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tv   Mad Money  NBC  September 21, 2016 3:00am-4:00am MST

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everybody! my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always work and i promise to help you find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome ra other people want to make friends, i just want to make you some money. so call me. or tweet me. @jimcramer. it is maddeningly inconsistent out there. we have good days, paul, but bad days. stocks up on individual performance then down aggregate news. other stocks rally on good event but then those gains are not sustainable.
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everyday. even a seemingly benign one like today. let me give you some concrete examples so you know exactly what i'm talking about. last thursday night, twitter broadcast an incredibly exciting contest between the new york jets and buffalo bills. and the followers of the stock were bursting with glee. if you went to my mentions column i was bombarded with people who simile could not stop telling me this is the biggest evennc they thought the stock would open $3, $4 higher. there were people saying that my tempered enthusiasm was misplaced to use a euphemism no are what they thought. even though i enjoyed it and the twitter is now to the moon alice, sure enough. jumping to more than $19. but then we got the numbers for will actual show the other day and they are down right puny. apples to apples basis, 230,000
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it was in a word disappointing. and even though the diehards don't want to hear it, the stock was immediately hammered to pretty much where it was before the game. it was exciting. turned out not to be the needle-mover that so many expected. i continue to think that twitter is an undervalued asset versus what it could be worth. but it is overvalued on its current earnings configuration. if you ask me which company had the biggest quarter of all big boxes, that would be home depot. long-term forecast runway positive data elevated earnings. but we have within hearing anecdotally about a slow down earning. for the month of august, they were punk. that was after home depot reported they were down .3% from the previous month.
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housing starts of fairly long proportion. that took me by surprise. the result, best performing retailer by the numbers is one of the worst performing by the stock. having fallen from 138 to 126. we can only imagine how bad it would be if home depot reported weaker results. how about the inconsistencies with the groups that drive you crazy. you mostly correlate by sector. builders are lennar and home brothers. there are gross margins improving sales. he raised his forecast right on the air here. but today lennar reported an ever so gross report. lennar stock is punished. yes. dropping 3%. actually closed kb homes and not as good home builder reports an outstanding number. remember i told you i like their
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stock is rallying 5% in after hours. how about another one? last friday straight shooting talker greg hayes, ceo of united technology spoke. reiterating guidance at the same time talking about production problems and make the new geared turbo fan fuel efficient aircraft engine. there are still glitches. something in this that is so complex to build. he was none to happy and he made this point several times. customers are angry because they are clamoring for the product. i totally got the frustration of the new engines. but you know what? it didn't matter. they decide to dump the stock, falling about two bucks. it wasn't the supply of engines and they hard to make, that wasn't it, no, no. had to be a slackening of demand. story the got totally distorted. it was incredibly inconsistent compared to what was actually said.
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i don't know about you, i feel better. not worse. about the united technology forecast. all right, elf in the room. wells fargo, here is the company that had some of the worst publicity imaginable about cross-selling misdeeds, amazing. ceo was brought to the senate for questioning. it was a weird hearing. but anger at stumpf brought condemnation. some crossed aisles against stumph. now come on, man. we know you expected that but no, wells fargo had its biggest day in ages. i think short sellers felt like they today bring in their bets because of the possibility after surprise rate hike at tomorrow's fed meeting. whatever the negative publicity fall out, wells fargo is supposed to be the top
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i suspect the stock will go back down though. or consider the bizarre disconnect between what analysts are saying about apple sales and what the sellers are saying. this morning we were treated to what i regard as an extremely negative no from jaffrey piper about how the new iphone may not have the legs and the demand is petering out much faster than usual. but then david interviewed sprint ceo. he is a true guerrilla fighter. we asked him about the note. he pointblank dismissed it. it is not a question of who you want to believe. it is more after serial commentary. he boosts the right back up with his comment. hence the gyrations with apple stock and hence how hard it is to have comments about anything. yesterday looking like it was rolling over but tonight adobe,
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and microsoft out of nowhere announcing a $40 million buy back and suddenly tech is looking good. how about this. allergan, paying. are you ready? more than 700% premium, took therapeutics, might have, might, might, might have a drug for liver disease and even though as recently as two months ago we learned this drug failed its primary end point, what heck. we have to find out more. but put out a big note today with jack moore, strategist, but still, 700%? i find that inconsistent. or one more. urban outfitters say good things about how fashion is back for women even in the mall and that they are spending again. consumer wants to buy she is purchasing. but then last night saying most
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the right fashion at dress barn, justice, maurice, ann taylor. perhaps because of weakness in the oil price. sounds like a stretch to me. what is it? i think urban has it right with stock over 56% of the year. it dropped nearly 30% in one session. here is the bottom line. basically this way all year. big runs in stocks only to see them repeal on absolutely nothing but a note about the back roll. that isn't doing that well. quickly, finding the last positive data point. the kind of thing that inspires zero confidence and it keeps so many investors on the sideline or streaming into the exits well before the game ends. all can i say is what a revolting development. lena in florida, lena? >> caller: boo-yah, jim. >> boo-yah.
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gamble stock and received an ever to exchange kng shares for cody. >> right. >> caller: i would appreciate -- >> just sell it. proctor and gamble went up to 89. but we think that proctor is going to be a better long time buy with that yield that you want. let's go to ruth if washington. ruth? ruth? >> oh, okay. take another call. how about bruce in illinois? >> caller: hi, jim. good to be with you. i was looking to get in on a timeframe for sales force crm. bought in at $79.95, last shares right before earning.
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it sort of even though it beat on the top and bottom line and roughly 10% down, not today at 72. i worked in data mining and software companies so third and fourth quarters are generally good for those -- >> yes, they are. big budget flush. >> caller: do you see any reason why the company won't execute -- >> this is a complicated quarter for sales force. like. but dream force is coming up. that's usually more action. don't forget, einstein knew artificial intelligence. i think the company stock is a buy. and i tell you, strong numbers from adobe this evening cause me to think better about sales force. a maddening market out there. that's why i need you more focused than ever. tonight i need to you focus on stories that can cut through the noise. tonight, etsy crafted a
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sales up year to date. tonight, i'm talking with one of the companies top execs to see if the on-line goods and emporium can continue heading higher. and general motors may not grow for years and believe it or not that's the good news. i'll explain why and what it means for other stocks affected. and financial technologies revolutionized how investors drop coin. is that smart? i'll tell if you there is still bargains to be hhe analyze the group and go off the charts. so stick with cramer. >> don't miss a second of "mad money." follow @jimcramer on twitter. #madtweets. send jim an e-mail to or call us at 1-800-743-cnbc. miss something?
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there is one thing to keep you working and that's growth, pure growth. the thing about growth stocks is that they can come in all shapes and sizes. take etsy, on-line marketplace for handmade goods. after spending near lay year getting hammered in the wake of the ipo, it was skeptical, but then the company dramatically improved the user intraface. terrific technology and fundamentals started to improve immediately. hence why i reen etsy rallied more than 50% with the gain coming after a blowout quarter. the company has become the number one place it buy hand crafts on-line and from this year 2018 forecasting the revenue the increase at 20 to 25% compound at growth rate and merchandising volume rises from 13 to 17% annually. on top of their organic growth,
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black bird technologies. they deliver superior search relevance and recommendations for undisclosed sum. black bird gives them an artificial intelligence platform. to help etsy do a better job of directing their customers to products they like to buy. this is so essential. especially going toe to toe with amazon. take a closer look at christina, etsy's chief officer and a member of the global cfo co get a better sense of what is happening with her company. welcome to "mad money." good to see you. thank you for coming. >> thanks for having me, jim. >> this acquisition. when we hear about machine learning and artificial intelligence, you think amazon has that and they are killing everybody. what will this do it make it as it is, etsy is killing amazon. what does this mean to be competitive. >> etsy leverages technology to
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we are tech innovators. this is a great example. what we can do with this technology that others can't. we're so excited to have this black bird team on board. we have deep skills learning because it is really hard to connect 40 million items to 26 million buyers around the globe. but this augments our skill set and accelerates our progress and search and we think it'll drive future growth. we're so excited to have this. >> you have a special machine when it comes to international and translation. beads all the time because she makes jewelry so she goes to etsy constantly. if you like beads you might like something? >> this technology has multiple application from just spelling suggestions to recommendation engines. it will really help us turn the fly wheel on search. we're already leaders in unstructured data because all of our 40 million items for sale are unique. they are not commodity goods. not found anywhere else. this will just help us really
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someone will say amazon will do a home crafts or alibaba. how have the competitors done who have tried to be in your space? >> we've been in business for 11 years and we have seen competitors come and go. when we look at the competitive landscape we think we are differentiated to help these creative entrepreneurs. we have 1.6 million in 200 countries. they have a distinct set of needs we feel with our technology we can leverage it more than an. >> talk about this. my daughter was on your platform and you guys not only do not abuse sellers as some companies do. but you absolutely try to promote their businesses both on and off-line. >> yes. i think is another example of what we can do with our technology. we talk to our sellers all the time and build seller services to help them grow and scale their businesses. we directly target their pain points. >> their pain points? >> their pain points. they tell us where they need
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whether it is marketing, inventory management, shipping, payment. we launched our service five years ago and that is 50% of revenue. yes, etsy is e-commerce but it is so much more. we have new services and growing the ones we have. >> you are growing the app and the app is where the business is done. you have to stay within the app. how much of your business is done on hand-held? >> at this point, 60% of our visits and nearly 50% of our gross merchandise sales is through mobile. we are really proud of what we have done in mobile the last two years we've been laser focused on it. we think there is so much more to do. again this acquisition will help us on things like mobile search for example. we think there is such a pipeline that we can innovate around with our products like mobile app. but also growing in mobile web, mobile app and desktop which we are proud of. quite differentiated. >> now, i know you -- i do a lot
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guys all the time and you're a huge employer in brooklyn. can you get the talent in this area that you need to be able to be a good presence on-line? >> absolutely. when we think of etsy as a company, it attracts employees and when you think about engineer being with engineering is not just silicon valley and engineers come to us and come because we are such tech innovators. we are known for that and they love the hard problem of 40 million unct connecting with 26 million buyers and 200 countries. that's so exciting and challenging. such a great opportunity for smart engineers. >> in one of the panels i led where your ceo is there, openly talked about the notion, you're an advocate for small business and that that is really integral to what you believe in. >> as you know, small business drives economy and we're passionate about the creative entrepreneurs.
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business model. all of our business decisions are around. how can we help them succeed? makes it really easy to make business decisions when you're focused on your customer. >> one of the things that would distinguish from amazon, you have craft fairs, you're perfectly willing to introduce your sellers into the world of say, macy's. >> oh, yes. when we think about the long-term we want to help our sellers sell wherever she is. there's a great opportunity, not only with etsy-owned mar our wholesalers but to take all of our seller services off of etsy over the long-term. a great opportunity. >> it's been great, money is made, you far exceeded guidance and people love your site. both buyers and sellers. that's kristina salin, etsy cfo. just a terrific story. stick with cramer. >> coming up, the stock of tech
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monday. >> this was a monster deal. why is it even perceived as being perfect? >> does this company have more room to run? cramer sits down with the ceo. when "mad money" returns. how can this have been washed 12 weeks ago and still smell like paris. unstopables in-wash scent boosters. the more you pour the more scent you'll savor. toss into your wash before your clothes for luxurious scent for up to 12 weeks. and introducing unstopables fabric conditioner by downy with luxury you can feel. for long-lasting scent, just pair with your in-wash scent booster. unstopables by downy.
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i was amazed yesterday when i saw morgan stanley upgraded general mo. adam jones had hated for years. i mean, it was certainly a begrudging upgrade. it was brilliant in simplicity. sure, if general motors can report flat earnings for a couple of years, they think it is a huge win. when i check wall street's consensus estimates, sure enough for gm, 585 this year, 585 next
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holy cow it would be fabulous if it can generate flat numbers for the next two years versus consensus. no wonder this information caused gm to spike. one of yesterday's biggest gainers. and it kept it today. and why are flat earnings so important? okay, average stock sells for roughly 18 times more but general motors sells for six times earnings because it is expected to have two down years in a row. money managers will not pay up under any circumstances with year. gm has the same problem as ford. same as delta, united, continental. and analysts believe the future will be much worse than the present. that's a pretty darn exclusive club. even if it isn't one you want to join. and low valuation cease statement. there is no particular reason why the autos and airlines need to have two years going forward that are down. the companies certainly aren't
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about the near term absolutely. they are worried. but the very bullish about the long-term prospects. the analysts on the other hand are a lot more skeptical. so i got to ask you, who will be right? honestly, i find it hard to believe that they are facing not one but two down years in a row. i think many of the problems have to do with the addition of new capacity as companies try to take advantage of higher fares. even after all of the consolidation in the industry. they gauge in e over the country. they simply couldn't resist. at the same time, foreign travel is increasingly difficult. the dollar put a crimp on tourism. a fear of terrorism. then the economic decline in latin-america which hurt traffic for the airlines too. let's not forget the zika drop-off. that's a lot of head winds that are expected to stay head winds. i just don't believe that it can last for two whole years. the airlines can turn things
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expand again. and the key metric can go higher. then the companies can take all their cash and use it to aggressively buy back stock and they have a lot of cash now assuring that the additional profit expands. i think that's doable. how about autos? tougher situation. let's forget ford. let's focus on general motors. these companies face real long-term head wind. driverless cars. uber. younger people no longer getting cars or even driver's licenses. concerns and gm is a worldwide company. short term though, i think there is a reason for optimism here. u.s. is strong. could stay strong with low unemployment rate and low gasoline prices. i think that europe with 770 million people isn't going to put up negative numbers this year. not with incredibly low interest rates and a central bank that won't stop until things pick up. immigration explosion could cause even the tight fist of german government to spend money.
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ill advised. i bet it surprises in its strength. latin-america top brazil could go way by way of argentina. mexico, peso could be troughing. finally, china. and this is the real source of my optimism. general motor is doing very well in china. last year sold 3 million cars in the u.s. and 3.6 million cars china. did you know they sold more cars in china than the u.s.? august was up 18%. gm like the airlines needs to take that cash, buy back as many shares as it can and help boost earnings. can this financial engineering count? let at the games in the package stocks with no real organic growth whatsoever but lots of earnings per share growth generated via buy backs. investors will pay for better numbers period. that's why i believe morgan stanley will be right on general motors and why i think most airlines are buys here, not
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inspiring. i just don't want to rule out the idea that the future might actually be better than the past. go to rick in california. rick? >> caller: jim, boo-yah. >> boo-yah, rick. >> caller: it's my birthday and i'm having an incredible day because i'm talking to you. >> happy birthday to you. glad to have you on the show. >> caller: what do you make about the ipo several years guy and has done what with it and what is your take on it. >> well, i don't particularly like the group unless they are selling at five to six times earnings. this one is at nine times but falling more than 20% for the year so i would not advocate selling it. i just would not buy the stock. let's good to gordon in my home state of new jersey. gordon? >> caller: boo-yah, mr. cramer. >> boo-yah. >> >> caller: how are you?
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>> caller: good. congratulations on the fantastic job you do educating the investing public. i'm a minister and we have an investment club at our church. and listening to you is one of the keys to life. >> thank you. >> caller: thank you for the fantastic job. >> minister, thank you so much. wow! i mean, we do it. we do it for a reason. we've been doing it forever. you're listening. thank you for those comments. it inspires us too. >> caller: yes. i like your comments on the stock symbol al, they purchase and lease commercial jet airlines in asia, pacific rim latin-america as well as other countries. they announced today that the airlines is committed to leasing at least six of their new airbus. i would like to know your opinion on this company.
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in a good enough place that a company like this can do well and grow? >> thank you for the comment. i'm still glowing. we heard from honeywell and from boeing. looks like air travel is over ten-year period will continue to advance. that's how we will look at it which is why i like your stock. not short-term. short-term is very, very rocky. long-term travel is in great shape and i think that air lease will participate in that. there is tremendous long-term demand for airlines. i get it be a all-out slug fest at the airport terminal and everyone riding around in uber real soon. but the future for the airlines and autos may not be as bad as expected. that may be just enough to get their spots moving. that's what we wanton "mad money." now i'm going off the charts with some of the major names in the payment spaces.
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sector. shares of tech data rocking over 20% yesterday. i've got the exclusive with the ceo at the most recent acquisition and it's a big one. of course, rapid fire in tonight's edition of the lightning round.
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circle back to an idea i started talking about last night. at a moment like this you need to be searching for stocks that are worth buying regardless of what happens tomorrow. what is working even as the market has gotten choppy over the last couple of weeks. i say the nonbank financials. especially the payment place. they have been holding it well. that's why tonight we are going off the charts with the help of bob lang, the founder of as well as technical star in the three-man team behind the trifecta stocks newsletter. we got to get a better sense of what is happening with the credit card stocks and payment place surviving or even thriving in what's pretty much a volatile market. and i'm speaking here about visa, master card and pay back. lang says charts are looking up for restocks and you can understand why, if you know a little bit about the mechanics of money management. there are many managers who like to mirror the composition of the s&p 500. if some sector rockets higher out of wherever we won't perform
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they witness incredibly intense question of john stump in the wake of the wells fargo, but there are all these hedge funds and mutual funds that still need financial exposure because the financials are the second largest in s&p 500. what do they do unless the federal reserve decides it surprise us with a rate hike tomorrow they will keep piling into the nonbank financials like payment processors because thee rates to make good money and that's why i think visa, master card, and paypal, which kind of really are tech companies, in the financial arena, are focussing on here, plus the fundamentals are just plane good. what does bob lang like about these? let's start with visa.
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decline represents normal pull-back activity which is why the stock started bouncing back. when visa got hit along with the rest of the market it found a nice floor of support at short term 20-day moving average. about a buck below is where the stock is currently trading. that's good floor to have. lang says visa seems to be making a run back towards the visa's expand this month is stock rally and volumes like a lie detector when it comes to reading charts. if a stock rallies on strong vibe like visa, see the button, that means it moves as it is generally a sign that big institution money managers are in there picking up the stock and when the big boys buy something, their purchases are so big sometimes they push the stock up. you see foot steps by looking at the chart. next up, let's look at the chart
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pattern and like most things it is called a pennant because it looks like a pennant. it looks like a pennant hanging off that pole. that's what we've got there. why does the imagery picture matter so much? because this bullish pennant formation is known as a continuation pattern. means the stock is resting before it resumes to march higher. breaking out at high end of the pennant today means it could be ready to run soon. lang points out when the market was getting slammed last week master card found a really nice floor. again, moving the average floor, currently around 98 bucks. down from where the stock is currently trading. plus the recent rally over the past month happened on high volume. okay. which tells lang the institutional money managers are
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that's an oscillator which levels the buying and selling pressure. it goes strong since early august. another sign of institutional buying. that's why master card is lang's favorite chart in the group and part of the reason why this stock is in this street's trifecta stocks portfolio that he does. so this one is his favorite. finally, how about paypal? and this is just an okay performer, frankly. this is the on-line payment stock we ond here is paypal. when he says he has a lot going for it, first paypal made an inverse head and shoulders pattern, one of the most reliable bullish formations in the book and it sounds like an upside down bottle of shampoo. there we go. i know some people say to me, jim, isn't that head and shoulders bad but bob is looking that the from this point of view and saying you can see that this is a real inverse head and
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smaller declines which looks like the head and shoulders after person hanging upside down. but thing about this pattern is it often moves higher. and paypal could easily go to 42 bucks now that it broke above the pattern's neck line and that's what typically has it happen and broke above the neck line there. that's where the stock is if paypal follows bob lang's advice. i think higher. the vergens to vergens, the mac changes in stock trajectory, made a bullish crossover. there's the bullish crossover. you see this here. that's where the black line goes above the red line, very bullish. and another signal suggesting paypal goes higher, chicken money flow. here we good. this is pretty positive territory for months. and perhaps most important, lang likes the paypal actually manage to hold its own and when the
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the past couple of weeks. one of the few great performers during the period and paypal could exceed march highs of $41.75, over 2 bucks from where it is now and this stock is off to the races. so here is the bottom line here in these payment processors. as interpreted by bob lang, indicating big boys are loading up like visa, master card, paypal. he thinks all three could head higher. he particularly likes master card. me, i like all three. i would buy any of does indeed give us a statement that's too hawkish tomorrow. "mad money" is back after the break. when it's time to move to underwear, toddlers see things... a bit differently. thanks to pampers easy ups... while they see their first underwear... you see the best way to potty train.
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it is time for lightning round. and then the lightning round is over. are you ready? time for the lightning round. starting with john in illinois. john? >> cal cummings? >> i would buy cummings for the long-term. i think china will be fine and it is a bit of a china play. david in virginia. >> caller: thanks for taking my call, jim. should i buy, hold or sell chesapeake energy. >> chesapeake is not one of my favorite. lpc is what we are talking about now.
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>> caller: hey, jim, how are you doing? >> good. how are you? >> caller: fine. last week intel announced pc and what do you think about micron? >> i think micron is good. i like micron. i still live nvidia. how about tim in washington? tim? >> caller: hi. how are you doing. thank you for taking my call. >> of course. >> caller: my daughter sophia wants to say hi to you. >> hi, jim cramer. >> caller: i have a question about high solution -- >> scour solutions? scour solutions is 7 bucks i think. as much as 7 bucks intellectual party in apple iphone 7. i remain steadfast that this is a good stock. to ron in new jersey. ron? >> caller: jim, boo-yah from new jersey. >> nice. i was in ocean groves last
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>> caller: the prospect of the new alcoa and -- >> i like the split very much. the vin investment guy with me. and i wanted to double down on it to tell you honestly. double down. why? because i truly believe that aircraft demand is strong. and this looks like precision cast parts to me. i'm going to mark in texas. mark? >> caller: [ inaudible ] >> kroger? i think kroger is overly punished. i have been down, down, down. i'm willing to say you should stop selling kroger. it is too low to sell. go to nick in new york. nick? >> caller: jimmy, boo-yah, how you doing? >> boo-yah, what's shaking? >> caller: nothing much. cliff natural resources -- >> no, no. that is at a stay.
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the that's the end of the lightning round. >> the lightning round is sponsored by td ameritrade. tomorrow, kick off the trading day with squawk on the street. live from post the at nyse. >> no, i did. >> okay. >> i had something in my ear. >> now our executive producer >> well he is an eagle is fan, flying high and he can tell us what he wants. >> all starts at 9:00 a.m. eastern. why am i so devastatingly handsome, i'm in a fragrance..., and my sweethearts gone sayonara. this scarf, all that's left to remember. what! she washed this like a month ago!
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superior clean. i'm never going back to a manual brush. boy did we get big news out of tech data4 . basically tech data helps apple, cisco, hp. and many others. yesterday we found out this company is expanding its reach. tech data announced it is acquiring competitor app net for
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the news. i knew it woo be up but not this much. typically you don't see a rally like that unless the market endures the deal. there is a lot to like with the transition. more exposure to the data sent earn the vast asia pacific market. some day could be a big positive. especially since the company's most report a few weeks ago wasn't perfect. so just how bullish is this acquisition for tech data? could this deal be what the stock is or did yesterday's monster 22% gain already bake in most of the upside. let's check in with bob, ceo of tech data. learn more about how the company is doing and what the ab tech means to the future. welcome back it "mad money." good to see you sir. have a seat. this is a monster deal and we have had ab net on and your company on many times.
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why is it being perceived as being so perfect for tech data? >> yeah. i think the market and vendors understand how the two pieces fit together. tech data wants to invest in the data center and help customers grow at the higher end of the market. the reason that's important is we want to help customers get ready for the third platform. >> which by the way you say third platform drives all new strategic enterprise i.t. investment. >> for the next decade. we needed more skills, more talents, more vendors relationships. to be that offramp into the third platform. business out. we have become european weighted. 60%, 40%. >> yeah. i thought oh, that could be bad for tech data. >> we wanted to find an acquisition to balance us. and we wanted to get into asia pacific. as a distributor, you have to have a presence. you can't just hang out a sign and grow. >> that's only 3%. >> but it's a footprint. >> tell me. >> it will allow us to bring
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relationships into that mark eaten grow. for example a networking vendor that may want to grow if asia pacific that we have a relationship with, we can take that product there. that's what we were after and technology solutions checked all three boxes for us. the perfect move. and i think customers and vendors have acknowledged it. >> we have to explain third party platform technology to people. talking about hyper converge all good through this. >> all good. if you turn back the clock on technology it started with the main frame. that's referred to as first platform. that is the industry standard for 25 years. then this architecture called client server, small computers attached to pcs. that's a second platform. third platform is, is a whole new set of architecture that leads out to cloud, leads you to social, leads you to mobile.
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have to be big in the data center. and so we wanted to make these investments in the data center to position us to be able to take our customers into that third platform. >> i think that's interesting is you are very abject in your call saying we have to get in with the times. you were a little too much notebook and pc. this leapfrogs immediately. >> and we're proud of that heritage. that broad line heritage of pcs and printers. but under the cover, we have an $8 billion business center today. and so by when we bring technology solutions in with more vendors and more customers, lots of talented people that understand that business, we balance tech data out between the broad line and new higher end technologies. and by the way, the margins are better up there. >> right. right. >> we can earn a little bit more money because we have more value. we have a lot of experience in that high-end business. that's why when we saw technology solutions, we knew
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us. >> now, i was just confused about how you arrived at the price. what do you say about that price is this is basically extremely, one reason why the stock went up, somehow that's good for everybody. not like ab net, i know you didn't want to take advantage because they got stock but the fact is you were able to price this so next year's numbers go up big. >> yeah. we think it is a good deal for them and their shareholders. if you remember, jim, our balance sheet had virtually no debt on it. so with a little debt and leverage, it becomes very attractive to our shareholders. when you can put a little leverage on your balance sheet and find a strategic match like we did, that's where you get the doubling effect. >> and your cash flow is huge. you will be able to pay this down very quickly. >> our goal is to pay it down in the next 18 to 24 months. >> unbelievable. >> still carrying some leverage
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>> i have to congratulate you. it was so clear this was a great day. i've loved your company for a long time. and even though you're a put down, you never skipped a beat. >> we are excited. we're excited with the talent and skills that come into tech data. a difference maker for us. >> oh sure. i don't think the stock is done go by any means. all sorts of decks and conference calls. stick with cramer. gotten used te smell of lingering garbage... her kitchen yup, she's gone noseblind. she thinks it smells fine, but her guests smell this. ding, flies, meow febreze air effects heavy duty has up to... ...two times the odor-eliminating power to... ...remove odors you've done noseblind to
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adobe keeps delivering. there's the cloud company that has stood out as doing it exactly right. don't forget fedex. we will have more tomorrow. but what a beautiful quarter.
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you tomorrow. at least a dozen police officers injured as hundreds protest charlotte near the scene of a favorite officer involved shooting. a rambling late details surrounding the bombing suspects. for the third time in three weeks, questions about donald trump's charitable foundation donations. >> grilled tuesday and on the menu the ceo behind epipen's skyrocketing price. angie files for divorce from brad. what happened to our biggest hollywood couples? "early today" starts right now.


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