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tv   Mad Money  CNBC  August 3, 2021 6:00pm-7:00pm EDT

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gift, chopped off 10%, buy. >> and bwz is a winner in the absence of china. >> dan >> i like xpi here, thank you for watching "fast money." we'll see you back here tomorrow at 5:00. meantime "mad money" with jim cramer starts right now. my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm crame! welcome to "mad money" welcome to cramer. i was trying to make money my job is not just to entertain you but educate and teach you. call me at 1-800-cnbc or tweet
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me @jimcramer. the delta variant has us on the run, and today the market seemed to get what we're dealing with, which is a much more hazardous situation than we thought a among ago. i know the averages are up, but bear with me because that's why. you see, whether it is unvaccinated kids giving their parents breakthrough covid infections or the 22% of vaccinated people who are asymptomatic spreaders or the morons refusing to get their shots, we have a truly horrifying development we have 85,000 new infections yesterday, worse than where we were in the spring of last year. sure, the death rate is still low, but those numbers likely will go higher over the next couple of weeks. in terms of the stock market, the relentless spread of the delta variant has reached a tipping point. in a tipping point managers take aggressive action really to ensure a worse case covid scenario is embedded in their portfolio. the money managers i talked to
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are calling it the second great pandemic now, i'm not going to litigate whether or not these views are correct. maybe we are rapidly heading toward herd immunity so everybody that hasn't been vaccinated can get immunity by being infected that's my thesis is the government right to bring back mass mandates how high are the student infection rates? we don't have them do i have to ask people to show me their clear symbol at the door a mexican restaurant, that's appetizing is it up to me or will some level of government make the decision for me? can somebody help us the truth is i can't answer most of these questions i can tell you exactly what the big institutional money managers are buying as they try to find ways to play the delta variant, and they do. they play the delta variant. yet the spring 2020 game plan, i dusted it off for covid outbreaks and it started working today. okay it is an extensive list.
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i don't care the new stocks that are on fire because of the new rules that make you feel like we're headed back into lockdown, even though we know we're really not but it worked for us back then, could work again with everyone from the federal government to the cdc saying it is going to get worse before it gets better, i got going to get worse before it gets better portfolio! let's start with retailers we need to reactivate. watch. that's my acronym for the essential retailers that made out like bandits during the original lockdown. wall street believes whatever is left of the independent retailers will be crushed by the new outbreak and only big ones can survive. target has been strong ebbs. great back-to-school numbers you can't go wrong buying the stock of target in august because it is the place to shop for everything from school supplies to cozies, sports team uniforms brian kornell will be on our network tomorrow at 3:00 i love it when brian is on we have two guys from queens on
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nationally we have favorite one, "jeopardy" and kornell on our network home depot is about the pesky home offices need to be expanded costco feels like it is up a lot, even though the stock only rallied 15% year-to-date we know costco made a fortune during the first lockdown. it should do well in a pseudo lockdown scenario. notice suepseudo, i don't think we're going to lockdown. i like walmart because its stock is painfully flat for the year you can follow along by joining the club i think their poor performance has the do with the inability to compete with amazon at the highest level, delivery, but it could change at any time that's why i like the underdog in the dog fight we will find out more when walmart reports in two weeks stock started to break out today. then there's amazon, only up 3% for the year after last week's drubbing i think if you buy it, you will
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be on tenterhooks the whole time until the next quarter amazon is an obvious winner. i recently spoke to the ceo of u.p.s. not long after her stock was obliterated. her commentary for the future was cautious she made it clear to us u.p.s. would have a hard time duplicating the kind of numbers we saw last year, mostly spent in lockdown. much of money managers have visions of pseudo lockdowns dancing in their heads and u.p.s can mount a comeback right now fedex is doing better than u.p.s maybe a power play, should be able to make a similar come back that means you can buy nike right now even here because no one asked them about human rights in the -- in china on their conference call, about 30 points ago when a lot of short sellers figured someone has to bring it up. you can go own lululemon for comfortable workout clothes to wear stuck at home check out the casual wear from
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ralph lauren selling out right now, just beginning to take off thanks to the hybrid workplace i love the numbers looks like they have the fullest catalogue for people who want to order merchandise directly rather than buying from a department store, although i will get purple label at the department store domino's became the dominant restaurant chain during lockdown it has its own delivery system, doesn't crush profitability. lately the stock is soaring because they put up incredible numbers even during the reopening. they win either way. but they might learn more in the pseudo lockdown scenario that forces more competitors out of business then there's apple apple did incredibly well during the height of covid, talking about buy now, pay later with the firm today but that's not what is going on right now it did that because remote work gave them a back door into the lucrative enterprise cloud ware business for ages apple computers were far more popular with consumers than corporations.
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with the exception of some niche industries, people think apple is too expensive, people who run companies. with people working from home on their own machines, they forced corporate i.t. departments to learn how apple systems work no more shoulder shrugs, hey, we don't support that, sorry. i'm sick of the we don't support that support way want i work hard! there, i said it all right. this is huge as the enterprise market is much more valuable than the consumer market finally, i have a new want, robin hood markets, okay now, this is the robin hood that david favor did not mean last night when he said money goes through robin hood, that was the foundation last night i pounded the table on this one. oh, my, did i take heat on this. i said you had to buy robin hood yes, the broken down stock because that business captures the current site and could get better if they try tobranch ou by acquiring a company in the rapidly growing buy now, pay later space, like a firm that
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maybe came with. i thought the stock deserved a rally. i had many doubters on twitter which is impossible to read, but i never expected a surge of 24% in a single session. now that the idea is out there, the short sellers will be wearing this will wall street be portrayed going wrong? i think they were shortic it already. i am a believer in robin hood. i am i still like the stock even up here obvious and less attracting just under 37 i know it is not the high ets quality but i endorse the stock less for what it is now than what it can become and that's why it roared today. here is the bottom line. as the delta variant keeps spreading like wildfire, state governments bring back some of the covid restrictions all over the country, i bet these pseudo lockdown stocks will be big winners! of course, if somebody comes up with a cure for covid overnight it could destroy the thesis. then again, even if we had a cure i bet 50 million americans would refuse to take it just like they refuse to elect
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immunity daniel in new york daniel >> how are you, jim? >> i am good, daniel how about you? >> doing well. so i've recently opened a position in six flags, sticker six, and given the potential for the covid variant to spread rapidly i wonder if you think the stock to buy, hold or sell >> i will be honest, no. i mean they're scaring the living daylights out of us when they tell us in new york we have to start asking people, where's your cards, i know we're in a situation where there will be people saying i'm not going to six flags if they're going to ask me whether i'm healthy or sick, to hell with them very odd in a counter intuitive way. i'm going to call it rather than sub optimal, puzzling. unfortunately, the surge in the delta variant has us on the run. it really does everywhere but as always i got a playbook for any market environment i don't care these stocks right here are the ones you need to own when we start talking lock-up even
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though i am telling you right now there will be no lock-up! these are just big winners from the playbook, the pandemic playbook because this, my friends, is pandemic number two. on "mad money" tonight, in july, the market finally succumb to ipo fatigue? i'm looking at the new limited names and sharing what to make of the recent action you won't like it. then despite delta variant concerns, the market cruises higher but are we nearing the top of the major averages i'm going off the charts come on, give me a black what can we make of clorox i'm going to the source, the ceo. stay with cramer >> don't miss a second of "mad money" follow @jimcramer on twitter have a question? tweet cramer, #madtweets send him an e-mail to mad demilitarize, or give us a call at
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1-800-473-cnbc miss something
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and ask how to save up to $400 a year on your wireless bill when you add xfinity mobile. get started today. if you want to know what worries me most about this market, it is not the delta variant, although i'm not crazy about that, or the chinese government's return to marxism leninism which is worrisome or the possibilities of a debt ceiling. remember, like i always tell you the stock market is first and foremost a market. in any market prices are controlled by supply and demand. you dump in a bunch of supply, prices tend to go down when we get tons and tons of initial public offerings it puts pressure on everything so far this year there have been 304 traditional ipos that collectively raced $500 billion.
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it puts it on par with 2004. that doesn't count the spac ipos in the last three weeks of july we had more than 20 deals per week, yet we've averaged four ipos a day but this is too much supply for the market to process. there's just not enough money out there. last week alone three companies postponed their offerings citing adverse conditions and many of the deals that didn't make it through the ipo window performed poorly this is when the market is at all-time highs that's worrisome in other words we have a bad case of ipo fatigue. i have told you that the deal it won't stop until buyers stop paying out for this stuff. looks like we are rapidly approaching that point it is always, always a moment of truth for the market when wall street gets ipo fatigue investors lose their appetite for low-quality merchandise. you can see this most obviously in the chinese deals or rather
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the total lack of chinese deals. i warned you for ages these would under perform or at least tend to, the american ipos, and you never know when china's government crackdown on a particular business will happen for making too much money. nobody wants to hear that. that will change with the chinese uber that came public end of june and was booted from every app store in people's republic a few days later, crushing the investors who participated in the deal every since the debacle there's only been a single chinese ipo there. there was another deal scheduled for last week but it was shelved. then last friday sec chairman gary beginsler effectively put the kibosh on chinese deals when he announced a series of new disclosures they have to make before they list stocks here he made the right call he is doing good things right now. beyond the disappearance of chinese deals there's less appetite for ipos of any stripe. when you look at all of the
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stocks that came public this year, only 51% were above their offering price as of last night's close. that's terrible. getting in on the actual offerings is supposed to be a sweet deal the underwriters work hard to ensure stocks go up right out of the gate normally the odds are stacked heavily in your favor, but not when there's ipo fatigue when there's ipo fatigue you end up with a situation like this where it has basically become a coin toss. i don't like coin tosses hey, of course, wall street is losing the appetite for new deals. in first five months of the deal we were getting 1.4 to 1.9 new ipos per trading day in july it went to 3.5% ipos over the last couple of weeks it has been 4 that is absolutely nuts. 4ipos per day? when the ipo market gets too crowded everyone loses as of last night's close the average july ipo was up 4.9% from the offering price which might seem good, but if you pressure from the first trade,
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more accurate because most can't get in on the offering, roughly 6% of the july ipos lost you money. on average down nearly 6% from the opening on their first day that's dismal. when you break them down by week, you can see how this ipo fatigue has crept up on us in the final week of june which included the first few days of july you could feel strain this was the week of the didi deal until it dent meltdown until the week after krispy kreme became public with a deal price well below the proposed range while it was able to mount a rally the stock quickly broke down, now below the ipo price. more quickly you get the self proclaimed amazon of turkey. on the first full week of july we got lots of little deals too small to talk about on air, but there's a weird pattern worth mentioning a few of the stocks soared out of the gate but since then they've given up all of their gains. even when the brokers managed to push something higher, there is no follow through.
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second full week of july, you had some big deals that you either lost you money or have done nothing the italian supplier of medical equipment, priced at 21, opened at 16 and change ouch you had a real estate investment trust focused on supermarket anchor property, came up 28, barely budge it. how about membership collective group, priced at 14, finished the day at 12.66 hmm, still stuck in the low teens. then there's f45 training. buyers are investing alongside mark wahlberg, that deal price is 16. now 15.389, down a few nickels and dimes where we recommended for speculation. not looking good but it was the third full week of july, the week before last, where things really got crazy. we got 21 deals and many were actually good including brian specialty group holder, core and main, and paycor but even these were muted. plus, there were signs of train
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near the end of the week, many, many more losers that thursday and friday finally last week the ipo fatigue hit hard 20 deals, exactly half of them finished first day of trading either at or below the offering price. that is terrible probably would have been even more than half if three deals hadn't been pulled there were still some nice winners. duo lingo, the popular language learning app, but the losers were more noteworthy last week robinhood came public with a whimper the deal looked like a dud even though i am a fan of robinhood and the stock has come roaring back, monster 24% move today we pushed it hard last night to you. opened nowhere you could have bought it when a massively hyped stock had such a weekday bu it shows you have the ipo in a very tired fashion. bottom line, all of the new deals are bad news for the average goes, too much supply weighing us down at least the pace is finally slowing. now that we're in august and the worst ipos are getting pulled. the underwriters know they can't keep jamming our throats down with all of this junk!
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they should be ashamed stay with cramer going, going and gone? as the major indices continue to notch new highs, should investors be concerned about an impending top? cramer's investigating the recent action and going off the charts to see what the patterns are signaling. next
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reasons to be concerned. last night we highlighted some of the chart work from the legendary larry williams who told us that the s&p 500 usually gets hammered in august, and explained why this year should be no different. tonight i want to consult the only other technician in the same league as larry, and his name is tom demark, the pioneering head of demark analytics with a storied history timing the markets going back for decades. he has a tremendous track record when it comes to spotting tops and bottoms, not just stocks but cripps owe currencies. he nailed the bottom a month later, called the pill back in late october as well as the election day bottom. what does he i think about the market right now you have to give him props and chops because of what he said. you mow, this man has a host of proprietary indicators that have been positive on stocks since the big bottom in march of last year he made a truly legendary call for buying he has been watching and waiting for signs of a peak but he has a strict methodology
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he and his team, it is not a legal top unless the averages hit his price target models right as the timing countdown fires off. there's a couple of pieces involved if you need to know more, i suggest you go to his website which is synbloik. that bowers his charts and give us a sense did you miss some of this or try to understand it better soy far his marks have not coincided. rather than a major top leading to a brutal decline, we get these garden variety pull backs and then the rally gets going again. now it is different. now his timing and price models are finally in alignment and he thinks we could soon see a significant top both in the s&p 500 and the nasdaq 100, somewhat sooner than larry williams was saying i want you to start here it is a daily choort of the s&p. you can see when the sapp approaches his price targets he tends to sell off. obviously. that's exactly what has happened here in early september and
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mid-february however, he has a thing called a 13 session countdown pattern that tems him when a rally is likely to run down steep we never got to 13 in september. we never got to 13 in february as a result of declines were muted. by the way, something happened in june. he warned us a major sell-off could be on the way. market melted down hard a week later but came right back because we didn't have the makings of a real peak de mark thinks this time is indeed different s&p 500 flew through the price target of 44.26, and his 13-day sell countdown is currently on day 12 this pattern says it is time to sell when it gets to 13. so what we're doing obviously trying to get this ahead of time i'm not trying to give it after. where do we go from here simple the s&p needs to make one more higher high, meaning it needs to go above 4430 in this case, up only seven points from here. that could be done it needs to open above today's close, it needs to make a higher
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low than last thursday i know, these are very complicated series of circumstances but, you know, thursday's closing high of 4419, that could easily happen tomorrow if the s&p rallies so slightly in the morning as it has lately have you noticed 9:30, 9:45? then it hangs in for the rest of the day. that is a threatening pattern and i want you to notice it. tomorrow is day 13 it is pretty much of a pivotal session. we're not done it is not just the s&p 500 now i'm going to have you look at the qqq, the etf that mirrors the nasdaq 100 which contains the 100 largest nonfinancial stocks in nasdaq composite this time blew through the price target last week and is on day 12 of his 13-day sell countdown. that countdown will be to 13 and fire off a sell signal in a moment here we go the qqq closes above 369, up only a few points from here. so we're really close. if the s&p and the nasdaq 100
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both give you the sell signals at roughly the same time, demark thinks things get ugly this is the first time it has been a possibility since the bottom in march of last year of course, if he is wrong there's a chance the s&p and nasdaq could give you a quick two or three-day rally in a good news environment right now he thinks a meaningful top is far more likely remember, these are percentage games. all right. how about the dow? this one is really intriguing. ever since late last year he points out the dow has traded ear rattlically. yes, in a pattern that he finds eerily similar to early 1929, in the months leading you have to the great crash. he calls it the seven megaphone pattern. okay because it looks like a megaphone and it has seven stages we've seen a series of higher highs, a couple of lower lows. you could say the dow has been turning and turning in a widening gyro. it has resolved with the breakout to the upside which is similar, yes, to the big rally
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in 1929 before the peak. all right. let's take a look at it. in 1929 demark notes it was the seven-step pattern and after the final step the dow jones collapsed under its own weight he is not saying we're in for another crash here, but the dow is currently in step seven of the pattern. once it runs out of seem he expects to see a significant sell-off not of this magnitude. he is also concerned with crypto his models have been incredibly accurate when it comes to crypto i loved it because there are no fundamentals here which means the charts are much more important. we got a completed 13-day sell countdown in april all right. right before bitcoin was cut in half then we got a 13-day buy countdown last month right before things bottomed but, and this is a huge but, his
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short-term indicators didn't confirm the bottom so to him it is a questionable one. there's another reason he doesn't trust last month's lows for crypto normally bottoms happen when on bad news, not good news securities finally bottom and all of the weak-handed players capitulate and dump positions. when bitcoin found the floor last month just under 30,000, how did it do? we didn't get bad news on the contrary. tess loan's elon musk and twitter and the arc, make it feels like ashort rally. meantime, they've recorded what he calls nine setup which are typically associated with interim highs. sure enough, a major crypto breakdown today and it is possible it is the beginning of a larger decline i threw a lot at you but this is
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the bottom line. the chart is interpreted by the legendary tom demark suggest the market is close to top, especially the s&p 500 and nasdaq 100 not keen on the dow jones industrial average either. if you were thinking of hiding assets in bitcoin while stocks roll over? demark says think again. daniel in california, daniel >> boo-ya, jim >> boo-ya. >> i have been watching the major crypto prices seemingly bottom and begin to steam back is now the time to get into coin base >> we have a training camp started already. look, i want to steer clear of crypto right now in any form just because i want to be sure that tom demark's work doesn't, let's say, come true because that would mean that bitcoin's too high and everything associated with it is too high sam in colorado. sam. >> hi, jim >> hi, sam
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>> -- release of -- 22 -- financial results the street should be aware of absolutely stunning results now -- beat on top and bottom line, they actually expanded -- unlike many other companies in this market, tesla was able to increase revenue while bringing down the cost of revenue and as a result tesla is -- and financing new factories in berlin and texas comparing the stunning financial results with other auto manufacturers, it is clear tesla has the technological and financial advantage. why would anybody want to own -- >> because the technological advantage may not be as great as we think i know people don't believe ford i believe in jim farley. i think there will be a lot of companies coming after them. they're very well financed, but i like tesla stock i'm just saying that it is not going to react the old way it is going to be a bit more of a slog from now on the market keeps hanging here, i know but the chart suggests that the s&p 500 and nasdaq 100 could be approaching a significant top. same with bitcoin.
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so proceed with caution, be ready to act when the rally finally runs out of steam, if it does you know what i like to do on the charts on thursday, and i won't start until thursday, these are for lack of a better term awful i'm concerned bought they are so awful. weaker than expected earnings, how is clorox down so badly today? worse since 1999 compare the deal with rising commodity costs and all sorts of issues, i have a conclusion for the ceo. pepsico is selling off tropicana proving they're not afraid to shake things up. what other companies are willing to make bold changes to unlock value? i'm going the reveal some names. rapid fire in tonight's edition of the lightning round! so stay with cramer.
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♪ ♪ this is important. how worried should we be about clorox this morning a consumer product company reported a truly ugly quarter and the stock plunged nearly 10% today, erasing nearly all of the gains since the beginning of the pandemic. one time it was down more than any time since 1999. we knew clorox would have a rough quarter this time, up against tough comparisons because during the same period last year the demand for cleaning products was off the charts we didn't know they would post a massive top and bottom line miss, getting sales down 10% over and over, market streaking by 970 basis point an out loor for the full year, talking about further erosion and a single digit sales decline, i saw little reason to buy the stock. clorox is getting squeezed by
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higher raw material costs, higher manufacturing costs, apparently inflation is giving them a tough time. maybe it has found a floor, that's what i want to know maybe not. that's why we need to take a closer look with the ceo of clorox who we commend for coming on the show in good times and bad. welcome back to "mad money". >> thanks, jim, for having me back >> okay. so i'm going to go to what you said midway through your conference call in a question to wendy nicholson. you said, what we're seeing absolutely an extraordinary environment. i hate to circle a little bit but it is really the perfect storm. describe what the perfect storm means to our viewers >> yeah, i know. i think we should start with q4, a great place to start, and put the results in perspective and then talk about what we're seeing in the cost environment first, if you look at q4 we were lapping 22% sales growth in the quarter and we did expect sales to moderate in our cleaning business which it did, but to a greater grethen we expected
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although it is significantly above where it was pre-pandemic. the rest of our business largely delivered what we expected them to i think what is important, jim, is taking a longer view, not just looking at the quarter but the year and all four of our segments delivered sales growth in the year. if you look even further at a two-year stack, each one of our segments delivered double digit sales growth in that time period if you think about the impact the pandemic has had, our brands have performed incredibly well during that time, and we believe we are emerging as a much stronger company than we were pre-pandemic looking at the two year stack results put it in perspective. what you highlighted is absolutely an unprecedented cost environment and we are seeing it flow through in what happened in quarter four, in the front half as we lap sales growth and we're taking aggressive action to manage it over the coming months >> i want to go back over where you thought people were and where the street was morgan stanley, a quick comment. large fourth quarter earnings per share miss
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guidance well below consensus. jeffreys, guidance worse than feared jpmorgan, worse than feared. barclays, worse than feared e these are not the stuff we thought it was going to be bad these are people serious analysts, you and i both know them many, many years. they feel bad. what do we say to them >> what we say is this is a short-term unpredictable environment. although we did our best to guess where we thought we would land on the quarter, things are changing daily with consumer certainly covid is changing as we watched unfortunately what is happening with delta although we are providing the best visibility which we have at that, it is continuing to be volatile we did miss, but i think the important point, jim, is if you look at the fundamentals of our business, our brands have federal reserve been stronger. we are investing in those brands and we're investing for the long term and we have every confidence we will continue to increase and accelerate the profitable growth of the company over the long term >> so if you look at your mosaic, your businesses, you do not agree with morgan stanley that says that this quarter
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calls into question the degree of strength of clorox's underlying businesses, you think that's just -- the man is just not there, got it wrong? >> absolutely not. absolutely not i look at two-year stacks in the double digits across every segment. we have our highest superior consumer value rating we ever have. our household penetration is strong, our repeat rates increased, our market shares are growing in seven out of nine businesses and we continue to expand the leads our business is fundamentally healthy with the consumer and, most importantly, jim, exposed to greater tail winds as we move forward. health, wellness and hygiene is not going away the consumption of our cleaning business is 25% higher than pre-pandemic people are doing more things to take care of themselves. they're drinking more water. they're staying at home more, given the fact there's hybrid work our portfolio will benefit from that and we're ready to take advantage of that in the future. what we need to get through is the next six months. we are taking the necessary actions when it comes to cost savings, pricing to deal with margin, but we're continuing to
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invest in our brands what we see in the back half of our year is returning to the low end of our sales endal al goe rhythm and expanding growth margin in quarter four >> i thought you were well ahead in ecommerce, but you made $500 million investments over the next year for digital capabilities was i wrong in your company's strength in digital? >> absolutely are you correct. we lead the way in digital market and ecommerce it resulted in having our business nearly double in ecommerce over the last two years to 13% we have learned through those digital investments that we have an opportunity to digitize the rest of clorox this investment is not about the short term this investment is about having a stronger company moving forward, not just in the strategy period but well beyond that we are taking the time to do that we believe so deeply in what we can deliver from a sales result
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perspective in profitable growth and we're taking the opportunity to double down on that with this investment >> i add i mire you conviction i have fwleef one of the lines of business you have, i will not call any particular one, maybe aligned too far. i found my conviction was somewhat shattered and i want to believe, i like the yield, i like what you have done, i like the fact that the company has some fantastic brands. but then i say to myself, okay, something has gone awry here that you and i, linda, we have to be puzzled. we have to be puzzled by the so-called algorithm, puzzled why some of the brands, which i don't expect to have weakness, hidden valley ranch, glad bags, kingsford, we're all going outside. the bert's bees. the only one that surprised me on upside was supplements, which i know you have gotten right after a tremendous amount of work >> yeah, and, jim, i think again we have to look at the longer run on this. if you look at a quarter you are going to say that about those businesses >> right
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>> if you look at kingsford we are back in the 70% share range on that business we have grown tremendously double digits every single quarter in the pandemic. this is lapping incredible growth hidden valley ranch has grown share 23 out of 24 quarters and we continue to deliver strong results on that business it is not a fundamental problem with our brands. it is a matter of lapping an incredible impact to our company, and we're taking the environment very seriously and, again, taking the necessary actions. you will see us emerge even stronger coming out of this in the back half of fiscal '22. >> you can bias much stock as you want with a good balance sheet? >> hey, you know, we are always prepared to put our money to work for shareholders as we have for the last year, and we are always evaluating that we have a very strong cash position and we'll continue to ensure we balance that as you know, we've been deeply committed to the dividend for many years and we will continue that focus >> look, i want to believe y there are companies in the
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penalty box, not you, your company, nobody wants to see that we want to see clorox as strong as it has been for many, many years. it is vital the next quarter come through, and then i think people will say why did i not buy clorox linda randall, ceo, clorox company. thank you for coming on "mad money" >> thanks so much, jim >> "mad money" is back after the break. stick around >> may i make a suggestion i would stay with cramer >> the lightning round is coming up next. that building you're trying to sell, - you should ten-x it. - ten-x it? ten-x is the world's largest online
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commercial real estate exchange. you can close with more certainty. and twice as fast. if i could, i'd ten-x everything. like a coffee run... or fedora shopping. talk to your broker. ten-x does the same thing, - but with buildings. - so no more waiting. sfx: ding! see how easy...? don't just sell it. ten-x it.
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and then the lightning round is over are you ready, steve rob. >> hey, jim. first time, long time. >> first time, long time >> action alerts member here love the move you guys made in the portfolio today. >> thank you yay, we had some good ones thank you for being a member of the club thank you. >> you did my question is mksi. i need your help >> i don't understand why the stock is so cheap. it is exactly the sweet spot of semiconductors i think it is a buy, buy, buy. >> i got to do a piece on it this is really good. we need to go to rudi in florida. >> hi im, jim. a first-time caller but long-time follower >> there you go. >> thank you so much for everything you do for the little guy. >> that's who we are, little guys let's do it. >> i would like know your thoughts on my stock, auph >> immuno suppressant should be doing better it is an unbelievable market
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i wonder if they have anything proprietary or not i want to be careful about that stock. let's go to steve in california. steve. >> boo-yah what better place to chill than san diego. >> all right >> a good segue to a local biotech that you are familiar with, sorento therapeutic. >> i would rather choke frankly, sorento, which is a beautiful town by the way, not far from where my wife -- let's put it this way i think sorento is overvalued. i don't like the way they have handled themselves and i am in the -- >> sell, sell, sell. >> -- when it comes to sorento i need to go to corey in new jersey >> how you doing, jim? thanks for taking my call. >> my pleasure >> my largest position in my portfolio is pal entire. >> the cult can take it up to 28
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if they want to. people don't really know what it does but they own it there are others that know what they do and own it i don't know what they do but it is a secret but people still like it. let's go to kevin in texas kevin. >> jim, i wanted to get your current take on grts bridgestone bio. >> yeah, tumors. you want to own -- novature is the way to go, not that one. brad in new york brad >> hi, jim thank you for taking my call >> of course >> boo-yah i have learned many things watching "mad money" >> thank you >> and i thank you >> thank you >> any question -- you're welcome. my question is about sofi. i bought back -- >> i don't understand why the stock is where it is i think it is doing a terrific job. think at $15 you buy the stock i just think you just go buy it. i need craig in california craig. >> hi, jim, a sunny boo-yah to
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you. >> thank you >> thank you for taking my call. last week you provided us with a nice little upside i wonder what you think about suppliers. >> if you do suppliers you have to do ge or raytheon i prefer to own boeing which at one point was down i think it is reversed i think boeing is the one to buy. that's it for the lightning round. >> the lightning round is sponsored by td ameritrade they say if it ain't broke, don't fix it why might some companies revamp their beloved brands cramer's highlighting consumer staple stocks that are shaking up their brand portfolios for the better and what the innovation could mean for shareholders, next.
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♪ someone once told me, that i should get used to people staring.
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so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory.
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♪ ♪ good companies are ring averse, they rarely change
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beyond doing a position here or there. but great companies don't hesitate to shake things up. look at pepsico. today we found out they're selling tropicana and naked beverages for $3.3 billion when i saw the news i was dumbfounded. tropicana is a story brand, lots of aisle space in the super. perhaps that's why they're keeping a 39% stake in the newly formed enterprise. i was dubious about the deal, but my ears perked up when i spoke to the very smart cfo johnson about the decision he first told me that the tropicana brand had fallen a bit out of style there was a moment when he asked me if i knew anyone who starts the day with a glass of tron can au i said every day, i never miss however, i quickly followed up with the recognition there's a huge amount of sugar in every bottle people don't like sugar in the days and if they have to get one they like it in the form of energy drinks like mountain dew rise, which happens to be my
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favorite i cannot get enough because it has few calories and the caffeine of two cups of coffee listen, if i do a 4:00 a.m. workout, give me a break pepsi pepsi really knows the secret. lots of companies know how to do little things like kraft, heinz, kellogg. what setts pepsi coco apart they have drug -- it has drinks like this that to me, well, let's see they send you to the moon i may be obsessed with tron kappa tropicana, but it is dying out pepsi needs to cut lose the slower brands. if they're going to hit the market, tropicana no longer belongs under the same bill. there's not much they can do with orange juice so it is gone. that's how you become a
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shareholder friendly company with a nearly 3% yield and steady eddie growth which is what we wanted from clorox we want some bold actions, but some companies, well, let's shake it up. who else is pruning, buying, growing grand? they aren't easy to find even though many claim they do it i like mccormick, the spice maker, which was aggressive in the acquisitions a lot generate net growth. like hormel, that stockst almost giving you a for bagger in the last decade, too then constellation brands like this they have a stock going from 19 to 221 in the last decade. their secret, they made out like bandits when the justice forced them to buy anheuser-busch to sell the rights to corona for 4.7 billion in 2014. they got lucky they do a better job than the previous owners did.
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yes, they make mistakes. they own the mistakes. these companies don't get stuck in a rut because they never stop transforming themselves. both through noefgts and by reshuffling the brands and, yes, admitting mistakes that's why i love the stocks i like to say there's always a bull market and i promise i would find it just for you on "mad money." i'm jim cramer, see you tomorrow "the news with shepard smith" starts now democrats call for the new york governor to resign, and now the president weighs in. i'm shepard smith. this is "the news" on cnbc >> what this investigation revealed was a disturbing pattern of conduct. >> a detailed report finds governor cuomo did sexually harass multiple women. state and federal laws broken. calls for his resignation and his response. >> i never touched anyone inappropriately. >> the key to nyc. >> if you want to participate in our societ


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