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tv   Mad Money  CNBC  July 16, 2018 6:00pm-7:00pm EDT

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>> bad was a character on happy days >> i didn't know that much. >> the name of his gang was -- >> i don't know. >> do we have a final tre? tnksouch for watching thank you so much for watching see you back here tomorrow at 5:00 in the meantime, "mad money" starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there is 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 the make friends. i'm just trying to make you some money. my job is not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc or tweet me at@jim carmel sometimes you just have to go against the grain.
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when panic reigns, you have to be bold enough to say that the sellers -- >> sell, sell, sell. >> -- have it wrong and it's time to start buying. >> buy, buy, buy >> when everyone is euphoric, you have to be willing to sell when others are going down low that's why the market tried and failed to break out despite the change in leadership the dow ultimately rising 45 points, and the nasdaq dipping .27% and expect morselling in that index tomorrow after we digest netflix's disappointing earnings this very evening. example on friday, citigroup, jpmorgan and wells fargo reported better than expected earnings and their stocks all laid eggs [ booing ] >> it didn't matter that citigroup committed to buy stock. it didn't matter that jpmorgan gave you much better than expected trading didn't matter that wells fargo had very little fallout from its previous transgressions.
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in fact, the only reason why wells fargo didn't even give you a bigger number was a decision, a prudent decision, to limit lending in markets that don't offer good enough reward to compensate for the risk. i was flabbergasted when i was on "squawk on the street" friday morning. simply shocked that the sellers could be so obtuse, and i jumped up and down to try to get people to buy these stocks. >> buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy, buy >> i figured the sellers would come to their senses and the buyers would step up yet there was a total buyer strike and a usually important group for stock market was laid to waste it made no sense whatsoever. then today things changed. yes, bank of america reported, delivering on pretty much every single line fem. the company was incredibly efficient. the government company returned $26 billion to shareholders over the next year via buybacks and dividends which is $9 billion
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more than they were allowed to do last year the income for the quarter was a staggering $6.8 billion after tax. get this, up 33% year of year. at the same time, bank of america is taking advantage of the yield curve to grow its net interest margin responsibly. and its embrace of technology has created tremendous returns versus traditional brick and mortar banking the result the stock took off from the get-go, the exact opposite of what happened to the banks that reported on friday more importantly, bank of america took every major bank stock with it, including the big three that reported friday, citigroup, jpmorgan and wells fargo just erupting to the upside and why not? these are the cheapest stocks in the market other than the autos, and unlike the autos, the banks are showing excellent year-over-year growth as you'll hear later in the show when we interview brian moynihan, the bank of america chairman and ceo who delivered such an incredible quarter. >> hallelujah! >> i think you have to step back sometimes and say to yourself
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wait a second, how weak were those numbers really i sat down and looked at everyone this weekend. i did it over and over again, trying to find it what people were thinking. i went over the lines and found so few weak ones, let's say the ratio was probably ten good ones to one not kidding. 10 to 1 that i don't simply had to go against the grain on these stocks because the market i thought was dead wrong, and it was. where else could the market be wrong? today president trump met with president putin in helsinki. and we heard some rumblings that made it sound like putin would throw him a bone by pumping more oil that coupled with whispers that the saudis would be pumping more all combined to knock down the price of crude by almost 3 bucks a barrel >> house of pleasure -- >> oops, sorry. >> the house of pain >> here is the problem just like the sellers are mistakenly slamming the bank stocks on friday, the buyers had aggressively bid up the oil
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stocks not that long ago now oil has been clobbered and the oil stocks are under huge pressure so chevron with the stock that just run from 123 to 127 has now gone down below 1236789 or how diamondback energy the wrong fang so to speak it climbed from 129 to 138 and now it's back below the 130 level. so where the buyers wrong? no no, no. i think they were just overenthusiastic no sarcasm that's what they were, because now that crude has come down to 68, i think once again you have to take the other side of the trade. you've got to buy the oils why? simple let's say we were going to unleash some of the oil from the strategic petroleum reserves let's say russia does put more crude into the market to give trump a win. hey, it's the least putin can do let's say the saudis are making deals to off-load more oil into the market these are not matters what long-term. it's not about individual countries boosting the production long-term the oil market is all about exploration. we need these countries to start spending more money on discovering new oil.
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that's what's not happening. we heard from core lab last weekend and listened to schlumberger talk endlessly about how drilling budgets really haven't increased much at all. some countries like venezuela and mexico are depleting and depleting. if these producers don't replenish their oil coffers sooner or later, the price of oil is going to go sky-high. the few countries that are actually drill willing be rewarded with police chief higher prices. let me put it another way. betting against oil after a quick decline has proven to be a bad bet. well experienced a 1.5 increase in demand this year. for the last two deck cascades it's never gone up more than 1%. then this very evening we've got an event that is causing torrents of selling. >> sell, sell, sell, sell, sell, sell, sell, sell, sell >> in the tech world this time netflix reported what it called a -- well, and this took my breath away, first line, a strong but not stellar second quarter. with membership growth at 5.2
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million. that's a million shy of what they forecasted. >> agggh >> ouch! >> it didn't matter that the company had fantastic margin expansion. also streaming revenues rose 4% year over year suddenly it seems reasonable given it was up 108% for the year going into the closer honestly, that, well, i can say the stock could trade still lower tomorrow but you know what doesn't make sense to me? what could be an opportunity was that all of fang faced amazon and alphabet and google all got slammed as if somehow netflix was a proxy for all those companies. amazon stock gave up a 9% gain from amazon prime day and then dropped another big chunk below that, although obviously that was exasperated by the now crash heard around the world
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that's the crash in the amazon site which is a suboptimal development. further, any company, a company like spotify, for example, was crushed in after-hours trading and of course that was in sympathy with the netflix devil. to me it feels a lot like guilt by association at least the banks and the oils deserve to trade together. but these companies like facebook and twitter which are going down come on. the only thing in common with netflix is they were up a lot. not a lot of commonality there i'm not saying that every bit of weak seasons a buying opportunity. last week the president castigated the companies for rampant price gouging and the stocks went up only pfizer has agreed yet to roll back prices what happens when the president returns home i think he hammers them again. i think he tweets that come on, pfizer is the only good one? yeah they'll probably get hit again i don't think there is much the government can do the lower drug
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prices here is the bottom line. in this crazy market, you need to be willing to go against the grain because it's the only way to be rational just try not to overreact so that you can be opportunistic. don't be blind buying good merchandise into weakness caused by collateral damage, and maybe ringing the register into excessive strength like you got going into the less than stellar netflix quarter, maybe that makes sense maybe that's what you do tomorrow steven in illinois, steven >> hello, mr. cramer boo-yah. >> oh, thank you what's going on? >> caller: jim, i am very long listener and first time caller i've always been afraid to invest, but you actually took away that fear from me so thank you. >> oh, thank you very much >> caller: you're welcome. i'm actually calling about trn, trinity industries you said -- i'm looking at this company, and i want to know if you think it's a good buy. and based upon their leading
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positions and their strong free cash flows and their compelling opportunities, i'd like to know if you feel that they're an indicator because they're in the railroad industries. if their performance is an indication of how the economy is going. >> well, look, i've got tell you, if i want that, i'm actually going to go buy union pacific which is in there buying back a ton of stock. i think it's a much better buy than trinity i look at railcar loegsd, up 4% last week. that's okay, but not great certainly better than expected this market is about being willing to go against the grain. it's about being opportunistic that will help you remain rational on "mad money" tonight, from salt and pepper to more exotic flavors, you are likely to find mccormack in your kitchen cabinets but is its stock secret ingredient for your portfolio? are the financials finally getting their due as i said at the top? i'm going to sit down with the ceo of bank of america after earnings to see if the move can continue to go higher. and up over 20% from its
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lows what's ahead for the company i've got the ceo so stick with cramer >> 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 ♪ ♪ my ambition is to show my kids the world. ♪ ♪ the one in three dimensions. ♪ ♪ so they can look up and see the place they live. ♪ ♪ and prove that the real world beats a post.
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simple, easy and awesome. plus, come in today and ask about xfinity mobile. a new kind of wireless network designed to save you money. visit your local xfinity store today. . every now and then, you'll get a quarter that's so good, it sends a seemingly sleepy stock into the stratosphere. just look at mccormack, oh, you know mccormack, mkc, the number one maker of spices and seasons in the world after spending a year pretty much marking time, this cramer fav reported a blowout number at the end of june, and the stock pole vaulted higher, surging from 105 to $114 in a single session. this is a spice company, for heaven's sake and climbing up to 118 and change today that's right
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this thing so what's going on here? why do mccormick's latest quarter catch wall street by surprise this is simply because the consumer packaged good stocks haven't popped in the fashions of wall street of late they're hated. the company kept reporting good quarter after good quarter after good quarter, but it didn't matter because people assumed this was merely the best house in a bad neighborhood. everybody was talking about the ever escalating trade war that could make it hard for any of these companies to do business in an important overseas market. while that general diagnosis is indeed accurate, it didn't really fit the case of mccormick. this company kept putting up strong numbers, yet because investors tend to paint with too broad a brush, that is so typical of what happens, it was ignored. basically, wall street treated this stock like it was guilt by association. beyond, that though, there was also one big perceived negative to the specific that is mccormick. i say perceived negative because reality there was nothing wrong. but it took the analyst investors a lot of time to figure that out.
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i'm talking about mccormick's $4.2 billion acquisition of the food division a year ago they picked up a bunch of brands including french's mustard, and kettleman's barbecue sauce, french's and frank's red hot are both number one in their categories, and frank's is growing like a weed. when i heard the news, i too was initially confused, but then i came around because it gives mccormick a lot more shelf space in the spices, seasons and condiments aisle this is the kind of thing that gives package companies more bargaining power with the supermarkets nafnl supermarkets mccormick's stock got slammed on the news as investors worried they were pay too much for rb foods. they had toe do a round of media appearance 20s reassure investors that the deal was good
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one. in fact, he came on this show a little less than a year ago to lay it all out here is what he told us about the price. >> i wish i could have bought my house for a discount, but if i had tried, to somebody else would be living in it. it's the same with this it's a quality asset. these are leading brands they've got strong growth characteristics. they're on trend and they're tremendously profitable. a lot of other companies saw value in this. >> went on to praise the strength of frank's red hot. millennials seem to really love spicy flavor it doesn't have a lot of weight. they love that too doubling down on flavor, he claimed mccormick is doubling down on growth i like the story and pounded the table on the scott there was lot to like just beyond new exposure to the fastest growing hot sauce category the company could use its global scale to significantly expand the worldwide presence of these new brands told us to expect about $50 million. they alsotold a very good
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margin expansion story put it all together it was positive one making a deal when it closed last august. yet for months and months, the stock couldn't get much lift it was stuck bouncing between the 90s and the low 100s for the reasons i mentioned before nobody was that excited about any kind of consumer package, a good stock in this environment mccormick reported accelerating growth in september. the stock rallied a bit and then gave back its gains. mccormick delivered another beat in january, 21% revenue growth saying that the double-digit growth would continue through 2018 thanks to benckiser's deal. we're talking about the company's best revenue numbers in over 20 years, and that sales growth was already starting to translate into earnings growth in the first full quarter after they finished the acquisition. once again, the stock rallied nicely, up about 5%, and it kept climbing for the next few days, but also once again it quickly lost its momentum as the whole market fell off a cliff in february
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fast forward the late march. mccormick gave us a third beat in a row what do you have to do around here with monster 31% earnings growth and raised its full year guidance for the top and bottom line told a terrific tale that amazing earnings growth tells you exactly how well the company was cutting costs out of the rb foods acquisition what happens the stock opened substantially higher, and then again gives up nearly all of its gains the same day. in fact, by the time mccormick reported next quarter on june 27th, the stock was down a buck from where it was trading before we got those amazing numbers in march. the darn thing couldn't get any traction, even though, well, i got to tell you, these were quite exciting why was wall street being so obtuse in addition to all the hand-wringing about the consumer packaged goods space, mccormick also got a brutal downgrade, holy cow, from deutsche bank in january that really weighed on the stock. the analysts published a story about deceleration in seasonings division and a similar slowdown
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at the record benckiser brands they just acquired that was scary. they said mccormick was poised to lose market share and there would be little to no organic growth to be found just another food stock. basically, they painted a very grim picture and while quarter after quarter, mccormick proves this picture dead wrong, the negative thesis refused to die, which brings us to the game changer at the end of june when the company finally laid this nonsense to rest mccormick posted a 9 cent earnings beat after higher than normal expected revenues, over 9% a year. all that deutsche bank said were decelerating, no, no, no they're doing great. they believe they can turn frank's red hot into the number one hot sauce on earth i believe him. this is a high quality beat, and everybody knew it. couldn't fight this one anymore. finally, the stock got some real lift, surging 8.4% that day and continuing to rally to an all-time high of $120 last week.
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now from my perspective, this was all a little bizarre for the first time this year, mccormick didn't actually raise its guides and for the first time investors bought the stock hand over fist. the reason the shorts were forced to cover is the bear thesis was eviscerated it took a while, but people finally realized that mccormick paid up to buy benckiser's food division not because they're morons, but because they understood how valuable this business could be. they own the yellow mustard category of course, at these levels mccormick is getting a little expensive. it's trading 22 times earnings and it's going to be up against tougher comparisons, the anniversary of strong quarters but let me give you the bottom line mccormick has proven the bears wrong every step of the way. after languishing for the better part of a year, i think the rally is just getting started as the stock has become the darling of the packaged foods group, as well as it should be given the
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amazing acquisition that they have made. let's go to glen in new jersey glen >> caller: hey, jim. hand on the show and i appreciate your book, "get rich carefully". >> oh, thank you very much >> caller: you bet hey, i've made good money off starbucks in the past and the stock is about 20% below its previous 52-week high. they've had some disappointing earnings, some bad press, the fundamentals seem pretty good with 5 million new digital registered customers over the past three months and big plans in chicago i'm wondering if it's time to buy starbucks again. >> well, i've got to tell you, if you can get it below 50, i think i would. i think the company's in there buying it with you i think a lot of negatives are beginning to be recognized it did catch a price target shade today that made people feel like wow, i shouldn't have paid out for it. but below 49, i got to tell you -- >> buy, buy, buy >> all right spice up your life with mccormick. the company has proven the bears wrong time and time again. i think the strength in the stock is just getting started. much more "mad money" ahead.
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after a big day for bank of america, i'm sit do you think with the ceo after earnings to crunch the numbers, and you better not miss my exclusive then after today's drop in oil prices, see what's ahead for this oil pipeline. this thing is really tracking. and china trades back is a concern for the oil space world. there might be a little more to the story than meets the eye i'll explain stay with cramer
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bank of america delivered a terrific six cents earning with higher expected revenue on robust long growth, rising deposits, aggressive cost cuts and superb digitation. they don't need high long-term interest rates to make a killing. ocould this begin the financials let's get a better sense of the quarter and what his company's prospects are. mr. moynihan, welcome back to "mad money." good see you, brian salt have a seat. >> good to see you, jim. there. >> are is many great lines exceptional loan growth, the knack you can return so much money, the $2.8 trillion deposit. i am struck by the digitization. you are well ahead of all the other banks. and tell what's that means for you and for shareholders >> well, if you think what digitization means, it means better convenience for the customer and lower operating costs for us and more assured transactions think in a consumer business, customer interface
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it enables the process to work better in all that a good result for the customer our customer service scores continue 20 go up while at the same time the cost structure continue to come down and got to 48% efficiency ratio this quarter. negative, how about how many millions of people are using digital devices and how many are active mobile users? >> so you start from the high level. we're at 35 million plus digital user, which would be any device, computer screen coming to bank of, et cetera. 25 million plus of those are mobile in other words, they're going through an app they locke logged in 1.4 billion times this past quarter. that's up 500 million times over the last year probably and so there are a lot of people using it those are active users they've had to use the app in the last month actively to do so >> wow so give me a sense of what that means. how much are you able the save from just having plain old brick and mortar operations? it would seem that this is a consider saving versus that. >> so you have to think -- go
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back about ten years when we started seeing the impacts of this internet banking started in the mid-'90s dial-up servers, it all took a long time to take off. what happened with the advent of the smartphone and the iphone and thanks like that, you saw this thing take off. so if you go back ten years ago, we had 6100 branches today we have about 4400, 4300 we had 100,000 teammates working in the business. no you have 60 but importantly, you had 12,000 who were relationship managers now you have 25,000. so you've had this massive switch in terms of what we do in the branches and the customers so it is high touch and high-tech. and that requires both >> i would guess from some of the business you have more revenue producers than you have people who don't make money for the bank >> iwould say that's true, but i think you have to remember that we're a service business. so you come and need a power of attorney, that might not produce instantaneous revenue, but why you're asking for it probably has to do with something going on in your life. the relationship of managers that >> enhancing thatrelationship
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rather than take a check over the transom. there is not a lot of value add view to that just get it right, please. where if you come in and have a question about a mortgage, need a car loan or a card loan or something like that, or more importantly, my mother's sick, hopefully she is not, but if my mother were sick, i need some help for power of attorney for medical or move her accounts and things like that that's what you want to go on in the branches you want the really interesting hard questions where people need real help. >> we on "mad money" care passionately about buybacks and dividends. it looks like the government is real really versus year ago, a sign of your health. >> we've been building that up you go back over the years, we've been asking for more and more last year we got $17 billion total, almost 18 cap return. this year we got 26. last year we also went back and got an extra 5 when we redeemed converted into common. that's been a great move for us. the $26 billion, it's getting pretty close to the earnings
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level projected for us and dividends will be moved from 12 cents to 15 cents a quarter which gives awes $30 price at 2% yield. it's all good. >> a lot of people are fretting that perhaps long growth is slowing down your loan growth figure indicates the opposite. >> we point that out to people i beg your pardon, we never promised you a rose garden we never promised 10% loan growth because the way we run the engine and the way we client select and focus and prime the consumer is such that we're growing. if you looked in our materials today, you saw that year-over-year for the last second four quarters we've grown 5 to 6% every year it's consistent, grinding it out, good high quality loan growth the customer smart and we can get paid back. >> it has to do with bank of america. you have erica, and it looks like erica is doing the opposite of what netflix is doing tonight. that's been very strong growth in a very short period of time. >> you talk about that mobile application in 25 million customers' hands the question is you have to type
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in it and you have to do all the things what erica does is artificial intelligence, voice activated or text activated engine that changes your interface dramatically and starts to anticipate what you need so, for example, if the other day i opened it up and said i wanted topay someone a bill. i said pay -- in that case it was a landscaper, $422 it found the person. it said you want to pay $422 yes, it's done as opposed to typing in the name and finding and scrolling through. it's an easier way after it learns more about me, it will start to plan my finances it will tell me i'm spending more than i earn or i'm spending a lot if i want all the payments i made for restaurants it tell me at that time what we've made it's an artificial intelligence thing. but initially it just works to help me to be able to use the device much more to my benefit. >> to me when i hear this, i think okay >> let's remember, it went from starting to two million users in about 50,000 in april and two million today. it's taking off. >> but a lot of those people have to be millennials who
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otherwise would think that maybe i should just go and be on paypal not that paypal isn't a partner. >> well, paypal is more on the payment side of the balance. but in interpretation of our mobile capabilities and core mobile banking go far beyond the millennials. i god the asked the question is this millennials with 35 million digital users, there aren't enough millennials to do that it spreads across all ages and even guys as old as us, jim. the takeup of something like erica is going to be a little bit more people are used to using their different devices at home to talk to and have them activate stuff that will change over time. you use it because it's just easier for me because i got big fingers on a little phone and it's hashed to type. >> bank of america has a great call on what our country looks like right now i got great confidence after listening to your call, thinking you know what? stop being gloomy. it looks like business is pretty good in this country >> so we start -- and you think about the u.s. economy, 2/3
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driven by the consumer, 70%, whatever people say at this moment, and we got good insight into the consumer. for the first six months of the year, our consumer spending which is checks written, cash out of the atms, cash out of the tellers, bill payments, debit and credit cards, wire, ach, zell payment subpoenas 9% over the first six months of last year that was 6% the year before that and 3% so we've got 3, 6, 9 that's acceleration of consumer spending and i would posture, leave aside some completely out of character risk out there that the u.s. consumer is spending at a 10% growth rate year-over-year that is a good thing for america and the economy will be in good shape. now that is on about a trillion-4 of dollars spent. it's not a small sample when you think of double that to $3 trillion for the year. think of that size relative to the economy. that's just the consumer side. that's literally you or me sending money to the account you think about that growth, that bodes well. i heard from our team today that our internal people, because of
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tax reform, because of deregulation are probably saying that they're going to -- good team, bank of america, merrill lynch at 4% gdp growth for the second quarter. >> what? >> they moved it up little bit for the whole year, 2.93%. but this quarter they think it might have a 4 handle on it. that will be a big number when you think about it that's for the second quarter, and you see more people come along. whether it's 3.8 or 4, that's a big number retail sales, you see that consumer spending. all that bodes well. so we feel good about the u.s. economy. now, is the unknown of this out there, the unknown that of there is always an unknown. >> right. >> right now people are employed they're making more money. tax reform has benefitted them tax reform is benefitting companies and you're seeing that flow through the country. >> what a great story. great for our country, great for bank of america. that's brian moynihan, chairman and ceo of bank of america the stock is too cheap stay with cramer need a change of scenery?
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could the pep line stocks finally be ready to get some lift even as the price of oil is getting slammed here take the longest most sophisticated crude oil and transportation system on earth they carry the vast majority of the crude that the united states imports from canada.
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they also have a fantastic natural gas network courtesy of its acquisition of speck ra energy and they have a nice sideline of renewables with portfolio of wind, and solar generation when donald trump won the election in 2016, a lot of people figured that his pro fossil fuel pro construction policies would be a huge boon for the pipeline industry, but it sure hasn't worked out that way. earlier this year we got a ruling that hurt the whole industry plus, these are all high yielding dividend names. so they were getting punished because rates were rising. but in the last few years enbridge caught some lift. in late june they got important approvals from the state of minnesota for a pipeline then enbridge is selling its natural gas gathering for brookfield for 4.3 billion in canadian dollars the stock has roared 22% from lows in late april could this stock be ready to roar or do we need to be returned that the recent rally could run out of steam now that
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the price of isle oil has come back down. let's take a closer look with almon co, the president and ceo of enbridge. mr. monaco, welcome back to "mad money." >> hi, jim thanks for having us back. >> it's been more than a year now since you closed the biggest deal you've ever done, spectra i want to get a sense of what it's done for your company and what it means for the future. >> for sure, jim if you roll back the tape a little bit here we werepretty much a single purpose, although a very strong single purpose focus on the liquids pipelines business out of western canada and into the u.s we essentially transformed that picture into one that now includes what we think is the best natural gas franchise business in north america, plus we added another utility so we've got a very large utility base, gas utility base now in north america, one of the largest and fastest growing, frankly. so we're set up really well for the future >> you've also made some dramatic changes
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you've done your best to sell some non-core assets, get that debt picture better, but you also simplified your structure, something i'm really thrilled about. it make it much easier to what you're really getting with enbridge these were necessary, right? both because of how much money you had to spend to get spectra, but also because you had the mlps that frankly can't get their cost in capital lower. >> exactly right as you know, jim, very well, the mlps have done a good job i think for us over the last number of years, but certainly over the last two 20 three, the cost of capital really hasn't been effective on top of that, we think having a simplified structure, one that hosts one investable entity, which has great infrastructure assets in it is the best way to go we get some financial benefits out of it. retain more cash in the business so overall we think this is a great outcome for us we're in the roll-up process now, and hopefully that will be done in not too distant future.
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>> what time these were such great, great pieces of paper individuals loved them for the tax benefits the oil companies loved them natural gas companies loved them for the drop-down benefits do you think they'll ever come back >> you know, we can never say never, at least our outlook at the moment is for the foreseeable future the best structure for us is to have one investable entity, as i said that has a lot of benefits to it as well. so who knows we'll see what happens for now we think is the best way to go, and apsz and we'll see what happens in the future. >> now, this your presentation earlier in the year, you talked about further asset sales potentially. you've been making them. you've been able to find buyers for pretty much everything you still got some more things you want to sell to make that balance sheet even better? >> well, a great question, jim if you just go back a little bit, at the end of last year, we rolled out a strategic plan which basically said we want to focus our efforts on our three
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big franchises, which is essentially a pipeline and utility business model so when you look at it from that perspective, the next -- the next phase is let's look at our asset base and see what's core and non-core, and what we can actually monetize for good value. so we had a look at that post speckra closing, and we concluded that the gathering processesing business, although a strong business, really didn't fit the business model that well it became a capital allocation decision we looked at our hold value for the assets and we saw some good opportunity to try and generate some excess value for us and i think we've done that with these asset sales. we had a $3 billion target we're now at $7.5 billion. not only does that on strategy per se, it also generates some very good financial flexibility for us going forward $7.5 billion in asset sales, even though we're a large company, is nothing to sneeze at it r so it gives us great financial
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flexibility. >> now, you've also been doing a lot i'd say to broaden the possibilities for export, for our country. i look at what you're doing. you are the most forward-looking company in trying to take advantage of what is a tremendous glut of natural gas i listen to the president today, talking to president putin i started realizing that one of the things that's happened with europe is they could have used our natural gas. are you bullish about the prospects of exporting natural gas? and it looks liken bridge has to do the heavy lifting >> that was one of the main reasons, frankly, jim, for pursuing the spectra deal. very much a natural gas strategy focus for us and you've hit the nail on the head again we see a huge opportunity for natural gas growth in this country, very much a low cost supplier technology-driven, bringing costs down overall in the industry, and now the opportunity is how can we build
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the infrastructure and it's all got to be pointed, at least in our view, in the future, jim, in terms of gaining export markets gaining global market share for what we have here in north america, which is a tremendous competitive advantage in energy. so it's all about pointing that infrastructure to capitalize on that advantage and gain export market share on a global energy basis. >> you've always had a great open really fantastic website. everyone can know what you're about. i would be remiss not to talk about these gigantic renewable projects you're doing. it seems like you've got the largest wind projects going on in the world right now. >> you know, it's a part of the strategy, jim, only because we think that all forms of energy are going to be needed it doesn't take away from conventional sources of energy that's been the core business. but we think there is good opportunities to build out offshore renewables in particular going forward and the best thing about them is they hit the middle of the
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fairway in terms of our business value proposition and risk/reward. they come with long-term contracts, and that fits very well for us, and it comes with growth >> i want to congrat everything you've done for shareholders i love the simplification. it's such a good deal. almon co, president and ceo of enbridge it's great to see you, sir. >> thanks, jim thanks for having us. >> they just raised their dividend this has got plenty of cassity, continue to raise their dividend, and it's a simple structure now. i liken bridge "mad money" is back after the break. is this at&t innovations? yeah, wow..this must be for one of our new unlimited wireless plans. it comes with a ton of entertainment options. great, can you sign for this? yeah. hey, uh.. what's in that one? that's a shark.
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"lightning round" is sponsored by td ameritrade it is time it's time for "lightning round." cramer will -- buy, buy, buy -- >> sell, sell, sell sell, sell, sell. >> buy, buy, buy buy, buy, buy >> and then the "lightning round" is over are you ready, skee-daddy? time for the "lightning round. we'll start with bene in illinois bene >> caller: hey, jim. big fan. boo-yah! >> boo-yah what's up? >> caller: i have a question on a company you've liked in the past you had the ceo on as well, but it's been a while. the company is children's place. >> yes
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doing a great job. one quarter does not a stock make i think you take advantage and buy it require heave. >> buy, buy, buy >> it's too low. >> let's go to john in florida hi >> caller: hi, jim, it's john. >> how you been? >> caller: okay. it's always a pleasure to talk to you. >> same. >> caller: >> i own dbax. i'd like to know what you think of it. >> i think that dynavax, it has come down. i still like it. and i'm going tell you, i think, john, that it is actually down here down 3% today >> buy, buy, buy >> okay, let's go to dustin in california, dustin >> caller: boo, jim. >> boo-yah >> caller: yeah, atmv. >> do you know years and years ago we had this company. i just thought it was the greatest story i love cardiovascular stories. there you go it is still a good buy we're still not done
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let's go to matt in illinois >> caller: hey, jim. >> caller: i see this company doing a lot of awesome things, and i'm wondering what your opinion is on the stock going into the next earnings report that is zebra technologies. >> caller: oh, gustafsson has done such a fantastic job. >> buy, buy, buy >> it's almost in double i'd stick with it. let's go to david in idaho david? >> caller: yes, hey, jim how's it going >> all right how about you? >> caller: oh, life's treating me well. hey, got a quick question about abs and basically gold and silver. >> look, i always think people should have some gold. i like the gold, gld, or i like gold the boullioun it is really hard to own the stocks it was abx, barrack -- >> sell, sell, sell! >> let's go to jared in texas, jared? >> boo-yah, jim. >> boo-yah >> caller: what's up with chesapeake we're heading into earnings. >> hey, jared, don't want to go to that one. i say --
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>> sell, sell, sell! >> i'm not a big fan of the natural gas market and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade overwhelming air fresheners can send you running... so try febreze one. with no aerosols and no heavy perfumes. so you can spray and stay. febreze one. 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.
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there are a ton of very smart people in this business, but every now and then you'll see kind of a herd mentality on wall street that is utterly impervious to reason --
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[ buzzer ] consider the other worldly contrast between the air show in the uk and the endless fretting about china potentially cancelling its order for american-made aircraft the entire aerospace industry is frantically trying to meet the demand for planes as more and more people in developing companies join the global middle class and begin to travel by air. airbus are in a dogfight over these orders,s at the same time they're desperately struggling to neat demand because they're both overwhelmed with business we keep hearing how china could wreck boeing's earnings if the trade war keeps escalating here's what i don't understand if china is the linchpin for aerospace, what's the deal with this air show? do the orders not count? don't get me wrong, i know china's an important market, and look, it counts for 13% of boeing sales up from 7% back in 2011 but at this air show, we keep seeing the demand for airplanes far exceeds the supply, which is why i keep telling you that
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china needs boeing more than boeing needs china the world only has two major manufacturers of large commercial aircraft. the wait for these planes is as long as 20 years for some models like every other country, china wants to be at the head of the cue. they don't want to walk away from it. so we're real clear, if china switches all its orders to airbus, they won't get anywhere near the number of planes they need maybe that's why boeing stock gained more than $5 today. we know that a potential lack of chinese plane orders has cast a pall on so many air woe roe space stocks but it's a potential lock. chinese fears put a lid on honeywell. united technology will have even more aerospace exposure when the company closes on its rockwell collins acquisition. what else? i believe all this chatter now about our biggest winner in the s&p 500 today, impossible leveraged buyout candidate come downs to aerospace because our business is heavily comment on
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aircraft components. even general electric has been hurt by the belief that china will cancel orders with boeing but boeing does get a lot of business from china. with know boeing and caterpillar a the two stocks that get hit every time trade sensing flare up with the chinese. i'm betting people will realize china has to order aircraft from someone. there is only two someone's in the space, boeing and airbus if they want to switch from boeing to airbus, it could add years to their wait time this is very much a beggers can't be choosers situation. you know what? the real worry here isn't china. it's all that weakness in the american airlines, and the amount of overcapacity here in the u.s. the fares aren't holding up. the revenue isn't going higher the dogfights among carriers are back the only way to cure-all this is to have fewer planes being bought to take out capacity. that's something worth keeping an eye on. against that, even with the price of oil pulling back to the high 60s, crude is still a lot
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more expensive than a year ago, which means if the airlines want to keep their costs down and the costs are killing them, then they need more fuel efficient planes, and those interest ones that are being developed right now. i'll be talking to larry kudlow, the president's chief economic adviser later this week at cnbc's alpha conference. it's a fair question i think about how the u.s. can get the chinese to buy more plant equipment from us. chinese orders to boeing are certainly a way the do it, but if china doesn't buy those planes, someone else will. stick with cramer. who would have thought, who would have guessed?
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an energy company helping cars emit less. making cars lighter, it's a good place to start, advanced oils for those hard-working parts. fuels that go further so drivers pump less. improving efficiency is what we do best. energy lives here. improving efficiency isyes or no?
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do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online. at this point, can netflix take the whole market down i don't know it can certainly take fang down for a day. but let's not forget, netflix was up more than 100%, and that's an awful lot going into a session to be able to withstand anything i like to say there is always a bull market somewhere. i promise to try to find it for you right here on "mad money." i am jim cramer, and i will see you tomorrow
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>> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ ♪ hey, sharks. my name is tony gauthier. i am scott hoag. and i'm wesley osaze. and together, we are the owners of... all: spretz! the one spray that is... all: too fresh!


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