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tv   Mad Money  CNBC  January 7, 2020 6:00pm-7:00pm EST

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certainly a lot better than the five year average at about 50 times. >> and macy's going to rocket it since the goldman downgrade in early december and thanksmuch appreciate it. see you tomorrow "mad money" begins right now my mission is simple -- to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job isn't just to entertain but to educate teach and put it in context, so call me at 1-800-743-cnbc. or tweet me @jimcramer. hope springs eternal at least for tech it does. every year for the last three years the market has come in hot in january the real strength is in the tech-laden nasdaq.
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this year's no different while the averages got hit and dow dipped 120, and the nasdaq only slipping three basis points, in fact, the nasdaq, though, is up more than a percent for the year while the other averages are barely positive and the tech part of the index which is what i'm focusing on tonight is pretty much on fire yep, today we saw remarkable moves and all sorts of tech stocks after analyst after analyst issued bullish recommendations that reverberated throughout the whole sector pit action this is a special time when the analysts survey their universe and make predictions so far the predictions have been positive as they pretty much are every year but why not there's plenty to like better than expected quarter from a company that you probably never heard of called microchip bolsters a host of semiconductor stock, analog devices with a big
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upgrade. both of those companies are seeing strong demand you always have to buy these stocks coming off the bottom that's what i've been telling you over and over again even though it might have been caused by them turning the price around worth $4.70 or 8.78% on an upgrade. given an overall weaker take that's an astounding performance. they sound off at ces for only the consumer electronics show. it's all bullish lisa su talked about strong demand for her data, pc and gaming chips and gave us a spectacular blueprint for future sales. the brilliant cfo of nvidia tells us how inference chips, actually thinking chips are becoming a real part of the business closer to genuine artificial intelligence than most think and last time reflected in the actual earnings per share. what else? if customers are buying
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semiconductor in record numbers the chip numbers need more capacity they go to kla and applied materials and lam research no wonder their stocks are soaring. executives are showing off all sorts of new devices and seeing excitement for 5g. 5g ripples through everything from skywork solutions and marvel technology and talking about the wonders of it later in the show maybe you'll believe me then elon musk gave a rosey outlook for tesla's chinese demand a did a jig because he can't contain his excitement tesla is going to be selling 150,000 cars from the chinese factory that didn't exist. didn't exist 12 months ago took 10 months to build. take -- oh, none of the american companies could build something like this. this is up 150% since may and it's got more room to ruin the cloud kings continue to romp as one analyst after another
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names them salesforce jumped 10 bucks this week alone stuck in the 150s forever. we got a big endorsement of twitter for merrill lynch. including the facebook which is on an outright tear and cybersecurity stocks rocking defense, just today we got an upgrade in the laggard fire eye. 3% an upgrade i could go on and on, the point is tech stocks are reacting to every single positive upgrade. every single data point and the stocks -- >> buy, buy, buy. >> -- go higher. should we be shocked at the strength despite how iran is ready to wreak havoc for us killing one of their top generals i myself am torn history is on your side. for the last three years since president trump was sworn in, tech stocks have rocketed higher in january january 2017, nasdaq composite rallied 4.3%, last year the
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nasdaq blasted to the moon up 9.7% now the nasdaq index itself, the composite is not to buy. there are way too many drug stocks and those are the exa opposite of the tech stocks i'm talking about here those are safety last stocks you know, look, on the other hand, these january tech rallies, they don't always have legs in february of 2018 you had a one-two punch of an economy that was too darn hot and a series of dangerous bets made against the volatility index or vix. what else? you're not early this time around last year we came but the jay powell bear market with the foolish decision to raise interest rates while promising more rate hikes in 2019. as soon as powell changed his tune the averages caught fire. this time around there's no spri springboard. we've had a major run. that said the trend is driving
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so much it's real and long-lasting let's take 5g. this is the year when 5g networks should take off any company with a decent amount of exposure will win from the semiconductor names i already mentioned all the way up to apple. second, digitization i know i talk about it forever but it's still in its infancy and gives you room to buy a seasforce or workday or adobe. my charitable trust just trimmed service now -- i mean trimmed salesforce had to the stock is up 10 bucks in 2 days third, a decontinue tiff shortage of social media stocks, twitter, facebook and snap that's about it. advertising remains strong don't forget trade desk. many believe that we're about at the level where we have to be a moron to buy stocks up here. we have an unpredictable president who has provoked possibly serious retaliation from iran.
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a number too hot for the fed to justify rate cuts. if we get a strong labor report the money types will crawl out of the woodwork. there's hope based on a stronger tech market by growth great trends that transcend these worries. i read my twitter feed and see what the critics are saying. they're saying i've gotten too negative as a palms to my eldest daughter i've become jimmy cho. that's what she calls me i saw the tina turner play i don't want to fight no more. what iran has planned for us you can understand why someone might join that. i'm not a garden variety bear. i'm not even neutral too many opportunities the bottom line is i'm simple frying to be respectful of the power of hope melded with the strength of the technology complex. i want to buy these stocks but keep in mind, you have to be
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prepared for an exogenous event that causes a pullback that will give you opportunities to buy at lower, less expensive levels mark in nevada mark >> caller: hey, jim, go, blue. a longtime listener, first-time caller in the past you recommended marvel it's been hovering around 25, 26 is this stock only a play in 5g space or hold it -- >> you've good to hold it. it is biding its time. it's reshuffling its debt. it's getting rid of low marriagesen, cut things like wi-fi, moving aggressively into 5g and when it's done it will be the purest 5g play there is by marvel hey, how about alex in pennsylvania alex >> caller: hey, jim. it's nice talk to you. thank you so much for everything you've taught me i appreciate it deeply. >> thank you, man. >> caller: question about gw farm m i've been in that stock for some time now.
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each time it goes down 5%, 7%. what do you think? is it time to let go of that or keep holding on? >> i think you can hold on to it gw pharma is the pharmaceutical. they create cannabis that is used principally right now for epilepsy for young children. i don't want to give up but i can understand your frustration. to carlo in florida. carlo. >> caller: boo-yah, jimbo. carlo here in coral gables with my daughter mia and olivia and want to know about square. we're not very happy and the n nonaggressive nature of the cfo. can you let me know if it's time to sell or hold? >> i struggle myself i struggle myself with square. jack dorsey is in africa everybody is online all the time maybe it shouldn't matter. i think they're doing incredibly well the stock is flat-lining they will have a meeting soon where i think you'll feel better about it we have an upgrade today i say you buy square, not sell
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it guy, listen, hope is springing eternal for tech just like it did last year and the year before and the year before that. on "mad," dollar, dollar, billya more attention to the greenback. then i've got 2020 vision on the sportswear companies nike, under armour columbia who will make the cut? i'll reveal and gadgets and gizmos a-plenty. the discussion of the ceo of cvs so stick with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to or give us a call at 1-800-743-cnbc miss something, head to
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what are you doing back there, junior? since we're obviously lost, i'm rescheduling my xfinity customer service appointment. ah, relax. i got this. which gps are you using anyway? a little something called instinct. been using it for years.
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yeah, that's what i'm afraid of. he knows exactly where we're going. my whole body is a compass. oh boy... the my account app makes today's xfinity customer service simple, easy, awesome. not my thing. for the past year we haven't had spent a lot of time worrying about currency fluctuations. the dollar strong, not great for exporters and it had become a recurring problem for all multinationals but now something new, something different something positive it's happening for companies a weaker greenback and we got to see hoi weak it can get. currency markets are not my prove convince but that's why i'm going off the charts with the help of carly garner a brilliant person and author of
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"high probability commodity trading" because she thinks the weakened greenback could be poised for a major breakdown and once that happens it will bleed into everything else, stock, bond, commodity, not just the multinationals the weekly chart of the dollar index. it measures the value of the u.s. dollar against a basket of foreign currencies the blue line here, okay that's the 1 eye-week moving average. garner is not a huge believer in using that to come up with price target, many technicians are but when you look at the longer term ones she thinks they can give you a helpful, big picture view. when it comes to dollar index we've seen over and over that when it breaches the 100-week moving average, well, you tend to get a significant move. you can see, boom, that's big. wow. could really get clobbered
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2014 it broke out above the 100-week moving average and seemed on a colossal rally and the dollar index from the low 80s to the triple digit and the move totally changed the landscape in the markets with oil and gas prices plummeting and hurt the earnings of a lot of multinationals. 2017 the dollar index broke down below its 100-week moving average before plunging from the high 90s to the high 80s garner points out after our currency weakened we saw rallies in oil, gas and gold not just priced in dollars but bullish fundamentals giving them a boost. she brings it up because once again the dollar index looks poised for a major, major breakdown. the march futures are currently trading near 96.50 the relevant strength index is down at 41, meaning there's still plenty of room for more selling before the dollar gets oversold if the greenback breaks down and
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takes out it this level, if it goes below the 100-week moving average, garner thinks it will alter the balance of the currency and commodity markets while the dollar index has a floor of support at 93, she expects traders to be caught off guard and thinks it will plunge to 88.25 if she's right a lower dollar will drive most prices higher, something maybe the fed will be worried about. if the move happens gradually garner believes it will boost the stock market because so many big multinationals would benefit however the dollar is lower rapidly, that could trigger uncertainty. weaker greenback is bad news for u.s. treasuries because coupon payments become less valuable. check out the monthly chart of gold prices. the precious metals have been on a tear and probably because the dollar has started weakening igniting a fierce rally. uncertainty drives gold too. it's gotten big lift from geopolitical worries if you think we're headed to war with iran, well, you know as
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i've been saying over and over again cash and gold, cash and gold right? however in the absence of a big breakthrough in the dollar garner would expect prices to peak sooner rather than later and sees it the precious metal is pricing in the decline to the low 90s. at this point they're nearing their major ceiling of resistance and it's nearing overbought levels meaning we've come up too far too fast but if we get the breakdown in the dollar that garner is anticipating she could see the precious metal break out above its ceiling at 1605, next, 1793. maybe we test the 1900s. now we haven't seen that level since 2011 although she doesn't think that's likely. without a meaningful decline in the dollar garner thinks gold will run out of steam -- this is striking to me make it all the way back to 1250 whoo and if that level fails, she thinks it will go to $1,115.
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this weekly chart of gold with the commodity futures trading commissions, a commitment of traders report or c.o.t. report which shows you what they're doing. we care mostly about the large speculators, money managers. lately they've gone all in, all in gold. this is -- do you know this is their largest net long position in gold in history well, garner believes there will be more upside but it's gotten crowded and good reason to believe it's gotten way ahead of itself look at this everyone is recommending gold. i've been recommending since the show began and i think 10% of your assets should be in gold. ensure your house and ensure your portfolio what else gives garner pause, u.s. treasuries. the daily chart of the tlt in types of geopolitical turmoil wouldn't you expect this to go higher because bonds are a safe haven but that hasn't happened the tlt is trading sideways,
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less volatility. as far as garner is concerned the gold market and bond market both can't be right. bond traders tend to be more levelheaded. ooh, i'll take a lot of heat on that but it's true w that in mind she is assuming -- remember, you can attack me on twitter. i'm not going to respond assuming that gold is overreacted and treasuries have underreacted even speculators are usually long gold. but when you zoom out that actually makes sense last year u.s. treasuries got a huge boost from the rest of the world. foreign bonds paying negative interest rates so investors sent their money here the rest of the world's interest rates have gone higher so there's now less overseas cash flooding the bond market she expects the market to be decisive except when it comes to treasury bonds weaker dollar should send them lower. right about the lower she expects tlt to head to 130 from 137. that would be pretty dramatic too. at which equates to the 30-year treasury yielding about 2.5% up
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from 2.3%. might make a brief run at 142. before then but garner is betting it will be rebuffed and she recommends selling into strength sell this etf. okay that's important a lot of trade remembers in that thing. the bottom line, the charts as interpreted by her tell us it's time to start paying more attention to the action in the dollar and it's about to plummet and betting on a big breakdown, not this little one we've had so far. good news for gold bad news for u.s. treasuries good news for american companies that do a lot of business overseas i hope she's right and want to see higher earnings for our international companies that could detroit it higher. if she's right that's precisely what we will get stick with cramer.
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let me get you up to speed on my favorite stories, the sports wear bull market. last year during a rough period, sportswear roared higher it has been my fave rallied nearly 37% columbia sportswear gained 19% and even the down and out under armour finished 2019 up 22%. although, of course, it was done with a lot of turbulence but all three of these companies have experienced some big changes over the past few months we got to reconfigure here nike and under armour, new ceos and columbia lost its longtime chairwoman gertrude boyle mother of tim boyle and we offer tim and his family our condolences we know this group fascinates you so have to ask what does the future hold for the big three? let's start with nike. last year the big worry with
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nike was whether they'd be able to maintain momentum in china despite the trade war. boy, it turned out to be total non-issue and forged strong relationships with the chinese government and able to keep delivering incredible sales even before we got the phase one trade deal last month, probably the best performer in china along with, yes, apple and starbucks. new fear in late october we learned their lo long-term ceo could be stepping down for his replacement the board decided to bring in john donahoe then ceo of service now and formerly ceo of evacuatebay. he is set to take the reins next week i think he is a fantastic choice you need to understand parker's handing donahoe a truly tremendous enterprise able to put up terrific quarter after quarter after quarter. it was a clinic. there's a reason these guys are the biggest footwear and
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sportswear company in the world and they offer customers a constantly improving digital experience have you seen the store in midtown fifth avenue if you come to manhattan from out of town, go to the nike store. it is incredible a wonder the company's digital apps outperform all other channels driving 38% of digital growth. if you read their last conference call did you know the word digital appeared 47 times digitization that's where nike's focus is that's why donahoe is such a good hire. remember, he spent years running service now, a cloud-based company that helps his companies save money he's exactly the kind of executive you want if you're trying to grow your digital business you might worry service now is an enterprise play while nike, of course, is the ultimate consumer focus company but before, he ran service now, donahoe was the ceo of evacuatebay and understands both sides and understands the consumer and had him on so many times. i know he's got it down. mark parker is staying on as
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executive chairman the stock is currently selling for 29 timesearnings estimates but if you don't own it at that kind of price wait for some exogenous issue pullback in other words, something that isn't involving nike that causes the market to be brought down. you reach for this one okay, next up you don't reach for this one under armour this story has a lot of hair on it wall street bald is beautiful. hair is bad. it's like finding hair in your soup for ages under armour one of the hottest growth stocks around 2015 it slammed into a concrete retaining wall, 2016/2017 got more competitive and growth slowed it was a $00 plus stock in 2015 but by november of 2017 it had plunged to 11 bucks. but that's where it bottomed now after spending years lost, they started turning itself around and had a nice run in 2018 in the first half of last year at its peak last july the
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stock was up 57% for the year but then it hit another wall at the end of july the company reported very disappointing quarter. grim guidance, then it got hit again two months ago when "the wall street journal" published a bizarre story stating that under armour was the subject of a big federal accounting probe that sent it from 21 to 17, however by the end of last year it rebounded to 21 and change because the most recent quarter was better than feared the big change here in late october under armour announced that kevin plank was resigning from the ceo job though staying on as executive chairman and brand chief. his replacement, patrick frisk who took over as chief operating officer in 2017, and for that he spent more than a decade working with good one, timberland, north face a good pedigree. my view, the accounting probe is contained. i think the scrutiny is overdone i don't want to take it off the table. can't do that but it's not important. i wish i could be more sanguine
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about the actual company prospects. unlike nike's leadership, theirs feels too much of more of the same this company needs a bit of a new vision although i think if kevin came here right now with mr. frisk we could get that vision explained but right now i feel like i just feel like the market is too cruded for what they're offering and know this is this hover is doing well but it just seems -- i don't know it seems lost in the shuffle kevin is adamant he's been instrumental in the company's recent turnaround but it hasn't always gone smoothly while they're in great shape under armour is in the middle of a turnaround, even hard for a person as accomplished as those two. those stocks have roughly the same valuation but consistent high single digital growth i hope patrick can pull it off i like these guys. the accountle scandal may be let's say much ado about nothing. but the actual fundamentals show me last but not least columbia
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sportswear which you might recognize at mountain hardware, this has been an incredibly performer at the depths of the great recession to 100 as of today. the story here is more of a tragedy, late last year, the longtime chairwoman and boyle family matriarch passed away an took a company not far from bankruptcy in the 0s and turned it into a $6.8 billion powerhouse it was very much of a family business and her ton is taking over as acting chairman. why do i were this up? for years i've been hearing speculation that the passing of ms. boyle could put columbia in play meaning it opens up the possibility that the company might put it up for sale my view i don't think that's going to happen. you should never buy a stock purely because of takeover speculation but they are a well run company. while i'm recommending it up here and it doeshave some exposure to tariffs, here you have it, made in china
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i do think like nike, if this one comes in, you want to pounce on it. here's the bottom line, we've seen a series of big management changes in the sportswear space in the recent month but i'm going to reiterate i think it's worth sticking with nike, buying columbia on a discount and under armour still has a lot to prove before i can bless owning its stock. let's go to tracy in california. tracy. >> caller: hey, cramer i am a marathon runner and my running community is obsessed with wearing lululemon do you think there is more room for the stock to run no pun intended. >> i love that the answer is, yes, i think lulu is not done. 233 and all-time high today. i think lulu is incredibly well run. it's been well run got a new ceo. it is just terrific. and even up here it's a buy. let's go to gerard in south carolina gerard >> caller: hey, jim. how are you? >> i am good, gerard how about you?
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>> caller: good. sorry about philadelphia i was rooting for them. >> yeah, me too. i was going back and forth with my friend today. i'm trying -- i'll put it behind me soon but i just want carson wentz to get better as fast as possible. >> caller: good point. okay, jim, i started a position in revolve on your recommendation they missed their last two quarters do you still like it. >> yeah, i really do i know that -- i know the stock has come down a great deal but it's an e-commerce fashion company that i think -- i actually had a debate about this with my daughter who says, dad, you're a little too bullish on this company i think it's got a terrific, terrific fashion presence and i'm not backing away from it i think it's fine. all right. there's a -- look, there's a powerful sports market bull market going on. nike and columbia, you get that
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exogenous event everyone is talking about. think of these two when it happens. more "mad money" ahead for decades this company has been focused on the next big thing. don't miss what harmon's ceo has to say about the future of technology live from ces music to my ears dumbfounded by tesla but for reasons that may surprise you and all your calls in "lightning round. stay with cramer oh, your mom just texted. she's landed. and she's on her way to our house. what. i thought she was coming next weekend. i got it. alexa. start the coffee. set the temperature to 72. start roomba. we got this... don't look. what? don't look. lets move. ♪ mom. the lexus es, eagerly prepared for the unexpected. lease the 2020 es 350
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on the open road this company is delivering. music the way it ought to be heard. as the 5g era is near, can you connect to the future with harman >> every january the tech industry assembles in las vegas to show off their new products at ces, the consumer electronics show it's wild. this year's ces got rolling yesterday. today we're checking in with one of my favorite consumer technology plays harman, the maker of all sorts of audio and visual technology for the connected car and home sound systems and headphones i bet you got something from harman in your house three years ago it was acquired by samsung we loved the stock now it remains a subsidiary of the tech titan
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even though we can't own it directly we can benefit from the management's expertise dinesh is the president of harman and we get a sense of what he has cooking now that ces is in full swing welcome back to "mad money." >> great to be on your show, jim. >> you know, dinesh, i miss you very much, not just because of what you did with harman but because you have unbelievable insight. tell me what it means to have sold 100 million headphones. >> jim, we're in a pretty good place right now. you know, on the consumer side, we are gaining one new headphone customer a second, 32 million new customers in one year so happy and we have come from number nine position to number three and the fastest growing ahead of apple and sony and bose, couldn't be happener in
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but ces is buzzing and it's very different from last five, seven years what i have seen so something special is in the air. it's not about unique cutting edge technology but finally these things like augmented reality. artificial intelligence, smart everything, smart display, passenger economy, 5g. they're starting to come together to create a solution and companies are coming together to create a collaboration finally putting it all together because one company cannot do it alone i'm happy to see what i'm seeing right now. >> dinesh, let's talk about say use the example of gaming. gaming is maybe the most popular thing in the world right now and harman is now doing some things in gaming making it so that you've got the best quality technology to go along with the unbelievable games why did you move into gaming so aggressively >> so, jim, we've been in
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headphones for past 40 years the recording reference headphones were made by jbl but entered into consumer headphones and this year i'm very proud that jbl launched a jbl quantum, it's a patented technology which really tracks -- puts the gamer in the context and contextual especially you can do with many headphones but this gives you immersive 360 view of up to 40 channels so we believe this is the fastest growing category, $35 billion market in 2024 and we want to play big in that. >> all right so, dinesh, this morning, a very -- katherine ross who works with me at the street said, jim, maybe you're making too much of 5g is it possible it's overhyped? please tell me, dinesh, it's as big as i think it is >> jim, you're the master but
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you're asking me so i'll give you my view. look, 5g has been hyped for last many years the same time we all know without 5g we could not really apply ar and ai, the smart iot, the smart displays, the passenger economy, the shared mobility this morning i was part of bmw's announcement that first 5g enabled would be in commercial car in 2021 and that would be supplied by harman samsung and this is going to go spread like wildfire so 5g is here and, jim, 5g's 100 times faster than 4 g and by the way we never had 4. g in real life, we only used 3, 3 1/2 so 5g will take us 28 minutes to download a movie it will do it in 5 seconds and allow the bmws, tesla and gm to take the sensor from car, take it to the cloud and have no
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latency, autonomous driving initiatives. connected lifestyle. connected professional side. connected life the whole office environment so 5g is real it's happening this will require standards across united states this will require global public/private partnership it's mature and under application now. i see split if it's that fast and i'm holding up my 11, why do i need cable tv? i mean, it sounds faster or equal to cable >> you know, this is an interesting word a lot of new players have entered. those who are streaming live, they launched latest movie from netflix in the theaters same time as coming on netflix. a lot of content creator are coming and privately people like you and i if we have competition we are streaming live so i think this is going to be a play who can give you high quality relevant content on time
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everywhere any time and on time and has to be high resolution without buffering. i hate buffering 5g will take care of that. i'm excited about consumer side where we are able to bring end to end samsung's capability from chip, from compute platform to the mobile to 2 1/2 billion phone, the whole network and this company understands user experience and when you bring that together in home, in car and in enterprise i think we're in a pretty good position to leapfrog and i think that's what will define but this definition will not come alone from samsung harman this will require a partnership with microsoft, with google, with amazon, companies like ten cents in china which by the way we are showing collaboration and my dear friend from, i know you love them and i love them we have a bmw car showing full application of
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without destruction as a passenger, you can really orchestrate your pursuit from the car so it's 5g which will make it realtime with no lay tennessee. i want to be clear it won't happen next year or this year. i think it's 2021 and then after that it's going to really spread >> okay. look, that's enough for me to be able to start visiting in what i regard to be a tidal wave and i want to thank you so much to dinesh, president and ceo of harman great friend of the sir. "mad money" is back after the break. (upbeat music)
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merger between t-mobile and sprint i say wait a few days, stock is coming down and then you'll get a better chance to buy to gerard in new jersey. >> hey, jim. how is it going tonight? >> going really well how about you? >> caller: pretty good i'm looking for a price target as well as a time frame on mattel >> i think -- you know, we had mattel on just a few weeks ago and the stock has been motoring higher and it could go to 17 or 18 without a problem they have fixed the company. i'm a believer in mattel let's go to robbie in new jersey rob. >> caller: jim this is rob from dirty jersey. how are you tonight? >> i'm from clean jersey i'm doing well what's going on? >> caller: i love to hear it >> it's the garden state, chief. >> caller: okay. well, listen, jim, i bought a position in isee, i bought it at $1.8 aa share.
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veric and closed at.44 i got a stop in at $7.50 to sell 25%. i got another stop in at $7 to sell 25% and i got another stop in at 6.50 to sell the remaining 50%. >> all right you know, robbie, i don't know the stock but what i would do is take your money out. take the cash that you have in it and then if you want to keep the stop/loss. i don't like them, you go right through them take some profits then let the rest run i want to do more work and congratulations. this is what invest something about and speculation. they both work for me. jeremy in texas. jeremy. >> caller: i'm calling to see what you think about neo. >> the thing got pancaked. on "60 minutes" and got hit all the way down the only chinese stock i recommend is alibaba which is a great company and i've used them
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and it's very good let's go to lauren in connecticut. lauren >> caller: hi, jim boo-yah. >> boo-yah >> caller: i'm calling to ask you about ever bridge. evbg. >> i got to do work on that one. i'm in the never bridge camp walt in florida. walt >> caller: yes, sir, hey, jim, a big, big boo-yah to you, brother. how are you tonight? >> i'm doing fine. how about you? >> caller: i'm fine. thank you very much. i wanted to inquire about a stock that i'm looking at. it's pei also known as preak. >> it didn't sound that good and made it seem like it was going to turn the thing around 16% yield. i'm worried. i want to stay away from pei i wish it were doing better.
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valerie in florida valerie. >> caller: hey, jim, happy 2020 boo-yah to you. >> right back at you what is going on. >> caller: i want you to know i'm a big fan, watch "squawk box" all the time and maried to a philly man like you. want to ask about chewy and i love dogs. >> we're in the same boat. we love dogs and we love chewy this is a situation where i feel like the love of the product and the fact that it's got great growth is okay for me and okay for you. and that, ladies and gentlemen, is the conclusion of "the lightning round. >> announcer: "the lightning round" is sponsored by td ameritrade this piece is talking to me.
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so people are dumbfounded that tesla's stock can be worth almost as most as general motors and ford combined. that's right an $84.5 billion
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market cap gm, 50 billion ford, 37 billion we hear this griping every time tesla takes out an important level. i remember the consternation when a group bigger than ford and gm now almost the size of the two of them put together dumbfounded at their stock that it hasn't gone higher. why? the stock market loves growth. this market in particular can't get enough this is a chart of growth, people tesla's growth in space, investors will pay for it. ford is shrinking. nobody wants to pay for stagnation plus, tesla has a rapidly expanding business this china, all the more impressive when you consider ford's china business is in big trouble and gm just told us its chinese business will be down this year just like last year, it fell 15% and people mocking the fact that elon musk did a jig on the shanghai stage where he unveiled the cars he built a new plant in 15 months ford and gm would be struggling to get it up in 18 months and more in the habit of closing
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factories than opening them and musk says it can get capacity up to 250,000 the guy can dance naked after those accomplishments. i don't care more importantly these kind of comparisons between the old guard and new ones, worthless. wall street will always pay much more for fast growing companies with fabulous prospects. i remember in the '80s when merck and coca-cola, pepsi-cola, u.s. steel then gm, ford we were all agog it had to be wrong no it's silly this incredible bull market at the beginning of 1981 has been about one thing and one thing only, growth if you have it, your stock is worth more than a similar company and the same industry that doesn't have it unless there's growth it's a loser in the eyes of growth oriented advisers. i don't see ford or gm being acquired they hope that they're being paid to wait for a turn. crucially value investors, the che cheapskates, that's what they are.
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that's why you can't compare a growth stock to a value stock and appeal to entirely different audiences. most audiences like growth now, i got really bullish on tesla about 150 points ago when it became clear the company can make money maybe a lot of money as soon as next year. at the moment you're getting another wave of conversion from bears to bulls 20% is still short for a couple of positive earnings that can raise 2 billion if it needs it on a dime. what else made me go bullish elon stopped tweeting and stopped insulting the s.e.c. someone threw a rock at the unbreakable window of a tesla new pickup truck and no one cared. in fact, it skyrocketed. the ford and gm versus tesla comparison is just a parlor game tesla has electric vehicles. that's the future. gm has an electric vehicle that one wants. wake me up when tesla is double the value of ford and gm put together that's when i might take a pause in my bullishness only if ford
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and gm gain in value if they decline a double is too easy stick with cramer. . >> announcer: tomorrow, kick off the trading day with "squawk on the street." live from post 9 at the nyse >> what? >> at the end of -- sdmres's a seen. >> well, okay, i have a lot to say and not a lot of time. all right? and i got to do enough free association to stun you. >> i'm like, huh >> announcer: it all starts at 9:00 a.m. eastern. knowing we're prepared for the future. surprise! we renovated the guest room, so you can live with us. oooh, well... i'm good at my condo. oh. i love her condo. nana throws the best parties. well planned, well invested, well protected. voya. be confident to and through retirement.
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ight that doesn't accept apple pay yet, >> 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." ♪ first into the tank is a couple with a product hoping to emulate the best part of a favorite breakfast food. hi, my name is chris pouy... and i am tiffany panhilason. and our company is called cow cereal milk. and we're asking$250,000


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