Skip to main content

tv   Mad Money  CNBC  July 6, 2018 6:00pm-7:00pm EDT

6:00 pm
pit. >> mike. >> wwe. >> carter. >> going higher, could be big. >> thank you for joining us on "options action. ssoks like time is expired, i'm melia lee. check out "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. 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 money. my job isn't just to entertain but to educate and teach you call me at 1-800-743-cnbc. or tweet me @jimcramer today, employment trumped tariffs. which is how the dow gained a hundred points
6:01 pm
we've got job growth without inflation. and it's job growth in the right areas. manufacturing, construction. lots of workforce participation. this stock market is a constant tug-of-war between the bulls and the bears. and on the other side, you've got two big negatives. the tariffs that just went into effect against the chinese and the flat yield curve at the moment, i think it's a draw which is why you still see such a rush toward faang, the ultimate choice trade for technology, at least and recession proof names, even if they aren't doing that well i do not want to sound too negative over the last three months, we've seen an average of 211,000 jobs created without much inflation. that's right, each month frankly, that's an astounding. it should have been the talk of the day.
6:02 pm
not the soybeans many economists would say it's an impossible to have what's happening right now, a red-hot job market that's supposed to produce tremendous wage inflation. it's not on the other hand, i don't want to sound too positive. as my friend phil lebeau pointed out, the choice are putting tariffs on american-made cars. that could be a major problem. if europe decides to hit us with higher auto tariffs, well, it would be a very big negative does it undo the positive of the labor report no no, it doesn't but if you combine the tariffs with rising oil costs you do get an unfortunate picture i've said many times trade is a tough issue. we may need to accept some short term pain if we're ever going to get our trading partners to play fair for the moment that short term pain does hurt the flattening yield curve will yield long term treasuries aren't much higher than short term it's all about the tariffs and the chaos it could produce so is our economy strong enough
6:03 pm
to keep on trucking even in the face of these negatives? we'll get insight on that as they start reporting next week judging from the fed minutes yesterday, i can't expect it to happen let's get to the game plan, why don't we on monday the chinese government releases consumer and producer prices i've got to tell you, their data, oh, boy, it's become increasingly important, even though we're not stressing enough, the pundits aren't china's central bank has been easing sub rosa. i suspect the chinese aren't nearly as confident as they sound. china needs our economy more than we need theirs. it's not just the balance of trade. you hear a lot of talk about the government's massive debt load china has too much debt at every level, public and private. they're sitting on a trillion dollars of u.s. treasuries they can't repatriate that money because then their currency would go higher.
6:04 pm
the pundits say they can't even hold out for a thousand days next up, remember when alcoa used to kick off earnings season now it's pepsico an extremely negative note from wells fargo about pepsico. this company has a lot of levers even the bears at wells admit the company could do something big to unlock value. you can follow along at i am concerned that a weak quarter could set the stock down hard unless the company addresses weaknesses tuesday is also a huge day for nordstrom which holds its first big analysts meeting the company offered very little explanation and said it didn't
6:05 pm
execute well, thanks for nothing. the stock fell, straight line, boom here we are back in the 50s. a bad meeting, we sold some shares for the trust this week you can see that from the club i have less faith in this company than i used to but it's hard to imagine them really screwing this meeting up, as badly as they did the conference call. that was one for the ages. wednesday, general mills holds an analyst meeting this is a concern for me it will be a test of the recession-proof stocks i talked about at the top generous mills, as i used to call it, hasn't been as generous as of late maybe think they paid too much this is a suboptimal situation let's hear more about that paydown and perhaps a further restructuring to bring out value. how about some vision too? we get our own producer price index on wednesday and consumer price index on thursday.
6:06 pm
remember, the bulls need a sign that the fed will slow down its rate hikes if the trade war does too much damage to the economy bulls need this. but a hot ppi and a hot cpi, let's just say the fed will be forced to keep tightening. finally, friday, it's a monster. jpmorgan, citigroup, wells fargo, pnc all report. the bank stocks have been horrendous we've had almost three weeks of relentless downside pressure i talked about the banks with scott wapner on "squawk on the street." he asked me, is there anything, anything that could reverse the direction of these stocks given that they can't make nearly as much money as they normally would with this flattening yield curve? i said these companies have all sorts of fees to augment lending and how they have plenty of other ways to make money i have to admit it all was -- i think i sounded pretty lame, frankly, versus how much the banks could make lending if we
6:07 pm
could just get long term interest rates going higher. still, they're returning a tremendous return, a tremendous amount of capital, cushioning their stocks against further declines i know, i know, not enough but at this point i would rather be a buyer than a seller, especially with citigroup. the company is buying back 7% of its shares this year and will be doing the same next year i don't see how a stock can continue to go down with that kind of trampoline underneath. today, positive employment figures trump negative tariffs can it continue? i think earnings could break the tie unless of course china blinks, highly unlikely. but we'll never have a better time to take on the prc than we did right now with this insanely strong job growth with almost no inflation. let's go to roland in maryland roland >> caller: jim, thank you for taking my call my question concerns huntsman
6:08 pm
corporation, ticker hun. i have a position in the company. i want to add to it. i'm wondering what effect the tariffs and/or trade wars will have on the company. >> it's killing that group it's killing that group. fortunately, we have frank mitch at wells fargo that has a pretty good read that huntsman is doing well i don't want you to have to swim upstream that's what you have to do it's like riptide out there. and i don't have one of those orange things i can throw you, all right? this is good let's go to chance in florida. chance >> caller: hey, jim, love the show >> thank you, chance >> caller: i wanted to talk about avi, ticker avvv >> did you see it move today >> caller: i love it the stock is still down almost 25% since late january high, mostly over similarity concerns in the european market along
6:09 pm
with potential competition domestically in 2023 do you believe this is a longer term trend or a market overreaction in the short term >> is chance smart or what chance has laid out the strong story that i share chance is not a fool's name for fate if you can remember that, tweet it right now let's go to joshua in tennessee. joshua >> caller: hey, cramer my question is about corning, specifically about the effect of 5g on the optical sector >> no, no, no. if we want to do 5g, i've got a lot of 5gers out there we could do qualcomm i would rather do qualcomm than i would corning. okay now i've got to go to hunter in florida. hunter >> caller: jim, i bought first solar back at the beginning of june when it took a dip. the last two days have been positive but it doesn't seem to keep its gains. i thought the good progress would california's senate bill
6:10 pm
00 wou 100 would spike it higher. i'm not sure if i should walk away or hold it 'til the end of the month. >> i think the quarter will be good this thing will be football, it's caught up in world trade. when we're caught up in world trade, it's just one big nasty headache all right. who is going to prevail, the bulls or the bears right now i think it's a draw. earnings could break the tide. it's been a long road for ge could the end of the decline be around the corner? where the stock pariahconagra m the frozen food aisle. what's next? and the biggest quandary about the oil market may not be what you think it is i'll reveal it stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question?
6:11 pm
tweet cramer, #madtweets send jim an e-mail to or give us a call at 1-800-743-cnbc miss something head to - i love my grandma. - anncr: as you grow older, your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life.
6:12 pm
the line between work and life hasn't just blurred. it's gone. that's why you need someone behind you. not just a card. an entire support system. whether visiting the airport lounge to catch up on what's really important. or even using those hard-earned points to squeeze in a little family time. no one has your back like american express. so no matter where you're going... we're right there with you. the powerful backing of american express. don't do business without it. don't live life without it.
6:13 pm
2, down. back up. our phones are more than just phones. they're pocket-sized personal trainers. [ upbeat music playing ] last-minute gift finders. [ phone chimes ] [ car horn honks ] [ navigation voice ] destination ahead. and discoverers of new places. it's the internet in your hand. that's why xfinity mobile can be included with xfinity internet. which could save you hundreds of dollars a year. it's a new kind of network designed to save you money. click, call or visit a store today.
6:14 pm
question -- is it finally time to buy ge you'll have my answer at the end of this segment. let's dig in for the last 18 months, general electric has been the doggiest dog in the kennel. losing nearly 60% of its value from its ten-year highs in 2016. and getting expelled from the dow jones industrial average it can't even be the dog of the dow anymore. the former ceo left the company in a terrible state. how terrible honestly, there's no way for me to put it into words at least not on basic cable. i mean, after all, this is a family show. i need to use too many of the late great george carlin's seven dirty words you can't say on tv.
6:15 pm
but i'll try ge was the most opaque company on the dow it was plagued by problems that seemed to have come out nowhere even if they should have been obvious to management. you had tons of unexpected liabilities like the pension hole and the horrific long term care insurance business. years ago, the old ge sold tons of policies to people assuming that they would have much shorter life expectancies and that health care costs would be much cheaper long term care is like an open wound. they took a $6.2 billion charge to shore up the business they committed $15 billion over the next seven years and even that may not be enough to stop the bleeding even worse, imelt made a lot of bad calls. he sold large parts ge capital businesses far too close to the
6:16 pm
bottom for the financials, including synchrony, their private label credit card business that's done very well as an independent entity he made a bunch of oil-related acquisitions he shut off $17 billion. maybe some of this was bad luck and bad timing a lot of it was plain mismanagement. ge developed a serious cash flow proble them to cut the dividend in half a lot of bears spectacululate t may be more cuts necessary when john flannery took over as ceo, he began a major strategic review to figure out how to fix things he talked about doing $20 billion in asset sales, bringing in a new board of directors, being a lot less generous to executives in april, they sold their care division to a private equity firm he announced a merger of the
6:17 pm
transportation business in a $11 billion deal it gave back all its deals and flannery in may made it clear the problems in ge's power business wouldn't be going away anytime soon look, when we learned ge was being expelled from the dow last month, i told you it was too soon to try to call the bottom then what happened last tuesday, ge shared the results of a strategic review. the plan, general electric is going to spin off its health care business as an independent company within the next year and a half they're going to sell their interest in baker hughes, a ge company, the big oil service subsidiary, over the next two or three years. and we already know the transportation business is going to wab tech. what's left? they'll focus on aviation, power, and renewable energy with real synergies this time their idea is to focus on these businesses rather than be a huge conglomerate that is impossible for anybody to understand.
6:18 pm
they want to be an engine and turbine maker. they call them "turbi nchl"turb. they always had their own way of doing things the stock shot up 8% on the news i love the aviation business we know aerospace is one of the hottest industries around with a holy moly decade backlog of demand it's better to be in the renewable energy business than the fossil fuel business but thanks to the rebound in crude, i imagine they'll be in a position of strength better to be lucky than good who cares? he's selling into strength, not weakness i'm not exactly thrilled that they're keeping the power business they make a ton of money servicing existing plants but they're not building anywhere near the number of new plants they need to support this gigantic more layoffs, please, sadly.
6:19 pm
the spinoff is very smart. flannery turned the health care business around. it is one of my favorite businesses it's pristine. flannery will be able to pay the debt down pretty quickly when the separation occurs, plain old ge will cut its dividend but health care will -- i'm very glad that flannery is cutting vast swaths of corporate blubber. the plan is achievable i think it's terrific that larry culp will replace john brennan as lead director you need tough industrials at the board's helm after watching john flannery operate for the past year, meeting him on a few occasions, and listening to his plan for the future, i believe that he is indeed the right man for the job. he's showedhimself to be an honest broker, someone who is
6:20 pm
willing to reveal bad news shortly after he finds out about it and then make the tough decisions needed to turn things around i really like that i'm just going to say it it's time to buy the stock of general electric yep, i think the end of the long decline in ge is finally here. after seeing the results of the company's lengthy strategic review last week, especially the plan to break up this conglomerate, i am a believer. john flanry h rnery has gotten head around the problems of this industrial giant the bottom is near, not here, but i don't want to equivocate anymore about this thing i'm not saying the numbers will start picking up tomorrow. i'm not saying the dividend is safe remember when i told about you the health care spinoff. i do believe at these levels the potential upside far outweighs the possible downside. consider there is an $11
6:21 pm
priority target on this thing. if the biggest bear on ge thinks that, i think it's a stock to buy. ge still has plenty of problems. but we can finally see some light at the end of the tunnel i think at this point the potential upside outweighs the potential downside start buying here and buy more if it goes to target flannery has a plan and it's a good one stick with cramer. ♪
6:22 pm
you shouldn't be rushed into booking a hotel. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. the nation's largest senior-living referral service. for the past five years, i've spoken with hundreds of families and visited senior-care communities around the country. and i've got to tell you, today's senior-living communities are better than ever. these days, there are amazing amenities, like movie theaters, exercise rooms and swimming pools, public cafes, bars, and bistros, even pet-care services. and nobody understands your options
6:23 pm
like the advisers at a place for mom. these are local, expert advisers that will partner with you to find the perfect place and determine the right level of care, whether that's just a helping hand or full-time memory care. best of all, it's a free service. there is never any cost to you. senior living has never been better, and there's never been an easier way to get great advice. call today. a place for mom -- you know your family, we know senior living. together we'll make the right choice. last wednesday we learned conagra, which you might recognize as chef boyardee, orville redenbacher, slim jims,
6:24 pm
love them, and other brands is buying pinnacle foods for $10.9 billion in cash and stock in a deal people have been speculating about for a year what happens the market hates it. conagra plummets 7% in a single session and it hasn't recovered very much in the week and a half since. that's insane. in an environment where everyone is scared what tariffs will do and a flat yield curve, the hedge fund playbook says you want to buy the packaged food companies. historically, conagra is exactly the kind of stock that works when investors believe we're headed into a slowdown but this is a strange moment food stocks have been stinking up the joint until this week when they caught some busiz but conagra has been giving terrific numbers this company reannounced an excellent quarter but it got lost in the shuffle as everybody
6:25 pm
was freaking out about the takeover itself. i think that this is a very good deal conagra has a strong track record when it comes to gobbling up other companies and integrating them into its business it's like what they're getting with pinnacle. back in december when i recommended conagra, i urged them to buy pinnacle foods they're seeing the benefits of ceo sean connelly. he spun off conagra's underperforming division like private label cereal and commercial food service and delivered good numbers, which is why conagra was doing well until the merger news last week. i said they should buy pinnacle. it was a good idea in december, it's still a good idea now how could the market be so wrong? why do i think conagra is a buy here let's start with the pinnacle deal the object of contention for the past year, pinnacle has been trying to put itself up for sale
6:26 pm
the company has a bunch of well-known products especially in the freezer section birds eye, i just bought this last week, not bad, easy to do when you're home alone duncan hines vlasic pickles wishbone, not my choice, but there's no accounting for taste. there's a lot of health and feel good stuff when you hear a guy tell a waiter, i'm gluten-free, think pinnacle foods pinnacle's stocks have been oscillating between low 50s and low 60s. this was a piece of merchandise conagra wanted badly, combining with pinnacle's birds eye would give them real dominance in the freezer aisle. it gives these food companies more heft versus the supermarket
6:27 pm
companies, that's a positive now, pinnacle's stock got clobbered earlier this year. it started roaring again in april when we learned that the activist hedge fund had taken a 9% plus stake in the company that's the same hedge fund company that did advise connelly somewhat about how to turn around conagra of course they were going to push for a deal. it's not like this was poorly telegraph telegraphed. in the week leading up to the news, we got story after story about how a takeover was in the works. but the stock got bent, spindled, folded, and mutilated on the news. why? the price. $10.9 billion for this company, along with a big slug of its own stock, valuing pinnacle at $68 per share. conagra is boring $7.3 billion to fund the deal some people think that's way too much but think what they're getting in return.
6:28 pm
the frozen food sector is on fire millenials are cheap this will make conagra the number two player in the food section behind only nestle every company in the space is trying to appeal to younger customers. conagra is becoming a lot more millenial friendly with this transaction. since they expected to close on pinnacle by the end of 2018, we're talking about less than a year and a half before the takeover becomes profitable. 2022, they're talking about a high single digit earnings boost, that's solid growth conagra has cost synergies over the same period of time. and they may be lowballing these numbers as this management team has a good track record of acquiring smaller brands and integrating them into the business i love this stuff. this deal is so obvious, it's as logical as could be.
6:29 pm
some real sometimes when companies merge, you have to think long and hard about why it's justified to belong under the same roof that's not true here there's a reason why the very smart guys at jana partners wanted to combo to happen. pinnacle isn't perfect, i know but their frozen foods business is growing like a weed and it fits perfectly with conagra's brands that means they'll be given better shelf space every consumer packaging goods company has been complaining about rising transportation costs. the best way to contain those costs is to increase scale to get the best bang for your buck. sean connelly as ceo has done a heck of a job turning things around remember, this is the guy who sold the old hillshire brands to tyson foods for a big premium for coming to conagra. best of all, this deal has the potential to transform conagra
6:30 pm
from a value stock into a growth stock. while it already has some of the fastest growth in the industry, that industry is still pretty stagnant in the latest quarter, the one nobody cares about because they preannounced it on the same day as the pinnacle deal, the company gave 5.7% revenue growth adding pinnacle to the mix should give them a real boost. i think managers are being conservative ahead of what may be a noisy quarter these guys are a known practitioner of underpromise/overdeliver even as the stock now sells for 15 times next year's estimates, that's pretty cheap for this kind of growth bottom line, the huge pullback in conagra stock last week was a gift the pinnacle foods acquisition is a positive, not a negative. i would be a buyer right here. let's go to kevin in oregon. kevin. >> caller: booyah, jim, i love your show. >> thank you >> caller: you have so much energy, you could be your own
6:31 pm
utility. >> certainly not a nuclear power plant. but i play one on tv what's up? >> caller:my question is on th constellation brands, stz. late june, they missed their earnings then a few days later they came out with $700 million in gains from cannabis investments. i was wondering what's going on. >> i struggle, i struggle, i struggle with constellation. i got to speak to rob sands. the problem is that they did not give you the number that we wanted beer is a little weak. wine was not good. but it's still the best in the group. so it's a tough, tough call. we still own a small position for my travel trust which you can follow along, obviously you can be a club member we did downgrade the stock at 230. i got to tell you, on strength, i may have to lighten up it wasn't what i wanted. such a great company, but it was a noisy quarter. although i did like the guidance for when things got warmer,
6:32 pm
april, may march and april were tough months jacob in illinois. >> caller: hey, jim. i was wondering about ag commodities, specifically soybeans the tariff was announced a month and a half ago since then soybeans have been down about $2. the tariffs actually were put into place today, where they took effect. and then soybeans finished up 38 i was wondering if they were bottomed out or if we could see lower prices, and if so, what kind of impact that would have on the whole economy >> one of the things i like to do is know what i'm good at and know what i'm not. i am not a commodities guy i do think soy got too expensive. i have to default to the stocks themselves archer daniels is okay addco is okay too. joe in new york. >> caller: hi, jim, how are you? >> i'm good, jim, how are you?
6:33 pm
>> caller: not bad i'm a long time listener and first time caller. i would just like to thank you for all the good advice, you've helped me a lot. >> you are a gem, thank you. >> caller: my question is on starbucks. just wondering about all the tariff war going on between china and trump, with phase i going through. now with phase ii going through next week, what do you think about the company, whether it's a good time to buy it now, and what you think of the target price. >> it's a great question we don't know what the chinese will do. it will be very strange if they put some sort of tariff on starbucks. the stock is almost 3% yield i would like to see the yield a little higher, because this quarter is not going to be that great. but down here at 48, it's a better buy than a sell but i cannot pound the table, because that last quarter just wasn't good enough
6:34 pm
and they're in the penalty box sometimes the market does make mistakes sometimes those mistakes are good opportunities conagra's acquisition of pinnacle is a positive, the stock is a buy much more "mad money" ahead. what should your next move be in the oil patch? i'll give you my take. good news if the dog ate your homework, i did it for you, and it could make you money. and the thank god it's friday edition of the lightning round stick with cramer. what's better than "mad money" what about more "mad money"? follow "mad money" on facebook, twitter, and instagram to go one on one with cramer >> what other questions do we have i always tell people you've got to start with an index fund because i need you to be diverse. >> get more with guests. >> how do you stay sharp >> and go behind the scenes with the most interactive show on
6:35 pm
television >> if you can't explain in three points why you're buying a certain stock, don't buy it. >> follow "mad money" today. at&t provides edge-to-edge intelligence, covering virtually every part of your manufacturing business. & so this won't happen. because you've made sure this sensor and this machine are integrated. & she can talk to him, & yes... atta, boy. some people assign genders to machines. and you can be sure you won't have any problems. except for the daily theft of your danish. not cool! at&t provides edge to edge intelligence. it can do so much for your business, the list goes on and on. that's the power of &. & this shipment will be delivered... at crowne plaza, we know business travel isn't just business. there's this. a bit of this.
6:36 pm
why not? your hotel should make it easy to do all the things you do. which is what we do. crowne plaza. we're all business, mostly. crowne plaza. becareally want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies see it- and see it through-with digital. when it might be time to buy or sell? with fidelity's real-time analytics, you'll get clear, actionable alerts about potential investment opportunities in real time. fidelity. open an account today.
6:37 pm
with pg&e in the sierras. and i'm an arborist since the onset of the drought, more than 129 million trees have died in california. pg&e prunes and removes over a million trees every year to ensure that hazardous trees can't impact power lines. and since the onset of the drought we've doubled our efforts. i grew up in the forests out in this area and honestly it's heartbreaking to see all these trees dying. what guides me is ensuring that the public is going to be safer and that these forests can be sustained and enjoyed by the community in the future.
6:38 pm
why can't the opec nations go reinvest their winnings and start looking for oil again? the biggest quandary in the oil market isn't about what's happening right now. skyrocketing prices with no lid in sight it's what's going to happen versus what should be happening. we all know opec's litany of woe. iranian strife, other nations tapped out it seems like only saudi arabia has a longer term plan and their plan is to diversify away from fossil fuels what's amazing to me is that by this point in the cycle all these countries should be spending fortunes to discover new oil fields and that's not happening. it feels like there's no top in the 70s. the difference is many of these major oil-producing nations were still spending money like drunken sailors a year into the downturn then they shut down completely and oil didn't come back for it seemed like aging.
6:39 pm
now that oil is blowing through the 60s, few countries have increased their exploration budgets at all some are gun shy after getting burned by the downturn t saudis could put a lid on the price of crude for the short term now "the wall street journal" is reporting aramco can be a no-go, they can afford to accede to president trump and raise some production without it they have more reason to compromise. the bigger issue is that saudi arabia seems to be the only major oil producer with a plan there's virtually no exploration going on around the world. west africa, gulf of mexico, no. that's insane. mexico should be out there spending billions to discover oil in the gulf. instead it's doing nothing to replenish. venezuela is doing nothing, they're actually the only one getting it right as they seem to recognize it's the time to explore. but brazil is not enough
6:40 pm
the amount america can bring in is limited by a pipeline shortage major national producers need to start boosting their exploration budgets, and they're not doing it that's why it's not too late to buy oil stocks if i were you they're going to be the big winners in the absence of nation-level exploration i expect the big producing nations by the end of the year will come to their senses which is why you can buy the oil production services companies, schlumberger we're telling members that that represents the best value. aggressive oil producers from the u.s. makes a ton of sense here i would buy them both right here, right now, and let them ride
6:41 pm
♪ hawaii is in the middle of the pacific ocean. we're the most isolated population on the planet. ♪ hawaii is the first state in the u.s. to have 100% renewable energy goal. we're a very small electric utility. but, if we don't make this move we're going to have changes in our environment, and have a negative impact to hawaii's economy. ♪ verizon provided us a solution using smart sensors on their network that lets us collect near real time data on our power grid. (colton) this technology is helping us integrate rooftop solar, which is a very important element of getting us to our renewable energy goals. ♪ (shelee) if we can create our own energy, we can take care of this beautiful place that i grew up in. ♪
6:42 pm
6:43 pm
>> announcer: lightning round is sponsored by td ameritrade [ bell ringing ] >> it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over
6:44 pm
are you ready, skee-daddy? we're start with dave in new york dave >> caller: hello, jim cramer, thank you for taking my call >> same. >> caller: my question is about tara therapeutics. with the license agreement last month, has it shown you enough >> i recommended it between 17 and 18 now it's going down to 29. the answer is buy. steve in texas >> caller: jim, thanks for taking my call i'm originally from cherry hill, new jersey, i'm an eagles fan, go birds >> go birds. >> caller: yrt, they run a chinese peer to peer lending platform >> i'm sorry, i know it was a buy, the answer is it's sell,
6:45 pm
sell, sell we're not recommending any chinese stocks other than alibaba and baidu. gene in pennsylvania >> caller: how are you >> good, how about you >> caller: good. i bought a large amount of merck and i'm very happy with it i had the opportunity to buy more now may i have your opinion? >> i think merck has the best anticancer portfolio right now the company is not very promotional. i think the stock is a good buy with a 3% yield. so i'm going to bless that one i think you should buy more. jason in michigan. >> caller: cramer, booyah from rochester, michigan. >> holy cow, i didn't even know it was there what's up? >> caller: hey ibm has been frustrating since their last earnings report >> true. >> caller: it's near their 52-week low right now. is it time to average down on big blue or should we wait until next earning >> the stock was bought at 140
6:46 pm
just the other day i think you can buy some here and buy some lower, if the yield is 4.4%. i think it's going to be an okay quarter. rick in illinois >> caller: jim, i am so glad to be talking to you. >> same. >> caller: thanks, buddy how do you tweet and be on the show at the same time? >> there's two me's. there's a twin i'm not kidding. can you imagine the other guy is really dynamite. what's going on? >> caller: my stock is amph. >> i got to ask my twin because i don't know it myself i'm going to have to do some homework on that one you stumped me you stumped the chump. okay let's go to lou in new york. >> caller: booyah, jim >> booyah. >> i've got -- >> i put that in the fin tech category let's go to marsha in texas.
6:47 pm
>> caller: jim, booyah >> booyah. >> caller: hey, jim. i'm a retiree and i'm looking for income and safety. could you give me a heads up on mly? >> a big yield, it's always had a big yield. that's a good way to be able to maybe some money i find it opaque i can't recommend opaque stocks on the show, it doesn't make sense to me. let's go to malik in california. malik. malik, we're on. what's up? uh-oh. malik! hello? well, i tell you, i'm out here just twiddling my fingers. why don't we go to sidney in california >> caller: a big booyah from gamecock country >> there you go, exactamundo >> caller: i bought smart global
6:48 pm
holdings on june 14th and 18th right before earnings. since then it's tanked what do you think about it do you think it's going to come back >> look, my favorite in that category is hpq, which is hp inc. i think that's better one. i would go with that one let's go to ellis in arkansas. >> caller: hi, jim, this is ellis paterson from farmington, arkansas >> there you go. what's happening >> caller: my stock is ppg i know that you've bought it a little bit there's a couple of questions. i know about this accounting issue. >> accounting irregularities equals sell. i can't recommend the stock anymore. just my discipline it's what i learned from jim cramer's real money. that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] >> announcer: the lightning round is sponsored by td ameritrade why are you so good at this?
6:49 pm
had a coach in high school. really helped me up my game. i had a coach. math. ooh. so, why don't traders have coaches? who says they don't? coach mcadoo! you know, at td ameritrade, we offer free access to coaches and a full education curriculum- just to help you improve your skills. boom! mad skills. education to take your trading to the next level. only with td ameritrade. - anncr: as you grow older, -your brain naturally begins to change which may cause trouble with recall. - learning from him is great... when i can keep up! - anncr: thankfully, prevagen helps your brain and improves memory. - dad's got all the answers. - anncr: prevagen is now the number-one-selling brain health supplement in drug stores nationwide. - she outsmarts me every single time. - checkmate! you wanna play again? - anncr: prevagen. healthier brain. better life. i we worked with pg&eof to save energy because wenie.
6:50 pm
wanted to help the school. they would put these signs on the door to let the teacher know you didn't cut off the light. the teachers, they would call us the energy patrol. so they would be like, here they come, turn off your lights! those three young ladies were teaching the whole school about energy efficiency. we actually saved $50,000. and that's just one school, two semesters, three girls. together, we're building a better california.
6:51 pm
i'm always telling you if you want to be a good investor, you need to do your homework that's why i try to set a good example. when you call in about a stock and stump me, i do the research so i can do a considered answer. let's catch up on our summer reading. on april 17th, i was asked about installed building products, ibp. i said i would get back to him
6:52 pm
ibp installs various building products, especially insulation, waterproofing, closet doors and shelving when it comes to new construction of single family homes, these guys are either number one or number two in most of the markets that's a lot of markets since they operate in 48 states. but here's the thing installed building products is joined at the hip to the housing market and so it has the same problems as the homebuilders right now. even though the company itself is in great shape. the stock market wants nothing to do with this thing. ibp's stock is down 25% year to date now, that's nothing to do with the numbers, though. the company's most recent quarter was very solid with 18% revenue growth pricing is strong. the earnings are growing like a weed just like the housing market itself right now, ibp is doing pretty darn well unfortunately many investors don't seem to believe that it can keep doing it. with labor costs on the rise and the fed continuing to hike interest rates, the whole housing complex has become
6:53 pm
radioactive. where do i come down look, ibp is cheap it sells for just 16 times next year's earnings estimates. the company has been stellar if you only look at the fundamentals, this stock would be a buy i believe the businesses will stay good thanks to strong employment even as the rates continue to rise however when you consider the mechanics of the money management industry, it's much tougher to recommend this thing. if you really feel strongly about ibp, you've got my bless to go buy it, as long as you understand that you're fighting against what we call the hedge fund playbook here and even if i'm right about employment trumbuping rate hike, it will be hard to convince money managers they're making a mistake. carl called about sun run, symbol r.u.n since then this stock has gone from $12 and change to $15 and change i wish i had checked it out
6:54 pm
earlier. sun run is red-hot, up for the year why? think of this company as providing solar power as a service. homeowners can lease solar panels from sun run. they cover the installation. you pay them for the power every month. we talk about the subscription economy. this is the next logical step. sun run looks a lot like solarcity, that tesla acquired sun run's business is in good shape. they blew away the numbers in the recent quarters. credit where it's due, carl in new jersey found a real wynn he - real winner here, in part because the irs extended the solar investment tax credit for another four years, that was a little surprising to me. since they make their own solar panels, the company also got a boost when the got slapped tariffs on chinese solar manufacturers, a lot went their way. they've gotten a big boost as
6:55 pm
the price of oil goes higher as conventional energy sources get more expensive, renewables get more attractive. but, and this is a colossal but, i hate to chase. and you're chasing if you buy sun run. while it may keep running, i suspect the easy money has already been made. finally, on june 6th, david in pennsylvania asked about ctso. this is a tiny critical care immunotherapy company that uses blood purification for medical treatments when you're very sick, your white blood cells throw offsite
6:56 pm
o -- throw off cytokines. something that causes massive inflammation, organ failure and death. this company's technology filters cytokines out of your blood to prevent your immune system from going crazy. the stock has caught fire as the eu approved two new indications for the therapy. i think it's intriguinintriguing but man oh, man, this is as speculative as it gets, barely large enough for me to get on air with $15 million in revenue and zero earnings. if you've done your hydrochloric and you really believe in this technology, you could own the stock. but only with money that you're prepared to lose think of it as a lottery ticket. hopefully with slightly better odds stick with cramer. the employee of the year, anna.
6:57 pm
[music playing] (vo) progress is in the pursuit. audi will cover your first month's lease payment on select models during summer of audi sales event.
6:58 pm
tap one little bumper and up go your rates. what good is your insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty mutual insurance. ♪ liberty. liberty. liberty. liberty. ♪ a hotel can make or break a trip. and at expedia, we don't think you should be rushed into booking one. that's why we created expedia's add-on advantage. now after booking your flight, you unlock discounts on select hotels right until the day you leave. ♪
6:59 pm
add-on advantage. discounted hotel rates when you add on to your trip. only when you book with expedia. with the new chase ink business unlimited card i get unlimited 1.5% cash back. it's so simple, i don't even have to think about it. so i think about the details. fine, i obsess over the details. introducing chase ink business unlimited with unlimited 1.5% cash back on every purchase. let me go over this again. yes, general electric is a buy john flannery's plan is the real deal the health care spinoff will be great. the sale of the oil business, right into strength, is something that i've been waiting for. there's just a lot to like as a matter of fact i like to say there's always a bull market somewhere and i promise to find it for you right here at "mad money. i'm jim cramer erican greed"...
7:00 pm
for motivational guru gary shawkey, the heat is on. you can accomplish anything when you walk through this fire. narrator: but shawkey's much more than a firewalking showstopper. he's a relentless con man selling imaginary products while raking his victims over the coals to steal millions. i'm making five figures a week. i cashed a 20-some-thousand-dollar check the other day. narrator: but when shawkey hatches a scheme full of shadowy government contracts and million-dollar paydays, he sets sail for murder. his motivation was pure greed. absolute greed.


info Stream Only

Uploaded by TV Archive on