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tv   Mad Money  CNBC  February 9, 2018 6:00pm-7:00pm EST

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>> carter? >> exxon for a bounce. big name that's overdone to the downside. >> mikey >> the spike in the vix is an indication we might be oversold. i think you can buy some here. >> have a good weekend time is up i'm scot my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends. i'm just trying to make you some money. my job is not just to entertain but to educate and teach so call me at 1-800-743-cnbc or tweet me @jimcramer. worst week since january 2016.
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20% of stocks in bear market territory. $2.5 trillion lost you have heard it all. now i just have to keep in front of you that much of the selling we saw today was deeply related again. made by clueless money managers who expect things remain calm as they had for ages. in the end, we rebounded today dow rallying 330 points and 800 points from enter day bottom we rallied late in the day bargain hunters stepped in to save it for the bulls. how will things play out going further? let's go to the game plan next week to find out this is really important and i am going to keep my eye on funds. to see if the madness continues.
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these funds led the market down today and when they started to rebound, they took the market with them as much as i hate them they are useless and they are totally and completely utterly in charge and do not let anyone tell you ourselves the market insane reaction was field by reactors who made big bets and did it with borrowed money. brokers demanded they meet more capital. this is what wrecked the markets. this is people, the reality, now, most comment taters -- they are wrong they haven't
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worked in a margin department like i have. they haven't traded like i have. they don't have the context that i have or know about the securities that i do my mother would hate that i was that much yoob browse but i have to help you. lots of hedge funds debt that volatility remained low and they were done. things have been calm for a long time and when i say lots, you know what, there may be as much as a trillion dollars doing this. not 100 million, but a trillion dollars bet wrong and when you audit all the implicit bets, it may be higher. you can watch the process play out by following these three toxic volatility instruments
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the the uvxy and the vxx and the tvix and if they do open higher on monday, then the odds are that the bulls will have another veal bad day. that is what happened during all of the really weak moments this week and intraday today. and it will repeat itself. so put those symbols up on your monitor, they are the probable cause of the decline and tell us all we need to know at 9:30 a.m. if they open up big, we might be in the clear and now what we are waiting for is a washout where the volume dries up if that happens and the interest rates remain calm, then we will return to our regular scheduled
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programming on tuesday when the company pepsico reports. has a history of meeting and beating its forecast stabilizing the soda business while unleashing good and good for you snacks on top of the doritos. i am proud to be a fan of frito-lay. if the numbers are good and pepsico opens higher and the vix cools then we will have a nice day. i am worried about under armour i believe ceo has a chance to lead a renaissance of the company. with the stock down at 13.75, i think it is running out of
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downside ong wednesday cisco reports. more important i think the recent acquisitions have enabled cisco to become a -- who can resist that juicy 3% yield and marriott gigantic winner i bet they are going to have a terrific quarter which is why i recommend buying any marriott last time reported we got a sensational number and the stocks rallied the entire semiconductor -- is a winner down here at these levels worth nibbling on going into the quarter. i mentioned this morning that i told club members that it was
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time to do some buying at least into weakness today. we were waiting to apply some of our stock hoard. and we did just that we expect that waste management is going to report an excellent quarter thursday morning i think waste management is a good name. construction drives the most trash. and friday we have our biggest quarry of earnings, coca-cola, kraft times and deer coca-cola has a new ceo and when the stock comes way down by the way, that is a great level to buy historically. kraft heinz has been a huge
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stinker. deere stock has pulled back. and after years of pain management deere has become adept. promising synergies and good times ahead. eight total and unmitigated disaster and now former ceo has teamed up with the activist fund to try to throw out polk and the board and let franklin take the reigns now he wants the whole kit and ka boodle. if the company can report a good quarter on friday, maybe he keeps his job. they will toss polk out.
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the fix busters are still in charge you need to see these pieces of papers calm down and calm down now. if they don't, if he they don't stop, no common stock is safe. if they do, we should have a huge relief valve like we did this afternoon and now, you know how to play it ara in ohio. >> caller: booyah. i am calling about honda motors a stock that has been treading water for years now. they do differentiate themselves they are growing briskly in china, gaining motorcycle market share and about to enter the personal aircraft market will honda stay in low gear or accelerate >> i am not a big fan.
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the auto stocks are really dead. please stay away from ford by the way. craig. >> caller: digital reality trust and your impression on the server read space. >> rates are going high including the good ones like you just mentioned marvin in california. >> caller: yes, sir. >> you are open. >> caller: i have a question about shopify. was that off the earnings per share you were talking about the ten points. >> i thought there was a short seller, i thought he made a good case that shoppi fi cold come
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down if it wasn't crushed by this selloff, i don't know what the heck will do it. a lot of it is a big short and squeeze when it goes down. the fix busters are still in charge if things calm down, you know now how to profit. is it time to dig through the rubble for buys. i will have some of the ones i like bond market could impact your money. i am going to break it down. and one of my favorite that could bounce back. and by the way, the bounceback started today. i will reveal the name just ahead. stick with cramer. >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail to or give us a
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. don't let the sea saw nature of this market fool you. as long as we keep getting slammed by hedge funds that are going wild are now being forced to sell stocks in order to pay back their brokers it is going to create bargains like we had today before the late afternoon rebound bargains can still get cheaper i don't want to say the pain is over but you should prepare for more days like today remember, we have seen this movie before the last time the market got crush like we have seen was january 2016 and it turned out to be an epic buying opportunity. as the market rally 10,000 points over the next two years, you need to be systematic with your bargain hunting.
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and i want to go over the ten big decliners. how to recognize opportunity and to profit. general electric, what are we supposed to do with this dog having fallen victim to the ceo. now the chairman of athena health good luck with that one. the analyst community is even more enraged i think they are being too negative in creating a buying opportunity. it is hard to say. who knows what the obligations are. so i don't blame anyone for despising the stock. this thing is like a frankenstein monster when you over pay, you can't just break up the businesses there is too much debt on the
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balance sheet. i think the stock would be much higher ge needs one thing and only one thing and it needs oil going higher unfortunately it is going lower. not only does it lose. but i am not saying that about oil. for now, i am saying you need to stay away from ge. and second is chevron. this stock made no science when it was trading at 173. even with shv ron down 15% it is still not attractive you don't want to own a big integrated oil when money managers have turned on the entire cohorts
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next is intel. the darn thing trades at 12 times earnings, no longer just the pc but also the data center. that said, nvidia has been my favorite while is nowhere near as cheap as intel. if it gets hammered again, it will be worth buying nvidia is king and intel is bishop caterpillar has become a momentum stock when you hear people say the market is too high and it went too high too fast, cat has become exhibit a stock was 62 years ago and now it is 149. sounds like no man's land. fifth is exxon unlike chevron, exxon didn't go
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to ridiculously low levels i think you have to be discipline on this one you have to just say no and even though exon wasn't as high as chevron, it can be lower number six is j and j. the actual best earnings genera generator is abbvie. th of all the stocks pfizer is least interest of me it makes a game changing acquisition to boost the growth rate while i am at it, merck doesn't
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interest me either 3.5% yield how about 3m tough. i think the world of the company but the stock got too high versus where i would like to buy it but with that said, i sat down with a rare interview, i think there is too much new product here to ignore maybe get more as it gets lower, you will agree with me after the interview and finely apple down from 180 falling to the mid-150s some of my thesis feels like it is built on quick sand, my take is it is counter intuitive but whip around the big boys so i say buy apple here and then
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wait to see if the futures can crush it down to 140 where you can buy more will it get there? i don't know in this tape, anything is possible as long as hedge funds betting against volatility need to unwind its position. of the ten business decliners we like intel, j and j, 3m and apple. all attractive and they get more attractive as the hedge fund goes wild continue to blow out other stocks in order to make capital. once the force selling ends, the names i gave you will roar there is nothing wrong with these stocks other than they went too high. that is being cured every time they tick lower. scott in texas. >> caller: booyah, jim fly eagles, fly.
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>> indeed. >> caller: i followed your advice in your book getting back to even using call options i have had success with companies of any signs of weakness i bought them three to five-month out the money, do you recommend getting out of these now? >> no. as they dip more all three of them, if you have to do another strike down and a month out. you are in winners there do the opposite. when we have a down day when interest rates go up or more vix. you need to be systematic about your bargain hunting and the pain might not be over be prepared for more days like this
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over-the-short-term the market might be low i am sitting down with a ceo of a company that rallied don't miss my sit down one industrial player could be worth considering despite the unknown. stick with cramer.
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and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse your house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your home. ally. do it right. i will say this as many times as it takes. the extremely short-term action in this stock market is controlled by hedge funds who borrowed money to bet against volatility that are now being margined out by their brokers. but the bigger picture involves something more important and that is the ten-year treasury. the rise in treasury yields a
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week ago is what got this whole negativity ball rolling. i think the foreselling by investors in these vix related trades roughly half the decline in fact the last time the yield and ten note treasury ticked up 10% we got crushed bern acke said he would temper in a normal requirement this wouldn't lead to a decline we have a bigger deficit in part because of the corporate tax cuts that will not pay themselves we have the absence of buyer from china and saudi arabia. we could really use their buying
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power. we have inflation building in the system wages are going up and in part because of the corporate tax breaks we have a shortage of labor in many industries particularly trucking and home building raw costs that are climbing including aluminum and chemicals. we also have amazon keeping coast down as retail and we have oil going down which helps keep bonds from reaching 3% but is inversely regarded as negative for the stock market. false construct but it does believe that we have done a lot of work on the correlation between stock and bonds. in a word, yes when interest rates go higher, bonds become more attractive as
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an asset class and obviously a risk-free 3% from treasury is better than risky 3% dividend stock. inflation is the really reason why rates are going higher rather than this being a product of the government issuing more bonds then there is a problem for certain for stocks inflation makes what we call long dated assets. the value of the stock is based on future earning streak so what does it all mean even when the volatility trade that i have been talking and tweeting about year-round and it is going to be we still need to worry about interest rates it is going to trigger another round of selling in stocks the tvix for the volatility and
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the tenure for the interest rate what goes down must come up. the raw cost in wage levels be tame including clorox on the raw stuff. the selling onslaught will stop and you will wish you bought some stocks right here let's take some calls. can we speak to david. >> caller: pins and needles booyah professor cramer. >> what is going on. >> caller: the chinese amonnound they would stop buying treasury bonds. do you think the announcement from the chinese is a precursor to trade wars. thanks for taking my call. >> yes, and yes, and yes the chinese are trying to show
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displeasure with us. the lack of buying power has hurt and i think the chinese are cutting their nose off to spite their face those that speculated there would be no increase in volatility will put pressure on the market but i assure you, what matters more are the bonds and if they do go down in yield and up in price, you would wish you had bought stocks. stick with cramer.
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you know what tends to bounce back first from the intense selloff we have been experiencing high quality plays on secular growth themes that we know are good we know proof point is doing well because they reported tuesday and it was a robust earnings higher than expected sales up 36%. earning guidance was a tad conservative, management raised it even as it started bouncing back
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this afternoon, finishing up 4.5% still getting that fabulous quarter next to nothing. it is the kind of thing you might want to have on your shopping list. let's check in with gary steele ceo of proofpoint. now you are processing over 5 billion e-mails a day. who can possibly do that. >> the great thing is that visibility and insight helps us better protect our numbers plus thevisibility we have today gives us a really sb interesting and unique position as we think about cybersecurity. >> you did this acquisition from
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wam bat. >> with wam bat we can do similar attacks. >> it makes so much sense. i know the big banks target each other war games. this seems to make it so they don't have to do it. >> we make the process of simulating attacks automated and we can do that with an automated system that improves the overall education of air user base. >> when we talked in san francisco i would say i get these e-mails that look just like amazon, or so and so. you now have brand threat analysis that is stopping people from doing that. >> we look at everything coming in and analyze it and do our best to ensure we don't deliver those messages at the end of the day, who is
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being targeted is those individuals. they figure out something about you and compel you to click. >> they are so smart i am glad you guys are smarter now you are pretty competitive you talk about in this most recent conference call which i loved that microsoft office 365-bundle not a lot for clients. they want a step up, they want proofpoint. >> we are proud of the results that we posted for q4 and all of 2017 move into the cloud. people are taking their on-premi on-premise capability and moving it to the cloud. it is driven by the constant landscape that we live with every day. >> why can't microsoft do the
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same thing >> i think we can deliver incremental value because of the visibility we talked about, the focus that we have and i think more importantly, the cyber attackers are always testing a microsoft environment. it creates a very high bar for microsoft. >> i wanted to check in with you on whether people, i was on a panel with you, and people are still using cyber attacks and for ransom, they want crypto currencies, is all of that going on. >> ransomweare is still hot. >> i thought we beat this thing. >> one of the things that is interesting, is as cryptocurrency is in vogue and everybody talks about it, cyber criminals are targeting individuals that have cryptocurrency you can create a mining for
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cryptocurrency everybody has a little compute power that could be allocated towards cryptocurrency mining. and cyber criminals follow the money. >> you scare me, but you protect me i appreciate it and you have a great story to tell gary steele ceo of profpoint "mad money" back in a minute
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in drug stores nationwide. prevagen. the name to remember. >> announcer: lightning round is sponsored by td ameritrade it is time it is time for the lightning round on cramer's "mad money." [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." starting with george in ohio. >> caller: hey, mr. cramer, how are you doing? >> i am doing well, how are you? >> caller: well, i'm a little bit screwed up because i got very infatuated with a stock that i learned about from you robotics and i bought it
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and i sold it and i made a good deal of money and then i bought it back and i went against my own advice when my son said to me, dad, you are up substantially, sell it. >> that's a good narrative, mazor is a good stock and i like it here. bob in massachusetts. >> caller: hey, jim, thanks for what you do and congratulations on the eagles. >> thanks. what's up? >> caller: the reason i called, a few days back, you were talking defense stocks lockheed raytheon, what about kratos >> that is good. but why go with this little dog? garrison in georgia.
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>> caller: how are you doing, sir. i am a newly investor, and i was wondering with roku? >> you are being given an opportunity, i have liked it i like amazon. i like it at 15, i like it at -- no i like amazon. david in new jersey. >> caller: what can you tell me about this stock >> i need to do more i don't know sorrento. i know sorrento the town we will do work. how about mark in pennsylvania. >> caller: hey, jim, i want to know about teledoc. >> many people coming into that
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segment and let's say ixnay tella doc. >> caller: my stock today is ware rower >> i like the story be careful it is going down with them i like them. jerry in florida. >> caller: hello, mr. cramer thank you for all of your hard work. >> oh, geez, thank you very much. >> caller: i like orrios and cadbury, but i am not sure if i cadbury, but i am not sure if i should stay with and that ladies and gentlemen, is the lounds. >> announcer: lightning round is sponsored by td ameritrade
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it's easy to talk about the big picture forces that makes you feel like this market is tossing you around like a rag doll at the end of the day there are a lot of high quality companies that are doing very well and their stock gets cheaper as they get lower take 3m. it is an innovation machine that
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is constantly coming up with new products it can take market share and big profits. when the company reported two weeks ago, it delivered a fabulous quarter while it can go lower, of course, it is the kind of stock that belongs on your shopping list if not in your portfolio. we got a chance to check in with the chairman and ceo of 3m an honor to have you on "mad money. all of a sudden we got stock market that is nutty and something fundamental to fall back on and here we have the ceo of the company that may be the embodiment of fundamental. >> thank you for the compliment and thank you for coming to minnesota. first of all, i think it i important that you have a play
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book in place and we have had one in place for many years and the way we look upon it, is we have three key issues that we work on to create more value for shareholders and for customers portfolio is one research and development is the second and business transformation is the third one. those three elements are creating more value as we move ahead for shareholders and customers. >> let's talk about this notion of innovation, people are looking at what you have and extrapolating. >> we have something called new product and that is somewhere around 30% of the product selling today. >> there is no company that has that >> i don't think so. i would be surprised
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first of all, a robust model to connect with the mark and we have two innovation models and one is called customer inspired innovation and one called idea to innovation. if you think about customer inspired innovation is where you work directly with the customer. and the other one, idea of innovation is about market you then have 46 technology platforms that is owned by the company. everyone can use it. and with 8,100 scientists we can then create value for customers as we move ahead. >> let's talk about i know a lot of companies use your product but a lot of individuals use give us an example of the idea factory and the ones you directly solved for the consumer has produced.
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>> what most people know is the consumer space we have other products which is going into global trend around clean air. so respiratory products et cetera, which is a huge opportunity for us particularly in asia. we work with consumers going to panels and then develop respiratory products that are based on your face >> the truth is you are dominant in china i don't know what the people would do there without you. >> i can tell you one thing, when i visit china, it is very difficult to get off the respiratory products so real brand equity in china is around our respiratory product and what we do in air and in water et cetera. but that is
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very important. >> something matters for the environment which you are ahead. people know about scotch tape, but where are you? >> we have been in the auto motive industry for a long time we are in the electronic industry, and we are in global leaders of 18 years of traffic safety if you take those elements together that is where we are going. we can capitalize in traffic safety not only vertical signage but license plate. electronic and energy is specifically an electronic we have an incredible
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competitive position and in auto motive, that is around 6 billion addressable market with a growth rate of 8% to 10% and we are now growing that business around 15% to 20% if you combine the three elements. >> when everything is booming industrials get that kind of growth but all of the products don't have anything to do with the boom bust nature of the economy. >> we have worked with our portfolio very hard to make sure there is less volatility in the market two businesses have done a fantast fantastic job, electronic and
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technology -- >> let's talk about portfolio management at various times i find 3m off loading something. but it seems like whatever you bring in is better than you have >> i think six years ago we looked upon fundamental strength of 3m. and it is technology platforms manufacturing capabilities and graphic rich and brand equity. if you take those elements and look at your portfolio you have to decide, can you find value around it. i find many businesses inside 3m did not meet those criteria. we are company, as you know, we grew 5% organically, with 25%
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margin our expectations is very high. the business could not meet at least three of those four elements, they will be better off with a different owner they are smaller, the margin lower and not growing fast and we couldn't create value so we said that is not a personal issue it is a business issue they can go somewhere else at the same time we purchase businesses where we said on those four fundamentals we will create value very fast and you are right, bigger, performing better and more profitable and the relevance for us in the market is significant. >> people are nervous and people want to know dividend safety are companies really buying back stock. is this something that just
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started? 3m embodies all of those why not go over the 100 year record. >> i would say one thing that i think is important if you think about a bell curve, think about the bell curve where you say in the middle is the ceo. very important on the left-hand side you have people processors and things that are better. on the right-hand side you have different. you need to move things from better to different. because on the different side is where the real value creation is that is where you create premium return to your shareholder and premium return to your customer. so you need to move that to the right hand side. 3m, we have done that for over 100 years. for 100 years 3m has consecutively paid dividend. for 60 years consecutive
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increase dividend. and for the last five years double the dividend. and last quarter you saw increase 16% and 3m's best days are still ahead of us. >> i am going to leave it at that i love that tone admire your work my fire was a rep for your company and i admired for 60 years chairman of the board and ceo of 3m one of my absolute favorite companies. thank you so much. >> thank you very much
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oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies see it- and see it through-with digital. . >> if you see nvidia, this stock, not the dog, down at all on monday, i would buy it. why? because it was the best quarter so far of twenty eighteen. i like to say there's always a bull market somewhere. i promise to try to find it just for you right here on "mad money. i'm jim cramer, and i will see you next time!
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