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tv   Mad Money  CNBC  November 5, 2018 6:00pm-7:00pm EST

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up, lmt. >> it's interesting, scott. >> how interesting, guy? >> doesn't matter how you won. interception. >> i mean, come on. >> doesn't matter why. >> not on "dancing with the stars." >> anadark 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. this market had some real year 2000 cross currents going today. dow gained 191 points just like
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in 2000 when the dow did well. s&p rallied. but the nasdaq lost .38% and that was exactly like the year we call the turn of the century. we need to search for some sort of totem that can turn us in the right direction. no human trading desk would buy chevron up four bucks. humans wait for the bids to bill and then they hit them they wait for the offers and then they take them. but machines they just go wild running up some stocks, cratering others which is why in the end those who swear by these algorithms are doom to lose money. any time you buy at a high and sell low, you have a losing
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hand believe me, that is how it is played in this game. what can we count on then when there is so much choppiness with so many programs moving around this is an algorithm, take that. insider bik insider buying, that's what i'm looking at right now for all kinds of reasons, these were hot for a while they only buy for one reason they sell for many different reasons, divorce, state planning, whatever they buy to make money we got this morning with ibm, the last chunk coming because sellers, hated, no they despised
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ibm's purchase of red hat until today when we learned that five board members including the ceo bought stock and the stock rallied 4% how much did they buy? are you ready? she purchased $3 million worth of her company's stock with her own money. that's right four board members bought stock too. buy, buy, buy. eli lilly, bought nearly $500,000 rick waddel from northern trust. and joe swedish from anthem. these guys are all hitters not only that, but senior executive that we have had on the show before, bought $575,000
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worth. all of these buys made by insiders and still made an impact this is the first open market purchase that was made it was a real commitment she has a gigantic position here and she is like, oh, man, just like she is doubling down. now does that mean you should blindly buy ibm? let's go over the fundamentals first. i think the red had acquisition was a good move. ibm needed to something big, big, and grow much faster than they were growing. especially since the last couple of quarters were truly uninspiring. i am a huge fan of the ceo of red hat. produced a terrific growth company with real cash flow. it makes money got a real mission to help other businesses adapt to the cloud.
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these insiders could be 100% wrong. seems pretty darn appetizing for me while you wait for whitehurst to work his magic. tougher one, general electric. plunked down $2.2 million of his own money to buy his own stock on the one hand, this is a deeply troubled company. and on the other hand, he was the ceo of one of my old time favorites. ge still has a ton of problems d dividend which was slashed again. power division from hell which shows no sign of turning around whatsoever i think they are actually selling the goods and keeping the bad. that's terrible portfolio management and insider buying has led you
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astray with ge before. two ceos ago, bought shares. and another 50,000 at $31.40 we know so much more about the problems at ge now than even a few months ago that's the good news and the bad news is that we know so much mo about the problems i like cole. but what does that mean? too many people have lost money. cole is telling us the sound is all clear, the bell went off by ge no but i can't ignore insider buying there was a time in the winter of 2016, scarey time when jpmorgan stock was despised,
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hated not as much as ge is hated now. the price, $53 almost the exact bottom. no one knew the stock better than jamie he spent about $55 million picking up 1.5 million shares currently worth 162 million. remember when your parents said the rich get richer, he tripled his money. i am old enough to say that. can i say that decent guy all right. decent guy kind of like the guy i know it is not about friends smart fellow ever since the diamond bottom, you can't be too cynical about these insider purchased. the guy told you to buy the stock at 53. how many people have done that
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for you how about that berkshire hathaway had a now suspended restriction that it wouldn't buy stock at more than 1.2 book value finally, let's not forget the biggest buy back of all. one of the most hated stocks of the worl, one that is despised, apple. incredible repurchasing machine. got a whole back of apples last quarter average price of $209 $20 billion. that's a monster amount of shares do you think apple is back there buying at 200 if they paid 209
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before in too dangerous? candy apple? made you blink last night the ceo told me that he thought his stock was a better investment than keeping the money in cash and collecting large amounts of interest in it. you think he doesn't know these reports and these papers about orders being pulled for some, one of these, phones as if we haven't heard that story a dozen times all the way up yeah, luko was real shocked at that sellers are probably selling right into the country where is the arrow go ahead shoot me. pure growth companies in part because of the president's fantastic and insightful interview with axios i can say, be my best. if you broke up these companies
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now, i bet it would unlock a lot of value any kind of anti trust action seems unlikely to me historically, it is the time to buy. bottom line, if you are looking for a touch stone in choppy waters, some of them, like ibm, i am calling more actionable than others like ge. let's go to john in texas. john >> caller: hello, jim, how are you doing? >> good. how about you? >> caller: wonderful you taught me things that have not only helped me make money but to avoid losses. >> if you avoid losses and let gainers run, you are going to be a wise man, what is up >> caller: now, one of your rules is accounting irregularities equal sell.
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so i sold my honeywell. >> you know the disciplines quite well. >> caller: thank you so honey well is trading eight points lower than when i sold it should i get back? >> i remember back in the, really, i'm not kidding, the asbestos has been with us forever. i think that it is, it is not a nothing burger, but i would not have sold honeywell on that, and i am recommending honeywell and big position for action owners.com, which is our club. today was as wimpy as it comes if you are looking for totems consider the inside buys oil market should be soaring but the opposite is happening. i am offering up the crude reality on crude the president has been fond of referring to the certain paper
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of record as failing so how is the stock of the "new york times" considered higher? i have the news. and can you count on symantec, what the company could be signaling. stay 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 madmoney@cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. alpha seems more elusive today.
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the global investment management businesses of [ready forngs ] christmas? no, it's way too early to be annoyed by christmas.
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you just need some holiday spirit! that's it! this feud just went mobile. with xfinity xfi you get the best wifi experience at home. and with xfinity mobile, you get the best wireless coverage for your phone. ...you're about to find out! you don't even know where i live... hello! see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. you think the price of oil would be soaring today with our country reimposing sanctions with iran. but instead it closed down today. that's because in reality crude may be on the verge of rolling over even if that sounds totally counter intuitive. how is that possible if you only listen to major oil
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companies, you would think this business is firing on all cylinders. we just heard from exxon, chevron, and bp. all had fantastic quarters oil was at a hundred and ten bucks a barrel price of crude down 40% from those levels exxon told us the same story since oil peaked in 2014 growing perhaps the exxon of old. in many ways, bp was the most confident. management traced out an overview of global declined. mentioned libya, iran could send the price of crude surging higher bp told us that quote, we can't see anything which would majorly move oil
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i tell you what, even though i think chevron is a terrific company, i think you get a selling opportunity. how am i this bearish? simple the oil service stocks would be flying here. these companies make a fortune when they put their oil where their mouth is take sh lumberger. think about that when crude hit $26 per barrel. if crude headed higher, slob wouldn't be within spitting distance of 26 and below same goes for halliburton.
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this was a $30 stock, and now it is only a few higher than that the huge offshore driller, ensco has surged that's why i don't take it too seriously when they sing the oil market praise here and look, it is not just the service plus, independent producers have experienced the same issues. stocks bounce along the same levels where they trade the bottom in 2016 their balance sheets aren't as good as they are now this is counter intuitive. chevron after that remarkable quarter, you know, it is still
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down nearly 5% for the year. and while exxon stock regained premium level, still down. crude is in the seventies and it is going higher, it looks like it is going into the hundreds. even when you take your emotions outs of the equation, there are a host of reasons to believe that oil prices aren't going down i know my view is a lonely one united states just hit level million barrels a tay. we are still tapping the same old fields in texas. only two nations that have the power of manipulating oil prices, saudi arabia and
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russian. it was down today on the news from iran. this would be great news for americans but bad news for the oil patch. if you are bullish in the oil stocks, i think you might be making a bad call. everything i see from the oil service industry and many from the independent producers suggest that we were headed into worldwide slow down and that will crush the price of crude. while we still have oil exposure from the travel trust, making a big bet. when you make a mistake with your stock portfolio, the damage is limited to one person tom in louisiana tom. >> caller: yeah. who dat.
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>> what's up >> caller: ten years of "mad money" and a couple of recent issues of "real money," you have been a long time advisor, and now my daughter and son-in-law are looking for advice and i am sharing with them cramerisms my stock today is renewable energy group. >> hot, hot, hot and you know what we think about hot, hot, hot, too hot for an ira. if you are going to like the renewable chemicals business, you know whose is the best exxon. i kid you not. oil, oil, double, and trouble. yeah, you know whatever i believe there may be a spell cast on black gold pre halloween talk and we will not be immune.
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much more "mad money" ahead. president trump calls it the failing "new york times" but last week's earnings results are the opposite and then cybersecurity is one of my favorite themes one option has been humbled in the space. could semantic stay with cramer
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aware of unintended consequences because sometimes they are the most important ones. no better example of the no"new york times" or the failing "new york times" as the president likes to call it every time trump criticizes the times he makes it more relevant. 50 months ago i came right out here and made that argument. the "new york times" has taken the internet by storm. i told you their digital subscription base was generating significant gains. the stock has run from $19 to $28. that is a mammoth 47% rally. then last week it exploded higher after the company
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reported a blowout third quarter. you might even say they are getting tired of winning how is the oldest of old media companies become the oldest counter intuitive and more importantly can it keep climbing for years the newspaper business has become the house of pain lost more and more subscribers worst of all, it seemed they didn't have a plan to solve the problem. by 2011 they rolled out a digital pay wall the growth of the online subscription business finally surpassed. everybody recognized, hey, you know what, i guess this is the new game, you got to pay
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every time you go to a site, you got to pay and that is why i recommended the stock last year and it turned out to be the better if anything, better than i thought. delivered a number of strong quarters it is an online based subscription business first and a purveyor of advertisers second even when it was less than ideal. the company kept putting up strong growth. fast forward and the "new york times" knocks it out of the park paper of record earned 15 cents a share. wall street was only looking at 11 cents that's most important they now have more than through million digital subs and more than 4 million when you include the physical newspaper
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that is incredible as ceo mark thomas plains, this quarter subscription record accounts for two-thirds. grew at 17% clip even management was not expecting the forecast in the single digits to decline instead it was up seven% that is extraordinary. by the way, i want to give a shout out to alexia from jpmorgan she has been bullish and she nailed the quarter in recent times the "new york times" has transformed to a thriving media play. how did they pull this off at a
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time when others fell by the wayside. first of all, the trump bump and that helps sell subscription especially if you belong to the core audience of freaked out democrats. on power lunch last week, it was argued that the strength was a return to growth and the fact that the company is executing credibly well. when he was asked how the times was getting to many people to subscribe digitally, listen to what he had to say. >> the work that our colleagues in our news room and editorial department do. like the coverage of the kavanaugh hearings, and the op-ed piece about life inside the white house. we can see by the numbers those
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having a big impact on the daily number of people who want to subscribe. >> it sounds like the "new york times" is making a killing seems to happen. as much as president trump may dislike the "new york times," he is great for the distribution. calling this an elevating news cycle. more people are willing to pay up for digital subscription. a heightened interest in the news is positive for one of the few sources of information they are willing to pay for it which brings me to the second source of strength the market does love subscription stories i spend a lot of time thinking about the rise of the subscription economy these days consumers are a lot more comfortable paying for
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subscription service the "new york times" has been in the subscription business since the 1800s. the actual demand is it feels like it has come full circle i really like a pull back because the "new york times" calls for 28 times next year's earnings you don't want to chase the stock after an epic run. let it come to you the bottom line is the "new york times" -- trump stock -- has gotten its act together by embracing the future if you get a five to 10% pull back, you know what, [ buy, buy ] john in pennsylvania. >> caller: john here from beautiful pennsylvania. >> i love it there
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i was there before the casinos. >> caller: i am calling about zuora. unfortunately they got clobbered. i used the downturn as an opportunity to supplement. my question is can an end of november earnings be pushed. >> john, i do think it can i think that team zu is going to deliver a great quarter. he is the king of the subscription economy i like the stock i like him and i like his book. unintended consequences are the most important ones. the best example of that are the "new york times" winning from the presidency all right. much more "mad money" and symantec has been in the doghouse for quite some time i am going to give you my tape good news if the dog ate your
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homework i did it for you and i think you can make some money. and all your calls and tonight's edition of the lightning round stay with cramer
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always on the lookout for stocks that have been left behind beaten down names that represent good buying opportunities. i think we may have found one tonight symantec the old school anti virus company that transformed itself into a good cybersecurity play i am a huge fan of the cybersecurity place. people increasingly live large chunks of their lives online companies need to spend ever larger amounts of money protecting that data within this group, there has been one that is a total dog and it is called symantec. down 28% year to daylight. mo -- date.
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at the same time symantec cut its guidance it deserved to get totally crushed. and it has become a disaster and easy to see why no one is giving these guys the benefit of the doubt. plus, in 2016, symantec acquired a company i liked blue coats and the board handed over the company to blue coats management steami team i think this may be a broken stock and not a broken company it would have no material impact on the results one less thing to worry about. more importantly over the past few months, the smart activist investors at starboard value got
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involved involvement is a big deal here you need to understand how symantec ended up as road kill in the first place after years of under performance, the stock was doing okay at the beginning of 2018. and then got hit with a one-2 punch. they fell short of every single line item. it was that nasty investigation that slammed the stock symantec announced the board committee would be looking into concerns of a former employee. they told us it might affect the numbers. but didn't get much insight on what they actually were investigating. it was the most sub optimal conference calling that is a major, major red flag when that stuff happens. the way they laid it out, there
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was no way of knowing how bad this would be. we didn't even know what the problem was. so investors dumped the stock. nobody needs that kind of risk in the portfolio which is why symantec lost a third of its value in a single day. trying to damage control well, that didn't help either. over the next few months, the stock drifted lower. then starboard value got involved they were agitating to install five of their people in the company's board of directors we learned that starboard has a plan especially this enterprise business the stock popped more than five mfive of the news. slightly lower than it is trading today.
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a plan that i think is terrific. rather than going to war with the activist as so often happens in this situation. symantec negotiating a deal. now my ears perked up when i heard that starboard value has a new investment they tend to do great work in the board rooming. they had successes with yahoo, with darden among many things. these guys get what they want and what they want is good for the stock. they need to deliver or they need to find themselves more jobs more importantly is who starboard is bringing in rick hill a seasoned tech. made viewers a ton of money. when he did, many people thanked
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me for it. since then he served on the board of other companies marvel tech. while marvel is struggling because the semi conductors have falling out of favor, hill has issued a turn around a genuine catalyst that makes it much more likely that symantec can pull some kind of comeback if not, it is easy to imagine the company putting itself for sell too many other problems for me to justify recommending symantec there was that nasty auto committee investigation. one week after starboard got involved, we learned the company concluded the investigation. and the findings, management told us they didn't anticipate any restatement financials
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this is, you know, it is chump change what had been a serious open-ended problem became something less serious symantec filed its support for 2018 and when you consider this stock was obliterated. the fact this this stock rallied, it is crazy so it is like you are getting these developments for free. however, even with the accounting issue off the table, there was the problem that symantec hadn't been doing so well that is not a reason to buy a stock. but last thursday the company reported the numbers were surprisingly good. it was a nice top and bottom line beat. robust guidance. put it together and you have a compelling story plus symantec is cheap i think sure, it is still under a cloud even as the actual issues cause the stock to get
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crushed have been involved i bet the stock goes if not roars higher the bottom line, look, symantec deserves to sell off they sounded open ended. the companies results have stabilized the investigation turned out to be a nothing-burger and starboard value, one of the great activist firms have got involved and brought in rick hill and for whatever reason, people aren't seeing it yet however, with starboard involved, i think the stock will get more respects in the not too distant future which makes it a buy right now. "mad money" is back after the break.
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>> 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 you tell me the name of the stock. i tell you to buy, buy, buy or 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." starting with matt in virginia. >> caller: boo-boo-booia your thoughts on nokia >> can it go up? absolutely is it a bad stock? no is it high quality no and i think you need high quality here harry in florida
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har? you're up har. >> caller: what's up i don't know what's up with you >> caller: just wondering, what's going on with jci >> it is not a great stock so many other industrials that are doing well and their stocks are struggling. let's stay away from that one. steve from california. >> caller: booyah from ren dondo beach. we bought wwe. we love it but is it time to buy more >> yes it was up today. it got a great business. it is really, some of the -- it is entertainment that was introduction introduced to it i am going to olie in florida.
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>> caller: i wanted to ask about the geo group. >> i don't like the private prison thing i think you have to go with other stocks let's go to jared in wisconsin. >> caller: cram-bonie my man stamps.com has been dropping like a rock for two quarters now. i looked at the third quarter results it doesn't look that bad. and can it be bought >> i spent a weekend trying to analyze that stock and the conclusion is you can't analyze it and that, ladies and gentleman, concludes the "lightning round"" >> announcer: lightning round is sponsored by td ameritrade had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo!
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whenever i get a question i can't answer, i always circle back to it eventually. because my job is to help you become a better investment i am a teacher here. even if sometimes it takes me long to get to them. let's do some homework on august 16, tim in pennsylvania asked me about forecast, this is a company that
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makes shock. fox factory parts can give you a smoother ride. and they have a bunch of endorsements think of this as an aspiration specialty parts. full disclosure. i have been on a harley. may friend put me on one and that is the most terrifying think that has ever happen and i know less about atv. that said, i can read a financial statement better than the other guys and fox factory has been putting up impressive results. the company races full year guidance i am liking fox factory is building a new
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manufacturing facility here in the u.s. in georgia to keep up with the demand for the products now the stock got crushed like an aluminum can last month but the stocks roared back fox factory is trading at the same level from where it was i got to tell you, normally i would not feel comfortable recommending a stock if you believe they are in a league of its own, then i think yes, go do it. i am saying buy. rusty in louisiana called in about all script health care and i told him i need to brush up on this one it has been a real -- forever. pretty sub par track record.
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stock long-term has been disappointed year after year after year the health care care technology basis has a lot to offer but allscript has a lot to offer. wow. after company reported a lousy quarter, top and bottom line missed allscript seems cheap. but every time it looked cheap in the past turned out to be a value trap that line about the definition of insanity is doing the same thing over and over again and expecting different results. why torture yourself i like united health unh. and they have a good science business also. finally, on august 23rd steve in
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new york wanted to know about eros international company is a major distributor of films and television shows with online streams and services growing like a weed. number of paying subscribers tripled last quarter sadly apple did not see good numbers in india eros has a lot to be desired i got to tell you it is very risky. wildly speculative indian company. a lot of ways for this story to two real wrong to me it seems like it is going to be a boom or bust situation but if you are willing to take the risk, if you understand you are only to buy something like this with money you are willing to lose, then you have my grudging permission to speculate
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on eros considering the stock's recent weakness. again, this thing is incredibly risky, but if there is ever a time to make sense to pull the trigger on eros international, it could be right now. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.
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hi! how are you guys? at&t proudly offers wireless and tv discounts to military, veterans, first responders and their families. visit att.com/hero. next monday we are hosting our veteran's day show it would be my honor to be with me if you are serving or have served goo to our website for free tickets. it was my dad's favorite he loved it every year 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 i'm jim cramer, and i will see you tomorrow!
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narrator: in this episode of "american greed"... bars, nightclubs, strip clubs and big-name acts turn to insurance executive jeffrey cohen for the financial protection they need when crowds and booze mix. tserkis-mullins: it's the what ifs. that's what insurance is for -- the what ifs. narrator: with customers from coast to coast, cohen's company brings in more than $100 million, and he lives large. bender: he had a porsche, he had a bentley, an aston martin close to $200,000. narrator: but prosecutors say it's all a facade. swann: unexpectedly, we were notified by jeff's companies that i was not on the policy. narrator: according to the government, cohen uses a mountain of fake documents

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