, the
6:03 pm
stocks trading just a couple of points away from 52-week high, that tells me wall street isn't worried about the future of industrial and china another one, emerson electric. emerson has been there forever just this summer, the company decided to build a research center in china. with we were worried about the trade war, this stock would be at or near its low instead it is a couple of cents away from its high honeywell. but you know what is not overlooked, the chinese exposure bared sites honeywell's double digit growth it makes sense to me, when ceo came on the show and made a compelling case for what we shouldn't worry. and so far he has been right
6:04 pm
those who sold were wrong. honeywell made a new 52 high today. remember that is a lot of smart minds buying these stocks. if you didn't know any better, you would think that apple is in the cross hairs here or because the chinese might boycotting their products or all get higher costs because of issues involving imports the stock has been big, but today's $6 sell off makes me think somebody with deep pockets believes apple is going to get hurt we aren't sure how the u.s. is going to handle apple goods made in china dow dupont, ceo says he is going to stay on as executive chairman now though, tariffs flying back
6:05 pm
and forth, dow dupont expected to get it from both sides, one in their crop protection program. the darn thing rallied today i think the fears of retaliation are actually legitimate. they matter. but the stock is doing just fine strange. meanwhile, plenty of retailers source their merchandise from china. president trump has been in office for two years and he has been talking tough on china for ages no way they have provisions to move their products. all right, how about the american consumer, should we be fretting so far this trade war hasn't had much of an impact. car companies have had to entice customers with discounts
6:06 pm
lumber prices fallen employment numbers are so strong hard to see job losses related to te to te to te to tariff. least promotional environment that i have seen in the days following retail and let's talk about what a bear market looks like and who is getting hurt here. our economy may be doing just fine, but china, i see real promise, and real worries. for instance, the chinese stock market fallen to its lowest level since 2014 i don't think it has found the bottom yet we have terrific growth with little inflation
6:07 pm
and do we really think some 10% tariff on chinese goods are going to hurt us i don't even know. if this were a real problem, the retailers would be at their 52-week lows, not 52-week highs. i know there is so much money sloshing around from the tax cuts, it may not make sense to borrow, to have the money in the bank already why borrow more i can't pinpoint many jobs however, given how tight the labor market is here, i don't think that matters at the moment fed ex tonight fretted about tariffs putting a damper while the hurricane was a horrific national tragedy, the thing about these storms is they do tend to be good for the
6:08 pm
economy in the area they happen. this will respark a building effort just like it did with hurricane harvey in texas. the pundits can fret all they want about the trade war saber rattling, not when you consider the red hot state of our economy. let's go to bro can ck, in wiscn >> caller: how are you doing >> fine. how are you? >> caller: booyah. and go pack go from wisconsin. >> there you go. >> caller: i can invest in parent company anheuser-busch, with the growth of the legal marijuana industry, is it worth picking up bud >> if you believe in that
6:09 pm
theory, if you believe in the theory, you want to own constellation brands because they have the big stake in ca canabi. >> caller: my questions are about stanley black & decker recent minor stakeholder purchase of mtv products since the purchase, it has been heading back up. and i read that stanley does grow by buying good companies. do you think this purchase will be a spike for them or signaling a turn around. >> i think the hurricane can going to help. there was a piece this morning, a fine analysis about how business is better telling you business is good and i think that one works even though the stock has been down it is starting to bounce
6:10 pm
i like it. brady in massachusetts. >> caller: booyah from the lake. >> sorry about that game with the jags. >> caller: hey, wdc, western digital. with the new iphone, are we on the horizon of the end of disk memory >> i think it has been eroding for some time. flash pricing has crated as late they got down, stocks go down when they guide down we need to wait when they hear that we want to understand if tariffs matter, let's take a look at the individual stocks going up and down little confusing and not clear on "mad money" tonight, if you can walk a mile in vf corp
6:11 pm
shoes, would you be making a profit and has joe papa pulled off a rescue of the company formerly known as valiant i have the issue stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to or give us a call at 1-800-743-cnbc miss something head to welcome to the xfinity store.
6:12 pm
6:13 pm
thanks, janet. it's my happy place. you can learn how to switch to xfinity mobile, a new wireless network that saves you cash.
6:14 pm
and you can get 5 lines of talk and text included with your internet. and over here i'm having my birthday party. dj fluffernutter, hit it! ♪ dj fluffernutter simple. easy. awesome. ask how to get $300 back when you sign up for xfinity mobile, and purchase a new samsung phone. visit your local xfinity store today. listen to public figure speaks including ceos. not many chief executives are willing to kind of be tough on themselves on national tv. that is why it was refreshing when we poke with marcus lemonis back in june the stock had obliterated.
6:15 pm
toughest candid self-assessments we have ever seen on the ceo talking about transitioning from a private company to a public one. raking himself over the coals for not doing a better job so when you called in about camping world, i said we need to hear from marcus lemonis let's check in with him. the chairman ceo of camping world holdings and the host of "profit. ceos can sell for any number of reasons. they only buy for one reason, they think their stocks will go higher you gave a vote of confidence.
6:16 pm
>> i had sold several months back, almost six months back and i had this window to buy friday i wanted to get into the market and i set up with the bid and i ended up with only 25,000 shares i was disappointed. >> many people who want to be in the stock and then people who don't grasp your longer term visit. i want you to tell our viewers about one of the reasons you want to buy is you think you can double in the next five years. >> will double. >> will double. >> you got it. >> at the end of the day we are an rv company first and foremost and the number one asset is customers who sit in our good sam file in order to have that grow, we have to grow our platform. we are able to make dealership acquisitions anywhere from one
6:17 pm
to four times. that is trailing the real number. we provide a good exit strange for a lot of dealers and as i looked at where this company needed to go, doubling the size of the dealership footprint was the only option. and gander outdoors was the spark. >> can you talk about the good sam program and how gander can be used to generate huge number of leads. >> the good sam file and the good sam club are an important part of our business and essentially, it is people that want to save money on campgrounds, camping, all hunting, fishing camping equipment, and they want to buy roadsi roadside equipment we sell all of those affinity products as people walk in the front door, those are fresh sets of eyes and people to sell the
6:18 pm
product to. >> the analysts are caught up with this idea that you did lower ebitda the high dollar, no margin business that wasn't doing for camping world. >> the high dollar, low turn market business. i look at our relationship with thor >> they are about to report this week. >> yeah. we have a good congruence. the entry level toll bowl. the motor home business is good, but never recovered. never recovered from 2008. >> now, youshould talk about, thought the parts and services numbers and the increase in finance and insurance are gigantic. >> yeah, they are big, but deceiving in a way our service and parts number are
6:19 pm
large because they serve the installed base close to 10 million rvers in the base it serves the installed base where i get nervous is when you start to think about things that could affect the business. do gas prices affect the business to a degree. do interest rates affect the industry not really what affects, is the availability of credit that >> you really detail what i think as my daughter does, glamping it is a zeitgeist, it is a lifestyle. >> it is a lifestyle and we are ultimately trying to find the millennial, the millennial who doesn't want to go in their father's motor home, a smaller
6:20 pm
unit, a lighter unit, and pull it with their prius. doubling of the number of dealerships would be a gigantic deal. >> we had the trade show this last weekend in hershey, pennsylvania. >> that is marcus let lemonis
6:21 pm
6:22 pm
lemonis.. ♪ we know retail has been on fire lately. pretty much anything related to apparel and accessories. these companies call themselves lifestyle brands tonight i want to ask a question that has occurred to many of
6:23 pm
you, what is a lifestyle brand it becomes a lifestyle brand when it tries to represent the values and interest of a sub culture. lifestyle brands don't just try to sell you a product, they sell you a whole identity classic example lululemon. they built this effective image as a yoga inspire maker of a athleisure part of the reason why the stock has been an incredible performer. tripling in the last year in the half another one is boot barn i joked that the store is like the costume department for a john ford western, he made a
6:24 pm
very good point. >> when you go out and fly from here to l.a., you are looking at customers that drive a pickup truck and listening to country music and they wear boots, hats, work wear and blue jeans every day of their life. this is what they where. >> for the millions of people who wear jeans and boots to work while listening to country music, boot barn sells to identity its stock has more than tripled in the last 12 months. increasingly fragmented society, lifestyle brands make you feel like you are part of something it is not like you can roll out a lifestyle brand overnight. once the work it done, we have seen with lululemon and boot
6:25 pm
barn, that these concepts can be profitable for you as an investor i want to introduce you to what i think could be the next lifestyle brand, vans. most mostly associated with skateboarding, and now is more however, vans has been growing like crazy and now it is poised to becoming larger part of vf corp because it is spinning off its denim company. how hot is this one? last week the vf corp held an analyst day just for vans. what a transformation. it is going to account for 30% of its sales going forward and that is huge still, so let's drill down into
6:26 pm
what they told us last week. this was a master class in how to build a lifestyle brand vf corp acquired vans 14 years ago. the old vans had a lot of counter culture cache. while its grows margin, what they make after the cost of goods rose from 48% to 60% gigantic numbers for apparel how did they do it they took a brand that was popular in california, and went international. the company focused on making vans more aspirational and doubled down on its action sports business especially shoes for skate boarding when kevin bailey took over in 2009, they started trying to figure out how to connect with
6:27 pm
their customers. here is what he said "we felt there was something more there." he go 11 countries that point and it helped us reveal something as we talked to skaters, artists and musicians and street culture icons, we learned they just wanted to celebrate and share their self expression. it cowl be all abo-- could be a creativity that is very similar to how lululemon was initially a yoga brand, and now to millions of customers who never have done a minute of yoga vans have been consistently
6:28 pm
deliver revenue growth vf corp is an ambitious company. now they are moving into a new phase with a goal of turning vans into "a global icon of creative expression. those are their words not mine they laid out a long-term vision and only spent a half an in our talking about vans could see their sales rise to $3.3 billion by 2021 that forecast was way too pessimistic. they will rise to three years ahead of schedule. maybe they are not my style, but they look good on some people,
6:29 pm
i'm sure the company is talking about vans becoming a $5 billion brand by 223 again, i think they are conservative they will get there by rolling out more advanced sneakers and new apparel. never under estimate the power of a successful lifestyle brand. vans could be the third largest lifestyle brand in the world behind nike and adidas they are not getting nearly enough credit for vans but once they spin off that jeans business, the remaining company will look more attractive. and i think it is a great buy into any tariff related weakness that you know is coming down the pike john in maryland >> caller: booyah. how are you doing today? >> doing well, how about you >> caller: doing all right close coming up, rainy down here
6:30 pm
in baltimore, how is new york going? >> i don't know. just focusing on lifestyle and ath thr athleisure, how about you? >> caller: doing well. right now would be a great time for a canada goose with this weather coming up. >> the problem is when we reported the last quarter, the stock got hit on what i thought was no good reason at all. i agree with john in maryland. i think it is a buy right here and i would buy more if it got below 50 >> caller: analyst downgraded on valuation but the stock keep going up and up because of total addressable market planet fitness seems like it could be similar
6:31 pm
1600 stores currently, talk of growth through 4,000 everyone with a fitness app must be lining up at their low cost health club, is it a buy >> we liked it it had a big move. it has come back down, at 45-46, it would be a terrific buy time to give credit where credit is due the shoe that is vans is becoming a lifestyle brand i think vfc is a buy because of it not just because of north face did bausch put the kibosh on its own demise i am giving you classic examples of where to put your money all your calls and tonight's edition of the lightning round stick with cramer.
6:32 pm
(nicki palmer) being a verizon engineer is about doing things right. and there's no shortcut to the right way. so when we roll out the nation's first 5g network, it'll be because we were the first to install millions of miles of fiber optics. and we'll be the first to upgrade the towers and put up the small cells that will power the smart cities of the future.
6:33 pm
when i started at verizon, i knew i was joining a team that was pushing the industry forward. now, with the launch of the only 5g ultra wideband network, we're doing it again. this time, changing the way we learn, work and live. and i'll always be proud that we're not just building america's first 5g network. we're doing it right. ♪
6:34 pm
6:35 pm
how do you know for sure when a company that was on its death bed has made a miraculous k recovery that is bausch health company that was formerly valeant. focusing on a couple of core franchises, changing the name to bausch health. under papa's leadership, the stock has rallied from 170% from
6:36 pm
its april 2017 lows. we already made tremendous progress turning into one company to an organic grower and then last week another positive development, reached an important settlement with stevis can this be just the beginning let's take a closer look with joe papa to hear more about the settlement and what it means about the settlement thank you for being here you still say -- you said that you would do what was necessary for the investors, then you said you would settle the lawsuits. this lawsuit was the big one to settle, wasn't it? >> absolutely.
6:37 pm
my legal team has done an outstanding job with dealing with these legacy issues we think it is good news for patients because it gives us an additional ten years to develop new investigations for patients. it is also good for the bausch health shareholders, what it does is removes the uncertainty in the marketplace which allows us to continue to invest in the products. >> i can't, look, you can't overemphasis this. analyst have been negative, you have to, i love this -- time delay our weapons. the focus is on new products pretty substantial. >> absolutely. this year alone, research
6:38 pm
development up 15% versus last year all targeted towards bringing out new products launching a new hydra gel contact lessons. released a new treatment for glaucoma one of the important ones we have is a very good product on the market since may, and it is the number one physician recommended product for the treatment of red eyes. and it is already over 20% in the market. >> i use it. because it doesn't sting. >> happy to hear that. ultra multifocal lenses. a lot of things happening.
6:39 pm
one approved fo one approved for dermatology so we are starting to turn the company around two years in to a multiyear plan importantly in the last two quarters, we have shown organic growth for the first time since 2015. >> you feel that through ebitda to pay down more debt. >> grow the earning of our company. and by doing that, take the cash and put it towards debt. if somebody comes to us and says we will offer you a great price for a company or product, we have to think about it and listen but right now we are not compelled which puts us in a stronger position. >> you have done that every
6:40 pm
analyst has asked. why don't they give you the chance to run the company. >> if someone comes to us and says we want to offer you x for a company. we have to listen, we are a public company continuing to improve the operational of the company and that is paying down the debt, and starting to grow. >> a man of your word. you have been able to deliver and this litigation settle is gigantic joe papa, ceo and chairman bausch health companies. wasn't called that last. "mad money" is back after the break.
6:41 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.
6:42 pm
6:43 pm
comfort. what we deliver by delivering. >> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." that's where i take your calls rapid fire sell, sell, sell we'll play this sound -- [ buzzer ] -- 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 rich in
6:44 pm
illinois. >> caller: booyah. my question is on paypal performance has out paced the industry how does it look to your eagle eye. >> this stock dropped and another two points it is going to be oversold and that is when i would pull the trigger let's go to steve in texas. >> caller: booyah. calling about sens what do you think about it >> if you want to do glucose monitoring, you buy avid or dex kon. those are the ones i care about. >> caller: cramer, line backers,
6:45 pm
d thank you for taking my call. >> jordan howgives me 21, i am great. >> caller: idex x labs >> all about amd and idexx stock is the kind of stock if it comes down another five, that is when you buy and that is perfect. jack in new york. >> caller: calling about s oonos >> that is not the stock that you buy in a weakness. stay away. ann in florida. >> caller: hi jim, big hem hoe
6:46 pm
from cape coral. i have a question about denbury resource they have good earnings for the next quarter and a good forecast for next year, but i am a little hesitant because it has taken a drop from its 52-week high so should i hold >> yeah. ann, i think you have had a really good run in that one. no the a high quality company. that group is struggling i would say ring the register. osbin in tennessee. >> caller: thank you for taking my calling my question is about apptio. what do you think about buying it in a pullback. >> to me, this is a worry some
6:47 pm
situation. sales force is going down. i would like to see you in high quality stock like that. mark in missouri. >> caller: invitae corp. >> i felt it was way to speculative, but this thing, it has warped and it is not mine as long as you understand that it is a spec, you are okay how about jeff in california. >> caller: greetings from sunny southern california. i have been on a fast moving train called wayfair. >> this is one that i am going to tell you i am not to call on. i liked it i thought it would go higher i never thought it would get to these level. at these prices i thought it is
6:48 pm
too high i have been telling people that for the last 20 points i prefer to say it, i have not been the call on wayfair, i have not gotten it right. let's go to canyon in texas. >> caller: hey, jim. reading your book "a sane investor in an insane world. my speculative stock is >> way too speculative not a single one that i am recommending there, that's it sammy in louisiana. >> caller: booyah, thank you for being the greatest in the world. if you write another book, i am going to buy it immediately. in the meantime, what are your
6:49 pm
thoughts on mcdonald's >> i do prefer wendy's i did have to stop my wife from getting a bacon ator enough is enough sf, i like it n principle. enough is enough and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade
6:50 pm
you know, i used to be good at this. then you turn 40 and everything goes. tell me about it. you know, it's made me think, i'm closer to my retirement days than i am my college days. hm. i'm thinking... will i have enough? should i change something? well, you're asking the right questions. i just want to know, am i gonna be okay? i know people who specialize in "am i going to be okay." i like that. you may need glasses though. yeah. schedule a complimentary goal planning session today with td ameritrade. lease the 2018 rx 350 for $439 advana month for 36 months. experience amazing at your lexus dealer.
6:51 pm
6:52 pm
some stocks are so consistently hot, that when you get any kind of pullback, especially the kind of that is caused by trade war worries, you
6:53 pm
need to hol yods your nose and y they have all seen their stocks were higher on good days and barely get dented on back days they have jumped what is called multiple turnstiles. today they got hit and i think this hit is indeed a nice buying opportunity. you buy slowly, buy on the way down, but you can start. how do i know? because periodically, you get a chance to buy these. that knocked the stock down from 103 to 99. and you had to ignore every negative word that was said about this one and buy it and hold your nose, now it is 109. same goes for anthem, cigna. many of them got hit today and
6:54 pm
their buys, especially cigna which is purchasing express scripts it is a deal that got green lighted this morning long-term it doesn't seem to matter everything negative is speed bump on the way for higher levels you are going to get your chance here boston scientific, perkin elmer, all have been roaring. these are sainted stocks the fact that they pull back today is a gift. thermofisher, downgraded by goldman. and when you look at the price earnings multiples, hard to justify any of them. these days we have a stock sh t shortage caused by etfs, the hedge funds and mutual funds
6:55 pm
that own them get more money because they are doing well. they tend to invest that new money in the same stocks, same winners. they don't care about price at all. any cloud or king or prince, they all work especially on trade related weakness like we have today and likely tomorrow so this is a piece that is prepping at the same time there are groups that seem down right toxic. when they rally, you have to worry that they get back to those gains at any single moment sherman williams is reaping the benefits of the bold decision to buy valspar. what is so frustrated and maddening about the market is that valuation makes no difference what so ever.
6:56 pm
i just roll my eyes. buyers don't care. they are not going to stop here. they get new money in, and look at their winners and buy more of them end of story occasionally you get a down day like today and that is your chance to pounce you better believe the buyers are back tomorrow. money managers buy these stocks because they go higher, and go higher because they are bought that may seem like the dumbest investment strategy manageable but also incredibly profitable you want to be a buyer, not a seller stick with cramer. like ever. they reveal in extremes and defy limitations. these pursuits may seem unnecessary.
6:57 pm
but the scariest thing i can imagine is a world where this, doesn't exist.
6:58 pm
f.a.n.g and company had a hard day tomorrow we are going to hear how f.a.n.g is dead. that is the way it works
6:59 pm
the only thing i am concerned about is facebook. the numbers there might not be there if the valuation is going down don't feel like that about amazon i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you tomorrow i am opening up the lines to hear from you. i want to talk to you. >> mr. cramer, i want to tell you, you are absolutely positively fantastic. >> thank you for helping us not panic in times like this the average investor which we all know and love and cater to us, we appreciate that >> i am not going anywhere, you shouldn't either ar. >> announcer: cramer has your back let's take on the market together. >> we will make it so we are all smarter.
7:00 pm
what we know now is wall street can bring down main street and frankly i'm going to tell you it's a little scary. >> your company is now bankrupt, our economy is in a state of crisis. >> did you mislead your investors? and i remind you, sir, you're under oath. >> in your testimony today, right here, right now, you continue to deflect personal responsibility. >> i'm going to be blunt here. people want to know if you defrauded investors. >> that should be a yes or no, sir. >> you don't seem to acknowledge that you did anything wrong. >> you know, we


info Stream Only

Uploaded by TV Archive on