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tv   Mad Money  CNBC  July 17, 2019 6:00pm-7:01pm EDT

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now. stay long, s&p puts. >> wow, that speaks volumes. grasso. >> i look at this and you see the fed is dovish and you see bitcoin is having a little bit of trouble i go gdx you have a bufrnch of investors tail wind to 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 save you some money my job is to entertain, educate and teach you. so-call me or tweet m me @jimcramer. i hope the fed is watching the right companies here after not so hot day where the dow lost 116, the s&p declined 6.5% and the nasdaq shed .46%.
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we need fed chief jay powell to listen to last night's big, bad conference call from csx that's a railroad. or this morning's report from aerospace texron that showed a weakness in almost always robust aerospace sector or tonight, surprisingly not so hot guidance from united rentals, the equipment rental company at the same time, we need to innor ti ignore the bank conference calls from bank of america on the heels of the major bank stocks that have been good. certainly happen -- we got -- let's hope he stays away from any conference call in the red hot airlines sector. why? because we have two economies and right now out of scn krrks nrks krrcn -- sync if you believe bank of america,
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j.p. morgan, citi group, why not, consumers are spending but we're taking down a little debt. paying it off. based on what is happening in the consumer economy, you could easily make the case for more rate hikes here but the business economy is a totally different story. that conference call, i have to describe it as brutal. csx is a railroad that moves products when they suffer, it tells the fed to slash interest rates like freddy kruger. we see this struggle in the economy play out every day it's a bizarre situation the bull is focused on negative data because they want to rate cut and the bears focus on the positive data because they want the fed to do nothing. i think the bulls will ultimately win why? because jay powell keeps obsessing about that rate hike too far. that one in december as well as
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president trump's fickle stance on the trade war i got to tell you, if the chinese don't start buying soybeans soon, i'll scream but not as loud if the white house rolls out another round of tariffs and could be destructive for the economy. mostly, this economy is just plain weird. i can't think of another time in my years in the business where the consumer was in such fantastic shape or industrials were in so much trouble. normally, the one boosts the other or vice versa. it doesn't seem to be happening right now. if you want to know how crazy things are and they are nutty, you got to listen to jim foot level headed ceo of csx. he says quote, we started this year expecting revenue to be 1 to 2% and global and u.s. economic conditions have been unusual this year to say the least and impacted volumes you see it every week. the president of the economic backdrop is one of the most puzzling i've experienced in my career end quote
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he now thinks that the numbers are going to be down with the stock down 10% today, it's safe to say that investors don't like to be puzzled and who can blame them according to csx markets that are strong are doing badly look at the big metal shipping containers which is a great gauge of the border economy down 11% but some had to do with internal changes to csx and went on to explain the expected seasonal rebound that happens now has not materialized many volumes show weakness that's exactly what jay powell needs to hear if he's going to cut rates. oh, boy, but then there is the brutal negative pin action when one railroad does badly, the whole group gets hit you know, union pacific plunged nearly 6% today. norfolk southern went down 7%. all those cargoes are getting crushed. metals down and over capacity. autos stuck in neutral despite
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the credible balance sheet csx had some railroad growth on sports utility vehicles but more than offset and didn't help it was a mid sized aerospace. the pin action f it created bargains, martin and honey well as i always tell, you the money from one pocket finds its way into another for example, bank of america reported an amazing good quarter with by interest in the heat of sale interest. i think bank of america could have as much buck. accelerating revenue growth driven by relentless monitoring and diabetics, last night united airlines dramatically raise td h forecast but with a short fall,
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money pours into the ones that don't need a good economy to make numbers we look at shopify they empower small businesses allowing them to make the website as good as a power house's retail i know more people that got their businesses going than any other non-banking enemy on earth and feel like they are being hurt by amazon amazon is web service is their best friend. for example, let me give you one close to home. my 25-year-old daughter, i don't want to reveal her business plan but she wants to sell a particular type of apparel i asked her how to get it up and running. she looked at me like i had two heads. she said same as others, shopify. she turned me on apple, google, netflix long before they blew up on wall street what can i say the kid is money she stays in the picture of course, speaking of netflix, we have companies that manage to buck the strong consumer trend netflix is consumer focussed and
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getting killed in the after hour trading because polling suffered growth and those guys are terrible at predicting numbers at the same time, ibm which is all business delivered what looked to be better than many spect -- expected quarter that said, we have the usual suspects that are still working like you'd expect them to when the economy is weak. money goes into cybersecurity and palo alto network and cramer family fav octa. sales force and spunk and adobe but you have to wonder if there is enough for everyone we have jay powell satisfied by csx and textron and we have the key to firepower and a health care start and fantastic set of high growth winners. it wasn't enough to prevent today's decline given the fact of netflix and uri but we would have done more without the positives. the bottom line, you need to hang in and wait for positive
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reports, which i believe could be right around the corner but if i'm wrong and the earnings are a bust, the federal reserve has more ammunition to justify multiple rate hikes. despite hikeups, i'm betting with the bulls i think they are more likely to win. i need to start the calling with billy from maryland, billy >> caller: jim, thank you to you and your team for your hard work. >> my staff is unbelievable. unbelievable and regina and her gang are amazing what's up? >> caller: okay. i'm calling about a retail stock. the stock is at home home ticker symbol they opened the 200th star with plans of opening 400 more. there has even been rumors about them being acquired by a charger chain like kohl's. the problem is the stock has over 70% in the last 30 days so is this a buy, sell or hold >> they can open 1,000 stores. when they keep missing quarters like that, you're going to have
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to go down and believe me, kohl's, i don't think they are about to buy anyone. they should be buying back their own stock if they want to buy something. let's go to bruce in new york, please, bruce. >> caller: bruce, how are you doing there, jim >> well, bruce, how are you? >> caller: so far, perfect. >> look at that. >> caller: thank you for making me a smarter investor. >> that's what i'm trying to do. make people a better client, make people a better investor. thank you for noticing. >> caller: 20 years ago my wife's father told me to buy chd. my average cost is about $2 a share. all dividends were invested. the stock is near it's all-time high with a market at all-time highs with house money at this point. do you think i should sell some or all before earnings >> i can opine about the company. it is so good. it's done so well. it is so consistent. i don't feel any need you probably take your call spaces out to do any selling.
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it is just a great american company. boy, do i wish they would come on it would mean a lot to me. let's go to robert in pennsylvania, robert >> caller: hi, jim. >> robert. >> caller: i'm calling about harvey davidson. i've owned the stock now for about ten years and bought it at $50. it's now trading around $36. >> right. >> caller: is there any hope for harley davidson? >> the problem with harley is not necessarily what people are worried about with imports, it's the demographic. it's just an older group of people who ride harleys. now i don't know, i don't ride motorcycles. my best friend micheal haley has a harley and we go to the store and they look great but then again, i'm 54. okay maybe a little older all right. there is enough here for everybody. there is enough to keep the averages hanging in. on "mad money" it could be time to worry about earnings and big
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tech in washington and sit back, relax and pop a cold one i'm talking uncle sam, boston beer company and the comeback, what is that about staying strong despite multiple analysts downgrades, i'm checking in on the resilience of an old iron bender from ohio so stay 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 madmoney@cnbc.com or give us a call at 1-800-743-cnbc mi setngssomhi head t
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bic tech went to washington this week. whenever these companies are in the news, need to distinguish between headline risk, important and general earnings risk, serious, painful bad in other words, when it comes to facebook, amazon tussling with
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congress, is this an issue that makes them look bad or does it cost you money let me give you an example yesterday david sisilinni said something i thought was major most people washed over. take a listen. >> in an effort to promote and continue this new economy, congress and anti trust enforcements allowed these firms to regulate themselves with little oversight as a result, the internet has become increasingly concentrated, less open and growingly hostile to invasion and entrepreneurship. >> if you own the stocks, it's the last thing you want to hear because regulated businesses make less money than non-regulated businesses so there is an earnings risk. you normally expect republicans to fight and republicans perceive it as liberalism. big tech is the only thing the two party ks agries can agree on facebook, amazon, politicians
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love to hate i don't want to make these big tech platforms sound like they are under dogs they are gigantic companies and very powerful but that said, this is not a great situation for them in part, that's due to the environment. the media has every incentive to pay the negative picture and it depends on advertising, congress is full of ancient politicians getting comfortable with email they are snail mail people, the last people that should be regulating the internet but some of the problem is self-inflicted when other industries get too large, they put up offices in the congressional districts all over the country look at the defense contractors. these big tech platforms with the exception of all wise and knowing amazon are all concentrated on the west coast i'm not saying i approve of this corruption but what is the point of being a $500 billion company if you don't buy some congressional mind share there is a lack of public well-known grownups, people who
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cannot be bought big tech refused to bring in senior executives trusted by washington to me, the smartest thing that he did when he took over at uber was to hire tony west as general counsel. west was the former gc of pepsico and the attorney agagena of the united states he's got the best resume ever for this kind of thing remember, he had to clean up the mess left by his predecessor you don't hear much about that mess anymore, do you even though uber is an aggressive company because west gives credibility of congress. deservingly. unfortunately, these companies don't seem to know they need a guy like tony wes to help then get along with regulators and need more former legislators turn lobbyist. i'll take famous athletes. i mean, even the banks know how to do that or else we're liable to end up with the interstate, internet commerce commission
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with real regulators assigned to these companies. let's go through them one by one. there is alpha bit they have real earnings risk here they remind me of microsoft before it lost the beginning trust 20 years ago there is no escaping google. it determines what you read first not to mention what you see first on youtube a lot of first amendment stuff there. it's congressional per view. one of the reasons i've been a fan is the power that's earned -- it's own ingenuity, the problem with that, they can find a way to play kick the government, someone will be trying to break them up. the good news, stock is cheap for 21 times extra earnings. the bad news, while the call for a mcelderry chccarthy stale iylr base, there is reason he's going after them i personally love everything about google but no denying the power and does have the ability as critics would say to be coerci
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coercive there is real earnings risk. the company needs to find a way to self-examine and not by cheap a.i. but by expensive humans they have the money. i know they don't want to slow down the invasion, they are great innovators but lack a powerful way to tell them if they are right or wrong. there was some no-name alphabet guy on the hill answering questions about chinese communist infiltration can they be that tone deaf they need heavy hitters to get them out of the jam. next up is amazon. they have big brother and alexa and wiped out small business and have the power to steer their own goods but amazon also has friends. they have distribution centers all over the country that gives them influence and their platform is beloved by everyone who uses it and ceo jeff bezos owns "the washington post. that's one way to ensure you get publicity but he has not influenced the editorial if you're worried about corporate concentration, that's rifling.
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even though amazon spent years krau crushing smaller retailers, this is in the best shape it made a brilliant settlement nobody is talking about to appease sellers, the people that are on shopify like i talked about at the top of the show amazon knows how to play the game last but not least, there is facebook man, they sure didn't buy much with that $5 billion settlement. it's out of the frying pan and in the fire with them. the treasury department is not thrilled with the plan to launch the currency, lib ra if they bring in counsel, couldn't they find some sort of distinguished federal judge who is retired somewhere i mean, they would be the government -- would allow them to self-regular gate again their instagram business is on fire as my instagram account on fire mainly, i'm not worried because i have a plan for them facebook watches the show so
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listen up facebook i understand i like the lib ra concept but you got to drop it it's doing more harm than good take your money. want to get into payments? buy square that's 100% premium. nobody turns that down then they can blow out the payment network worldwide. square, cash, is going to be facebook cash and don't forget, square takes bit coins to get the fix. i'm not being grip it will cost these companies money. the bottom line, if you impact free speech, you'll take an earnings hit and maybe breakup risk as we get to the election you impact commerce like amazon, you'll have at least a small earnings, maybe a fine but i expect the rules to be relatively painless like the ones they agreed to in germany and if you're facebook, buy square and bring in a former juror to play the fence. maybe that's enough and for european regulators like our afternoon show, i say check
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please believe me, that's how things work over here stick with cramer. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity.
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♪ ♪ when the heck has gotten into the boston beer company sam adams. this stock rocketed higher from $150 to $400 and i got to tell you, this is one of the most spectacular comebacks i've witnessed. i didn't see it coming, did you? is driving this thing? we have to understand these. boston beer was one of the ultimate cold stock and less than ten years ago, a craft beer craze swept the nation given sam adams was a pioneer craft beer and made a killing into the strike thales growth iw
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double digits. then craft beer started taking off in 2012 and next thing you know, they had 13% sales growth. in 2013, it went to 27%. 2014 it was 22% growth not bad for a company that's been around for decades, right ultimately the very trend that made boston beer so successful was undoing. as more and more tiny craft breweries opened up across the united states, sam adams started feeling like a lot less special in just a few years, it went from being red hot growth property to kind of a lost brand. stuck somewhere between the mass market and the 6% in 2015 and then well, it turned negative as you can see from the stock in 2016 and 2017 hence the decline right there. all right? then beer went out of style and that only made things more difficult. throughout this period the stock got clobbered, which is why i gave up. i didn't like the beer
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tasted like cheer owios. i don't know about you it shows you how companies written off and left for dead can indeed make themselves relative again if they have great management so how did they do it? it starts at the beginning of 2017 when the boston beer long-time ceo martin roper announced his retirement given the stock's performance over the previous couple years, you could see it was time for roper to go. it took awhile for the company to find a permanent replacement but in february of last year, they brought in dave burwick, meanwhile the company founder jim cook stayed on as chairman i don't want to give all the credit to him. that would be wrong. boston beer started before he took over but then he was a member of the board of directors. in the dark days of 2017 when the growth was shrinking, boston beer took a stand, a gutsy stand. rather than focus on cost cuts and buybacks to boost earnings, we seen that playbook a lot. they chose to sacrifice
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near-term profitability to invest in the business something a lot of executives are afraid to do because it causes stock to get hurt and did it with the hook these eventually would pay off boston beer upped its marketing budget and invested in new product development outside of the new struggling beer category the company had non-beer products like twisted tea but they were an after thought compared to the formulations of sam adams. in retrospect, investing in invasion was a smart move. in 2017, boston beer rolled out a new hard brand called truly, which is now become the pillar look at this the pillar of the turn around right here more in a minute boston beer understood you can't be a growth company unless you spend money to grow the business and the fickle beer market, they took control of their destiny. why doesn't everyone do this it's too risky stop the bleeding, cut costs and
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accept your fate as a slow but steady grower. isn't that the way of working yourself out of a jam. if it hadn't paid off, if boston beer hadn't paid off, the stock would be in big trouble. it's the nature of the business. it took awhile but by april of last year people were believing in the story again and that's when boston beer reported huge earnings to be driven by the non-beer business category, angry orchard and twisted tea and the new truly, this is known as hard selzer this is wild berry with 5% alcohol. the key metric in the beer industry, the depletions were up 8% and translated to 18% revenue growth fabulous number. the brand remains weak but more than offset but the strength of the rest of the company part particularly truly from there the stock exploded higher running straight from 200 to 300 by the end of last june
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and hasn't been smooth sailing they had stumbles and stock got nailed as the whole market melted down but quarter after quarter management told the same story. twisted tea was on fire and angry orchard red hot and hard seltzer was smoking. three quarters of market is controlled by two brands from the company behind mike's hard lemonade there is plenty of dollars for example, ubs initiated coverage last december with a sale rating and 228 price target arguing stock was too expensive and the growth was bound to slow given the stock is up more than 60% for 2019, can i call that call premature i don't want to give anyone a hard time but this may because i missed it, too they keep proving skeptics wrong and sell it every step of the way. in april, goldman sachs, good analyst downgraded the stock to a sell and then a couple of weeks later, ran a hitch happy hour could be over for boston
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beer stock once again, when boston beer reported later that same month, they shot the lights out the company literally doubled wall street's earnings making over $2. analysts take for a buck even though management left the full year guidance unchanged it was fafwas phenomenal dave really focused on truly he said truly continues to grow beyond our expectations. all right? we're expanding distribution across all channels and improving our position as a leader in hard selzer. it was a very bullish story, so bullish when the other big innovator constellation brands reported, management was peppered over and over with questions when they will launch their spiked selzer. in response to stock quickly spiked back to $320, look at this, a lot of guys calling the top right here and $320 and keep
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running when the market rolled over in may. earlier this week, boston beer broke out above $400 look at this, will you this is incredible move. all right. pull back to 390 today but that is one magnificent run they report this quarter one week from today. you got to be careful about trying to gain the quarter because this stock ran so much last week they raise the price target to 421 and argue they could be looking at years of growth thanks to truly, truly years and there could be more upside if the company canturn around sam adams brand or get some of the newest brands to take off like wild leaf or tura. i thought that was a car system. they are bullish about the acquisition of dog fish head, the rapidly growing craft brewery and maybe can turn around that beer, the beer business is hard to do the problem, at these levels the
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stock is trading at 39 times next year easie's estimates that is out of whack what's the bottom line, losing stocks can become winners when the bull management makes a smart decision and bites the bullet boston beer run so much i think i could sell off hard next week and obviously if consolation comes out with a hard selzer, this will come down. if that happens, use the weakness to do buying or keep your bat on your shoulder and wait for another pitch but you know what? i got to hand it to them, they reinvented the company in spectacular style. let's go to john in virginia, john >> caller: hi, cramer, my son has a question about a stock. >> sure. >> caller: boo-yah mr. cramer. we have family cramer night at our house and i just got general mills stock for my 15th birthday because i eat a lot of lucky charles. what are your thoughts >> they had a descent quarter and the stock ran up so it didn't take off but i think that it's time for them you're absolutely right to do it i want you to put away, don't trade it
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congratulations, john for doing the right thing and i love families that invest and take a long term view and he knows what he's doing listen, boston beer could have a sell off next week if that happens, use the week to do buying. there is much more "mad money" ahead from smoke show company, parker and the bank is finally back i'm crunching numbers and giving you my take and rapid fire in you my take and rapid fire in tonight's editio lightning round so stick with cramer lightning round so stick with it was a mom and her kids. everything they had had been washed away. the only thing that brought any kind of solace was the ability to hand her a device so she could call and let them know that she was okay.
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if you want to know the driving force behind this market, look at the industrials that refuse to bend the knee even when these stocks get hit with a broadside of negativity, they just don't get crushed as they used to consider the case of parker ph symbol a classic smoke stock it know it sounds boring but hydraulics and aerospace over the past week six separate analysts, six have downgraded this stock six analysts downgrade in february after they posted a huge short fall and announced an
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investigation. six downgrades is a lot when parker actually hasn't done any here to actually deserve and the response, market couldn't careless in fact, parker is actually up $4 since the downgrade started first couple notes did a little damage but the rest is how the stock can rally on seemingly bad news so we got to ask ourselves, if something like this happens, i got to give you the context. what the heck is going on here basically? there are a couple things you need to keep track of but the main one is simple we don't understand this part. they know parker is expected to report in a couple weeks and they want to bash the heck out of the stock ahead of time get it right maybe they will even be right about the quarter but that's not the point. in this environment, the current results aren't that importantdil why? j powell our dovish fed chief made it clear he wants to cut
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interest rates lower rates bolster the economy and benefits companies like parker they look at the weakness as long as they are confident that the fed will take action that means all these analysts who downgrade the stock are fighting the fed they are fighting the fed. i've told you you can't do that and they are fighting the tape and that's a fight you cannot win. not unless the fed changes course which seems unlikely given there is real weakness in the business side of the economy. it is the consumer doing just fine with bank of america but that's not the only thing they are going for. the industrials, we don't talk enough about them. in particular, they get an additional boost because there are so few publicly traded manufacturers. we have a real shortage of this stock since many of them have monster buy backs and we rarely get industrial ipos.
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between the shortages, these analyst downgrade. parker is like the unsinkable molly brown. the social light who survived the titanic sort of like the kim kardashian of her day. we're seeing the same thing with illinois tour works. seems to catch downgrades as often as the yankees win games does that mean you should buy the stocks parker gave you that off $3 and change that's probably really off the text drive time to bounpounce not so fast. this is where the market is telling you basically you have to be selective. i would never bet against an industry jell. it would be crazy. you need to look at the particulars. you know cyclics can go down and one of a hand full of major railroads reported devastating short fall with management slashing the forecast because of the trade war and also because of high rates. stock plummeted 10% today.
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for the week leading up to earnings, csx, though, unsinkable but truly dismal quarter is enough to blow anyone out of the water. if we get a disappointment, saying good-bye to the unsinkable molly brown survived the titanic but she died of a brain tumor 20 years later how is parker doing? they get nearly half of their sales from outside the u.s this stock has been put through the meat grinder every time investors get worried about a worldwide slow down. when trade tensions flair up, it gets annihilated and that's what happened in october when pence gave you the big speech framing the trade war as a cold war taking the place of the soviet union and got too aggressive dropping the boom on all things but when powell reversed course, okay, look at this, reversed course in january, parker comes roaring back
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stocks surged higher through april, all right in my president trump ratcheted up trade tensions and the stock came back down parker was $190 stock, okay, look at this and by the end of may $152 stock. since then we've gotten a date with china but who knows how long that will last and the federal reserve made noise about the need to cut rates an rebounding to 167. this is what i would describe as a picture of the current right there. the last time parker reported in april the company delivers substantial earnings beat, the sales came in light, wall street was not thrilled sing management refused to raise the full year forecast you raise the near term, you beat but they don't raise the rest, that means the rest will be worst the quarter we got at the same time we didn't have the fed at our back which brings us to the latest round of downgrades. a week ago, get this, this is amazing. j.p. morgan took parker hannifin but want to get more cautious.
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they also weren't thrilled about the announced acre sixz acquisi lord corporation which the company is buying for $3.7 billion in cash. okay j.p. morgan thinks they may have over paid. that same day deutsche bank argued they were likely to pull back because they expected guidance to be disappointing when the company reports in a couple weeks later that same day, wells fargo downgraded from out performing the market again and expect the forecast and bank of america hits with another downgrade saying quote, they see limited room for either multiple expansion or upward earnings revisions in 2019, 2020. it's all about slower global growth and economic uncertainty. then, two days ago, keybanc to sect sector, about a whole and finally, yesterday we should
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have gotten what would be goldman sachs taking park er to sell will you look at that? there is substantive reason to be worried i'm not going to deny that when you look at the disappoint point from last night in equipment were down 6% parker is the machinery maker that gets hit when the economy slows down and recovers more quickly when we recover. the interesting thing is not that analysts are concerned but the stock market isn't blinking. it doesn't seem to care because it's banking on rate cuts that will benefit i wouldn't recommend it but i wouldn't recommend going against it don't you think some of the negatives are in the stock bottom line, if you want to understand why this market remains so resilient in the face of not so hot earnings, look at a great american company this enterprise keeps getting
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hit but the stock refuses to go down because wall street believes it's about to get a boost from the fred and that's more important than all of these negatives. negatives. stick with cramer. and most of that debt is actually from credit cards. it's just not right. but with sofi, you can get your credit cards right - by consolidating your credit card debt into o payment. you can get your interest rate right - by locking in a fixed low rate today. and you can get your money right. with sofi. check your rate in 2 minutes or less. get a no-fee personal loan up to $100k.
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it is time, it is time for the lightning round. buy, buy, sell, sell, another quarter, and then the lightennig round is over. are you ready? it's time for the lightning round. i'll start with kert in florida. >> caller: thank you for taking my call, my friend. >> good to have you. >> caller: is core labs a good company. >> we have a good fortune of getting i think at the end of the week we have schlumberger that's been a real disaster and we'll find out more. let's use that as the example and make that whether we should buy it or not. i need to go to linda in new
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jersey, linda? >> caller: hi, thanks so much for taking my call. >> of course. >> i want to hear your thoughts about triple point venture growth tpvg. >> it's an opec business we don't really know what is in it so whether we canpossibly get any comfort with it, i can't i have to say -- let's go to robert in mississippi. robert >> caller: jim cramer. >> yes. >> caller: my man. boo-yah, baby. >> boo-yah. >> caller: big shoutout to my boss braid, we have the freight market on business down to business i bought in at 12.98, supposed to go up in june. >> that stock -- that's -- you got it at a good price to be about to go. that's a marginal retailer i don't -- we can't -- there is no room for marginal retailers in a market dominated by amazon and shopify.
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anthony? >> caller: i want to thank you for enabling me to invest with confidence. >> confidence breeds the ability to make better decision making what's up? >> caller: my stock is the animal health lab company -- >> you know i like that but what happened today of course, what always seems to happen all time high. you know, jonathan, he actually -- it cares tremendously about my pets i like that. there is a very good post about the howling when a fire alarm went off and you might want to check my insta let's go to pravine. >> caller: hi, i'm in san diego and i'm a huge fan of your show. i love your show i listen to the pod cast daily and discipline for small investors. >> thank you >> caller: i bought on february 2018 at 91 and now it's around $242 is it time to sell the stock
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or -- >> see, this is a man not brainwashed by an interesting one that says single stock risk will keep you from making money. this is a man that did a lot of work on the software solutions for payroll and i got to tell you, it is one that i personally have missed the whole way. it's driving me crazy. take a little out but otherwise, congratulations. steven in california, steven >> caller: boo-yah jim from the sunshine state. >> all right >> caller: what are your thoughts about nrz high quarterly dividend. >> this reminds me -- they own some sort of bond thing. we can't we cannot get involved with companies we cannot analyze. that's a bad call. joseph in new jersey, joseph >> caller: hello, cramer. >> yeah, man. >> caller: i'm a multi-time caller and you've always been right when i asked you about a stock. thank you for that. >> wow that's better than luck. i'll take it thank you. >> caller: okay.
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my stock is axa. >> it's a very good company. it's a broker age olding i don't think -- it's okay to buy. let's go to bryce harper -- sorry, bryce in california. >> caller: hi, how are you doing? >> good, nice walk off home run last night what's up? >> caller: i like waste management. >> you're absolutely right to like waste i think it's a terrific buy. i wouldn't mind buying some right here and that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning >> announcer: the lightning round is ♪♪ ameritrade
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are the big banks finally back have they become investable again with the fed poised to cut rates and economy slowing? let's say they have come a lot more attractive after this week. the big banks that reported so far are citi group, jp morgan, bank of america earned a combined total of $29.5 billion. that is astonishing. j.p. morgan made $9.6 billion and each are extraordinary profits. when you make that much money, your stock deserves to trade at a higher evaluation than they have been getting before the numbers. how did they do it
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take them one by one j.p. morgan is a power house the consumer as i mentioned at the top of the show but the whole thing, as j.p. morgan is firing on all cylinders, very good the stock trades at 11 times this year's earnings with plus 3% yield people say every stock is expensive, that's a buy. how about city grociti group brought back 54 million shares purchased below the tangible book value of 67/64. they are going to keep doing it. this is $163 billion bank with a three-year plan to return $62 billion to you meanwhile, they know how to execute. city had a great efficiency ratio what they make and the headline numbers were fantastic. best of all, stock trades at 9.3 times 2.5% yield buy. then there is goldman sachs, my alma mater has a habit of crushing ex member tapectation e earning side gold man's revenues were better
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driven by unexpected strength in investment banking and equities. goldman sachs stock is held by sales but with the company focused on building up the reoccurring revenue, that's much less of a problem. i think the stock is way too cheap trading at 9.4 times and 65% of the numbers the book value is 203. the best for last, buy all right. bank of america was small beat but a beat nonetheless some of this company is just -- it reminds me of a 24/7 atm profit spinner the best digital banking business 35.7 million a quarter of all sales come from digital. half from mobile a third applications came from digital. these are insane numbers they indicate it's not just one but older people embracing it. that's huge and a great way to keep cost down and digital banking can cause less than person to person banking and bank of america has a massive
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buy back trading 4.5 times who can blame them buy. when it comes to major banks, the only questionable quarter is the troubled wells fargo that can't get the efficiency ratio down enough. put it all together and the banks have reported amazing numbers. if you don't buy the stocks, they will buy their shares hand over fist in the open market i've never seen it so sound and executives with interest rates coming down which isn't going to hurt their ability to make money. does it -- it doesn't seem to matter that's why j.p. morgan, citi group, goldman sachs and bank of america are buys especially what looks like int you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. weakness stick with cramer. weakness
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their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today.
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we are in industrial hell but consumer heaven. there is always a bull market somewhere and i promise to find it here for you on "mad money.
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i'm jim cramer and i'll see you tomorrow and her daughter. you know why i'm here, babe. it is 100% for you. - i love the connection that you two have. announcer: and this single mom will do anything... - no deal. no deal. announcer: to help her achieve her dreams. - the million is still there. - yes, yes, yes. announcer: tonight these three powerful women... - i have ran 15 half marathons. she is a starting point guard at one of the athletic powerhouses in the entire country. - at 62, i became a pro bikini model. [cheers and applause] announcer: will face their toughest opponent... - you think you're gonna win?

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