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tv   Mad Money  CNBC  May 19, 2014 6:00pm-7:01pm EDT

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abercrombie & fitch. >> you swayed him. >> he does sway me. >> i'm melissa lee. thanks for watching. see you back here tomorrow at 5:00 for more "fast." meantime, don't go anywhere. "mad money" with jim cramer 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 trying to make you a little money. my job is to entertain you, educate and teach you. call me at 1-800-743-cnbc or tweet me @jim cramer. prices matter. when a stock gets hammered, it
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actually becomes cheaper. just like any other piece of merchandise. if a stock that's been crashing stabilizes for a bit, potential investors come in to do some tire kicking and then they do some buying. these factors came onto play in a huge way today with the dow advancing 21 points, s&p gaining 8.3%. the nasdaq, the center of the strength, climbing 0.86%. >> house of pleasure. >> today the much-maligned momentum stocks bottomed. they've become the bain of so many managers' existence, almost all roared higher today. why did that happen? i think it was a combination of lower prices going into the session, some takeover chatter, the charts, a cessation of new ipos, lack of insider selling and the first time in ages, a fear of being short.
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meaning a fear of betting against stocks. not of being vertically challenged. let me explain each one of these. first, lower prices and takeover talk. turns out stocks do get cheaper as they come down, even stocks that are outrageously overvalued versus the broader market. when you see yelp fall from 101 to the low to mid 50s, you know that stock's been put on sale. and it does have intrinsic worth. if you were a martian and came back and said yelp split 2-1, sure it would have to pay premium to the market cap if you took a run at yelp, but the acquisition price would be nowhere near where yelp was trading. if you were yahoo and your company is about to get a ton of money selling part of its stake from ali baba, you could imagine
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buying yelp might be exactly the kind of high-profile acquisition that would change the perception of your company. yes, yahoo should buy yelp. when i was searching for some piece of news that could have triggered today's rally, i heard that tablo software, symbol data, another tech stock that's been cut in half, is now the subject of takeover chatter. i have no idea if that's true. tableau could be a terrific fit for ibm or s&p. the takeover chatter didn't make sense when tableau was at $102, but $54 where it started today? you can see how someone might take the rumors seriously. these kinds of stocks have been total free fire zones. just the nastiest place to be. where the owners bailed, the short sellers feasted on the remains, but what happens if there is a takeover?
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holy cow. the shorts, they would be killed. they would be crushed. so you can see where a tableau rumor could spark wildfire sending up the whole cohort. i'm keeping an eye on concur technologies, the $4.7 billion company that reported remarkable sales numbers, not earnings but sales. concur owns the enterprise travel software space. all your bookings and different record keeping. nobody has a better travel and entertainments business than concur. it's major smart phone, could be a trip advisor or yelp. it is a natural takeover target for oracle. especially if it keeps going down. you own this company and you own a huge segment of a portion of the enterprise. concur stock traded as high as $130. now down to the low 80s.
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it was such a fabulous story. who knows how long it can stay down at these levels if the momentum stocks put on a real show here. jim, you said it's overvalued. it's overvalued, but not if you're an enterprise company trying to get in into the framework of the enterprise. a software company like oracle. it's not just the fear of takeovers driving this move. tomorrow sales reports. based what i'm hearing from five different wall street research firms, this company is going to blow away the numbers and give us a nice guidance. who wants to be short ahead of that? this is what i mean when i say price matters. it's obvious $60 sales force before last quarter report. down here at 53, that is a horse of a different color. i'm acknowledging again like workday, like concur, like these others, the stock is still expensive.
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i'm stipulating this market likes dividends and buy backs and sales force won't give you those. sales at a substantial discount to where it was two months ago is intriguing to them. i always said the high-fliers are an emotional group. with the bizarre exception of zillow traced out a gigantic head-and-shoulders pattern in the charts. we are operating at the right shoulder of the chart like a rotator cuff problem. this is a very important moment. the right shoulder can appear to be a deceptive plateau. stock is in freefall when tracing out that head. the right shoulder holds out the tantalizing prospect that the entire decline is over. we're right there i think lots of people believe this could be a launching pad. remember, i only care about the fundamentals of the companies and valuations of the stocks. there are a lot of chart followers out there.
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those who just know the charts of not just the companies which are legion will be interested in taking a stab right here. next up, the lack of new ipos. for months we were inundated with initial public offerings that looked like the established cloud and internet players i talk about all the time. that led to the need to sell the old to bring in the new. then these ipos started bombing, deals dried up to a trickle because buyers walked away with many that we've been expecting put on hold. that's where we are right now. so with the new supply tapped out, the cloud and internet stocks are no longer diluted by issues. there are no new ones. plus the insiders selling that brought huge secondary offerings to the market dried up, too. i don't know how long that's going to last. we keep hearing about a resurgent in deals. supply and demand makes for a
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much better environment for shopping. some of the major players started catching bids today meaning they caught buyers. first time in ages. namely the two big ones that have been stinking up the joint, google and facebook. since the twitter lock-up fiasco there's been a drum beating against the web. it created a more benign environment. how long will this era of good feelings last? we'll find out wednesday morning when we see the reaction to sales's tuesday night report. we have to wait to see what the real buyers do. none of that stuff at night. it didn't matter. i believe you are going to see a huge surge in all the usual suspects wednesday, concur, tableau which is data. workday, meta data, maybe spunk,
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firei, rocket fuel and the project known as the rubicon. could extend to the beaten-up biocons and the huge cell plays. let the play in the action market tell what you to do. i think the best way to play is not double down ahead of sales's report but scale back into the current bout of short covering and takeover speculation which is wild and we don't know if it's real. i believe this market likes earnings per share buybacks and dividends. let me give you the bottom line. as expensive as these high fliers are, their collapse did not hurt the broader market despite all the jokers who said i was wrong about this. that's crucial. now they're bouncing. i think if you like the stocks you can hold tight. if you're all nervous, tomorrow is the day to do, sell, sell, sell -- some trimming. debbie in connecticut. >> caller: jim! i'm thrilled to be able to ask you about insi therapeutics.
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i'm a cancer patient. upon your recommendation i bought 1,000 shares at $45. it split 3 for 2. now i have 1,500 shares. a doctor describing the drug has been investigated for medicare fraud recently. also that they reported last week and missed by a little bit. >> you hold on to this. i see insider buying which is all you need to do. why would an insider buy this stock if it wasn't right? i liked it and i wish you the best of luck and best of health. justin in ohio. >> boo-yah, jim. i appreciate the call. rig transocean. >> these analysts can't help themselves. there was a guy for energy services the other day that i just this morning downgraded
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esv. these stocks are so low already, i'm tired of it. my action travel trust bought some esv. i'm not against rig any more because rig is not as good because they got older and older drilling platforms than esv. remember, we learned that price matters. if you like these stocks, hold tight. if you're nervous do some tripling tomorrow. should you take a buys or sink your teeth into something tastier? >> jc penney and rite aid were left for dead but now they soar. one alarming detail that could cause a whole deal to fall apart. stick around! i'll clue you in. "mad money" is back after the break. don't miss a second of "mad
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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. you'd do that for me? really? yeah, i'd like that. who are you talking to? uh, it's jake from state farm. sounds like a really good deal. jake from state farm at three in the morning. who is this? it's jake from state farm. what are you wearing, jake from state farm? [ jake ] uh... khakis. she sounds hideous. well she's a guy, so... [ male announcer ] another reason more people stay with state farm. get to a better state. ♪
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most of the time i love it when companies make acquisitions in this environment, not just because you get a big instantaneous gain in the takeover target, but longer term these deals tend to be good for the stock of the buyer, too. not every acquisition is negativesly a winner. at&t overpaid for directv today. my view. more on that later. occasionally a smart deal might not be enough of a reason for you to buy the stock of an acquirer. let's talk sausage. consider what's happening with hillshire brands, company formerly known as sara lee. came out of the break-up a couple of years ago. the most meat-centric food brands, jimmy dean, hillshire
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farm, state fair. don't you love these? the old sara lee frozen bakery products, chef pierre piece. a week ago we learned that hillshire snapped up pinnacle for $6.6 billion, 18% premium where the stock was trading before the announcement. this is a huge win for anybody who has stuck with pinnacle since the day it became public. what about hillshire who got dinged in the news? people sold it down. is it still worth owning now that we have the catalyst of the pinnacle takeover? after the deal was announced, wells fargo upgraded the stock to outperform whereas the same time, exact same time, jpmorgan downgraded hillshire from overweight from buy to neutral. we had an honest to goodness
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smackdown over hillshire brands going on from here, steel cage death match. only one analyst leaves. before we get into the bull case and bear case, ever since the break-up of the old sara lee was announced, which we championed, hillshire brands has been a real winner. stocks giving a healthy low risk, 30% return since the break-up occurred in june 2012. just like we see with so many other break-ups this split has been good for hillshire's business. with the company rolling out popular new products, hillshire brands have bening a good job. people liked it as it was. nevertheless, we need to ask ourselves is the stock worth owning up in the wake of the pinnacle deal? i've been a huge fans since it became public. bulls of wells fargo become fans of hillshire brands now that it's acquiring pinnacle.
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pinnacle is in a dominant position in frozen vegetables, pickles and syrup as well as nice exposure to frozen seafood, fresh as the day it was boxed. frozen pancakes, yes! waffles and french toast and cake mix. wells fargo like the pinnacle is a dominant player right in the center of the grocery store. this allows hillshire to catch more space in the supermarket aisles where food companies are duking it out in a trench warfare where victory is measured by additional feet or inches of shelf space. the food space is about as challenged as you can get. something campbell soup showed us with a very disappointing quarter. there are price wars galore in every aisle, soup, meat, you name it. deals must be done to drive growth. otherwise, you just can't get enough from promotions or new products. beyond that, pinnacle will help
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hillshire reduce its dependence on meat-based products. don't you think they have a lot of meat? these can be vulnerable raw costs from the cost of live stock. pinnacle gives them more exposure to the health food categories that hot dogs and cake mix badly needs. this is an interesting juxtaposition to fatness. hillshire said the deal can give them $140 million over the next three years. wells fargo likes that. they added to the company's earnings. hillshire can spend more on advertising to support pinnacle's brands than pinnacle could, including opportunities for co-branding. willshire, wells fargo believes hillshire could rally as high as $42, a 15% gain. i like that idea. how come jpmorgan suddenly turned sour on hillshire? jpmorgan believed the pinnacle takeover erases all the reasons they liked hillshire brands to
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begin with. hillshire had a rock-solid balance sheet ton of cash. hillshire is not that much bigger than pinnacle. it could put a lot of stress on the company's balance sheet. second, the analysts at jpmorgan had been recommending hillshire in part because they thought it was a great takeover target itself. this pinnacle deal makes it larger more complicated, plus makes a takeover less likely. hillshire's management is being too bullish about product categories which is similar where conagra is similar. people feel these are no-growth areas. the newly negative or no longer positive guys at jpmorgan may be overstating things a bit. one could argue hillshire would still be small enough to be acquired by any of the larger packaged food companies that are challenged for growth. as far as the balance sheet, hillshire has been sitting on hundreds of millions of dollars
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to cash. with interest rates so low, now is a terrific time to borrow money to make an acquisition. where do i come out in all of this? i like what hillshire is doing here. on the other hand i think they are a better opportunities out there. i totally recognize that hillshire was, i think, in the cross hairs of some companies. for me the real take away from the pinnacle deal. other similar companies like b&g foods. b&g is just like pinnacle. they acquire unutilized brands and breathe new life in them. ortega taco shells, pickles. baked beans. how about this one? maple grove farms of vermont syrup. they look so much alike. stock struggled of late, but you are getting a good entry point. the company is able to put up 15% revenue growth.
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stock has a bountiful 4.2% yield. b&g is paying handsomely away from a potential takeover. they made acquisitions. organic growth not too good, but these look a lot alike down to the salad dressing components. if b&g is not sexy enough for you, there is white wave foods. organic milk and coffee creamers and plant-based nondairy alternatives like the soy in the amazingly white-hot almond milk products. stock up 79% since put up by dean foods a little more than 1 1/2 years ago. this company will make a brilliant takeover target for any large food player that wants more healthy eating exposure like hillshire is getting with pinnacle. you have to wait a little bit because there are tax laws. bottom line. the bullish and bearish analysts can't fight all they want about
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what the pinnacle food deals for hillshire brands. takeaway if pinnacle can catch a monster bid, so can b&g foods and white wave. these little food companies are all the more attractive. b&g who want to stay dividend, it's ideal. and for those searching for growth. turnaround time. jcpenney and rite aid have been flying high after hitting turbulence. are they equipped to keep soaring? soaring?
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in a world where stocks are increasingly treated like commodities, with more and more big institutions trading whole baskets of companies in the form of sector-based etfs, playing the entire market with the s&p futures rather than picking individual stocks, you know write come out -- >> boo! >> it's worth pointing out what's going on with particular companies actually does matter. no matter how many etfs they create, actions taken by management's matter. why? because there are some stocks that will dramatically outperform the rest of the sector and the broader market. companies on the brink and
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possibly facing extinction until clever executives manage to right the ship. a good turnaround can give you terrific multiyear gains. >> house of pleasure. >> among all these comebacks, perhaps the hardest is a retail turnaround. once a retailer starts circling the drain it's incredibly difficult to break out of the death spiral. and get the company back on track again. but when a terrific ceo does manage to execute a rare retail turnaround, hold on to that stock for dear life and not let go because the upside could be enormous. that's why tonight i want to show you the secret to a successful turnaround. two examples, not just one but two. jc penney and rite aid. symbol rad.
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the department store was almost ran into the ground by one single person, the former ceo. shortly after johnson took over november 2011, he hyped his vision for penney's future to high heaven causing the stock to rally up to $43 on the announcement of his bold new plans. he was able to unload stock there. unfortunately, johnson's vision, which included eliminating sales and coupons totally alienated the core customer base including yours truly. under johnson, penney consistently experienced hideous declines in the same-store sales often in excess of 20% or 30%. the stock lost nearly 2/3 of its value from that $43 high before the board finally got fed up and fired johnson. replacing him with his own predecessor mike goldman about 13 months ago. at the time many believed the company was on its deathbed and penney could not be saved. over the last year, omen has
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proved the doubters wrong. the company reporting a stellar quarter last thursday with a 6.5% increase in same-store sales. it's taken time to get penney's house in order down to just below $5 where it bottomed back in february. since then the stock has begun to climb higher. i think it's got a lot more room to run. how did olman pull it off? he raised cash, the preferred way to do it through new credit lines and equity offering that did hammer the stock but ensured the company's financial liability for a long time to come. he cleared out the high-price merchandise. it is so hideous johnson had brought in, we know that because activity dropped from 21% last year to 17%. they restocked with inhouse private label brands that penney's core customers had
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always loved. the great thing about private labels, it carries much higher margins than selling other people's brands. it's much more profitable. a year ago merchandise was 30% private label. ullman has it back up to 50%. ullman brought back the marketing promotions that have been the way penney gets customers through the door and buying things. you also get a hidden cup when you get to the register. it's so great. take 30%, take 50% off. i love it. word is spreading among consumers. that's how penney had its first increase in traffic in 30 months. what is gratified to see my local penney looked terrific this weekend. so good that i bought my partners each a $35 gift certificate, which given ullman's pricing allows you to buy a nice shirt and terrific pair of trousers. i bought four different pair of pants, two t-shirts and private
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label dress shirt that seemed like a song. beyond that, ullman has the furnishing department coming back from the dead. historically this was close to 20% of the sales. ullman fixed this up part of the store with all the right merchandise. it's really attractive. in the most recent quarter was one of the best-performing segments, could be a major driver of revenue growth going forward. earlier this year, ullmann reinstated the commission-based compensation structure so workers get paid more when they sell things like jewelry and furniture. all this allowed penney to report fantastically better than expected results. i think it was the first of many excellent quarters. like i said, this turnaround story is only in the second or thirding in. we need to look at another turnaround story that is much further along. talking about rite aid. the company is in the ninth inning of its terrific
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turnaround. it soon won't be a comeback play but considered very good retail. eight months ago rite aid was road kill. stock trading over $1. fast forward today and trading $7.80. company reported a phenomenal quarter april 10th then capped it off posting terrific april same-store sales at 5%, better than 3.5% gain. these days rite aid's business is humming in the front end of the store and in the pharmacy. they've done this despite the fact cvs and walgreens have become a lot more competitive and are terrific stocks in their own ride. rad has given you 136% gain and up 12% since six weeks ago. how did rite aid pull off this amazing turn? the biggest part of the turn has to do with ceo john stanley's efforts to remodel the stores. also closing underperforming locations. rite aid converted stores to the
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new wellness format which contained expanded pharmacy services and staffers are explicitly tasked getting customers in the front end of the store to shop at the pharmacy. these remodelled locations see 300 basis point bump. that's huge. along with the substantial increase of the number of physicians they fill. i love my pharmacist at rite aid, love her. rite aid fixed its stores. i salute my rite aid in brooklyn as my picture adorns the wall of the manager's office, an improvement they might want to consider for all locations. the company needs to convert 74% of locations to the new format. here's the bottom line. rite aid stock rallied more than seven fold since the turnaround started kicking in. jc penney has only just begun to show its stock price which is why i think penney has a ton of upside ahead as this back from
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the dead retailer follows in the footsteps of rite aid. let's go to david in texas. >> boo-yah, jim. >> boo-yah, david. >> i'm looking to see what your recommendation would be on magic jack. it's gone from a high this year of around $25 to some time in april down about 40%. i would like to see what you think about it. >> magic jack is one of those stocks, i'm going to tell you, this is symbol call. i need to have the ceo to make a considered judgment. this is very controversial and i need more information. can we go to john in florida, please? >> caller: hey, jim. boo-yah from melbourne, florida. >> nice to have you. what is talking to my buddy bowers from melbourne. what's happening? >> caller: not much. my wife and i we got some iras and i added extra money to it this year. in it one of the stocks aig.
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it's got great book value, but its projected growth is a little high. looks like it's right -- >> no. we've been kicking this one back and forth and feel like i didn't think it would have this good run after but it's obvious that they have something good going. i don't want to sell it. if anything, i want to buy it. retail rebound, jc penney and rite aid are making a major comeback. these turnaround lines are far from done. go to the stores and sigh what i see. at&t is making a bid for directv. the key isn't in the boardroom. it's on the football field. [ female announcer ] there's a gap out there.
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regular viewers to this show know i keep coming back to this idea of the north american energy renaissance. one of the seven big long-term themes i write about in "get rich carefully." the reason i hammer this story home is simple. it made you a lot of money. i think a lot of mees domestic
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oil stocks have a tremendous runway ahead of them. take crzl. this is smallish $2.5 billion exploration and production for e&p company drilling in some of the hottest shale place in the country. utica in ohio. we visited that one, right? and marcellus in pennsylvania. company used to have less-sexy assets but they sold off last year to raise funds to drill in some of the smoking hot plays i mentioned. i've got to tell you, crz k o is putting up tremendous numbers here. they had a seven cents earning, higher than expected revenue that rose 27% year for year. if you adjust for the shale assets i mentioned, they posted an astounding increase in overall production and are starting to ramp up. the company is forecasting an amazing 54% increase in oil
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production for 2014. that is huge. especially since oil should account for 60% of increase. no one in genuine growth stock has given us a 54% gain since we last spoke to the ceo in september and pushed it hard to you. up here carrizo is absurdly cheap given this monster production. let's check in with chip johnson, president and ceo of carrizo oil and gas. welcome back to "mad money." >> thank you. glad to be here. >> most of the companies showing your growth are extending their balance sheets and you worry they will do an equity offering. you're giving us unbelievable growth and shoring up your balance sheet. how are you able to do that? >> as you mentioned, we were able to sell off some of our gassy assets at a good price last year and that let us redeploy that capital to higher rate of return oil projects.
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we grew ebitda twice as fast as we kept cap-ex at the same level. >> after eagleford do you want to put more dollars in utica? it seems like utica, you are excited about the acreage there in ohio. >> that's true we have drilled, we think, one of the best wells in the utica. that's what the mid stream players tell us. we'll drill our next one in about a month. we won't have results until the fall. so far we've been ecstatic how well that oil did. it was still doing well over 113 days. it's above the oil type curve we expected. we are getting excellent prices in ohio, something like 7% or 93% nymex. with that income stream, that could be really big play.
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the niobrara is a great play. might be 20% lower internal rate of return than the utica. >> if you can tell us what the actual stuff that is coming out of the ground is. you've got a cap but what it will be and where it's going and what it's made into? that will make it come alive for people trying to understand the story. >> in the utica, there are different regions. some produce nothing but dry gas, some make wet gas with natural gas liquids. where we are primarily makes condesate. it almost looks like water. it's extremely light, volatile. the refiners like it because they can blend it with heavier crudes. we've been selling everything we make to marathon, who of course has plenty of refineries.
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>> go back to niobrara. it's in colorado. people haven't heard of it. this really is a bountiful area. you mentioned you think the return may not be as good. is that because your acreage is so great in utica? i love where you are in colorado. >> well, there are areas in the niobrara as good as anything we're. in it's more varied. you can go five miles in one direction and rate of return drops to 50% instead of 100%. both are good, but when you have the eagleford as your baseline, you get spoiled. that's why we would like to learn more about the niobrara. we are in several down sizing tests right now. testing multiple areas and we'll know more about this play in another three to six months. >> what is it about the eagle ford? is it just -- we've been talking about the permia.
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i keep circling about eagleford being the best field in our country? >> it's the best field i ever worked on. what they have over it is more layers. eagleford in the sweet spots is very thick, porous, good quality crude, high rates. there's nothing around to get in the way. we are on some big ranches in south texas. we have good logistics in terms of water disposal, water sourcing, access to pipelines, trucking, refineries. it's just a really easy great play with good results. >> well, chip, i've done a remarkable job. i know, i hope you know we've been behind you all what it and it's been a huge winner for us. thank you for coming on "mad money." >> thank you, jim. proud to be here. >> thank you. that's chip johnson, president and ceo of carrizo company.
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de>>who's got twond rhooves and just got ae. claim status update from geico? this guy, that's who. sfx: bing. and i just got a...oh no, that's mom. sorry. claim status updates. just a tap away on the geico app. it is time, it is time for
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the lightning background. hey, what is that all about? fire the calls and i sell you to sell, sell, sell. then they play this sound and the lightning round is over. are you ready, skee-daddy? time for the lightning round. i want to start with mike, mike, mike in illinois. mike! >> caller: hey, jim. i love the show. >> thank you. >> caller: i was wondering what your thoughts are on twitter and if you think the revenue growth -- >> don't buy, don't buy. >> doesn't have it. it's a total wait-and-see. waiting has been better. let's keep the powder dry. twirt. chris in connecticut. >> caller: we want to send a big easy boo-yah your way. disappointed with q 1 earnings with utilization rates. >> who am i going to disagree
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with a tulane person? i have a daughter there. i'm going to say you are right. i'm staying away from hornbeck. i like schlumberger. congratulations to the fifth round pick for the washington redskins. eric in florida. >> caller: this fsunny south florida boo-yah. >> wish i was there. >> caller: conocophillips? >> we are too late. this thing has been in a straight line. there are too many others. mike in georgia. mike! >> caller: how you doing today? >> fine. how are you? >> caller: fine. thank you. they had the revenues triple last year, two cents to a nickel what about synovus now? >> which one was that? synovus? you've got to ge in there but the sector annoys me.
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don in florida. >> caller: hey, jim. i need your insight into emerge energy services. >> i looked at it this weekend. i thought it seemed pretty good, frankly. i like the yield. i think the yield is safe. i wish the company would come on. i do like emerge. it's a good limited partnership. susan in california. >> caller: hey, jim. from sunny california. i've got a question. i've been in visa 2 1/2 years. when i looked at mastercard it was $300 and soared through the roof. >> they did a better job than visa this quarter. visa has exposure that worries me but you've got to ride it through. i would swap into m.a. m.a. has the game going right here. that, ladies and gentlemen, is the conclusion of the lightning
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why is everyone so gaga about this directv/at&t merger? why does everyone seem to think at&t got a good deal shelling out $48.5 million for an also-ran technological company with the nfl package hanging in
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the balance this season? at&t can walk away from this deal if directv loses the nfl to another network or possibly even google, which is much more money to spend than any other current or potential nfl purveyor. without the package, the ticket, many customers would walk away, too. i sure would. i wonder how many new american sign-ups there would be and how much cash flow from existing customers could be maintained? let me tell but directv. this is a well-run company. but as for the product, i subscribe to directv because i follow out of market teams and i play fantasy football. there is no other reason i would take this mohuge network. if this satellite technology were at all up to snuff apple, google or facebook would be
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bidding for it. comcast and verizon offer so much interactive features that i would disconnect if it weren't for the football ticket. satellites are relics. the nfl knows how this package is make or break for at&t. thief got directv over a barrel. the nfl knows fantasy football changed the equation. they watch games they wouldn't bother with and watch for the end of the game for no other reason. the numbers were up nicely this past year as every other sport saw weaker growth if they saw growth at all. there are potential reasons for the deal. at&t might think it can cross sell its phone service to directv subscribers. especially in areas with no cable competition. maybe they can give away the phone service to start. cross selling is a difficult task. i can't imagine how at&t can succeed except with big price discounts. nobody cares about the one-bill advantage. it's so overrated. they want better pricing. in latin america they can get a
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nice foot hold in argentina, chile, colombia, mexico and puerto rico where directv has 18 million subscribers. warner says 95% of the growth comes from latin america. at the same time i think latin america is becoming a difficult place for american companies to do business these days. argentina has been squeezing american companies, venezuela is a nightmare that leads to perennial estimate cuts. latin america's growth and at&t desperately needs growth to appeal to everyone except those buying stock as a high-yielding bond equivalent and they get money here, too. nevertheless, if there weren't issues here, i don't think the terrific ceo of directv would be all that anxious to sell. i hear how motivated at&t is to do the deal but mike white seems anxious to sell. perhaps because he's gotten all he can out of this franchise. i don't want to buy from mike
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white. i want to sell with it. if you own directv, you should, too. stick with cramer. we believe oug the competition tomorrow requires challenging your business inside and out today. 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.
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carsthey're why we innovate. they're who we protect. they're why we make life less complicated. it's about people. we are volvo of sweden. yes, i am a believer in
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penney and not just because i shop there and like the fact that the stores look the way they used to. there's still some of that expensive merchandise there. don't worry about it. always a bull market somewhere. i promise to find it for you here on "mad money." see you tomorrow! iginal product. >> it may be the most recognizable brand on the planet -- coca-cola. >> the heritage of this company is equal to none. there is nothing as global as coca-cola in the world. >> a $67-billion empire... sold in 206 countries... enjoyed in every house... and we mean every house. found in the most remote corners of the globe, melissa lee reports on the brand with a buzz. >> there was a wee bit of cocaine in the original coca-cola. >> and it's more than just coke. >> zico is 100% pure coconut water. >> 500 different brands to


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