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tv   Mad Money  CNBC  July 29, 2019 6:00pm-7:00pm EDT

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buys i agreed with him on square. if you're wondering what's going on check you out alibaba with my bank. nordstrom reports the first week of aust, gui think squeeze it into that. >>. my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i want to make you money. my job to train, educate, teach, coac coach. there is the real world and the stock market world
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the nasdaq got spanked and slit 1.6% but the average value 29 points in an it is passion of the upcoming rate cut, the first in ten years allow me to set the stage, on wednesday fed chief jay powell will give us the read on the economy and announce a quarter point rate cut to breathe now life into a business situation for many different industries. i know there will be sticklers that say with unemployment with the lowest level since the 1960s, it is ridiculous for the fed to think about cutting rates. others like president trump think a 25 basis cut isn't enough the president endlessly tweeted the federal reserve is way too tight monitory policy has been holding back the economy did it again today when your interest rates are too high, the currency gets stronger versus the rest of the world
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our rates are much higher so the dollar is very strong and makes the internationally oriented companies far less competitive and can hurt the auto industry and housing industry both of which are weak right now. realizes that the last rate hike in december was a rate hike too far and shocked the confidence and caused a mini bear market in stocks and took six months to recover. so powell wants to cut rates and he has all the justification he needs. we know trump's tariffs have slowed the economy we've heard it on conference call after conference call after conference call they are complaining about the expansion. we spoke to the ceo of the largest power transmission company and told us about the slowdown in power consumption. it's real. it's not spongeble or political.
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normally the fed is reluctant to cut so soon because nobody likes to admit when they made a mistake and isn't that what is happening? powell can blame trump he doesn't have to take responsibility for the rate hike and makes it easier to do the right thing. it's not just the tariffs. boeing may need to halt production of the 737 max. it could knock half a percentage off the growth that's how important boeing is there are tons of retailers, stocks traded at $1 less but there will be major, major layoffs as we get closer maybe they make it to the holiday season, maybe they don't. it will be bad for the economy because of the confidence shock but what about stocks? does this rate cut mean for the stock market, for your portfolio? if you look at the were inumbert
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doesn't do much but look beyond the numbers and it's a big deal. business partners will be more gutsy once they know the fed is on their side. that's how it does work. they will be emboldened by the possibility the strong dollar could cool down. it's been a major theme, like the dollar, the dollar, of course, the dollar it would be a huge win for exporters that translates into higher earnings. a quarter point rate cut will have a much larger impact on the economy because money managers have seen this movie before. they have what i call a playbook it's a playbook for what to do when the fed eases you sell high growth stocks and they can thrive. the big earnings beat when the economy accelerates because it cuts the playbook could be wrong. maybe the rate cut won't boost auto sells so you shouldn't buy industria industrials. maybe it won't trigger more construction so avoid
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caterpillar or union pacific it doesn't matter if the playbook is wrong. money managers know you don't fight the fed and tape, which means you don't go against the playbook that says buy every one of those stocks. what does it mean for you? >> caterpillar reported a subpar quarter when myself thought the numbers would come in better or btf. it didn't work out that way and the stock got slammed pulling from 138 to 131 however cat is the kind of stock the playbook says you must buy with your eyes closed because of the rate cut as cat goes by the way so go the other industrialindustrials. cat has more action than any stock ifollow. how about the super growth stocks getting pummeled again today something that's a common theme since service and paypal reported numbers wall street
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didn't like. i thought service delivered a good quarter we heard from the ceo last week on the show and he told a compelling story i went back over and thought i missed something i said okay, let me reread the transcript, let me reread -- no, it was great however the playbook is spoken and that's why the stock is down a quick $12. paypal deserves to go down as the company cut guidance but the pin action from these two has been extreme, and it's all thanks to the fed induced rotation don't believe when people say the stocks must mean stocks going down must mean the companies are slowing. it's not it's the rotation speaking so what should you do about this rotation honestly, i want you to be aware of what is going on, hence what i've been talking about. i think it's a mistake for you to try to trade this kind of rotation if you're a home gamer. i'll go further. the stocks now that are going down are the highest quality companies in this entire market. cloud case, sales force,
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workday, vm ware, adobe. excellent stocks but rarely give any viable pull back when you see a fed induced rotation, it means you can finally buy the cloud kings at a discount but remember, there is no hurry. we have to let the whole rate cut drama play out there are always late to the party fund managers that will figure out what i just told you after the fed takes action on wednesday. maybe that's when you make your move, and the cyclic look cheap. there is not enough stock but you have to deal with the endless trade talks. if the negotiation pulls thanks will stop the rally in the tracks regardless of the fed but the turbo charge growth kings, come on, they will do fine no matter what because they are riding the greate eses esest se trend out there. you need to accept this rotation is happening and driving these stocks the fed's rate cut will push
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money into the industrials but your job is to find high quality stocks and stick with them for as long as the underlying business stays strong so when this rotation gives you a bupull back, that's a long-term biuyin opportunity. you have to start some time. as it goes on, this rotation will be the best time to buy the stocks that we like so much in "mad money." let's go to miles in virginia, miles? >> caller: hey, cramer, big, big fan of yours and the show. >> thank you. >> caller: quick shoutout to my investor team in virginia. my question is about enterprise products partners. they have been up since announcing the dividend increase last month but i was wondering your thoughts for the long haul. their ex dividend instant moving, should i get in now, wait until after earnings? >> i think the quarter will be excellent. i'm relying on russia and
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brazil here is the deal, this is the only one with any real growth and that's why it's up 20% and dis tribute and keep going higher it's the company doing the most with the natural gas out there all the other companies should be watching what epd does because they are the best at it. i like the call. ashwin in california, ashwin >> caller: hey, jim, thank you for taking my call. >> of course. >> my question is on planet fitness, do you have a partnership with kohl's, also? >> i think -- here is the story with planet fitness. a lot of people feel the growth has run out so they are going to places like khols. we like what he's saying as far as i'm concerned, this decline is a buying opportunity, planet fitness. all right. the financial world and the stock world, they are very different at times but no matter what, you never fight the fed and you do not fight the tape.
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on "mad money" tonight a red hot stock up more than 80% this year earlier today tumbled announcing a deal and the stock recovered should you be concerned about the initial reaction or later reaction we've long been fans. the stocks of amazon and google telling different stories? you know what i'm going to do? go off the charts and find out what is happening with tech. time to go for the gold, i've got an exclusive with the ceo, long my favorite growth bowl stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question, tweet cramer. send jiman email to madmoney@cnbc.com or call us at 1800-743-cnbc. miss something
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head to madmoney.cnbc.com. here, it all starts with a simple...
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hello! -hi! how can i help? a data plan for everyone. everyone? everyone. let's send to everyone! [ camera clicking ] wifi up there? -ahhh. sure, why not? how'd he get out?! a camera might figure it out. that was easy! glad i could help. at xfinity, we're here to make life simple. easy. awesome. so come ask, shop, discover at your xfinity store today. what in the world is going on with cramer exact sciences?
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a company behind collar guard is a way to scene for one of the most terrible cancers, colon cancer using a stool sample. up 80% for the year had a sea saw day down $16 and making up for loss s andes and a fantastic rally. why did they get pancaked? the company posted really terrific numbers they lost 30 cents and wall street thought 56 cents. the cells were better than expected over 94%. that the a fabulous acceleration ver u versus the previous year color guard covers most of it. exact science dramatically raises the far cost. they have been going for 725 and 740 million and now 800 to 810 million. that's huge. it was the other big news story, exact science is buying 2.8
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billion in cash in stock a company that does a different cancer screening they use dna sequencing, essential for personalized met sin. they aren't paying a big premium, many seem skeptical i think the sellers made a big mistake and late afternoon buyers were right. let's dig deeper with the bankable chairman and ceo of exact sciences and learn more about the deal and what it means for the company's future yes, welcome back to "mad money. >> hi, jim, great to be here thank you for having us on we had a great day today announcing this tremendous news and it's really two pieces of news as you noted. we had a tremendous quarter of growth are cologuard they did a great job educating and we screen 410,000 people with cologuard generating 200
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million in revenue for the quarter. we couldn't be happier about that and the combination are genomic health we feel will pay off. happy to talk about it today. >> sure. i think there is a great, you have a fabulous deck you've always been incredibly transparent. page nine talks about the market as indication, i mean, you have got a gigantic diagnostic reason going now. >> it really invited and make a direct impact how patients are treated. the breast cancer test is a ground breaking test which is the standard of care for telling women with early stage breast
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cancer whether they will benefit from chemotherapy or not and a prostate cancer test and colon cancer test that helps to guide the right therapy. there are multiple avenues of growth plus they have an incredible commercial organization outside the u.s. and that global organization is something that's going to be incredibly helpful as these two great, strong companies come together. >> now i hope you -- if you can, talk about all of the cancer companies that are dealing with cancer, that i know. the portfolio is always boutiq e boutique it's about targeted cancer isn't that genomic health sweet spot >> it is if you look at the new test they launched in the prostitute cancer space to help guide therapy to a certain class of
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patients with prostitute cancer, genomic health has done a tremendous job not only identifying the right markers to test, they have done an amazing job of developing the evidence that convinces physicians, these are the right tests to order on the right patients to get those tests into guidelines and to get broad insurance coverage i just can't speak highly enough for the ceo of genomic health and the entire team there and our team can't wait to get to work. >> let's talk about the prospect there is a case score. there is the psa then there is the obviously there is the $600 million in diagnostics come in? >> there are two different tests. one is if you're prostate cancer and the question
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is it aggressive, is it not likely to proceed. there is an important decision that needs to be made. do you go to surgery or not and do watchful waiting. now there is a test that genomic health has that helps guide physicians and patients in that really important decision, what further treatment is required and a separate test that for a certain class of more advanced prostate cancers, whether they should go on or not go on a particular advance therapy not only saving the patient but also saving the health care system money. >> well, i mean, i've got to tell you, when i hear about people and hear all these democrats talking about the health care system and how it cost too much, i don't understand why they don't sit down with you. what you're doing is saving the system a fortune making money because you come in underneath but does anyone politically ever call you and say thank you or i
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see you're keeping the cost down >> i can say one thing, it's fun coming into work every day because people are not throwing darts at you people across the political spectrum are doing everything they can to help address what is the number two cancer killer, or i'm sorry, the number two killer in the u.s. in the health system is cancer. and it seems to be an area of galvanizing support across the spectrum we can't wait to bring some of the pipeline tests that we have in development through our partnership with the mayo clinic across the top 15 cancers and introduce them to this tremendous commercial organization at genomic health the oncology team, the global team it's really exciting, jim. >> what happened do you think today?
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it came out at 3:30 saying it was a good m ccombination. alone, i want the deal you know i think the deal is great. i mean, that quarter that you announced this morning was the biggest blowout of the year. >> well, thanks, jim the team did an amazing job and we as you know, we have never been focused on one quarter. we're trying to get 86 million americans between the age of 50 and 85 screened for colon cancer and the truth is, at least one-third of them don't get screened so we're about 6% penetrated into this large market as you know a year ago when i was on the show, we were 3%. >> amazing. >> adopted and the team is doing remarkable work to get more people screened and the team at pfizer that is our co-promotion partner, we can't thank them enough for their efforts. >> well, i got to -- >> we're going to lever this
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strength, too. >> well, no, i mean, look, this a great deal i didn't understand why the stock was down at all. it should have been up kevin conray exact sciences chair. thank you so much. >> jim, thank you. this company continues to clobber its targets and i love this acquisition it's fantastic as kevin conroy doing such a good job at exact sciences stick with cramer.
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what the heck is happening with tech? on the one hand the nasdaq surged to an all-time high last week and many tech stocks including alphabet exploded higher but on the other hand, there is big breakdowns like the sell off in amazon and the cloud king i talked about at the top of the show. we wanted to decipher this
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action tonight we're going off the charts and want to be unemotional so we're using caroline to help us. the brilliant technician that runs the queen.com website and a colleague of real money.com. her track record is phenomenal maybe she can shed light on it let's start with the daily chart of amazon, which reported, i guess you could call it an imperfect quarter, a revenue beat some felt the weaker earnings were good things to come they blame the weakness on building out one-day shipping and it was soft. now given the strength that microsoft's azure and google cloud, maybe the competition is getting fierce, i don't know what can the chart tell us the larger pattern here is still bullish pounding to mu isish po prices down the road after the pull back she thinks you're getting a rare buying opportunity in amazon. i couldn't agree more.
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they think it will terminate somewhere above amazon's june lows so we don't have to worry about the takedown here. she wouldn't be surprised if the pain stops this week remember methodology she measures past swings and runs them through the numbers, a key series of numbers. he's the medieval god father they repeat over and over and over again and i want you to think snell, shells, pine cones, flowers. for some reason they tend to show up in the charts of stocks. by doing this he finds important levels where stock is more likely to change the trajectory when you see a cluster of the relationships in the same area when it comes to amazon e s, sh knows it's support levels in the 1880s and 1980s. you see the clusters remember, this is where it bottomed today if the share price can hold above this first zone, they believe amazon could rebound to $20.73 in short order. if the stock falls below, this
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are two key levels 1853 and 1866. i like a lot of support. she says the stock's long-term up trend is in tact and i agree. based on prior swings, she could see amazon turning around and climbing to 2,145 or 2,252 or even 2500 if everything goes right. at the moment the stock is holding above the long-term 200-day moving average and boy, is that positive it held those levels even though it was hideous last week that said before amazon can make its way to the higher price targets, she wants to see the five-day moving average cross above its 13-day, the blue and red on the same daily chart. that's not happened. that crossover is the by trigger because it tells you when a stock has gotten its groove back that's what we're looking at could happen soon. if amazon breaks down below the last floor of support 1810, she's wrong and has to throw in the towel. i think she's going to be right.
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now on the very same day that amazon broke down, alphabet reported a real smoking quarter. i loved it the stock caught fire so went from alphabet's taylor chart, not as pretty as amazon. they remain in a bullish posture but the stock may have gotten ahead of itself. there is a lot to like here. they made a series of higher highs, okay? and it's trending above all of the key moving average they are watching for pull backs to get a better entry point. we got the start of one today. ideally, she would like to see more weakness. unbelievable move. i totally get that people don't like to come in on top of that move right now, trading at 1, 2, 4, 1. best case scenario, the stock holds above 1,052 and rebounds
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her first meaningful price target falls in at 1,370 that's up 10%. if the stock can clear that hurdle, she wouldn't be surprised to see it travel to 1,463 or 1,485 if you believe in the chart, alphabet can run another 10 to 20%. again, the queen wants you to wait for a pull back she thinks it will be brief and get back on track but confident she'll get a bet earn tter entr. i went back overall her calls. she's been red hot remember, my travel trust has both she's been so good that it's worth it to go with her. finally, let's consider the broader nasdaq 100 which is tech heavy index that contains the 100 largest non-financial companies. when you look at the weekly chart, it paints a positive picture. nasdaq 100 and brodin thinks it's headed higher she can see it going to the 80,
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100s and clears out. you hear about all these 8417 here what hear what i keep saying? these levels can blow through. maybe 8816 she's talking again and anywhere between 10 and 20% return. when brodin looks at this chart, she's less concerned about price and more concerned about time. as the method lets her identify key prices, but key moments when a stock or index is likely to change trajectory and that means inflection with the nasdaq 100, she sees a series of timing cycles that come due in august if you take a look, we're almost there. while they don't always trigger a reverse, she sees a bunch hitting between late august and mid september. all right, that makes it a little more cautious the nasdaq 100 will sell off, that's a good chance when. symmetry, the last big run in the nasdaq 100 lasted 34 weeks
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we're in 30 weeks of an up trend and late august will be 34 weeks. why is that a problem? for whatever reason when you look at the charts you see a lot of moving similar in duration. that doesn't mean this rally has an expiration date but when you throw in the time cycles coming due at the same time, you can understand why the queen wants to proceed with a little caution here what would make this go from a yellow light to red light? brodin is watching the five-day, 13-day moving average, she's watching like a hawk if the five-day cost is below the 13-day she'll stop being bullish. she thinks the nasdaq 100 has more room to run but may pay to be paranoid, here is the bottom line they tell an encouraging story alson is getting shelled and thinks it can bottom to make a fabulous comeback. i agree. alphabet is going strong and
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there is a lot more upside for the broader tech sector, she likes the nasdaq 100 for now but in four weeks time, you may want to exercise more caution mike in new york, mike >> caller: big boo-yah professor cramer from staten island, new york. >> love it good to have you on the show what's up? >> caller: thank you for everything you and your team does for the investors. >> that's why we do it it gets hard but that's why we do it. >> caller: i want to talk about etsy i think they are a solid company with a solid cash plflow recently the stock hit a 52-week high should i buy or hold >> etsy is a good stock and great long-term situation. i don't want to be knit picking. you know what i say, buy some now and if it comes in, buy some later. this is a good level to get started. i agree.
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paul in virginia, paul call j >> caller: jim, how are you doing, boo-yah >> what's up >> caller: my son and i just started buying stocks recently and wish i started a long time ago. >> never too late. >> caller: we were looking at some crowd strike. my son told me i should have bought that a few weeks ago and i wish i would have but anyway, i bought some chairs and it was doing good and kind of took a dive so i bought more. i'm hoping i'm doing the right thing. >> you want to leave room. don't get aggressive here. we're in a nasdaq sell off that includes that z scale or down, cramer family fav down these are all traded together. got to leave some room, particularly with octa. okay, the charge tells an encouraging story with tech. brodin likes amazon and alphabet for now.
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much more "mad money" ahead. i'm sitting down with the ceo to find it and i'm on the grind to help your portfolio and all your calls of rapid fire in tonight's edition of the lightning round so stay with cramer. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life.
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you know me, i'm always telling you to have gold exposure if insurance against economic turmoil or inflation. in 2019 gold caught fire with the precious medal trading in the highest in six years that's not a great sign for the stock market and may suggest many have one foot out the door. take a look at aem, which operates in canada, mexico and in finland with mines in the u.s. and sweden. after bottoming at $32 and change, they have soared higher climbing to $54 and change is up today. that's one of the highest levels in three years when the company reported last week, it delivered a top and bottom line beat management is aiming for record production this year so can the stock keep climbing
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let's check in with sean, vice chairman and ceo of aem. welcome back to "mad money." i'm excited to see you because a couple years agro you came on an you said gold was much lower and you said that's fine that's all well and good but it won't last you're the only one that said it and you said gold would be back as the reserve that people want. how did you know and take a victory lap because you're the only one i knew was talking about it. >> we get out and talk to investors. we have a broad range of investors in canada and saw the big, smart money starting to do homework earlier and taking our queue from that. we learned over time that this goes in cycles and it starts from pessism and higher lows
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grinding in the face of record equity markets and here we are just getting started. >> now, people need to know that it's -- i know this will sound oxy moron but it's not easy to find gold. >> that's the beauty if gold goes up, the industry has a hard time making a supply response because the lead times to build mines are extra long now, but there hasn't been major discoveries industry wide. the pipeline is not full for new deposi deposits. >> for you, you've got some really this mine, 3.8. you've got some gigantic prospects just not kicking in with your price of gold for your actual what you pull it out, really much much below where the price of gold is now. >> because that period between 2012 and 2015 when most gold companies stop doing business, we kept doing business we were investing in juniors, buying mines, expanding our
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drill programs we made a heavy commitment to it and as you mentioned, we opened. so our production profile continues to grow. >> this just open in may that's not even the numbers yet, right? >> it's in may we hit commercial production midway we only have six weeks we'll wrap up that and open up in august and hit commercial protection probably late september, that will impact this year we'll set record gold production but then we can continue to grow but grow at a steady pace. it's about managing risk because you're dealing with nature nature can throw you a curveball. >> you always pamanage risk how others don't every place you have mines i don't living at. i mean that seriously. you have no political risk. >> that's bedesiy design
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he said we don't go where they don't wear over coats in the winter mining is hard enough. when you start layering on other risks, it gets much more difficult. >> it seems like you embraced technology you talk about autonomous mining what is that >> the way of the future you get vehicles and equipment running on their own and that makes the mine safer and more efficient and keeps the cost down we're mining right now in montreal we're down below 3 kilometers. as we go deeper, some of our best drill holes are below three kilometers that has been drilling since 1988 and make it more productive. >> that's important. i know cater pillar is telling me about that and i didn't know whether the actual -- whether it's test pilot or somebody is using it. >> we're testing it now but what we do is run those mobile equipments remotely from the surface now and between the
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shift change where we're down without that equipment running for an hour, we can keep that equipment moving much more productive. >> one of the reasons people always say to me, jim, you like these stocks and you're a great stock. there is outages that occur and nobody is ready for them or turns out that the orr isn't as good i know at various times you had to ever a mine down for 60, 70days it's never going to hurt your quarter. >> that's the key. you run it like a portfolio and you ensure you set expectations so you can deliver and as we said, you're dealing with nature the mine you refer to, we closed it but we didn't give up. that mine we're mining 1.6 grams of gold, one of the lowest grade under ground mines in the world and making good profit that might have a record quarter. we reopened of those issues but
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it's about your technical skill and understanding risks but thinking long term it's a long-term business. you have to make the investments when gold is quiet. >> on wednesday the fed is going to pronounce a cut, i believe and one of the reasons why j. powell will do that is because inflation running below the fed's target is it not uncharacteristic to have infligs below a target and gold soaring here? >> well, i think yes, it is but i think what we see now is we see negative real interest rates. we see a substantial amount of money that's paying a negative return and what we're hearing in the last few weeks from our connections in europe, the gold funds are getting inflows. it starts there and they understand gold and understand risks and we're in a period now where gold blossoms. when you have low real interest rates and negative gold does well and then the inability of the industry to respond to a
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higher gold price is i think the key to get it going forward. we also have a situation now where we've been grinding for six years. we've built the base it's broke through that technical resistance at 1360, it's starting from a higher base it will hit the all-time highs of 1900 to 2,000 because we're starting from a higher base than we did back in the late '90s. >> dead right on this. a lot of people doubted you when you came on, not me. gold should be part of everybody's portfolio. the growth gold mine come pap knee, "mad money" is back after this tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch)
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they use stamps.com all the services of the post office only cheaper get a 4-week trial plus postage and a digital scale go to stamps.com/tv and never go to the post office again. it is time for the lightning for the lightning round. buy, buy, sell, sell, the lightning round is over. are you ready ski daddy? time for the lightning round start with larry in virginia, larry?
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>> caller: boo-yah, jim. >> boo-yah. >> caller: first time caller, long-time listener your thoughts on new mont. >> no. leon in new mexico. >> caller: big boo-yah, everybody call me the wall street trap. i love what you doing on here. my question is about dollar tree with dollar tree, with jp morgan chase and a lot of analyst, we may have a downturn. i want the know do you think dollar tree is good? >> no, buy some dollar tree and remake it my own family dollar into a dollar tree at last the other dollar tree i had to go to was way out of my way. joe in new jersey. >> caller: hl lello, cramer. >> joe. >> caller: you recommended valley national bank should i hold it or let it go? >> valley has a great footprint, the problem is the fed i think
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this thing at 11:00, a 4% yield. gary in florida. gary. >> caller: boo-yah, jim. >> boo-yah, gary >> caller: i'm retired living in florida, jim and my wife loves a good dividend. we're looking at and downside stock and the acre zquisition. >> it has no growth. sorry, let's go to mark in pennsylvania, mark >> caller: hey, jim, mark from pittsburgh p.a., boo-yah. >> boo-yah. >> caller: new investor. what do you think about six? >> it has descent growth it will come back and stall for a bit. i'm willing to bring out the terrible towel to say yes to
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six. okay, let's go to john >> caller: thanks for taking my call my question is ticker dxc. >> that does not have growth that's what i'm looking for. if you're going to be there, i suggest to swap out of that. and that, ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by t.d. ameritrade eet guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade oh, wow. you two are going to have such a great trip.
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how does the stock of a gigantic $120 billion company like starbucks manage to rally nearly 9% in a single session like on friday you only get that movement when there is a take sdwroeover starbucks reported spectacular numbers. how did they do it to get your head around this story, we need to go back to the quarter starbucks posted 12 months ago the one they just lapped a year ago the company gave you truly not so hot numbers it grew by 1% and china was down an astounding 2% it was enough to make you feel this once great company's best days were indeed behind them at the time i had just done a shoot at a small privately held coffee shop chain with the founder and ceo nicolas stone.
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we shot the segment through brand-new gorgeous story, come memb common ration of the fifth year and talked about the beer industry or old time brewers in decline eclipsed by smaller, faster growing craft breweries and coffee shop spaces, starbucks versus blue stone. the interview was a high five chest bumping affair and yes, indeed a funeral for starbucks but man, starbucks did not get the memo at the exact same time that the coffee was supposed to be dead and buried, the rookie ceo was making moves under growth at scale that would ultimately allow him to deliver the breathtaking numbers we saw last week first and foremost, johnson was his man. you can't envy anyone on the heels. it's a revered figure. who know how they would respond to a quiet low-key almost
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anonymous especially one that came in from tech. from telco tech. the habs been they wrote themselves. johnson had a few cards up his sleeve he off loaded the consumer package to necessastle $7.15 bin for the most aggressive starbucks reported and johnson unleashed that buy back on the back stock was so heavy i worried about the impact but johnson didn't care because he was hatching a come back fueled by technology and convenience and that's why starbucks put in a ceo from june piper of all plac k.g. recognized if he can improve digital ordering and solve the problem, if he could make delivery happen, he could then orchestrate a magnificent turn around regardless of what the competition was up to.
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oh, and it didn't hurt starbucks rolled out terrific products like the specialized coffees and yes, nitro, which is a millennial favorite. i know many doubtedson at tjoh the time and explained that the real issues had to do with making the stores more convenient and hospitable. they had a yogi bear problem like nobody goes there anymore, it's too crowded they rolled out technology making it easier to buy coffee the result, longer lines and starbucks. the company delivered the same sales growth and two of the points came from it and that addition of the nitro iced coffee did reignite the sleepy afternoon day part that's big money and burned more traffic. blue stone, look, i think there is more than fruit for the blue stones of the world and
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starbucks and everyone else in the coffee business. the starbucks just needed better technology to orchestrate a fantastic global same store sells acceleration from 1% to 6% in a single year starbucks brought in a tech guy, ceo and he's delivered and you know what? after this move with kevin johnson at the helm, i think the stock has more room to run but got downgraded by a couple firms today after it settles down, i would take the other side of those sellers. stick with cramer. ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. no matter what you trade, at fidelity don't miss your gto experience our most advanced safety technology on a full line of vehicles. now, at the lexus golden opportunity sales event. lease the 2019 es 350 for $379 a month, for 36 months, and we'll make your first month's payment.
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experience amazing. that's what happens in golf nothiand in life.ily. i'm very fortunate i can lean on people, and that for me is what teamwork is all about. you can't do everything yourself. you need someone to guide you and help you make those tough decisions, that's morgan stanley. they're industry leaders, but the most important thing is they want to do it the right way. i'm really excited to be part of the morgan stanley team. i'm justin rose. we are morgan stanley.
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♪ keeping the night interesting, is all about setting the right tone. ♪ lower carbs. lower calories. higher expectations. ♪ the light beer you've been waiting for has arrived. corona premier. all right. beyond me there is a secondary it's about time. let it come in it doesn't need to hurry up. i like to say there is always a market somewhere, i promise to find it for you here on "mad money. i'm jim cramer and i will see i'm jim cramer and i will see you tomorrow.
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>> narrator: in this episode of "american greed"... fugitive jason derek brown is a mormon missionary turned party king. >> from ski trips on the boat, to nights out at the bars, to motorcycling and atv'ing in the desert, he wanted to be the life of the party. >> narrator: jason's playboy life is bankrolled by a series of scams. but when money gets tight, he plots his most elaborate scheme yet. >> when people are in desperate situations, they do desperate things. [ gunshots ] >> he was down that alley, on his bicycle, and long gone.

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