>> pete, final tray. >> fcx, giddyap. >> dividend is out, ge is good >> thank for being here, scott, you've the man element vs >> it's been a pleasure. k for having me. that 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 cram america. other people want to make friends, i'm trying to make you money. my job is to ed kuwait and teach you so call me at 1-800-734-cnbc or tweet me @jim cramer.
when the market gives you a chance you got to do some buying, unless we're talking about a stock and company that's in decline, then you got to take advantage of it. critics today with all three major averages, record closes, dow gaining 85 points, s&p gaining. and nasdaq climbing at 100%. you have to take the negative to get the best buys. that confuses a lot of people including you, so we'll explain it tonight why don't we start with the stock of apple not that long ago this stock had plummeted from 164 down to 150 why? fears that the new iphone would bust now it's back to 159.88. i keep hearing, there was never anything wrong with apple the whole time but the stock got too heated then it got too hated in
a compressed moment. when i asked -- obviously like a lot of other people -- so, i asked around and talked to many people i said what do you think's happening here a bunch of me pointed me to an upgrade of key bank with the profits. i never thought it's the acts in apple, meaning the acts is the person who has the best understanding of the company, sure enough, when i got the upgrade there wasn't anything in there that we didn't already apple's got excellent power planning, service revenue stream, so why did the apple stop roar higher then? my conclusion it never should have knocked down in the first place. that pull back made the stock ab
normally cheap versus other consumer product companies did you hear what i just said, consumer products companies. i didn't say tech. apple's all about the traders and investors. investors, the people who buy and own apple and don't trade it when it's down, they view apple as a consumer products good. perhaps the greatest consumer greatest company ever, ever, ever to exist. and they're comparing it with stocks like proctor & gamble, or c clorox, uni lever or crafts time we got another great example this evening
analysts have been tripping all over each other representing the stocks of netflix of late. the stock falls three points well, that's your discount boom after the close netflix beats the forecast and this cloud stock's higher another example, jp morgan they reported a fantastic quarter reported last week, i think it was the best quarter from a bank. what happens, hair trigger traders bail on the stock, not happy with the line surrounding credit card debt today, investors come in and say, this stock trade at 13 times earnings which is cheaper than the average stock like apple it has an unsell bl franchise backed up by a balance sheet. it's hard to justify not buying the stock at jp morgan
it's too cheap a great franchise. i felt the same way about city group when an analyst downgraded the stock this very morning. took it to a sell. the analyst questioned whether this company received too much trade. wondered if the risks were being factored in correctly. you got to jump at that discount because there may not be another one. it may be bottoming. that's true when you consider the city's trading about what's known as the tangle book bag which makes the stock cheap and the analyst criticism sounds --. even as i don't care for the stock, the stock of wells fargo because of the cross selling fiasco, i know what it looks like when a stock doesn't want to go down anymore same with bank of america which had a beautiful quarter.
there's a case to be made that the stock of wells fargo has already been punished too much we're seeing these kinds of reevaluations all ort place, pepsi kos reported a quarter a lot stronger than most consumers. stock drops to 109 to 106 a day, traders tripped out about that when investors saw the discount they were getting in the stock they started buying handover fist now the stocks up by 13 this is a common pattern in this stock market the quick money finds things they don't like about stocks, throw them away. then the slower money, the investors use what's valuable to them to get in wait a minute, you're marking this fabulous version down but nothing's happening it's wrong i told you about it, he took it
to his cell. it made no sense to me the analyst pointed out that 3m stock had one a great deal, but he says the evaluation was too stressed to justify buying it so the jp morgan analyst make it a sell on that sell the stocks goes from 213 down to 208 now it's at 218. again, same deal sure the analyst may be dead right about a stretch evaluation but if the global economy stands strong the 3m stock may turn out to be cheaper than you're seeing it right now today the drug companies got hammered by the president. the insurance company made fortunes from obamacare. both groups were instantly pull va rised by traders.
investors used the discount to start accumulating decisions then a blink of the eiffel off followed by a blink of an eye rally. we've some somt declines in the private stock caps this isn't sears which also just is getting killed, this is marshals terrific franchise the nordstrom family must have taken -- they couldn't do it looks like there's no financing. so the retail group get crushed. ecommerce in general and specifically yes, amazon any time amazon goes against another retailer group like it did with whole foods, you can't buy the decline. i've watched the stock in the drugstore companies go down because of the fear amazon might
buy a drugstore chain. good company like walgreens annihilated. how about the stock of ulta beauty got a downgrade from stocks today worries about a slow down on sales. the ulta stock started 313 in june and continues to this day now the stock's at 193x had much more to do with rumors that amazon wants to own the stock. how bad is a retail situation. consider even -- aided by the struggle in iraq had managed to lift taking these stocks with it can you believe that, even that group has become invested. here's the bottom line, traders keep giving you gifts when they
bole and with exception of trojan horse which is retail, i think these gifts need to be taken. the opportunities are just too barn good to pass up michael in virginia. michael. >> jim booyah. >> booyah. >> caller: i baulgt a stock after the fto, hung in there, recovered nicely you gave me more info and more information. >> that's great. that's what we try to do >> caller: last week -- in the news and all the -- products identify listen looking at alternatives and i wondered what you thought about steel dynamics >> it isn't better than new courts it's going back up because of scrap steel is falling i do prefer new corp this is really a tariff story
too. let's go to eric in massachusetts. eric >> caller: hi jim how are you? >> i'm good how about you? >> caller: i'm fine thank you. i bought cvs, $40 a share a year ago. sold some at a hundred and more recently i'm wondering if i should sell or hold? >> i think you have to trim more walgreens was at 80, they did a great job. they had a goat quarter, they're getting a lot of rite aid and the stock's at 67 hitting a low. i think you got to do some trimming especially with that beautiful basis. i don't want that gain it's rude to turn down a gift in this market the traders keep giving the investors' gifts and you have to take it. on "mad money" tonight the stock market seems to be thrivering and the country's
come back is sparking a rare opportunity for the players putting us in uniform. the past few months, general motors stock seem to be racing ahead in the stock market. with interest rates rising, much of the markets focus ond the big banks but maybe people are missing an opportunity with smaller region players i'm sitting down with a ceo how after earnings the company stock is faring. stick with cramer. zar: one of our investors was in his late 50s
right in the heart of the financial crisis, and saw his portfolio drop by double digits. it really scared him out of the markets. his advisor ran the numbers and showed that he wouldn't be able to retire until he was 68. the client realized, "i need to get back into the markets- i need to get back on track with my plan." the financial advisor was able to work with this client. he's now on track to retire when he's 65. having someone coach you through it is really the value of a financial advisor.
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administration has been great for the stock market it's worth certain back to so-called, trump's stocks. everybody started to get excited about -- after the victory on the one hand the trump administration -- congress actually passing a bill, don't hold your breath the ranker between the president and congress and the president and the democrats and the president and republicans has not been conducive to getting -- even with today's pseudo love fest on the white house lawn there's no denying trump has created a much more positive sphere for business this year. businesses feel more confident about an administration that wants to roll back every regulation in the book long-term that's debatable but right now its led to a surge in
hiring and lowest unemployment rates since 2001 when businesses are hiring left and right, you want to own a stock like sin toss. c-t-a-s. not long after the election i came out and told you sin that is was the ultimate trump stock. when companies liar new workers those workers need uniforms. hence why the stock has rallied 31% since the beginning of the year let me catch you up on what the stock does, why the stock has been working and why it's not done this company gets 77% of its sales from hi uniform rental business this is where they drop off the uniforms in your workplace and pick them up to be cleaned and
repaired at the same timecrine that is also has a couple of small divisions that involve first aid, safety and fire protection problems, all the things businesses need to stock up on in the workplace christian that is was already -- before trump won the election. it's a 5100 stock. as the company has bounced back from the great direction sin taus has bounced back. company's got a fabulous management team and this is a rare business, where the executives who run things have their interest almost perfectly ashrined with -- aligned with you, the shareholder most the executives of this stock has the majority of the net worth invested in their stock. not that there's anything wrong with the ceo getting paid to do his job but it's always better when the people in charge have a
great deal of their own wealth tied up in the stock in this case the ceo of stock, scott former is the son of the company's founder. he's been running things for 13 years and done a good job. it's not something we see very often at publicly traded companies. if it means the ceo is more incentive not to screw things up aisle take it. imagine what thanksgiving would look like at the former house after the earnings this company does so right year in and year out. there's another reason why i've been pounding the table on the stock. this uniform rental industry has been ripe for consolidation. it made a lot of sense when the company announced it was buying ge services.
it's the second best stock deal closed in march, the market share has risen from 25 to 30% with the take off the stock's route density has increased dramatically remember they had to go around delivering the uniform picking them up, more clients in smaller space -- between 130 and $140 million by -- it should be a additive to the earnings starting next year that's what happened when you combine one with two the deal's already paying off. since the g & k acquisition closed it's -- the reason, sin tasz has had an excellent track record few weeks ago the company
delivered a complete blow out number it earned a buck 45 when the street analysts were looking for only a dollar 30 that's one of the largest beats of the year. even better company spanks comes up -- on top of that management raise the full year sell and the strength here isn't from the g & k deal, although that's going very well. the stock gave us an 8.3 organic growth -o i don't have many companies that have low single digit growths. the stock has run so much it's not cheap. it now sells for 25 times next year assessments by comparison, the company's closest competitor, air mark, which did some nice acquisitions this morning, sell for 17 times the next year's number we have to use the price -- do
apples to apples comparison. i argue the stock deserves to go higher was when you consider the earning will get a real boost next week. while this stock is a terrific trump stock, the truth is it's simply a terrific stock period, with or without the white house behind them this company's done amazing thing. regardless of what happened in washington i think the company gets a great up side its pulled back a tag today. the stock is -- than it is about washington and the possess misk swamp that refuses to dry up and go away. watch more "mad money" ahead including my take on general motors is the company driving up the ranch towards transformation or driving off a cliff. and the u.s. stocks are bouncing back, should you be
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the last dozen years i hope i've gotten a point across to you. the point is that the stock market is often just a big fashion show stocks always coming in and out of style just look at the stock at general motors for years gm was totally in favor with the fashion show. for 2013 for most of the year it turned out like a bomb out of stock. gm gave you decent yield ranging from 3 to 5% depending where the stock was but that was it. for everyone else it's a complete snooz fest with little or no growth and we buy stocks because we want growth gm got little attention from wall street. it was the definition of uncool. this stock has broken the rally since 25%. like wide ties general motor was out of stock for years
in 2017, the white ties made a big come back and so has the stock of gm. this thing has gone from $35 two months ago to $46 a day. it is absolutely beloved by the analyst community that's so long have spurned it. they've been falling all over themselves to upgrade gm shares to at least raise the price target the stock has been updated by bank of america, disturb bank, merrill and bark barclays. analyst at citigroup, it tie in who -- came out and said that gm would potentially rise as high as $141. that's the coverage you might expect from a cloud stock not an
auto maker what is behind the -- has the stock just gotten started or is it going to peter out. let's get through the possible reasons. some of the strength here is obvious, the hurricanes, especially harvey which may have wrecked a half of a million cars in houston hard remember until the storms there was a widespread beleft the auto companies has peeked something. cars are insured so you get the check and buy a new one. this doesn't explain why everybody's in love with gm stock. harvey's just one event but positive for gm. let's look at the numbers. company report in late july was nothing to write home about.
after 4% declined in june, 15% decline in july. company posted a 5.7 increase in august and 12% increase in september. imagine saying the third quarter would be weak and the fourth quarter would be better. okay, what are the analyst who have embraced the stock said, when the bank -- think short-term rentals geared towards young people and uber drivers. the car sharing business alone could be worth $30 billion that's $20 billion per share i think that's way over done but i'm telling you about what got people excited not long after a bank posted
a -- i'm quoting, the vehicles will be ready for commercial deployment without human drivers much sooner than expected. within quarters, not years end quote. that's shocking. most people thinksing th -- thig this is a 2020, 2021 thing, earlier. if presently -- now basing our price objective on the higher end of range of historical values this was another hybrid call they're enthusiastic about autonomous driving and electric rick cars. quote, gm is more of a -- end quote. what else. there's so much need -- there are some other things happening that could explain the change in opinion.
gm's been reconstructing its international business on top of that, earlier this month gm told us it's rolling out two new electrical vehicles and these will be the first of 20 new electrics by 2023 none of this explains why gm stock has gone from zero to hero in a matter of months. everything i mentioned helps but none of it gets at the real issue here real reason i think for sudden love, you're witness a reiterating of gm shares by the analyst and then notice l chang in the the investor space. investors figured it was known as a value trap, they were worried the company was in secular decline and you can't pay up for a stock for that's
going down the tubes like i said before, the darn thing traded like a bond and no one expected the share price to go anywhere. however in recent months, the attitude has changed and gm looking like the swan without the discover now investors and analyst are willing to give gm credit, benefit of the doubt for its new -- these have all been in the work for years and talked about for years. some sort of inexpensive tesla with a lot less growth but a lot more credibility has burst on the scene. there's now a decent case -- just good value going to growth. then when the stock broke out of $40, people realized the stock was going higher, then we see thrush of upgradings it's a virtuous cycle up
gm still trades at 7.5 earnings. far from over, still one of the cheapest ten stocks in the s&p here's the bottom line what we see in general motors is a good ole fashion rerating by both the analyst and buy end side the stock is cheap for years and a lot of the big initiatives going that a lot of people don't care about people are ignoring vehicles electric car sharing are forced into the spotlight the stock start growing back into the stock with a bigger evaluation i think the shift has only gotten started any dip will now be officially used as an opportunity to buy, not sell the stock of the once hated general motors michael in my home state new jersey michael. >> caller: what's going on
cramer >> a vicious vicious weekend this weekend what's up? >> caller: well i'm a new trader, i got a company in new york, master king music company and i started trading. i like tesla and i was curious what you think about it? >> tesla's a cool stock. there's 2,000 stocks i've inclined on the show if i tell somebody to beat it they're going to say it's ridiculously overvalue i have closen to punt on sesste. i've punted it, nailed it on the six. anybody that wants can it have it there scott in new jersey. scott. >> caller: hey cramer this is a michigan go blue booyah to ya. >> wow, it's been a little rocky but basketball season's about the start soon what's up?
>> caller: i recently bought ford and honda based on the hurricanes and the thesis that first honda and ford also and still are trading at a discount for the high of the year ford makes more trucks and honda has its new ridgeline likely to be popular i wanted to know what you think about this >> i happen to like the stock of honda. ford was downgraded by a whole initiatives that are occurring are going to take a lot longer than mr. hack it, i think initially felt or certainly wall street wanted it to happen much faster i do not like ford, i go prefer gm very much it just keeps coming back to tesla, when i talk about gm with people today all they say is hey, how about tesla there's just no tesla out i
seem to resonate what about region bank how'd they do, the company delivered at 2 cent from a 30 cent basis some people felt heavy news were -- revenues were weaker they pay on your deposits and you pay them on your loan. commercial loans up 11%, deposits up to 9%. frost stock has been up the entire year and the company was in the middle of making acquisition. so could this stock could be ready to get its groove back checking in with brian gordan the chairman with more about his company and where his company's headed mr. jordan welcome back to "mad money. >> good evening jim, thanks for having me back >> brian i wen over your numbers and i'm thinking this used to be the kind of thing we'd get from
bank stocks. slow and steadily are growth in loans. and yet people still seem to think that the banks are not invest bl in opportunities they were before the great recession. aren't we now doing better than we were before the great recession? >> yes, i agree. one, i think the economy has continued to move along. you expect the banking industry to move 2 or 3% better than you'd get in terms of kpik growth in terms of invest ability i think it's more invest bl with the safety precautions have been put in place as a result of dodd frank. i think it's more stable than it was say ten, twelve years ago.
>> let's talk about job growth we get these numbers and people will say, i don't know where that job growth is and then i look at tennessee. where are those jobs being created? >> well, you're right. tennessee is extraordinarily balanced economy and it's doing very very well in this recovery. west tennessee tends to be influenced by distribution, fedex is obviously here in memphis, mid tennessee has a big healthcare presence and an economy centered around nashville. on the east you have the service of the manufacturing here on the u.s. taking hold anywhere from johnson vil to chattanooga our work force is stable and in tine you have a favorable labor and tax regulatory environment we think it's going to be at or about above national trends for the foreseeable future
>> let's go over what the new regime looks like. we got the federal reserves taking up rates. we also have greater clarity with mr. -- versus say mr. thank you rue low about how banks could access themselves head of the tank does this make you feel more optimistic as a banker >> yes, i am two things, one, as you and i have talked in the past, regulatory reform has been important for industry and you're starting to see that with the leadership changes at the fed and the occ. you're starting to see the pendulum swing back more to the middle and, you know maybe we get some legislative change that comes out or amendment to dodd frank i don't think that's as necessary today with a regulatory reform coming from the occ, the fed, the ic and state regulatory action. i think it's more balanced and
it does make it an easy environment to serve your customer, serve your communities. essentially a bank like ours is a community facing organization. it's a community bank with a larger balance sleet and this environment with this regulatory shift is going to be positive for us i'm very encouraged by it. >> you're making this big acquisition where you talk about how you're not necessarily ready yet to have big investments in artificial intelligence and labor reducing technologies. once you complete the acquisition it'll be time to bring this in and shaave a lot f money for your shareholders? >> clearly the technology faces or industry are significant. they're going to require significant investments over the foreseeable future doing mergers and acquisitions like this give us additional scale to make those investments. the artificial technologies are
evolving at rapid rates. we will invest them at the appropriate time and the call as you pointed out, when i addressed it also said the relationship with our customers, the personal relationships, one on one, person to person is what makes us unique. as i said a few minutes ago referring to community banking it's about those relationships so we're not in a hurry to cut these personal relationships we will invest in those technologies when it suits the way customers want to do business with us >> i'm grad to hear you say that because a recently bank is much more in touch than if it's a national bank flying in to tennessee. thank so much to brian jordan, the president and ceo of first horizon hfm. "mad money's" back after the break.
so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! "we got a yes!" start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open.
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time for "lightening round." first of all start with nancy in indiana. >> caller: hi jimmy are you? >> i'm good. >> caller: my question is what is your long-term outlook for roku >> we think it's too expensive, the technology could have a problem down the road. that's why we're saying above 22 you want to sell the stock mike in florida. >> caller: hi jim how are you doing? >> i'm doing well. >> caller: i'm looking to invest in dte what do you think >> that's a renaissance story it's a great great utility let's go to roxy in california >> caller: booyah, big shout out to you and your team i love your show >> the team is unbelievable. we got some visiting stars back too. what's up?
>> caller: hey is home depot a buy -- >> yes they don't realize the volume of business from florida and texas will last for months the nay sayers don't have it chris in new york. >> caller:booyah jim thank you for taking my call >> of course what's beginning on >> caller: i'm a young millennial investor i believe the internet theme is the next big thing. long-term do you think cisco is a buy, hold -- >> it's a buy long-term. the company's been saying a lot of changes won't hit home until 2020 in the interim you're paid a nice deal. and how about the millennials who watch the show, right? millennials who love to invest, they invest in robin hood, they're doing their homework,
educated judge in arizona >> caller: booyah from southern arizona. thank you for what you do for us >> thank you for listening and watching what's up? >> caller: i bought industry link about ten monthsing a before the dividends it's gone down 18% since i bought it. is it still a safe stock >> i'm not a believer, i'm a believer in verizon, t-mobile, at&t and sprint. beyond that, i don't believe and that that ladies and gentlemen, conclusion of the "lightening round. i was having a good round, and then my friend, sheila, right as i was stepping into the tee box mentioned a tip a pro gave her. no. yep. did it help? it completely ruined my game. well, the truth is, that advice was never meant for you. i like you. you want to show me your swing? it's too soon. get advice that's right for you. investment management services from td ameritrade.
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if you're going to dream up the ideal stock for this more environment you want it to be an artificial intelligence based cloud company that can help further ecommerce particularly end payments while delivering a product the last mile to a house being rebuilt in texas and florida. interesting how these characters keep popping up and then the reaction in today's market red hat, they come on our show every quarter. this company burst on to the scene as a key enabler of any cloud strategy from the private cloud to the public cloud it remains the unsung winner in the cloud wars
auto desk surfaces, another stock that fits the bill a subscription base for software design manufacturer and you name it then there's nvidia, a company that's does everything that matters to the car company it's got more people excited right now, a new chip that trumps all the others. that's the whole shooting match which is why nvidia keeps blowing through levels and consolidating. giving back some basing and announcing all over again including today in one session how about the amazon complex which includes ups and fedex the stock seems -- the data center real estate investment trust so -- ecommerce, you know we prefer corp sites
xpo logics work and pay processer, paypal. the stock of net flicks deserves the artificial cloud too the ones that are particularly hotter are the ones that do social, mobile, artificial intelligence, the internet of things and the cloud the micron led the way but be careful of surges tomorrow, that company bled the group down after reporting quarter last group around the sell off was a mystery and turned out to be wrong i'd buy both lam and apply materials. meanwhile, texas instruments keeps getting it right it's your sleep at night semiconductor stop way ford seems complex, the stock keeps going higher
emmerson, eaten, pattern ner hamathon, anything looks like them can work. it's incredible what value there is in industrial space especially for those companies connected with minerals. you find one you got to hold on for dear life. but you know what, those are all minor courts it's this. when you look at the hottest stocks in this environment, the major theme is the cloud everything else principles in comparison in october we anoint what's going to work between now and the end of the year. and your looking at it stick with cramer. s here.
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tomorrow plain. great. so what are we gonna watch? oh! show me fall tv. only xfinity x1 brings you the best hand selected picks this fall. >> welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. if they hear a great idea, they'll invest their own money or fight each other for a deal. this is "shark tank." ♪ my name is stephan aarstol. i'm 39 years old, and i live in san diego, california. i've always been what you might call a-a geek, you know, i got good grades, i was on math team. i've kind of always played things by the book. coming out of graduate school with an m.b.a., uh, you're sort of groomed to go in a--a certain direction towards really corporate jobs,