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tv   Mad Money  CNBC  July 18, 2013 6:00pm-7:01pm EDT

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i think it goes lower. below 100. >> final trade here bk. >> i want to sell dhr. >> karen? >> i actually agree with bk in the bear suit. >> guy? >> tlt in a similar camp. you should see a bounce in the next couple see you tomorrow. "mad money" starts right now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to 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 a little money. my job is not just to entertain you, but to educate you call me at 1-800-743-cnbc. you know what i like to be mixed? no, not mixed drinks. if i own some of the text
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stocks, i'd be mixing a strange brew of arsenic and scotch and sipping it. no, i like my data to be mixed. that used pool data that confronts us every day, because the more mixed the data, the higher the averages. the dow climbing 78 points. all-new records. nasdaq advancing. it was weaker than forecast. the jobless claims, they came out. stronger than forecast. consumer sentiment survey that shows consumer confidence is high. we've got a bloomberg report that came out that shows it's at a five-month low. philly and the empire state say good gains in manufacturing. but among the weakest of leading indicators. that's what i call mixed. why do i like mixed? because the market likes mixed. looking at the dow jones industrial, still one more all-time high today. why is this mixed state of macro data such a pleasing cocktail to the bulls even as it can be a
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tonic, a toxic one, to the bears? first, because my biggest long-term fear as an investor is the discourage of inflation. always has, always will. i don't see anything in the numbers that we're getting, these big mac row mixed numbers that makes me feel inflation. secondly, that means the federal reserve doesn't need to fear inflation either. a long time ago, i used to watch wall street, you don't get that kind of crystal clear logic from anybody anymore. the federal reserve feels the need to be accommodated, meaning pro-growth, and it doesn't fear inflation. doing its best to provide money to the system and that money always seems to end up in the stock market. that money flow means that the tape, shorthand for the action of the market, the thing that's underneath, during the daytime, okay. that will be positive. in other words, you should be
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buying stocks, not selling stocks. the direction, perhaps more important, the momentum of the market will be higher and stronger than the mixed data would otherwise indicate. how this is mixed data impacted the averages, and your money. the suggestion that pretty much everything works, pretty much, not all. but something you can tell when you look at the biggest contributors to the 2,440-odd points that we have tacked on to the dow this year. at the top of the pack is boeing, which contributed an amazing 241 points in the dow. why? it's not the b-17. i'm talking about the new dream liner. that's helped for sure. yes, the dream liner. we have higher oil prices. that makes airlines buy new planes, 40% the bottom line. i always remember that when everybody and his brother -- i told you do not bet against boeing or its terrific ceo jse"e
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day" -- ceo. smart pants, buy boeing. 170 points. how did three-m do it? i think the stock's been on a role because people believe that when the economy gets better, three-m gets better. how about johnson & johnson, the third biggest contributor. this is a textbook case of how positive a mixed data environment is for stocks. just like some investors are buying mmm to play gravitation from mixed data to positively data, some are buying jnj. it's the perfect hedge for mmm. that's what happens in a bull market. you want totally nutty? how about the fact that the transport is at an all-time high. the transports. despite the fact that oil is making a new high.
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$108. commerce is slow. this is an indicator, people think mixed day leads to better data. really spicing the index up, courtesy of good numbers. two stocks we have been remorsefully behind. reasons, stronger autos, big chemicals, even better than expected coal shipments because of the increase in natural gas makes coal more competitive. i know many of you are skeptical. i have to tell you that yesterday's alpha conference, confab -- i'm not getting real no enthusiasm. nothing just on the fundamentals. nothing just fundamental. plenty of stocks now being left behind. particularly some in the tech sector, like google tonight, which missed on a very key metric, and microsoft which i guess had pretty much gotten ahead of itself. these tech numbers as well as some weakness from e-bay, which i believe has bottomed, and intel, which i don't think has,
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just last night could cast a poll for tomorrow's action. the earnings in the fda warning letter. that won't help either. remember, it's our job to find the good ones that are sold down anyway. because of high-profile disappointments like the one i just mentioned. those disappointments, they are going to happen. you see the disappointments are also part in parcel with the mixed data environment. misinformation and misearnings, even as they don't preclude buying winners. because when inflation is low that money is coming into stocks, not bonds. especially after we saw how much wealth could be lost in bonds in a blink of an eye. so here's the bottom line. mixed data, like mixed drinks, can cause a real high. is either sustainable? wrong question. by the time you figure it out, party's over. should it be like this? it's not a philosophical political thing. the point is that mixed data produces the best results you can get in the stock market, so why fight the tape when you can rack up terrific gains like the ones we had just today. mitch on the line, mitch.
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>> caller: boo-yah from chicago, the greatest summer city in the world. >> i always thought it was a little hot there, but i'll take your word for it. >> caller: i want to talk to you about blackstone. they reported earnings this morning. wondering if i hold on to it, i can expect some growth in your portfolio. >> this is one of our great specs for the year. i think the stock is still cheap. i do not want to ring the register on it yet. it's a good one. how about kate in texas, please. kate. >> caller: hello, doctor. cramer? >> yes, the doctor is in the house. >> caller: hello, i am kate from south lake, texas. i'm very excited to speak to you. >> same. >> caller: i am very disappointed with their performance. now what to do? sell or not to sell? >> it's not going to hurt you, it's not going to hurt you. i think it's a push. they're not going to break
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themselves -- they broke themselves probably a lot worth what johnson patrols is worth. zachary in oregon. zachary? >> caller: hi, jim, this is zachary. boo-yah. >> boo-yah. >> caller: was wondering if pfx is a buy now at this level, or does it go lower -- >> don't like the spread situation. now, just so we know, it's also got natural gas. valero is bottom. that's the one we think that could actually reverse itself. if they reported this number and didn't really go down, that would mean that it's bottom. not recommending the stock or the sector. is this market all mixed up? you bet it is. this mixed market can be oh so nice, too. we can question it. "mad money" is right back. coming up, coal heart? demand from china has caused
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coal to cool off. that's been bad news for joy global. its stock, down 20% this year. but, can the company dig its way out of this hole? cramer mines for answers with the ceo. and later, is bp back? it's been three years. the environment has been devastating. and its stock has also suffered. but, has the company moved past the spill on the path to a brighter future? on the day oil hits an 18-month high, cramer's got the exclusive with its ceo. plus, air superiority? s.a.p. is fighting for a position in the business of crowd competing. but today's weaker than expected report ground r grounded its shares. is this just temporary turbulence or is the stock about to lose some altitude?
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don't miss cramer's exclusive, all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question, tweet cramer, #madtweet. send jim an e-mail to madmoney, or give us a call at 1-800-743-cnbc. miss something? head to madm. 1-800-743-cnbc. miss something? head to
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if china can turn things around, this market can work to a whole new level. and if you want to get a read, you check in with joy global. the mining equipment have coal. it's down 20% for the year. weakness in the commodities. last month goldman sachs basically throwing in the towel.
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it was higher. i think joy global has weathered the storm quite well. the second half could be better for these guys. especially since the stock is trading at level where is any improvement could send it soaring. i play with an open hand. you should know that my trust is under water. that's why i want to talk to mike sutherlin, the president and ceo of joy global, hear more about his company. welcome back to "mad money." good to have you here in person. it's kind of like a bizarre universe. your company has done much better than most people think. and yet the stock itself is acting as if it's a coal stock. the last five years, joy is down 25%. you've basically been hitting, or nearly making the expectations. >> i think a lot of that has to do with lack of full understanding of our business model. we have 60% of our revenues come off of the aftermarket. the aftermarket for us is in
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support of e kwquivalent that i much more stable than the new mining expansion project. so people look at our business, like say a capital equipment business, and it is an aftermarket business. i think that stabltd is not obvious to a lot of the investors.ility is not obvious to a lot of the investors. we do a lot of things to our business to take volatility out. we intentionally increase outsourcing as a cycle deepens to hedge against the cycle peak and then we begin to bring that work back inside to help buffer the downside. we do a lot of things to make our business much more predictable than the commodity markets. people associate with us with the same kind of volatility you've seen in commodities themselves. >> you mentioned cyclical. there are many people who say that great cyclical move we had is totally over, and could be in a secular decline for the mining of commodities. he would say that's too simple. but that's kind of what the implication is. >> well, i couldn't disagree
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more. we all had expectations that growth at this point would be higher than it is today. growth in the u.s., growth in china, both are disappointing based on what we looked at three or four years ago. our customers had the same expectation. the growth isn't there. there's some downward pressure on commodities today. but if you look at the intensity of commodities per capita, and you look at where china is, you look at where india is, the other areas in developing asia, they're still very, very low on that commodity intensity curb and they're going to continue to move up that curb until they get to a level that may not be like the u.s., but certainly can apply north korea. if it looked like north korea, that is still two to three times the commodity demand you see today. if you look at it from a short term, you convinced of downside risk. >> you have been saying that we could have a better second half than a first half. sticking by that? >> well, we do -- because of the
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nature of our year duo have a better second half. we've been looking at order rates that have been relatively consistent over the last four or five quarters. they've been down quite a bit, 40% down from where they were in 2011. so we think that that reduction in customer cap is already reflected in our order rates and we've already seen that and we're seeing stability there. we look at prospects of new projects that are coming online that we 1993 the plsee in the p projects. that number is down 40%. but we believe that that's a better number today because the old projects that didn't meet the criteria have been scrubbed out, new projects have been added. it's a list now that meets the more stringent criteria that our customers have. we see stability in the order rates going forward. that's very similar to what we've seen in the past. as long as it takes to reach a point where we see demand improvement. >> so i want to be sure capital expenditure, spending for the
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big miners has been coming down. are you saying that your end of the business, it could be stabilized? >> that's what i'm saying. >> you are saying that? >> what goes into money equipment purchases is already -- actually, did that last year. we've already seen the downside in that. and other areas of cap ex infrastructure and other areas will wind down through time. but i think we've already seen the reduction for our tactical equipment. >> in the meantime, if it's a great opportunity, why not just do the giant buyback? >> we have indicated to investors that we want to have an adequate cash balance, u.s. cash balance to be able to execute before we announce. we don't want to do anything on announcement value alone, so we are generating cash, we're moving cash out of the international markets back to the u.s., and then when we get to the right time, we would -- right now we see growth cap ex has largely been spent for us.
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return to shareholders is at the top of our list. we want to start that and execute well. >> last question. is united states coal market growth finished? >> the long-term growth is going to be challenged by environmental regulations. but today, we have -- coal burn today is up about 60 to 70 million tons over last year. as our power generators move back from natural gas to coal, as gas prices have gone up, that is coming out of excess stockpiles. that will -- those stockpiles will normalize by the end of the year and that excess coal burn will translate into increased production next year. so there's some upside in the near term for our customers as the industry rebounds its fuel load and works down their inventory levels. but beyond that long-term, we really have to get environmental regulations. and get some indications today that the new epa regulations
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will have -- hopefully separate standards for different fuel types, which will give us breathing room. >> thank you for that very candid analysis of where joy global is going. that's mike sutherlin, president and ceo of joy global in person. coming up, is bp back? it's been three years since the largest oil spill in american history put bp front and center. the long-lasting impact on the environment has been devastating. and its stock has also suffered. but, has the company moved past the spill on the path to a brighter future? on the day oil hits an 18-month high, cramer's got the exclusive with its ceo.
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an environment where the price of oil seems to go higher by the day, what do we do with bp? three years after the end of the tragic oil spill, it's still being held back by litigation. consider the bp the company is not only doing darn well, it's also cheap by almost any definition you can think of. bp's latest quarter was terrific. and once again, aggressively with the gulf of mexico, where they have some of the high quality assets, not to mention the rest of the world. they've got projects everywhere. the stock is trading less than 7.4 times next year's earnings estimates. a gargantuan yield.
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they're going to buy back $8 billion worth of stock. but then the litigation, which the company has had a hard time putting behind. tomorrow is an important day for bp because they're going to federal court to see if they can temporarily hold off payments that it's been committed to making, because there's been so much well-documented flimflam. bp's decision to cooperate with virtually every single authority involved in the spill has caused the company $32.2 billion. they've already spent more than $25 billion on cleanup response and payment of claims. bp is so darn cheap, it's hard to ignore. so let's talk to the ceo of bp to hear about what the future holds for his company. welcome to "mad money." how are you? >> very good. >> point-blank, what's enough here? will some people just never be satisfied until you're put out
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of business? >> well, i don't know. we're determined to make sure that that doesn't happen. there will be a hearing in court. last week, louis freeh, former director of the fbi, was appointed to go in and look at this claims facility. we made a deal to repay legitimate claims. he's going to come in and have a look at it. there's a big dark cloud over it. we think wise thing is to take a time-out. >> are you an open register? i've been reading that there's an excellent investigative piece in bloomberg magazine that there are just lots of claims being put in that to me and maybe to judge freeh don't seem legitimate. >> i think many, many people look at the claims that are being paid as quite frankly absurd. they're not at all in the spirit of agreement. we made a agreement and it was a good agreement to repay legitimate damage done to victims. >> what happens if this turns into an asbestos situation or like tobacco litigation, where your reserves can't cover the problem? >> well, i don't think that will
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happen. we've got more than $42 billion set aside already. we paid $24 billion to date. this is a distraction in a very small way for the people. it's not distracting the company. the balance sheet is strong. business is performing. so i don't see that happening. >> well, let's talk about where it goes. an environment where oil -- i would expect bp to be trading in the mid 50s, maybe 60. you are pretty sensitive to oil. rising price would have normally had your stocks up substantially. >> we do have what we call an oil leak portfolio. businesses are running around the world. we've got higher soil prices to date. came together at 108 together. quite extraordinary. so as a measure of how we view our company, we've started this aggressive buyback program because it reflects a good investment for our shareholders to do that. >> the dividend will also be able to grow the company the way you used to?
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>> yes, we laid out in 2011 a ten-point plan to 2014 to increase our operating cash flow by 50%. we probably have more than $30 billion of operating cash flow next year. we've got a progressive dividend policy. we've done this deal in russia, which brought in $12 billion in cash. we're going to take 8 billion of that and give it back to the shareholders. so i think the company is operating well now. has lots of momentum. not really distracted by these things in the gulf. >> i know you know russia really well. i'm not a political guy, but sometimes when i read how much money you made in russia, that russia may have a more fair corporate legal system than the united states. >> well, our activities in russia, the largest foreign investment in russia. nearly 20% of ross net, the biggest oil producing company in the world today. we've done very, very well in russia. it's been a bit edadventurous. >> you're the largest investor in energy in this country.
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haven't bought too much. >> we've invested $55 billion in the united states in energy in the last five years. that's far more than anyone else. and that's not counting the issues around the spill. so we are a huge massive investor. bp is a global company. but it has more employees, assets, investments in the u.s. than any other country in the world. so we've got 20,000 employees, 260,000 contractors, we support jobs at a great big investment plan. >> not that pro the nat gas. your ratio, oil and gas, and what you're projecting for what oil and gas will be next year. >> well, we are planning the company. you never know. you can't predict the price of oil. but we're planning 1$100 oil. natural gas might be 360. today it's 380. longer term, $5. for us, though, we've got a big pipeline of projects coming on. it's a mixture of oil and gas. it's more oil than gas.
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but gas is a very regional part. it's very different in different parts of the world. so we have a focus on those gas projects in lots of other places. >> a lot of people feel grieved that the price at the pump is going up dramatically. what's wrong here? why should gasoline be up so much, and yet the economic growth so tepid? >> well, you look over the last 30 years, as long as i've been in the industry, the price of gasoline in the united states broadly goes up and down with the global price of crude. it's a real global commodity. so that's what you see happening now. each time the price goes up, there's lots of political investigations. it goes down, people don't think about it. that's what we're seeing today. >> all right. you took what many people -- my colleagues in law say was initially a conciliatory stance all along because your company knew that this was a tragedy. do you regret in light of how this thing can't seem to be put behind you that conciliatory stance that you started with?
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>> you know, jim, from the very beginning, it's been a philosophy of the company -- it was a tragic, terrible accident in the gulf of mexico what. we wanted to do was step up. we immediately waived the liability caps. we didn't want to have this go on for 20 years or so like other companies. from the very beginning, tried to meet our obligations, made commitments. we've been doing that for three years i think very well. and we remain committed to claimants on the gulf, legitimate victims on the gulf from the spill. we remain absolutely committed to that and investing in america. however, we made an agreement that i believe has been hijacked, and it is paying out absurd results -- >> hijacked by federal authorities? >> hijacked by the interpretation in the agreement we made by a claims administrator that is leading to absurd payments not affected fwby this. i don't think that's good for our shareholders. we're going to stop and shine a light on this and fight it.
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it's just not right. it's not good for the united states. >> not good for the united states because other companies might not want to do business, because it looks like it's a legal regime that is too difficult, if you do make a mistake? >> i think anybody who goes into it and makes an agreement and believes they have a settlement and an agreement and doesn't have the faith and trust that it's going to be interpreted in a way that they agreed and the spirit of it, it leads to these kind of results, it's going to lead to everybody questioning it. i don't think it's good for america. it's not good for american business. certainly not good for bp. it's not good for all of our employees in the country. and i do think that there is something that's gone a bit too far. it's almost a caricature of the u.s. this is what people outside the u.s. talk a lot about. >> one last question. you said the last three years has been -- there's been basically two companies, the oil company that's doing incredibly well and there's this other litigation company. three years from now, will we only be talking about the oil company? >> i think we'll be talking about the oil company, which is
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already getting momentum. the company is simpler. we've invested $40 billion of as -- assets. we'll have investments in the u.s. i think this is clearly what people will be talking about. and there will be this activity that goes on, probably for a long time off to the side. >> all right. fair enough. that's bob dudley, ceo of bp being pretty candid about what is the legal part of bp and what is the growth oil part of bp. "mad money" is back. we in the united states are competing with the best companies in the world. >> look at the global competitiveness by any measure. >> my life story can be your life story. you can start with nothing in america and create the american dream. oh, he's a fighter alright. since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick...
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i have some stock involved in the open cloud company -- >> too commodity. that's the wrong place to be. tam in california. >> caller: bph, buy, hold, or sell? >> i don't know that company. i'll have to come back. let's go to john. >> caller: what's your opinion on sprint? >> i like sprint. that's what i was worried about. please come on the show and talk about the national plan. jordan in michigan. jordan. >> caller: a big boo-yah from ca michigan. i'm wonder about rdlt. >> oh, i know that. i prefer creed. i know it's moved up a lot, but i still like it.
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brian in florida. brian? >> caller: hi, jim, and boo-yah from miami, florida. >> nice. a little hot, but go ahead. >> caller: i've been a big fan of phil cross for many years. my question is, given a key acquisition of stock, buy, hold? >> i think you hold the stock. i'd like to see a little pullback. let's go to ben in connecticut. ben? >> caller: hey, jim. i'm at the university of wisconsin. huge fan. >> excellent. >> caller: new ceo from microsoft. >> i like that guy. can figure out some upside. i'm going with it. everyone else is running away from it. i hated it higher. they loved it high. shane in georgia. >> caller: hey, jim, how are you? >> all right. >> caller: a big boo-yah to you. >> how are you? >> caller: i'm doing great. the announcement today of at&t to play services in nissan
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automobiles -- >> i like sirius. it's been terrific. i think sirius goes higher. bob in minnesota. bob? >> caller: boo-yah, jimbo! >> you're post all-star break ready. what's up? >> caller: -- >> huh? no, no. chinese solar, i know it's had a big run. okay, i won't go for fslr. let's go to charlie in ohio. charlie. >> caller: hi, jim. i love wall street. boo-yah to ya. >> i like that sentiment. >> caller: you gave a thumbs up to a georgia bank earlier in the year. they're in the process of paying back. i'd like your opinion -- >> that's why i like it. that's the reason to buy. i think it's worthwhile.
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the regional banks have done quite well. seth in new jersey. seth? >> caller: hey, cramer. >> how are you? >> caller: pretty good. i was just curious, what is your take on sndk? >> i think it's terrific. they absolutely are the right place to be. why is that? because they're flash and they do a great job. sandisk is for me. and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. coming up, air superiority, tech giant s.a.p. is fighting for a prime position in the business of crowd computing. but today's weaker than expected support grounded its shares. is this just temporary turbulence, or is the stock about to lose some altitude? don't miss cramer's exclusive. b] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ]
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many. sometimes going to be a big winner in the industry, s.a.p. reported a number that some analysts found disappointing. the stock is now down 8% for the year. don't get me wrong. maybe the most -- they have the smarts to move into mobile and big data early. they've been innovating the cloud for three years. this seems to be a real dog eat dog environment for the traditional software business model, as we heard from oracle and last night from ibm and even red-hot microsoft. so is this just some cyclical bump in the road? something s.a.p. can come back from easily. so many have disappointed. let's check in with big mcdermott to find out more about this quarter and where his company is heading. welcome back to "mad money." how are you? have a seat. everything is relative. people have the best numbers. but i know you, you're a
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competitive guy, and i know in your conference call, you said that you yourself felt that you didn't do as well as you would have liked. >> yes. >> so is it the industry? is it the geography? because china is clearly slow. is it the competition, because no one wants to let the other guy have shares? so everyone is crushing each other's margins. >> the key is in terms of our personal feeling on the industry, you got to go cloud. because the customer really needs to get as much innovation as they possibly is at the lowest possible cost. >> to them, but it can mean tough things for you. >> well, that's just what we want to do. so we want to out-innovate ourselves. so we see a world where a line of business executives, head of sales, head of procurement, head of hr is running in public clout. easy, ready to run applications, fast time to value. now, the big idea -- and this is the transition in the industry.
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a lot of the core businesses will also move to the cloud. >> core businesses that were -- that had better margins than the cloud. >> the cloud in this context can have just as good margins. >> but you said in your conference call, you said the cloud is resulted in lower software revenue expectations. >> in terms of revenue recognition in the current quarter. so when you go cloud, you also go for revenue recognition. >> talking about a situation where you may have got really better orders and just can't see it yet. >> that's one aspect of it. but we have a different vision. the vision is to put the entire enterprise, entire companies on an enterprise cloud. you and i have talked about big data. and the datdatabase that can ru
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transactions, analytics, even predict things from customers in realtime on a common architecture in a high performance cloud. the way you monetize that could be a rental model, or it could be a sale model. the important thing is that you innovate for the customer. so one major transition in this industry that you're talking about is the move to the cloud. the second one, just on some of the results, is the asia effect. >> yeah, but this china is for real, isn't it? not happy with asia pacific. >> that's correct. i was not. the asia pacific should never be in negative territory. that's not acceptable. you look at the root causes. what is the root cause? you have a china effect because china is now forecasting 7.5% gdp. i tell people it's still pretty good compared to most other
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places. but it does impact the trading partners in australia and japan. china is focused on domestic innovation, in china, for china, as opposed to manufacturing and exporting. this is a blip in the radar screen. this is big. very simple. jim, i think it's a simple metric. i look at asia pacific as a region. the pipeline keeps increasing. decisions didn't go away. they simply got postponed. >> six months? >> my prediction is it will happen within a six-month timeframe. how do i know that?
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i asked the people. i reviewed the entire business with the asia pacific management team in great levels of detail. and they seem to have gotten the memo. >> if you think china -- i saw things in europe that i liked. is spain coming back? spain was the hardest hit has bottomed. >> believe it or not, jim, we're growing double digit in spain, portugal, italy, and greece. in fact, greece had very good growth. europe in the aggregate is still not robust. you know that and i know that. so i'd like to see europe in double digit growth territory as opposed to single. but here's a nice benchmark for s.a.p. germany grew 9%. >> right. >> the most mature market we have in the world. and southern europe is starting to come back. and the middle east and north africa has huge growth potential. i think we're in a cycle in the macroeconomic environment that will right itself, and the key
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is as long as companies lead and innovate and drive customer value, they'll be fine. >> the takeaway i'm having is don't think there's anything structurally wrong. it is a cyclical bump and you expect next year at this time, go back to the way s.a.p. usually is. >> s.a.p. group in double digits as a corporation. >> the stock prices. >> yeah, of course. yes. our ambition -- here's some unlocked value. nobody knows value better than you, right? that's why i come on your show. >> thank you. >> there's three things in this stock that i think are very, very undervalued right now that really need to be unlocked in the minds of investors. number one, we grew this quarter in double digits. we didn't get everything we wanted in asia, true. we grew operating profit in double digits. we reiterated our full year of profit outlook. today, reiterated. we might use different levers, but we reiterated the fact that we're going to make it. here's the value, though.
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big data is valued at a ten to one ratio in the capital markets. we have hannah, the world's standard in-memory platform for realtime analytics. makes companies faster and better. we have cloud, going in triple digits. and we have a core business that's growing in solid double digits over time. >> got it. >> that's a big, big franchise. >> it should work. it should work. i'm going to hold you to the back half. i will. that's bill mcdermott, co-ceo of s.a.p., one of the best enterprise software companies in the world. check it out. incredibly honest in this conference call. they used the words that were tough and i'm just quoting. >> thank you, jim. tomorrow, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> if i were either one of these guys, i would say hey, it's all yours. >> it all start at 9:00 a.m.
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ceo so far? when you listen to these quarters, you realize just how disruptive the cloud and the mobile are. unless companies are specifically built for cloud computing, we're mobile. the construction line with these two themes, they just couldn't really deliver the results investors wanted. take intel. the executives bemoaned how slow they were to get global. we were a little slow to recognize the trend toward mobility. huh? could they not see this coming? how did marisa meyer not see it coming? how about the cloud. ibm had its cloud growth just like oracle did, but a funny thing happens that even s.a.p. admits. it seems to squeeze the margins of traditional businesses that are so important to these companies. these i.t. giants still rely on non-cloud software sales for the bread and butter. everybody wants to admit that going from heavy licensing revenue to lighter cloud sales
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really makes it a difficult transition. meanwhile, sandisk blew the numbers away. still, though, because of weakness, i think they're being conservative. after these reports, there was no doubt whatsoever that the old fashion expensive software with hefty licensing fees rapidly become a thing of the past. that's a margin that may be going away. maybe microsoft is feeling that too after that disappointment in the quarter. at least relative to most recently heightened expectations. we also have the personal computers were a high margin of business. ultra mobile, as intel calls them, are the bane of the existence of a company like intel. by the way, and bad for dell, too. i might add, intel, what are they doing? they bought back $3 billion worth of stock. intel missed the internet back
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boom business. it missed the whole mobile business. let them dominate it. it is sad that this company is not growing at all. flat revenues. but it beats the declining refs that ibm got. software isn't going to be as good as people think. but i really want to stay away from oracle even more so now that i hear how s.a.p. seems to be bearing down. the environment has gotten really difficult. reported a not great number. in the end, the real winner may be the company that tech enthusiasts love to hate right now, and that's you will never hear the ceo say he didn't hear it coming. his whole company is built on the premise that that the cloud is the only way to go. no wonder the mobile is hot. maybe salesforce deserves it. stay with cramer. keep up with cramer all day long. follow @jimcramer on twitter and tweet your questions, #madtweet.
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there's a continuing theme here. the competition teams have caught up with everyone. ibm versus microsoft versus or google or mobile, which was
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not that good tonight. or whether it be just the kind of -- just incredible tech tonic shift that has made it to the margins are farther apart. that's what went on tonight and yesterday. there's a bull market somewhere. i'm jim cramer and i will see you tomorrow! . welcome to the "kudlow repor report". we begin tonight with breaking news. detroit files for bankruptcy. it's the biggest municipal bankruptcy in u.s. history. cnbc's scott cohn joins us with the details. >> america's fourth largest city once upon a time. today the population is less than half. today the motor city is the symbol of urban blight. the case has


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