Skip to main content

tv   Mad Money  CNBC  March 4, 2015 6:00pm-7:01pm EST

6:00 pm
pfizer, owned it forever, yield over 2% and up 11% year to date. more room to the upside. >> i'm melissa lee. thanks so much for watching. see you again at 5:00 for more f-fun. meantime don't go. mad mad. my nation is simple. to make you money. i'm here to level the playing field for all investers. i promise to help you find it. mad money starts now. hey welcome to mad money. well coming to cray america. i am just trying to save you some money. my job is to educate and teach you. call me or tweet me. we have things everywhere and the battlefield is in smoke. you can not tell who is winning the bulls or the bears.
6:01 pm
yet you know that on any good piece of news this market wants to go higher not lower. even as in the end we got handed a second straight hammering today. sop 4 ht 4 percent, nasdaq climbing point 26. what makes me say something positive after a house of pain? simple it's how they react to news and the pin action and news that impressed me. let me give you some real life battlefield commentary and you know why it's to the upside here and the bears took the day. let's start out with the simple example way fair and symbol w. you may not know way fair unless you're a catalog shortstop. they have furniture for your home. i have bought good from one of
6:02 pm
their brands. it came in the mail and if you think that catalogs are past keep on watching. red hot catalog will be starting the stuff later in the show. i think that you will like it. a lot of investors thought that way fair was the busted i po of 2014. it mainly ran up to 37 and then literally got cut in half in december when some were proplexed at why the company was not doing better out of the shoot. then today they reported a spectacular 65 percent revenue quarter and buyers swarmed in to pick up damaged merchandise. if you held the stock, you're back to even after the 14 percent run today. it's the pin action that really em presses me. now now know that i have been a big fan of restoration hardware. it's like judging a restaurant or danny myers shake shaq by the
6:03 pm
next few quarters. you have to give them time. you're not going do well if you're in and out. it's about a long term vision and one that caters to the shopper or eater. the point is that way fair and restoration are catalog retailers and it rallies and hard off a sales number. it cannot be ignored for those that are looking for pockets of strength. now, i am not content with watching the two and saying i believe what have you done for me market lately. i want to spend another step. have you seen the resent catalog for res an troe polg ji. i like that stock. okay. take the bullish action in
6:04 pm
mcdonald's saying that when we get mcdonald's sales numbers we're going to see real disappointment. now, you would think after the run that the stock had it would be crushed by the news and crushed by that prediction. it's though the done stop since the ceo came in and something that would play the rest to have east that hold the real pow captioner the company. now the market took the q from another piece of research and they called it and said that change is going to come. they're going to pay up. might as well been written by sam cook. something that you should have acknowledged. so who wins? the buls. the stock goes up 51 percent and then it's up up up. then you get a further story and saying that it's going to phase out the sufshingerving of chickens
6:05 pm
treat with antibiotics. so there's a sigh of relief over here but it's slightly muted. i figured once again to buy hanes and showing as a formal specializes in the organic and then the ladder produces the hottest food stuff many the world plant based dairy like soy and almond milk. they also make whohorizon. they were ahead and they would not have gone higher on a day like this if they would not have shined the light in the food image. the lobbying group and the that lorous youtube base hybrid last year. simple whole foods has been resting after a monster run. this thing is good. it's just sitting there for the picking and two dollars from
6:06 pm
high. first poll back. whole foodss and back to the i foods. how can you not be salivating to buy the offspring that got it so right when mcdonald's was getting it so wrong? yes, chipotle. yes, after they reported a spectacular quarter and then guy dance. if mcdonald's is removing what we were pumping into chickens then how about buying share in the outfit because it pulled pork. no they did not serve pull pork and i make after marinating in coca-cola. stop serving it. why? because the pigs were miss treated. another idea. how about the rally in forma? after it received an important okay for the fda and the expand
6:07 pm
of the use of lung cancer drug. not an easy feet giving the companies companies. bio tech was strong by the get go. i have a big real of the ones that i like more. it's to be resumered to be bouthd by j and j. we can include that this is part of a larger trade. now, understanding that it disease not describe a long thesis but i do confess that february was weak because of the weather. this is my bar of having no traffic because of how cold it is. no matter when we get the data point toss show us the slow down, we will not say it was cold. we will say that i am going to be selling stocks. if you wait until the data comes out the people that bought today are selling because they were a step ahead of you. they took the risk. now namely had a couple of stocks that are owned by many retailer investors and the name for you home garms and timely
6:08 pm
got some lift and gopro. there's no cattles, but the gopro is strictly pin rally of the gopro sue pilepplier. beyond that a positive read through by sand disk. the stock is rebounding and that steamed the losses and the group is not affiliated and it's to see np and sky works back on the run after the one day pause. they're itching to go higher. here is the bottom line. i am not sugar coating. that would be wrong. in a second day you need to watch to see what is stabilizing
6:09 pm
stabilizing. that's where you do the buying. if they can with stand the on slot and still be standing like a stone wall then they should be even better tomorrow. larry in connecticut. larry? >> well let's call it massachusetts and kudos on the interview with scott painter. >> really? i think that the market did not react well. some of it they do have a very very big lock up expiration and i always try to tell people to wait for the ex per raxs because you tend to get a better price. go ahead. >> you're graceous. as i helped an army of guys clear four feet of sunshine off my roof last week the old fashion way i thought about tickers lltc and that makes
6:10 pm
analyzes for industrial and autos and the handsome and equally handsome bryan and fabulous margins but heavy international exposure. >> i am in. i like it and you know that i love the product. it's one of the best that i the street has. bob frequently of course one best in the show i think that it's a great stock. glad that you own it. what is stabilizing? you have to ask yourself when the smoke clears. that's what you buy tomorrow. taking the polls to global company with one of the best run companies on the planet. that's honey well. i will get an exclusive with the ceo and i got the names that could be ready to breakout and they can not stop them, but i have a company fighting to put super bugs in check. there's a device that i cannot wait to get my hands on. why don't you stick with kramer.
6:11 pm
>> don't miss a second of mad money. have a question tweet him #mad tweets. send is e-mail to mad money at or give us a call at 800743 cnbc. miss something? head to mad money
6:12 pm
6:13 pm
6:14 pm
i am hawk tauking about honey well and they make air space components and air climate control systems and refining cattles that had a terrific analyst day.
6:15 pm
honey well is one of the most clued in companies on earth when it comes to the economy. honey well reafirnled the numbers and the sell and also stress the importance and it's tucked in and going forward. they said that between buy bucks and capital employment and earlier today i had a chance to talk with day cody and one of my bankable ceo's from get rich carefully. >> dave, i feel like the last line is the most important. you said that this is an exciting thing. >> new products that go around the world, and i am pumped about everything that we have coming. when i go back 13 years ago, we have an empty pipeline. and a lot of it is software base because while we have 22,000
6:16 pm
engineers in total and you think of the stuff shipping in box and engine and totals, more than half of them are developing software, so you will see there's a lot of software base products that you see coming that are cool. >> when i think of software i think of and what we have been talking is how the car and the home is the new growth area. you're software for the home seems to be the dominant way that people are going to be able to take control of the home remotely. >> well, we're going to see connected everything. there's going to be connected homes, building and factories and connected planes and corrected workers that's also going to occur. like with a lot of things it's important for a company to be smart about it. it's easy to get caught up in the trend and say that the trend is right and the trend is good. spend what you can. >> like nes.
6:17 pm
>> yeah it worked for them. it's tough for me to complain on what they did. they improved our sales so okay emotionally bother some but rewarding financially. everything is going to be connected in some way. we're being smart on how we do it and the plane, home work building or factory. it's the right trend, and you have to be smart about it. >> it's more competitive and a line that caught my attention and you're becoming the chinese competitors. >> yeah that's perfect. that's exactly right. i few china as being the chance of the first 21st century phenomenon. they have moved from number 20 to 2. they could be number one easily if they keep on playing things right. they're creating their own
6:18 pm
chinese competitors. and they're good. if you cannot beat them and win there, they're going kill you in all of the markets that you like today. i spend aa lot of time on how we're doing. >> give me an example. where are they catching up and competing? >> well i would say in every single business and industry in that's in the u.s. the same thing is being replicated in china so arrow space. it's another and i think that you will see another air purifier that we have. so everything single industry is going through that and facing it. >> one of the things that we know of honey well is that it's a great stock. >> yeah, you made a good call a long time ago before we were
6:19 pm
neighbors. >> yeah. >> i love seed planting and how do you please everybody? >> well, the good thing is that we generate a lot of cash now. we're in a position to do all of this stuff and in the next four or five years. we're going to be increasing the dividend greating than the earnest earnings rate. we have a lot of power for the mfa and stock. at the end of last year the debt equals the cash. we're in a net zero. we're in very good shape. that leaves us a lot of flexibility when it comes to repurchases. that's why we talked in the pitch about the new approach that we're taking and saying that anything above 1 to 2 billion in cash we're going start to reemployee so that i have a lot of mna capacity but
6:20 pm
the investors do not have to worry about the cash even while increasing the dividend. >> well, 2014 was amazing because you said that it would be head winds and i never knew that they were that much greater. can we see europe getting better? defense spending and you highlight that as going up. a couple of lines are better than 2015 than 2014. >> yeah there's an interesting things this year. over the last five years for the first four of them i was more negative than the economy going into it. >> right. >> it just did not feel right on anything. this is the first year out of the dpooiffive where i have been more positive. >> yes this is a different dave cody. >> yeah, it is. i am running the place conservative. i do not get paid to be an economiest. i get paid to make the right
6:21 pm
call and conservatist. the affective oil prices and in any oil importing country so china, japan, india is going to put a lot of money in the consumers pockets. i filled up my car the other day and i was shocked. it used to cost me $100 and this time it was $70. even i noticed it. people think that i would not. >> people think that a lot of people that cover it are rich but there are small businesses that have a fleet of eight truck zpls yeah they became competitive and families have more money to spend. they're not spending it yet, but they're going to. i think that affect is going to be helpful. on the other side of that we're going to have the stronger dollar. >> right. >> that will keep the inflation down. i think it may help europe a
6:22 pm
little bit and make them export a little bit better. they need to fix the problems. i am worried that they will use it to do nothing and just prolong a problem. all in all i feel bullish about the world and i would say most do right now. >> one thing that i want today do is that you were the first person and oil could be 50 and was it 80? you do have a big oil and gas business. i know that it's downstream. you know the dirty or heavy oil is coming in in canada. we did not need keystone. these are your refining products that are making that clean, right? >> yeah, they do but here is the way that i would look at the up stream verse the down. there are two different markets and on the up stream it's driven by the oil price. >> right. >> is it worth me drilling to try to find more. on the downstream it's drin by what ask the economic activity
6:23 pm
in the demand for a refined product? because the oil prices are coming down and the economy is going to pick up, that increases the demand in that area. i am not that worried about it. >> yeah you have to pay attention to it and you will see russia start to slow down projects and you're going see that start to pick up in other places. they're going to be perhaps where you get the short term negative affect and then the long term positive affect is there. it's something that we have to manage. >> right. right. >> i think that it's good for us overall. >> well, i like the call that this is an exciting time for honeywell. thank you. >> always fun. >> coming up. the mafrkt gets covered in red ink. we're still pumping up some serious green. can the companies digital
6:24 pm
efforts help it stack even for paper. kramer has the exclusive with the ceo.
6:25 pm
6:26 pm
we have been on the look out for stocks that are getting jig give and reacting well despite
6:27 pm
the tie of the markets that washed over the beach. today i mentioned the leaders of the former pack and then bio tech. that's why i thought this would be a good time to circle back to the group and being asked about the stocks at jim kramer and what looks good. we know that it's been a battleground, but have you seen the stock late? sold at 12 times earning. being to hold above 100. might be setting up for one of the most quick ten percent move. i think that it's possible. what can i say. $100 billion company and fran excise does not know how to quick. i think that it's an excellent reed for the capital markets and that's a perfect companion and for the street and that's the way that i look at it. they have been pointing out and there's some data coming out on march 20th and i am calling that
6:28 pm
a nice one for the stock. it's been under pressure late and that's letting up for the moment. all i can say is that ceo has assure assured you of thele chal epglengeschallenges. even if it keeps on winning head to head trials and that's the generation drug that's being extended to those with diabetes and please stay focus odded on what is the next block buster here. now, a few that we have on multiple times and bio marine. just to point off the highs as it's abn orphan drug. i am sticking with it because of the pipelining and the coagulant. every time that i see something
6:29 pm
positive seems like people decide to pick on a negative aspect. i get that. stocks heavily shorted. i have a lot of faith and ceo of the ability to deliver. meantime in take of the farm lets because of far captionerpartnership. i don't know how many of the run the stock has had year-to-date. j and j would pay on top of the evaluation that they have. i have to tell you when and if they do it, it will propel all of the groups. at this point i would rather have you buy the receptors. we just heard from them. they have that world data for ms and also chromes disease. put it together and it's $8 billion in possible sales. then the possible specking of the pain managementment.
6:30 pm
remember he has been a winner any time that it's broken down. bio tech is not going to be able to lead us. and with activists and value doing so well remember they just did these big deals and i can only say there are a lot of ways to win with bio tech with the take out of the medium size companies or the larger ones so one last thought. if february was weak as i thought it was then it would reform when it takes a hit and only gathsers steam over the next few weeks as it is the next few chillies month and j&j turns and talks it into a reality. larry in california. larry? >> from sunny san diego.
6:31 pm
>> what's happening? >> i was wondering what you think of lab corp.? >> people do not ask about them much. we know that they go to the doctor and make money and make money. i think that you have a great situation there. i would not touch a thing. they're a winner. how about civil in virginia. >> mr. kramer that you so much for taking my call. i would appreciate your verdict on chrs the global bio similar company and they rated them as out perform. i bought a position in january. should i buy more? >>e know how this tough this group is. i try to stay on top of them and this one i am not on top of. better to own that and not cuff it. i have to come back can chrs.
6:32 pm
can bio tech lead us out? it's been a leadership group and i would not be surprised if it gets hotter. much more mad money ahead including my exclusive. can the resent kimberly spin off make the portfolio richer. who said pins ton. it's up 15 approximate percent this this year. plus your calls and the rapid fire in the lightening round. stick with kramer. [ male announcer ] at northrop grumman, we know in the cyber world, threats are always evolving. at first we were protecting networks. then, we were protecting the transfer of data. and today it's evolved to infrastructure... ♪ ♪
6:33 pm
and military missions. we're constantly innovating to advance the front line in the cyber battle, wherever it takes us. that's the value of performance. northrop grumman.
6:34 pm
6:35 pm
rngs don't judge a quarter by the stocks initial reaction. sometimes the market gets it wrong or it's confused. the medical supply company by kimberly clark. now, i am a big fan and that's why we own it and you can follow along and they make surgical and productions if were the operating room with products that are number one and number two in a bunch of categories and also has a faster growing medical device business. going forward they will be able
6:36 pm
to make some things to do the growth. this moneying the markets initial reaction is negative and pulling it down. why did it get hit? because it's a low volume name and does not have as much coverage. some of them were spoofed and something by the way that you should be aware of if you were watching the show. they were being conservative and wall street confused and that's why they rebounded from today's low. now, he is giving us an 18 percent gain and i think that it's room to run with today's pull back and giving you a nice entry point and let's take a closer look and learn more about the quarter and the company prospects and it's mad money. >> thank you jim. it's great to be back with you. >> we like the spin offs and we know that you watch the show. we like to say that the show can be lasered.
6:37 pm
what were you doing that you could not do when you worked for the great company of kim ber clark? >> well we were focused and started to research and develop because it drives the strategy. we delivered a strong quarter. we had sales growth and profit growth and generated growth so a very strong fourth quarter. puts us in great position to deliver on the initiatives. >> you now, i saw that you had a lot more cash than you do at this time. at the same time there's so many things being done in the space, is there anybody that's out there that you can kick the tires on for not an expensive price. >> you're right jim. we generated strong cash 149 million to end the year. with that it gives us options, and as we look at the options we have said all along in year one 2015 we want to continue to get off the transition services from kimberly clark. in year two we want to move
6:38 pm
rapidly to get things done and grow in the medical device category. our strategy is to shift to the high growth margin and higher faster and margin products like the medical devices. we like the categories that we're in and the pain management and the digestive health and all of the categories that deliver fast growth. >> let's talk about one of these. i have to tell you that i follow kimberly clark when my boss told me to go by 55,000 shares and i had never known that you had something called cool leaf energy for this pain management. this is a device when it's on the website is remarkable. i don't think that i have heard about it. what can you do. tell us about it now. i think that the viewers will try to go to the website and enter the zip code and find a doctor that has it. >> please do. it's a product that we rolled
6:39 pm
out and radio frequency and it gives you a way to burn or stop the nerve transmission. it's part of the overall strategy, and that overall strategy to eliminate pain and nonnarcotic method. it dpru 60 percent and growing very fast. it's the fastest growing technology and we're proud of it. >> is it a raiser? how does it work? how do you get it in front of more doctors? >> well we started with a website zparted with two markets in chicago and new york. from those markets we had 70,000 hits to the website and 10,000 customers looking for physicians. we trained 550 physicians last year. there's the generator and then the disposal part and that's how you do the nerve. so that technology really gives us a way to grow in the pain management. >> there was a line in your conference call about europe and
6:40 pm
that was you said there was a volume decline related to the home infusion bump. is this something that we have to worry about going forward? >> no it's not. we will have one distributor and go to another one. there's a gentle kind of transition that happens when you change from one to the next. that was just for the one quarter. the infusion business is growing and it's been a nice growing business for us. not just in europe but other areas of the world. that's in the pain management products. >> okay. in the time that we have left, i want people -- there's just not enough information, but there are a lot of analysts on the call. do you expect that some of them may pick the stock up. it's hard to get the research away from what we did ourself on the stock? >> yeah they believe the story and that they care about health
6:41 pm
care. we have those unique products that allow us to do that. we have two big areas that are really important to the health care industry right now. first is the hospital acquired infections and we have the products that you have mentioned before that address the needs and second we have products that address the growing concern over narcotic pain relief so by having those products we can have the tail ends associated with those in health care. they believe the story and believe in the growth. i think long term they're waiting to see we deliver quarter after quarter after quarter. >> you have the right management and the right focus too. robert and ceo of halyard. thank you for coming on the show. >> thank you. >> a little company within a big company. that little company becomes a bigger one. halyard is going to be one of them.
6:42 pm
stay with kramer.
6:43 pm
6:44 pm
. hey jim you're the best. you have influenced me in so many ways. i have mads lots of money
6:45 pm
because of your suggestions. thank you so much. >> thank you for watching. we're coming up on a decade of mad money. i am glad that i have the best audience in television. there's a huge group of shows being planned for you next week. this anniversary is about you kramer than about me. i want to hear from you. tell me how watching mad money has impacted your life over the past decade. share them on the video and go to mad money dot dot and click on the link at the top of the page. make sure that you have your phone whohorizontally. now it's time for the lightening round. the light round is over. are you ready? it's time for the lightening round. i want to start with walter in
6:46 pm
new hampshire. walter. >> yes, i am asking stey. >> if we want to go solar. we want to go to first and that's doing the spin. let's go to joe in wisconsin. >> hey jim, mine is st electronic. >> it's another one of the semis that i like. i like sieper semiand sky works and npi. >> what i am interested in is bob evans. >> i am disapointed. if you do not own the stock you can think about it fine. there was a huge disappointment. this was the first disapointing stock in 2015. let's go to eric in missouri. >> okay. dst and it's the stock that i
6:47 pm
said should break up and it does not broke it. it just goes up. rick in rhode island. >> excellent. how can i help. >> i am interested in popo and for 2014 in a couple of months. i know that it's one of the most heavily shorted stocks on the market. should i get out now? >> i am worried of technology issues here. there is something that could replace them. bio stocks are shooting and duking it out. i say that it's hard for this guy and i would rather be in indiana. >> jim from the northwest belt in indiana. >> sweet. what's going on? >> i want to thank you and your team for the hard work that you do for everybody. my question is with the great
6:48 pm
reports coming from the retail sector i would like to know your thoughts on big lots? >> i am not a big fan of big lots. they do report later this week and we talked about that earlier. i would be cautiousous.. i am not there for that one. let's go to kyle in new jersey. >> how is it going? >> i want you to know what you think of ralph lauren? >> no it did not deliver. that's the conclusion of the lightening round. >> the lightening round is sponsored by td ameritrade.
6:49 pm
6:50 pm
6:51 pm
. ♪ the moment where it feels like the market might be rolling over or taking a serious breather. let me tell you of a stock that's about to rally over the past couple of days. r and r donnelly and sons. the world's number one printing companying with a packing company. it's the single most trusted when preparing financial statements for businesses. now for agents it seems like it might be a deline but it's been on fire delivering three straight better quarters and the stock is bailing more than a dime away and it's a 5.3 percent yield. when we reported we did a nine
6:52 pm
percent and it gave strong guidance and this is the most powerful company in an industry and why that maybe shrinking we have the flexibility to make the acquisitions and it's got a stock that's up 28 percent since we last spock to theke to the the ceo. now, let's hear about the quarter and welcome back to mad money. good to see you sir. >> thank you. >> we have the full display. i like to ask and we have to talk about the self-published books, but i got some catalogs in the mail and it's just a blow out quarter and the hardware and urban outfitters and that's an troe poll ji and for heaven sakes we're glad that we have a catalog. any chance that the catalogs can make a recovery? >> yeah i would tell you that
6:53 pm
they have not gone away. the catalog is something that's getting you to that electronic device. it's not a world that's going to be just digital. it's going to be digital and print. print and digital. when you think about all of the ways now that we get communicated that and how to get reached out to. some prefer the tablet iphone and the physical content. our job as a global communication service supplier is to go ahead and make sure that we have a connected experience for the customers. >> and your conference calls it's clear that you're -- when companies print a company on the channel, they're turning to you. >> yes, we built the platform that goes ahead and allows us to serve the customers. we know that they have a situation to where they go ahead and reach out to you when you want to be reached out to you. it has to be the right message at the right time that has an saks take place. if it does not take place action
6:54 pm
then nothing comes out of it. >> speaking of actions taking place. it's an acquisition. you snap up before another company and that's an aggressive act. what's going on? this is an acquisition that sleeping publishing company that's not so sleepy that you decided that you had to have. >> yeah there's more of a story and they have unbelievable customer base that they have served so well over the years. they have modern equipment and a talented workforce and as you think of the capabilities that we have to add on a digital front, it's a perfect strategy. >> is this the company that you use the you're a formal writer? >> they have the ability to do that. all of us are authors so they can play in that role as well. >> another former book that we tend to not have are religious books.
6:55 pm
they own that market. >> yes when they have a great customer base for years, we're excited of having them come on board. >> i love the company as they are, but people that are smarter than are saying maybe they should grow off a business. make sense or keep it under the same roof? >> well we broke the business into four seg ms and publishing retail services and variable print and international. we know that shareholders do not have a lot of time to spend and see where the hidden jewels are. our services do have great financial logistics and it's something probably seven years ago the team we went ahead and said that we need to have an infur structure to deliver the product. that's grown into products and services that deliver print and washing machines. we do not have drones but we can go ahead -- >> yeah, you have a full service
6:56 pm
and make mad money calendars. one last question your capital allocation. you're making money now and other than a big acquisition dividend is so big and it can grow after nowing down more debt. >> yeah, as you have seen in the ten or 11 years it's $14 billion through the dividend and internal so we're excited ability it. >> everyone though that the stock has not moved and that's why it's a bargain to me. >> we agree. those that want income and growth, this is it. do not buy an oil stock because they may not have the income. this company does. stick with kramer. ♪ help northern china reduce its reliance on coal fire heating plants and prevent 60 million tons of co2 emissions?
6:57 pm
when emerson takes up the challenge it's never been done before simply becomes consider it solved. emerson.
6:58 pm
6:59 pm
it held the $52 level and i say to be care flg of the group. many of the companies are doing offerings and i have to tell you that i do not trust the stocks even as i think that crude are power the way back to 53 and 54. not much higher but there's a supply. i am not a buyer of the oil stock. i promise to help you find it here. i am jim kramer, and i will see you tomorrow.
7:00 pm
>> narrator: in this episode of "american greed"... everything about miami businessman claudio osorio says "trust me." with jeb bush on his board of directors, hillary clinton at his home, and nba basketball players at his side, osorio hustles his way to the top. >> here i am with the president-to-be. what other seal of approval do you need to show the world "i'm legitimate"? >> narrator: cleverly playing to charitable instincts in people he sets up his victims to unwittingly sell his lies. claudio osorio pretends to be a humanitarian entrepreneur. but he is not nearly as good as the company he keeps.


info Stream Only

Uploaded by TV Archive on