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tv   Mad Money  CNBC  May 5, 2014 6:00pm-7:01pm EDT

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>> big fan. >> love those guys. >> konopko fills. >> i think it breaks through there. >> i'm melissa lee. 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 make you a little money. my job is not just to entertain you, but to educate and teach you. so call me at 1-800-743-cnbc, or tweet me @jimcramer. why can't this market break out? given the vast majority of earnings have been very strong
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and our economy is definitely improving! what is holding us back? considering that the averages spent most of the day in the red before rebounding in the afternoon. dow climbing 18 points, s&p .19%, nasdaq gaining .34%. i think that's the question we'll have to answer right now. so tonight, let's talk about what's missing in this market's feeble attempts to mount a rally since peaking a month ago. first, we just don't have the rest of the world going our way. we got to admit this. for much of last year, we could count on at least one part of the universe besides us doing well in any given moment. think about it, we had europe coming out of recession and the interest rates falling seemingly by the day. we had china in a bad news is good news frame of mind where each negative piece of data implied that we were one step away from the gigantic stimulus plan everyone was waiting for. we had russia getting its footing back and our companies
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doing business over there, we're seeing some terrific year-over-year comparisons. we had japan saying all the right things and uniting the tech companies that applied their trade there along with materials companies as construction picked up. we had brazil building and building as the world cup and olympic spending coupled with oil drilling, major in the western hemisphere. and many emerging markets showing a real turn with mexico, indonesia and south korea playing genuine strength, leading us. compare that to where we are now. europe's government bond markets, they've stabilized, but their economies have stalled. and now, we're seeing growth get revised down across the continent. europe's austerity, and yet to have any sort of real comeback. how about china? you know what, let's put our cards on the table. we no longer believe the communist party has a plan. its government indicators worse
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than the last. every single piece of data shows growing weakness. this once double-digit growth economy will be lucky to mount a 6% advance this year, and the purchasing managers report, a total downer! russia, vlad putin seems bent on teaching the west a lesson. he's tired of being dissed. and if there's one thing clear endlessly being called the escalating tensions, mostly because they escalate every day is that this guy is willing to risk/reward that russia's not to be taken lightly. we thought putin was beholden to the ruble and the russian stock market and to wealth. we thought he had become our bud, instead, he's flexing his muscles. lots of smart people writing off ukraine, simply hoping he doesn't decide to go after poland next. in the process, putin has gutted his own economy. he doesn't seem to care. japan's ap tempts to kick its economy into gear, well, i think we can say now they failed. they've only papered over the real weakness that comes from a
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closed and shrinking society. i can't believe how disappointing -- you know the guy come in, the prime minister. it's not working, man. they put through some tax increases recently, that's the positive news flow over there. no wonder their market's down double digits in the currency. it's been bad in japan. as for brazil, oh, you want japan bad, this place has gone awol. the construction for sports facilities way behind schedule. crime's way up. drilling program seems to have vanished into thin air. just -- just the ether. they're not -- i don't know what happened. that was going to be the biggest drilling project in the world. brazil's economy is in a tail spin, it wouldn't shock me if it went the way of argentina. let's hope it doesn't come venezuela. the emerging markets are stalled. korea's stalled because of china, mexico's taking a hit, which leaves the united states as the only economy gaining momentum. we had terrific data today, a survey showed increasing
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strength, fed said lending is picking up. all good. right now, we are an engine without any train cars behind us. so we aren't getting the kind of traction you would normally hear if we got that, the second problems our financials. frankly, many of these companies have been pathetic parodies of themselves, including some i own for my charitable trust. i think we're learning that bank of america and jpmorgan are not just too big to fail, they're too big to manage. and i am being really polite when i say that. last week, bank of america suspended its buyback and planned dividend boost because it'd turned out the company overstated the capital by $4 billion. yes, a $4 billion error. they dramatically overstated the value of some bond that had been kicking around the shop for ages, at least five years. but it was put together by a team that no longer with the bank, that's kind of the excuse. i find this astounding. i still can barely believe it. and i was mortified my
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charitable trust owned the darn thing. bank of america is going to stay bad for a long time and the trust is itching to dump it. who can be that wrong and clueless? will anyone even be punished other than my trust and the rest of the stake holders? the people who checked off on that worth. year after year really keep their jobs, really? i would have fired them so fast, they wouldn't have known what hit them. i would have put everyone else who looked at this piece of junk and said nothing -- and in the old days, i would have called their moms and told them they would be ashamed. okay, undeniably harsh. that's what was needed and needed now. the bankers must pay for these mistakes with salary cuts, bonus callbacks and firings. only the owners of the stocks can get hurt and then jpmorgan announces on friday night that the business is off huge with the trading revenues declining as much as 20% for the quarter. for the quarter? we've only had one month under our belt. are they presuming the money can't be made back? do they have that little faith
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in the team? then you need a new team. but then again, the previous quarter was awful. the worst of the major banks. no, the worst of all banks. so maybe they're just striving for consistency. the problem is that the financials are a huge part of the s&p 500. when they're this bad, they can shoot down any market. realogy reported disappointing numbers, gave an outlook of doom. saying the tough credit standards, rapid home price appreciation will make this a difficult year. residential real estate has been a boon to this economy and it is no more. even though interest rates have come down, mortgage rates haven't. have you noticed that? we aren't building enough new homes. more people are living with their parents longer than almost ever before. a fed survey said credit availability has gotten better. realogy, they disagree. finally, there's retail. this morning, target canned greg
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steinhathel. why does this matter? because believe me, if target's business would've turned, this guy would have a job if business were better. the second largest general retail merchandiser isn't seeing a pick-up? i think retail is doing better. some stocks have been oversold, some companies want to merge, more on that later. warren buffett's upbeat about the future as we know it from becky quick's amazing work. but here, let me give you the bottom line. we have huge head winds getting worse, not better around the globe. against that, individual companies in this country, which we know are undervalued and you wouldn't get these mergers and acquisitions and breakups. on any given day, you seem just as likely to make money as lose it. not a reason to cash out, but not a reason to put more money to work without another wave of weakness. let's take a video call. >> hey, professor cramer, we manage over $20,000 with all proceeds going to charity. we're up 7.3% year-to-date
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thanks to "mad money." >> boo-yah! >> hey, jim, adviser for the investment club. they asked me to ask you about babcock and wilcox, it's a current holding. what do you think? >> first of all, congratulations. we know the manheim people from way, way back. they've been "mad money" faithful almost since the beginning of the show and they're just terrific. that said, i think this is a business that's an engineering and construction company inherently risky. i'd like to see manheim go for more yield and buyback and less in a business that i find too hard to model. let's go to paul in pennsylvania, please, paul? >> caller: b-b-boo-yah, jimbo. >> nice. >> caller: thanks for all your help and you have a wonderful staff. >> yes, we do. >> caller: again, posted a strong quarter. the conference call which you always stress. hey, to me was a "b" plus to an "a" minus.
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they grew 10% year-over-year. earnings per share, 26% year-over-year. buyback stocks, as usual, loves to do. i just want to know, jim. why isn't the stock, it's trading below its peers. >> i don't know, it dropped down $1.50 when that thing came out and the stock jumped up again and finished up on the day and i thought the quarter was amazing. i like the fact in the conference call that he called out some divisions as being underperformers and said he wouldn't tolerate it. i thought it was a strong call. i agree with you, i think twx is going higher, maybe much higher. all right. this period is what we call a push, ladies and gentlemen. no reason to cash out, but no reason to put more money to work unless there's another bout of weakness. coming up on "mad money" tonight, you might prefer coke, pepsi or dr. pepper, but the best investment is not a matter of taste. one flavor of pop does stand tall above the rest. stick around, i'm going to tell you which one. plus, when you thought it couldn't get any worse for gm, yet another recall announced today. when is it time to buy the stock if ever? my take is coming up and let's
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just say it might be the road less traveled. stay with cramer. coming up -- the road ahead. general motors high-profile recalls have impacted more than 7 million vehicles to date. and shave 15% off its stock. can the new ceo get the company back on the road to recovery? don't miss cramer's take. don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to
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♪ "first day of my life" by bright eyes ♪ you're not just looking for a house. you're looking for a place for your life to happen.
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what the heck's been happening in this beverage business? everybody knows that coca-cola and pepsico are the two kings of carbonation. yet, since the beginning of the year, both stocks have lagged behind lowly number three, dr.
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pepper/snapple. dps for you home gamers, this one has rallied 15%. while pepsico up 3.6%. and coca-cola declined. so what is going on here? has dr. pepper become a better company than two soft drink titans? how do we explain this stark outperformance by what has historically been the laggard of the group. and more importantly, can the outperformance continue? let's run down the reasons why it might be doing better than the competition. dr. pepper gets more than 90% of the sales from north america. while coke and pepsi have major international experience. that doesn't explain that much, though. because the market for carbonated beverages in north america is weaker than nearly everywhere else on earth. if geography was in control, then pepsico and coca-cola would be leaving dr. pepper in the dust. but maybe we're looking too
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broadly. when you actually break down different types of soda, cola has had it a lot worse than noncola, which is a definite positive for dr. pepper, the original uncola versus the likes of coke and pepsi. meanwhile, you consider demographics, dr. pepper/snapple has a strong following among the hispanic community in the u.s. that's one of the rare groups where carbonated soft drink consumption has been growing not slowing. at the end of the day, i'm not going there. i don't think these broad trends get at the meat of dr. pepper's recent outperformance versus these two. no, dr. pepper's stock has been beating the stuffings out of coke and pepsi because investors view it as more of a safe haven than the other two. and lately, the market's been moving -- comes from the u.s. means that it has a lot more insulation against global
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instability. think the insanity in ukraine, then coca-cola or pepsico. those have vast international exposure. those international markets may have more growth, but they also carry more risk. and for the last few months, people have been craving the simplicity of security. we've been talking about that a lot. this is a classic example. pepsico, right? second largest market, russia. which is among the reasons why it's lagged dr. pepper for the year. dr. pepper doesn't have to worry about mad dictators inviting international sanctions that could hurt their overseas business because they barely have an overseas business. second, dr. pepper's gotten very aggressive about cutting costs and returning capital to shareholders through buybacks and dividends, offering the safety this market's been craving. those are the two they want. when the company reported a couple of weeks ago, delivered a monster 15-cent earnings beat off a 59-cent basis on only slightly higher than anticipated revenues. much of that beat had to do with the concentrate shipments.
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it was a timing thing. but some of it was because dr. pepper's gross margin, the percentage of sales after the cost of goods sold increased to 59.58%. and that's dramatically better than expected. and better sales and administrative expenses. in short, what is happening here? dr. pepper's cut costs and that's how it did its outperformance. which is why i would rather own coca-cola or pepsico. i'm not going to tell you that earnings generated through cost cuts don't count. money is money, and i like cost cutting. but the problem with dr. pepper, they've trimmed the low-hanging fruit. and there are far fewer opportunities to cut costs going forward in my opinion. meanwhile, dr. pepper hasn't shown any ability to grow revenues and what is admitted a tough competitive environment. i think that's a big reason why even though the company crushed the estimates when it reported, management didn't raise their full-year guidance for 2014. they stayed cautious about the earnings power and the amount of money they believe they'll be able to return to shareholders.
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now, coca-cola and pepsico are a different story. after the recent run, now sells for 16.2 times earnings, pepsico for 18.9 times earnings. coke sells for 19.6 times earnings. historically, dr. pepper has traded at a significantly larger discount. coke and pepsi may have lagged dr. pepper so far in 2014, but i bet they play catch-up through the rest of the year. they've got organic revenue growth and dr. pepper doesn't. let's start with coca-cola. slapped down by warren buffett's abstention on a vote that he considered too generous. ken tempered the plan after this, but buffett made it clear that there's no way he wanted kent gone. he's too good. i think that's why he didn't vote outright no on the plan. coke reported a knockout quarter. even though the company only delivered in line earnings, did manage to produce revenue growth of 4%. in part thanks to the strength overseas thanks to brazil,
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russia, india and china. coke saw improvement in carbonated soft drink pricing here in the u.s., which only expected to go higher going forward. what else? coca-cola generates mass amounts of cash and terrific at managing that cash. reinvesting it in the business to fuel growth, making smart acquisitions and joint ventures like their stake in keurig. after this run by dr. pepper. dr. pepper's yield's only 2.9% versus this very solid international grower. finally, there's pepsico, my favorite player in the group. not only does it have a terrific international growth story like coke, but it also has a fabulous snack business in the form of frito-lay. and we know snacks are a stronger market than carbonated soft drinks. when pepsi reported mid april, the quarter was spectacular. with the results better up and down the income statement, including mid, single digit revenue growth, much better than coca-cola. for the full-year, 7% earnings
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growth including the impact of foreign exchange rate. just like coke, pepsico sees the market improving. plus one of the companies being spurred on by activists. the king of the activists, someone made you a fortune if you piggybacked on his investments. meaning, if you found out what he was doing and bought it after it was announced, you made money, you beat the s&p. peltz wants to break into a beverage company and snacks company. something management's not willing to do. we know that simply having an activist in there is a thing that makes topnotch ceos up their game. and if pepsico stumbles, there's a real chance that he'll be able to push through his breakup plans and bail you out since when companies split themselves up, it's almost always a win for shareholders. pepsi does have a smaller yield than coke, 2.7%, but also cheaper, it has more potential upside. here's the bottom line. since the beginning of the year, dr. pepper/snapple, but that
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outperformance was driven by finite cost cutting and a flight to stocks that offered domestic security. going forward, i think dr. pepper may have run out of the major cost to cut, which means that coke and pepsi should be able to play catch-up. i like them both. but pepsico is my favorite. jeff in california, please, jeff? >> caller: boo-yah, jim. >> boo-yah, jeff. >> caller: jeff from sunny southern california. i want to shout out to my beautiful daughters. i'm calling about j.m. smuckers. >> i regard it as inconsistent. made some acquisitions, i thought they were good, they have been hit or miss. it's entirely possible the technicals are good. i happen to like the segment. but you know what? i can't go with hit or miss, i've got to go with consistency. soda's the name of the game, and david has been beating the goliaths of late. but i think that could and will change. and i think coke and pepsi could catch up to dr. pepper. which do i like the most? put a little pep in your step.
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up next, it's been a rough ride for general motors, is the ride about to get smoother? it might surprise you. don't move. more "mad money" after the break. i'm going to kick that football clear to the moon! >> coming up -- in peanuts? there's no doubt you've heard of the brands, but the business behind it has remained a wall street secret. not anymore, cramer talks with the ceo tonight.
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all right. look, enough is enough here. i'm sick and tired of the endless negative chatter about how general motors is toast because of the admittedly gigantic 2.6 million and horrible vehicle recall relating to some faulty ignition switches. the truth is, as much as gm keeps getting hit with bad press, including a brand new recall just announced today for 52,000 suvs but flawed fuel gauge software. as much as the media seems to be eating these guys alive and as much as today we got a high-profile resignation of the engineer involved in the original recall, i think that's one of those crucial moments where you have to be a buyer, not a seller. that's right. i'm telling you to buy general motors right into the teeth of this recall controversy. and, yes. and yes, i have put my charitable trust money where my
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mouth is. we own the stock for the trust. you can follow along actio why would i want to own a stock where everybody's so negative? it's simple. when companies make big expensive mistakes that generate tons of horrible headlines, it really doesn't take that long for the market to process that information and thus for the stock to bottom. just look at what happened with the bp oil spill back in 2010, which faced liability issues and financial impact that were so big and overwhelming that they simply dwarf any that gm is facing. bp's stock got cut in half almost immediately falling quickly from $60 down to $30, but it's been working its way higher pretty much ever since as the headline risk diminished overtime. i think the same thing can happen here. gm notified the national highway safety administration or the nhtsa about the ignition switch problem nearly three months ago
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on february 7th. then two months ago we learned there would be a justice department investigation. gm has linked 13 deaths to this faulty ignition switch. this issue for gm is a loaded one. because it has to do with tragic loss of life. all stocks face headwinds, sometimes it's a lawsuit or recall, a ceo scandal. it can be weather, hurricane, flood. however dark it may seem, our goal is to look at the financial angle of the head wind on "mad money." at this point, general motors has lost $5.5 billion of market capitalization, the stock has fallen from the 40s to $34 and change. so far the recall has cost the company $1.3 billion. when all said and done, that number will, indeed, goes higher. if it costs $2.5 billion. all told after fines and litigation expenses, by the way, i think it's a stretch. that means the stock has already been punished more than enough. let's say, look, let's just be really negative. let's say it's $5 billion. a number that even the bears
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aren't suggesting. the company can handle the loss and still recover quickly given how profitable gm has become. my reasoning. okay. these cars that are being recalled right now, they were manufacturing in 2003 through 2010. remember, that's the old general motors. the new gm came out of bankruptcy right at the end of 2010 and thanks to america's corporate friendly bankruptcy laws, you know what, there's a good chance that the gm of today won't actually be liable here for all the costs. plus, as much as this recall seems enormous, with millions of vehicles being taken off the road and a number of serious accidents, not underplaying that, the issue is inherently finite. and i think gm's management is as proactive as you can be about solving this problem. one more thing about the recalls. about three weeks ago, a very savvy, big-time money manager kyle bass was interviewed by my "squawk on the street" colleague david faber about why he's still such a huge shareholder and believer in gm. and did get in higher. bought some stock higher.
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not sure where he started, but i know he paid much higher. bass pointed out something that's very controversial. he was talking about the 13 people who have died in gm cars that had this ignition switch issue. and because this is such a delicate subject. you know what i want to do, i want to go to the tape of david interviewing kyle bass. i want you to hear his words, not mine. >> when you look at the evidence. and if you look through, watch the congressional hearing and you try to parse through all the publicly available data, there's some interesting narratives that aren't being told in both the press and in the halls of congress that i think are worthwhile. they're worth understanding. for instance, when you look at the 13 deaths, we're talking about 13 deaths out of 2.6 million vehicles. there are 250 million cars on the road today, and of those 13 deaths that happened, 10 of them either weren't wearing their seat belt or under the influence
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of alcohol. >> now, look, i think every death is a tragedy, but there's still the criminal intent here. whether gm knowingly put these people in danger, which is what the justice department is looking into. but if bass is right, you have to believe it's much more likely the victims' families will be willing to accept a settlement with general motors. in short, given that gm has lost $5.5 billion worth of the market cap here, i think it's safe to say that much of the recall issue is baked into the stock here. and if you can bring yourself to look past this issue, the fact is that general motors is a pretty well-run company. good numbers, a business that's going real strong right now. not only that, but gm dividend, 3.5% yield, that's better than most of the consumer staple plays like the food and beverages, not to mention many of the big pharma stocks. the gm sales, the april numbers increased by 6.9% year-over-year. much better than the 4.7% the other -- the analysts were looking for. and by the way, much better than almost all car companies, that's important. in fact, gm actually took two to
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three points worth of market share from march to april, despite all the negative headlines and the incentives are lower than expected. more profit per car. we know the latest quarter reported april 24th was excellent when you exclude the cost of the recalls which, again, are a one-time thing. we know that people are coming into gm showrooms. remember, the recall is about vehicles that are no longer being built, so it doesn't seem to be discouraging new buyers. streamlining their products so they can build different cars on the same line, which is a huge source of savings. altogether, gm has $25 billion worth of fixed costs in north america and these cuts should be able to take out over $5 billion of costs, that is a very big deal. gm has rolled out 17 new products, nine of which are trucks or suvs. these are higher margin products than cars and the launch costs are already in the rearview mirror. their european business, it's really improving dramatically. chinese business, never in question. quite strong. more than enough to offset the
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weakness that many companies are seeing in south america, including gm. let's put it together. i think gm could earn maybe $5 per share next year, and that means the stock's currently trading at seven times 2015's earnings estimates. that's absurdly cheap, really. come on. you know who else agrees with me about gm? warren buffett. great interview with becky quick today. here he is praising ceo mary barra on our air this very morning. >> she's basically on the hot seat, but it's not a hot seat of her own making. and i don't think there's anybody better that's going to be better at handling it. i think she's terrific. she can run any company at berkshire, that's for sure. >> i didn't hear anyone quote that all day. drives me crazy, that's important what he says there. yes, the recall's a real problem, not denying that. but when you look at the $5.5 billion decline, i think the stock's been punished enough. the company's doing very well. once the recalls are in the rearview mirror, i bet the stock will be able to roar.
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meanwhile, they're paying you to wait with the notoriously b.i.g. yield, one that's liable to grow. making the dividend bigger over time than it currently stands. alan in new york, alan? >> caller: hi, jim. thank you for taking my call. >> not a problem. >> caller: spo logistics announced their first quarter earnings last week. net revenue grew by 259%. this year, xpo is a billion dollar company. ceo bradley jacobs states that xpo is on target to reach revenue of $7.5 billion for the year 2017. >> okay. >> jim, i'd like you to invite bradley to appear on "mad money." >> well, i'd like that, too, but i'm not a logistics champion here. i'm not a champion. that group has been very challenged. i'm happy to have that man on the show. i think that would be very good tv. but i'm certainly not going to
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recommend the stock. here you go. despite the recalls, i think gm is doing quite well. and i think the stock is a buy. up next, check the tags on your clothes. you know the brands of the iconics group. but can the stock make you money? "mad money" is back after the break.
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the cold weather that's been a drag on the consumer's finally left us. it might be a time to get a read on retail for the rest of the year. which brings me to iconix. under the radar house of 35 brands from everything from house, apparel, footwear, electronics. you'll know these names, joe boxer, london fog, candy's, danskin, among many others. iconix owns these brands. and the company then licenses them out to various retailers and apparel makers who are the
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ones that make and sell the product. and they pay iconix quite a good royalty. and on every value of the spectrum from saks 5th avenue all the way down to walmart. they have a terrific business model, they're a retail play, but you never have to worry about inventory, and that's the bane of the whole industry. when it reported last wednesday, blew away the numbers, posting a 9 cent earnings beat off a 63-cent basis. higher than expected sales. management also raised the full-year guidance. not only that, but iconix has been a buyer of its own stock. 37% retired since october of 2011. this stock has given you a 40% gain since we spoke to the ceo last june. but even here, only 15 times next year's earnings estimates, too cheap. let's check in with the ceo and find out more about the quarter and where his company's headed. mr. cole, welcome back to "mad money." >> thank you. >> i've got to tell you, many people have sat there and said, you know what, you ought to buy my stock, things are going well. you completely delivered on many
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fronts. and you were the biggest buyer of your stock the whole time, aren't you? >> yes, we had a great opportunity and able to buy back a piece of our company. >> it seems every single channel is doing well for you. that makes me feel that retail might be a little stronger than some of the numbers suggest. >> well, where our growth is a lot of it's coming from outside the united states. >> that's true. you have a very big latin, huge china. >> that's really more than -- this year about 40% of our revenue is outside of the united states. the united states is a little choppy for the consumer. >> i was hoping -- i was going to say, the target, we had the news today, the ceo who i liked very much, he was cut out of the company. and i think that the mass merchandise distributors aren't doing as well. not consistently, i guess. and you see some of the action in those. >> yeah. but april's been a little better. >> it has been? >> yeah, a little comeback after easter. a little more encouraging than what we saw in february and march. >> you know, one thing i like about your business, you can't be amazon, can you? >> can't be amazon? >> amazon can't hurt you.
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amazon -- >> no, i think, you know, we have the benefit of most of our licensees have e-commerce, so we are benefitting from a big e-commerce business, that are doing really well. >> but you also have no inventory, which is what i always feel. amazon kills those retailers. >> exactly. we have great flexibility where we just get a licensing royalty without having to worry about owning the inventory. >> i want to talk about this international market. because every time i see you, i feel you're bigger in china. a lot of people claim they're big in china, but not a lot of people making money in china. that's something that you're doing, right? >> yes, we have a wonderful partner in china. and we're really, you know, spreading our footprint. today, we have well over 1,000 different outlets that have our brands either in store fronts or concessions within department stores. and we had one ipo of one of our businesses and a couple more hep hopefully coming in the future. >> maybe down the road we can
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see the positives of that. >> yes, we have a stake in every business we do. we trade our brand for a piece of equity in the businesses. >> okay. now the most exciting thing i see is -- i didn't know this. in november of 2015, there's going to be a peanuts movie. and what i'm telling people when i read your -- i know that you have to get ahead of that, don't wait until november to buy iconix, right? because it's right now that all the action's happening. >> yes, we've been working with every major retailer pretty much around the globe working on programs to sell products in, also ways to promote the movie. but the movie's going to be, in i believe 75 countries in 40 or 50 different languages, it's going to be a wonderful reeducation of the peanuts customer. >> when did you get peanuts? peanuts is a brand i didn't know. i was thinking, that's going to be a huge movie. "frozen" was big, "peanuts" will be big. you've owned this brand for some time. >> we bought "peanuts" four years ago from scripps. >> did you know there would be a movie? or is that the kind of good luck that happens to iconix
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shareholders? >> it was the good luck. we're partners with the schultz family. and we said there'd be no movie. but luckily, there's a 23-year-old young movie writer named ryan schultz who is charles schultz' grandson. >> so your partnership is with the schultzes, so it's covered. >> they came to me and said can we do a movie? and i said, hooray, that'd be wonderful. i have a 9-year-old daughter who doesn't know snoopy like my wife and i do. >> it drives me crazy because i refer to stuff with my kids with the football and stuff. they don't know it. they'll know it soon. that's neil cole of iconix brand group. there's a terrific presentation. you've got it -- once you go through the investor presentation from april 30th, this is the kind of homework i want you to do. you'll understand why this company's stock can go much higher. stay with cramer.
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it is time -- it is time for the "lightning round" on cramer's "mad money." that's about rapid-fire calls, one after the other. i tell you whether to buy or sell, and just to be clear, i don't know the callers or stock questions ahead of time.
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play until this sound and then the "lightning round" is over. are you ready, ske-daddy. time for the "lightning round" on cramer's "mad money." >> caller: hello, mr. cramer, i'm from charlotte, north carolina. >> nice. >> caller: my question -- yeah. my question is about valero. >> i didn't think there was more to it, but the spread going valero's way. it's motivated to make you money. kenny in oregon. kenny? >> caller: this is kenny in oregon. you got it, buddy. plug power. >> plug power, when we were on a rig in the gulf of mexico. and i said it should be sold. it's now come down, they did a big equity offering, it is just a sloppy stock. this is part of the speculation coming out of the market. i don't like plug. let's go to nathan in texas. nathan? >> hey, jim, thank you for taking my call. >> my pleasure. >> boo-yah! >> how do we feel about ori. buy, sell, hold?
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>> old republic is a good company. it's got my name on it. let's go to shawn in new york, shawn? >> caller: hey, jim, this is shawn from new york. they beat on earnings but conservative guidance. >> this group is so out of favor, but you've got to pick -- you've got to make your stand. and right now, i'm willing to make a stand. it has been crushed. i think it's okay. let's go to chris from rhode island, chris? >> thanks for taking my call. >> okay. >> caller: my question is about a stock it own goodyear tire. >> i don't know, goodyear had a big move, it's pulled back. i want to stay away from goodyear. it's too high, so many others, i prefer general motors. mike in michigan, mike? >> caller: yeah, jim, what do you think of wes pharmaceuticals? >> it's good, not great. look, i felt that pfizer was good if they do the -- i prefer pfizer. let's go to dolly in arizona. dolly? >> caller: hello, jim. >> hi.
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>> caller: how are you? >> very good. happy cinco de mayo. >> caller: let me tell you, jim, snn, 1989, i've been with you -- over 20 years. >> holy cow, i've been around. a lot of mileage. >> caller: i'm telling you, jim, you're still the same shy, caring, trustworthy, you're waking your tail off for us. i hope this station appreciates you. because you are the best. >> thank you. and they -- they do. i love -- i love the team i work for. what's up? >> caller: you do love your work, you can see it. and you love the people. i mean, really. you're the best. you are the best. >> thank you. >> caller: now i hope you can help me out. >> okay. >> caller: i'm interested in taser international. i called you several times. i've been with this company, believe in it. it was doing hot dogs, it was going way out. >> look the stock had a run, pulled back. you know we liked it. brought management on, the stock was lower, it's been a winner. i don't get discouraged.
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i think we're fine. thank you for those kind words, holy cow. let's go to tim in california. tim? >> caller: hey, cramer. i'm calling about dnb. personally, i think it's a great long tech. how do you feel? >> it's my local company, i was surprised it sold off as much as it has. i think you're right. i like data, i think the company's a winner. i would stick with it. staying alive this year, we have a lot of companies correcting. down 13%, it's not that bad anymore. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. >> why are you bullish on our country? >> we are in control of our destiny in this country and we need to get after it. >> you're either riding the innovation curve or not. >> don't bet against us. we're going to be the winner in this industry. >> watch "mad money" and be the first to know.
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♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade.
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the good news keeps coming. we keep focusing on everything. ukraine, chinese industrial numbers, interest rate declines, tapering, but then, i'm talking about this massive wave of buyouts, breakups and mergers that might as well be invisible. for all the attention it's getting. i don't like that. today was b.e. aerospace, a stock i like very much from the
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beginning of the show to walk down the aisle. gaining 10% in one session after management said they're open to new ways to bring out value. yes, at $8.26 rally. wow. all-time high. one session! b.e. aerospace which has managed to integrate itself into so many airplane parts, it's got a huge chunk of every plane. yesterday canceled a scheduled analyst meeting sunday and instead issued a release stating it's going to explore all alternatives. this could be a natural fit for united technologies after $16.5 billion acquisition of goodrich, bought in late 2011 that's been such a win for you techs. it could work well for general electrics. i would say honeywell, except honeywell sold fasteners to b.e. i can't understand, though, why honeywell would want to own all the instrumentation up front and the seating, lighting and gally
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porti portions of the plane. however, honeywell did just sell 1.5 million shares earlier this year. it received that as part of consideration for the faster business it sold. but still retains 1.9 million shares. i request also imagine, i like this one, doing some matchmaking here. rockwell collins, kicking the tires and possible merger of a company that has a huge piece of many planes. deal would make a ton of sense. of course, a private equity firm could buy beav. these days, though, having cashed out of tons of positions, the p/e guys are flush enough to make it happen. don't sell this. we have lots of areas in the economy where we know there's intermittent strength. we debate these every day, especially when there's a backdrop so low and the weather playi ining havoc with so many s of the economy. we know that ukraine and china held back stocks, regardless of where they're located or what the companies underneath them do. but no one, no one with any
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brain is questioning the aerospace cycle strength, fuel-efficient planes of sizes and shapes -- that means b.e. has a huge backlog of orders. i have no doubt that a transaction would get done here. here we've got one more medium to large capitalization company with a stock after a fabulous run for 2/3 of 2013 has done nothing for six months. i'm sure there are many people who think we shouldn't take it as a given that a company's stock deserves to go higher. however, given the strength of b.e.'s business, i think this period must be very frustrating to management and the board and looked upon with intense interest by these big countries in aerospace who recognize the united technologies been able to keep raising estimates off the synergies of the goodrich acquisitions of landing gear. in other words, the public market has undervalued b.e. aerospace. that is until today. stick with cramer.
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at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. all right, it is up two initially and goes up even more. that is the ultimate momentum name, really. so watch out tomorrow. i think you'll see the yelps
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recharge and the salesforce.coms recharge. stay tuned, at least in the morning, this market changes coloration by the hour. there's always a bull market somewhere, i promise to try to find it >> my name is jeff allen, and i'm back. it's a new season of the car chasers. all right! i buy, fix, and flip cars. this is a money-maker. >> sold! >> but i don't do it alone. i've got perry, a real artist when it comes to restoring cars. >> i think you should take these carburetors, just throw 'em outside. >> meg, my better half. she keeps all of our spending in check. >> we don't do cars to set bars. we do cars to make money. >> and eric. he builds, he wires, he repairs. >> i'm pretty sure this is legal. >> there's nothing this mad genius can't fix. >> she is purring. listen to that. >> my main competition is still my dad, the toughest negotiator


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