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tv   Mad Money  CNBC  November 12, 2018 6:00pm-7:00pm EST

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>> doesn't hurt my feelings. >> final trade. >> america. >> b.k.? >> mcdonald's. >> tim >> boeing. holding up. >> all right, "mad money" starts right now. thank you. >> way to go, joe. >> thanks, guys. my mission is simple, to make you money i'm here to level the playing field for all investors. there is always a bull market somewhere, and i promise to help you find it. "mad money" now. ♪ hey, i'm cramer. welcome to a very special veterans day edition of "mad money. welcome to cramerica other people want to make friends. well, i got a loft friends here
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with me today. my job is not just to entertain, but to educate and teach you so call me at 1-800-743-cnbc or tweet me @jimcramer. you would think we might get a reprieve on the first session avenue veterans day, especially when it's the 100-year anniversary of the ceasefire that ended world war i but no, today went right back to the trenches, and not just any trenches this was a meat grinder. dow plunging 602 points. s&p plummeting 1.92% the nasdaq, the nasdaq nose-diving 2.78%. now the thing in today's action are surprisingly simple. money managers are buying the winners. >> buy, buy, buy >> and selling the losers. [ buzzer ] >> there are a lot more winners than losers, and i want to put that into context. such behavior is highly unusual this close to the end of the year so what's behind the dramatic decline, and how can it be stopped? what could make this market
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bottom well, we need to see seven things before we get a sustainable comeback, and i'm going to give you the list first, the largest capitalization company in the world apple needs to stop going down it's a tall order. on the conference call we heard that the company will no longer be breaking out the number of iphones it sells in a given quarter. then we learned of large apple quarter cutbacks skyworks solutions last week, good company, and momentum today. skyworks is integral to the nuts and bolts of cell phone sales. a lot of their stuff will pile out if you ever break over a cell phone please don't momentum is all about facial recognition, the kind that apple uses after today there is no denying that apple has some sort of problem selling some of its phones it is china? is it developing world is it here in america? we don't know. maybe it's nothing then again, maybe it's something. the question is what's the solution i think the solution is what i call price at some point, the stock will pull back to a level where the
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service revenue, plus the overall love for apple's phones caused buyers to come in judging by the ferocity of the decline and the fact that the stock is still falling after the close, upwards to $11 in total we aren't there yet. second, the fang stocks, boy, i created that thing and it can't find its footing that's right facebook, amazon, netflix, alphabet, they need to be able to stabilize these names used to be the market leaders they represented a huge fraction of the market strength now they are the epicenter of the weakness of this market. facebook may be doing okay at this point, but the company is still tainted by its rapacious action they need to start behaving better to put this stuff behind them to bring in someone from the outside, an adult, to clean up their mess they're not doing to do it, which is too bad i think they're making a big mistake. amazon has done nothing wrong. in fact, i think their business
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is doing exceptionally well. but they gave a downward scope when they spoke and it kiboshed everything netflix is hard. it's hard because the idea of basing the stock price on the company subscriber growth, it seems like it's disappeared. netflix needs to go still lower before the incredible subgrowth will matter again. again, price cures it. see, i got to say, alphabet is the biggest conundrum here they have more than 100 billion in cash. they own search. they own the self-driving car market, at least for now i think it's an outright buy, but no one cares all this will start mattering at some lower price, though people are too negative about alphabet and i bet the baylor bears come to regret selling it. we need fed chairman jerome powell to admit that he is winning the war against inflation. ideally, he should announce it in december when he does the next and i think the necessary rate hike. we do need that. he should say at that point, you
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know what? rather than have three more rate hikes in 2019, why don't we wait a bit? why don't we wait a bit and see what happens he needs to be prudent even better, he could tell us that he doesn't want to be the reason why we are thrown into a recession. he's not said that either. powell does not need to say that rate hikes are off the table he just needs to say he sees concrete evidence that the rate hikes so far are working to tame inflation. and they are the price of oil is plummeting, off another dollar in change today. and that is another source of persistent inflation home sales and home prices are starting to go down because mortgage rates at 5% so let's say you own a house with a 4% mortgage or less well, you're more than likely to stay put because it would be a big jump up in mortgage. your interest is going to go up a lot. a weaker housing market may sound like not that bad a thing, right? but don't forget, powell thinks it is his job to slow the
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economy in order to prevent inflation. to be fair, that's part of his job, just part of it, though but the way the fed tames inflation is by slamming the brakes on the economy so that wages stop rising. you know what? i think that's ill-advised who cares if we have a little more inflation as long as it means that people who work for a living can finally get some much needed raises. unfortunately, the federal reserve cares. i think it's misguided fourth, we need something good to happen with our chinese policy, some sign that china will cooperate and gray agree to stop acting in bad faith when it comes to trade when we admitted china to the world trade organization, the idea is they would liberalize their economy, which they have sort of done, and maybe democratize their institutions, which they haven't done at all the problem with the trade war is it's not a trade war. it's really a policy over containment. and why would the chinese agree to being contained if you listen to vice president pence, who is the leader of
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this, it sounds like he wants regime change in beijing so maybe the white house doesn't really care about making a deal. maybe they just want to marginalize the people's republic still, i don't want to rule out something good happening a the g20 meeting happening next month. why? because the chinese economy is slowing much faster than people realize. and when the tariffs increase next year, it will hurt them more than it hurt us many american companies are frantically moving their orders to cambodia, to thailand it's a huge drain on the chinese economy, and it's accelerating but it's possible the communist party would rather wreck their own economy than be seen bowing to america fifth, the dollar, the dollar. the dollar's got to stop going higher stocks trade based on earnings estimates. the strong dollar, which continues to accelerate versus pretty much every other currency seems unstoppable. that's bad for the earnings of most companies so despite the lower energy costs, the earnings estimates for next year are still too high it is a real headwind. six, the flight to quality must
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end. right now almost every consumer good stock, kimberly-clark, clorox, they keep growling it's a bad sign. this says money managers are hiding in stocks that do well in a recession. finally, g.e the stock needs to bottom, for heaven's sake. this morning my colleague david faber pull ed larry cole. he is the ceo. all i heard it's going to take a lot of time, a lot of time and then a lot of time if that's the case, why own it worse, why not sell it the bottom line, some, if not all these things had to occur, something has to occur before this market can find a sustainable bottom everything else is just a phony false floor not to be trusted. let's take a question, sir it's on you. >> ba-ba-boo-yah, dr. cramer. >> thank you >> and thank you for everything that you do for all of us sitting at home watching your show. >> well, thank you for serving >> i have a question about amd
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>> sure. >> with the news coming out that they're getting into business deals with amazon. >> sure. >> into the cloud sector, intel's issues with their chips, do you see them gaining significant market share in the technology sector? and if so, how -- how do you think that the stock can do? >> this is a great question, sir, because the answer is they are taking great market share. they did not have a perfect quarter last time, which is why the stock only went from 34 town to 20, and then it dropped to 18 if we did not have such a bear market in semiconductors, i would tell you to buy it right now. but they are taking share. and lisa soviet union lisa su it job. thank you, sir >> a big boo-yah from massachusetts. >> all the way down from massachusetts. thank you for coming. >> thank you for having me my question is keeping in mind the market turbulence, interest
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rates rising and they're later in the cycle, what would you advise someone in their 50s who is fully invested in a diversified portfolio as far as backing off their investment ten years out from retirement? >> that's a really good point. look, i am older than you. i still maintain for my mutual funds stocks a considerable stock position but i also have a considerable cash position now if the market comes down i'm up to -- i'm probably 80/20, 80 stock, 20 cash. maybe you should be 90/10. i don't want to leave the stock market why? because you're earning so little on your cash but i would increase it. don't be fully vesd. i think it would be a mistake. thank you. >> boo-yah, jim. thanks for having us. >> of course, thank you. >> petty officer hudson from north carolina >> fantastic >> is there any way to hide with the current market >> well, look, i think that the issue is the word "current."
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i think that word is a kind of a not constructive word in the sense that we're all trying to think longer term. because i don't have anything good for you current i do think, though, that this market over many years will be a good one, and that there are individual stocks that are coming down, being pulled down by etfs that are going to get there, are going to be where it is going to be a good place to buy. i just can't be encouraging right now. and boy do i ever want to be thank you so much. yes, sir >> what's going on, jim? >> not much. >> i'm from the great state of iowa, and i've been watching your show since i was in eighth grade when we had an eighth grade stock market project. >> fantastic >> it's a cool moment for me. >> and people said young people would not be interested in the market untrue they know how expensive it is to go to college. they have to start saving when they're 5. >> exactly. >> my question is in regards to china, and i know it depends on the specifics of the deal, but what sectors would you see get a major lift if a deal could be completed?
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>> well, it would be the huge industrials that do so much business with china, the big international companies like the united technologies. and then, look, let's just call it, apple. apple is a big one we can't trust this false floor. these seven things need to happen before we can find a true bottom i know, tall order on a very special "mad money" invest in america salute to the troops, it's one of the most iconic brands in the business and it's created thousands of jobs for veterans along the way. iowa got the exclusive with starbucks ceo to hear more about the future of the world's coffee giant. then you know what they say. there is no such thing as a free lunch. what happens when it comes to yield? i'm offering up a few case studies. and how former u.s. air force cyber warrior used his experience to become ceo of a security powerhouse. don't miss my exclusive with fireeye ceo. so stay with cramer. [ applause ]
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don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #matttweets. send jim an e-mail at or give us a call at 1-800-743-cnbc miss something head to >> this special edition of "mad money" with limited commercial cryption is made possible by boeing boeing is committed to service and thanks them for their service. boeing veterans make us better.
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i was able to turn the aircraft around ♪ and the mission around and was able to save two men's lives that night. my first job helped me to grow up pretty quickly that'll happen when you're asked to respond to a coup. in 2001 i signed up for the air force, two days later, 9/11 happened. ♪ ♪ on a brutal day like this, it's key to keep your eye on the
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prize and pay attention to long-term winners. i'm talking about starbucks, which barely got dinged today. not only are these guys winners, but they made a commitment to continue winning by hiring the best of the best roughly five years ago, starbucks made a pledge to hire 10,000 veteranses by 2018. you know they hit that target by the end of 2016. then last year the company set out a new goal, hiring 25,000 veterans or spouses of veterans by 2025. just a few days ago, we learned that they already hired 21,000 people a lot of people talk about supporting the troops. starbucks is actually doing it and hey, maybe they've got some good karma, because a week and a half ago starbucks reported a fabulous blowout quarter and sent its stock flying into the stratosphere let's take a closer look with kevin johnson, the ceo of starbucks who is coming to us from one of starbucks' military family stores in san diego to hear more about what he's doing for our veterans and where his company is headed.
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mr. johnson, welcome back to "mad money." >> hey, jim. good afternoon i'm joining you from a starbucks right outside marine corps air station miramar. so it's great to be here today >> all right so tell me about how you recruited these people to come to work for starbucks and what you're doing nationally for veterans >> well, you know, jim, as you mentioned in the introduction, we made a commitment five years ago to hire 10,000 veterans or military spouses, and we did that recognizing that the number of men and women that have served our country for multiple tours of duty for many, many years were transitioning back into civilian life, and we felt like we have an opportunity to play a role. so we put an infrastructure together to reach out and recruit these veterans and military spouses and thus far, as you said, we now are at 21,000 that we've hired on commitment for 25,000 by the year 2025.
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and i tell you, jim, these veterans make us a better company, and they make these better communities >> how hard is it to get to the vets and what are the obstacles for veterans to find jobs where you have really made a commitment to try to help all of them, not necessarily going to starbucks >> well, you know, one way we reach our veterans is we've built now 50 starbucks military family stores that are either on or near military bases around the country. and that's one place where we've hired a number of veterans, military spouses, and they have the opportunity to connect with veterans and their communities in these stores, make them aware of the opportunities that we have for them to join starbucks, and it's not just joining starbucks. it's joining starbucks with the full range of benefits we offer. health care and one of the benefits that we find really is attractive to veterans is our college achievement program that we have in partnership with asu. so we put out a broad set of initiatives to reach these
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veterans, recruit them and create an opportunity for them to transition into civilian life and have a great career. >> now you have donned the apron, as i like to say, put on the green apron and worked directly with people lou the veterans -- what are they like to work with >> well, these are fantastic people these are people work in the service of others. these are people that are mission-driven these are people that care about getting results as a team. they're resourceful. they're creative, and they're phenomenal starbucks partners. and i'm always proud to put on the green apron and serve next to one of our military veterans or military partners they're fantastic, fantastic starbucks partners. >> i would be remiss not to give you a chance to talk about the turn the turn is real, engineered by you. bought back a lot of stock in the 50s. now the stock is in theify 60s, isn't going down despite the turmoil of the market. why don't you give me thoughts on how to turn around and organization, because that is
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not an easy feat. >> well, jim, you know that this whole turnaround started 18 months ago with a whole set of initiatives to streamline the company so that we can get more focused on the core value drivers of starbucks and so, you know, with the transitions we made of a number of retail markets, with the global coffee alliance with nestle, with a number of simplification moves, we're now putting the entire focus of our leadership team, our deployment of capital into the things that matter the most. and if you look the results we've had in our two largest markets, the u.s. and china, we're making good progress there. we admit there is still more to do, but really posting some good numbers. and certainly the global coffee alliance with nestle is something that is just now kicking in and i think that's going to pay dividends for years and years to come for starbucks and for nestle. >> and you obviously believe in the organization, because you took some of the money you got from them and really were a voracious buyer of the stock in the low 50s because you believed in your team >> well, that's right, jim
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when you're driving a growth at scale agenda and the stock price was as low as it was, we were very aggressive in buying that stock because we believe in starbucks as a brand we believe in the strategy we're on, and we're now delivering against that i think shareholders have seen, that and i think that's part of what caused the stock to move so much here over the last week but we're playing the long game. and so much of this buying back our stock is the acknowledgment that we think we've got one of the world's most admired and trusted brands and we have the right stratd. >> over the next several years >> we have so many problems every day it seems with china. you've been there. starbucks is a huge employer what is the temperature that you see between the united states and china? >> well, you know, jim, i was in china last week and spent several days in shanghai and had the opportunity to really connect with a number of key leaders and business leaders and our partners in china. you know, and certainly we
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operate in 78 countries around the world. and so we deal with geopolitical situations all the time. you know, we're not immune to them, but because we really have built starbucks in china for china, it really is operating as an entity in china that's relevant to the consumer, to the culture, and we're playing the long game. so we haven't seen any significant impacts from the geopolitical situation between the u.s. and china, but that said, we're not immune, but we're going to stay focussed to our plan and execute and play the long game. >> you know, let me ask you about business versus government, kevin. it seems like right now business is playing more of an ambassadorial role than government itself. and not just in the united states, but around the world business is a force of good, isn't it >> yeah, i think so, jim i actually think the relationships that we have with our partners in china, starbucks partners in china, but also chinese companies. i did a partnership with the
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alibaba group, you know, china's largest tech company, and the relationship i had with daniel and their leadership team is phenomenal and we work together to find solutions. well work together to find things that are win-win for both companies and for our customers. and so i think by engaging with sort of an attitude of optimism and how can we collaborate to great create a better environment for all, we can find great paths forward. >> last question do you get asked by a lot of people is your former ceo howard schultz going to run for president? and we sure wish he did. that a constant question to you? >> you know, jim, i get that question a lot, and i think howard has been very clear that he's evaluating a range of possibilities for this next chapter in his life and i always leave those questions to howard, and i stay focused on starbucks. >> well, and that's probably why starbucks' stock has been so
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great. i want to thank you for everything you've done for people who have served for our nation thank you so much to kevin johnson. he is doing a fantastic job and doing it with the men and women who have served our country. thank you, sir "mad money" is back after the break. [ applause ] this special edition of "mad money" is sponsored by boeing. boeing values the hard earned skills that veterans possess veterans make us better. while i was recovering i realized that i was one of the lucky few who had been given a second chance. today i'm embarking on a new mission with boeing, reaching out to veterans, showing them that the values and skills they gained in the military are precisely the things that make them valued employees. ♪ ♪
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i am a techie dad.n. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.
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♪ after a nice rebound over the past couple of weeks, this seesaw of a market started getting pummelled again. in a volatile environment like this one, we're always searching for stocks that can give us some kind of stability.
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stocks that we can hold on the for dear life and buy more of in weakness but how can you do that when you can't trust the day to day prices well, you can always go after companies with good dividends. a 4 or 5% yield may not seem like that much when kwloouf gyo stops up and then going down they can compound. you take your dividend, reinvest it in the stock and now you're earning dividends on your dividends. albert einstein famously called compound interest the eighth wonder of the world. it will give you phenomenal returns, even if the stock doesn't move very much at all. a stock with a 6% yield will double your money in 12 years, even if the share price stands still. but in this is the world's biggest but, you need to be very careful when you're chasing higher yielders for einstein's compounding effect
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you might think investing in companies with huge dividends would be the safest thing in the world, but it's not. the risks are enormous if you don't know the pitfallious need to watch out for and that's what i want to tell you about tonight. because a big dividend is only worst having if the underlying company can actually pay it. look what happened to anheuser-busch recently, the global beer titan that trades under the sim you believ b-u-d b-u-d-d. or general electric, who stocks that have been pummelled since their cut their dividends, with g.e. falling to the lowest level since the financial crisis as much as we love dividends, they're only worth chasing after if your payout is safe so if you want some income from your stocks, you need to watch out for red flags. you need to watch out for the one i just threw at keith, my cameraman. i told you many times to be wary of stocks with sky-high yields when you see something sporting
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an 8% yield, it's often an sign that investorer believe the dividend is about to get cut so they sold the stock down, and that pushes the yield even higher but there is another red flag for you need to watch for. the thing that doomed the payouts from bud and g.e. and debt and lousy fundamentals. you can't rely on them to keep paying consistent dividends. why don't we do this why don't we drill down to what's happened at bud and g.e., and maybe i'll typical you what else i'm worried about anheuser-busch has been in a tough spot for years the company built up a mountain of debt thanks to a series of major divisionacquisitions, thet recent being miller. ill became clear that the beer business was slowing, especially in the united states in the u.s., it's in outright decline. so bud decided to seek its
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growth elsewhere, doubling down on emerging markets, places where bud wiser is seen as a premium brand. but a couple of weeks ago the company reported a not so high quarter with weaker results across the board worse, they rebased the dividend, which i guess is management speak for cutting it in half. suddenly instead of 5.2% yield, it had a 2.7% yield. why? because bud has $109 million in debt the problem, less than 25% of bud sales come from the united states and the dollar, which has been very strong lately, which i said at the top telephone show means all of their sales in euros orrer pesos vu to translate and translate into fewer greenbacks. bud does a lot of business in latin america. in some ways they're like a troubled latin america government think argentina. the sixth largest market when the argentine peso plummets, they need to take severe action to keep paying their dollar denominated debts
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no wonder the stock got pulverized all right. how about -- how about general electric the tragedy here is that it's taken the company so long to fathom the full depth of its problems between an ugly power business and some horrific long-term care insurance policies that they sold for a pittance many years ago, among many other suboptimal decisions, g.e. is indeed in trouble. the former ceo john flannery cut the dividend in half a year and a half ago after flannery was let go and the board brought in larry cole as the new ceo, he realized that the problems were worst than the company had acknowledged and he slashed the payout down to a penny per share in order to shore up the balance sheet he should have raised equity when he had a lot, offering a lot of stock he didn't. this was totally predictable i know that because we predicted another dividend cut back when g.e. seemed to have a 4.3%
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yield. many investors got burned. hopefully not you. so what other dividends might potentially be in danger i can think of one company that shares characteristics with bud and general electric, and that's a household brand, craft heinz candidly this company hasn't said anything they might be willing to cut their dividend, and i don't think their payout will be in danger in time soon i'm saying it shares characteristics with other stocks where the dividend has been cut i'm not sure i would sleep easily at night if i owned this stock. for one simple reason, the company is starved for growth. it sports a 4.7 yield, but not so high that it suggests we need to worry about its safety. but craft heinz has a lot in company with bud for starters, they were both created when 3g capital orchestrated some epic mergers so when bud slashed its dividend, that was a yellow flag
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for kraft heinz. they sold 20 million shares in august that's not a very confident sign second, the company has a lot of debt, $32 billion, which is substantial for a $65 billion company. worst, kraft heinz has $3 billion in debt due this year and they repaid it by borrowing more money and doing that in the future will get increasingly expensive if the interest rates keep rising and we're seeing a shift away from core products in center of the aisle of the supermarket. that's where the millennials don't go natural, organic, the stuff is not. the bottom line, there is no such thing as a large dividend you can take for granted just like we saw with bud and g.e., a hideous balance sheet and slowing fundamentals are a toxic grow burrough that can put your dividend in danger. if you want income, watch for that, or you might just get burned let's take questions. >> hello i'm private first class toni walker from lakehurst, new jersey >> i hope you enjoyed the show
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my friend stephanie link said she had a great time. >> my husband is a former apache instructor pilot and when he retired, i joined the army, and i joined at 40 so we did a shift change. >> that's fantastic. thank you, both. >> thanks for your support [ applause ] >> so my question is this. about two years ago tried to wean myself off of sodas, and i know you said to buy stock in things that you buy. so i started buying sparkling water. and i bought fizz. >> you bought fizz >> about $45 a share and this year it's gone up to about $127 at its highest. but lately with the publicity on the lawsuit against them with them having saying that claiming that there is insecticide, a chemical which is actually created inlab and is naturally in blueberries so they're just saying that it's
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not with the bad publicity should i hold it i know pepsico is making bubbly. so i was going to sell it and buy pepsico. >> look, i love pepsico and i love coca-cola, but i like what you own too. you do have a big gain no one ever got hurt taking a profit you seem to know the risks more than i can tell you maybe take some off. the other two are good too thank you. yes, sir >> yes, jim. big army hoo-ah to you. >> done your way. >> i'm looking at an index override fund that pays 7%, but i'm comparing that to a growth dividend stock such as american water works. pays 2%, is growing, and with the water waste/water services being required going forward, what do you think about that one? >> i like american water works very, very much. there is nothing wrong with a mutual fund that gives you dividend power i think that's terrific. but in terms of an individual stock that is safe, that has done a miraculous job where the
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compounding is good, american water works is excellent thank you. yes, sir >> boo-yah, jim. frick frederick, retired army, connecticut. >> thank you. >> monster and coke both came out saying there was an arbitration case. >> yeah. >> monster tanked. what do you think about that the -- >> sir, i was on that call, and i got to tell you, suddenly i found out that coca-cola was allowed to compete with monster many europe. i was always thinking that maybe monster was going to get bought by coca-cola monster is a sale. what can i say it's just a sale and i liked it for a long time in this seesaw market, i know stability is what you crave, and that means you go for companies with big dividends but remember, dividends are not always safe, and do not take them for granted much more "mad money," including my conversation with the ceo of fireeye. how the company is protecting your data from the new war front in cyberspace.
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then, the market dropping today, trying to figure out who is making the calls when it comes to averages. i'm investigating. plus, our nations hero -- well we got a very special "lightning round." it's a salute to the troops event on "mad money. stick with cramer. [ applause ] lieutenant here coming to you from djibouti. i want to give a shout out to family and friends back home in syracuse, new york and say happy veterans day to everybody. boo-yah! >> this special edition of "mad money" is sponsored by boeing. boeing values the lard earned skills that veterans possess veterans make us better. ard of. researchers of technologies that one day you will.
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some call them the best of the best. some call them veterans. we call them our team. i was very nervous ♪ but we were able to save a couple of lives so it was pretty rewarding. ♪ ♪ ( ♪ ) there are a lot of struggles that many service members go through in terms of how to properly translate the skills that they acquired in the armed forces. boeing's investment is going to directly impact over 200,000 transitioning service members. ( ♪ )
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♪ boy, it's tough out there, but i'm here to keep you focused on long-term themes. and on our veterans day, tonight is our annual salute the troops episode of "mad money. and since we have a military audience here, i want to talk about one of the fastest growing businesses related to national security it's called cyber security i know that sounds a little lame compared with the real world security, but in a world where no country is dumb enough to fight us head on, they hit us where they can, which is often over the web in the past year researchers have spotted a new family of industrial control malware it's called triton, something specifically used to hack our infrastructure think power plants and the
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electric grid. last month we found out it came from russia, and we found out because of fireeye, the cyber security with the best forensics in the history when you get hacked, they're the ones who find the culprit. their report a couple of weeks ooze was excellent let's take a closer look with kevin mandia who served a as a computer security officer in the 7th communications group at the pentagon and later as a special agent in the air force office of special investigations where he worked as a cyber crime investigator after founding mannedia, he took over as ceo of fireeye not long after they bought his company. mr. manned yarks welcome back to "mad money." >> jim, how are you? it's great to be here. >> thank you so much for coming on let's get right to it. we are here with an audience of veterans you obviously have a tremendous history in the military. i want you to say what does it bring to have people at fireeye who have worked for the military >> sure. well, first i want to thank all
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the folks that are in the military today, serving the nation it brings so many things, jim. i can tell you so many times when i'm approached with a challenge at work, i remember the phrase is beaten to me by the sergeant saying attention to detail, mandia so i've been yelled at enough and beat up off in it teaches that attention to detail, it teach es leadership. there is a difference between leading when you're managing between win and lose and when you're managing between profit and loss and thing is a great lessons to be in leadership from the military >> whydon't you tell us exactl your progression in the military, because the positions you had are very hard to come by >> right >> what did you do to keep getting promoted and what should other people do who are in the military who want to follow your career? >> well, i can tell you there is a time and rank that you have to do but when i got staged into the pentagon, first, it i was a second lieutenant.
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a second lieutenant at the pentagon is kind of a rare thing. and i didn't really pick computer security because that was my dream job i picked it because i thought it was the best of all the choices i had. i was lucky enough i was given choices as a computer science person, and i picked computer security but i wanted to blend computer security and my knowledge there with forensic science. so i cross trained into the air force office of special investigations a fantastic career loved what i did for the military quite frankly, i really still would be in at the age of 27, 28 we didn't have many conflicts. it was 1998. i was given an assignment that didn't quite marry up with my skills at that time frame, so i chose the private sector, really with a short window to do so but i respect anyone in uniform today, and i can tell you the military, i wouldn't be here in the position i have if i didn't serve. >> and how about how trustworthy people are from the military, given the fact. >> absolutely. >> you're in a job where you really don't want the people to switch to the other side.
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>> not at all. i loved hiring out of the military i started in company in 2004 called mannediant. it was a self-funded startup the majority of employees were coming out of the military well gave them a great home. they had the expertise we needed it was going from serving your nation in uniform after you took the oath to quite frankly to defending the nation in corporate america. and now we defend a lot of nations globally >> let's talk about defending our elections system nobody knows about how people have tried to tamper with our elections like fireeye i know that you found out about the iranian influence. tell what's you saw about this election. >> right well, i can tell you, first off, we were armed and prepared for this election, and that's across the board. that's fireeye that's industry. that's the operating system companies. that's the state officials everybody was shields up,
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borrowing the old "star trek" term for this election and so far i haven't seen anything that would impact this election and its outcome but it was fantastic to see fusion centers started, dhs, or department of homeland security was deeply involved. there was all kinds of task forces we worked together i feel the elections are pretty darn secure from my perspective. let's put hit the way. if something did happen, we would have seen it going to the influence operations, though, that's the concern that we all should have. it's very hard on an anonymous internet to police that to make sure that not only are we getting truth in what we're being told, but also getting truth about people's identities. so it's going to be hard for us to combat those folks that want to influence in the hearts and the minds of the american people in an inappropriate way. >> okay, so kevin, can you speak to us about something that i happen to be with some people who are comp side people who worked in self-driving and were
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were saying you know what? the most dangerous thing we can do, the next frontier is if we have self-driving vehicles, self-driving trucks. >> right. >> and they're hacked. >> right. >> and i said we have great people in cyber security who can stop that. but this is something i know personally i'm concerned about where is fireeye in this >> well, i can tell you all of industry is thinking the more you live connected, the more you got to safeguard it. but more importantly than just safeguarding we cannot always be on defense and that's why we've always had the theme it's going to take technology and people to safeguard us in cyber space. i've added one theme to that, jim, and it's dipdiplomacy we have to have international rules of engagement. we have to have nations that during times of pieeace that if they don't abide by norms and behaviors we hoed them accountable. >> how do we hold putin accountable for what he has done >> well, at some point you got to believe -- you pushed the
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envelope too far there has to be a line where neither side wants to cross it but it is my opinion that since about the middle of 2015, we've seen several nations escalate their aggression in cyberspace and we have to figure out as a global community who is going to be in the boat to behave a certain way, who is not going to be in the boat and for those nations that condone activities that are unacceptable or even unauthorized or unlawful, their citizens are going to have a very different internet experience >> well, look, i want to thank you for your service i want to thank you for the amazing job you're doing for shareholders at fireeye. that's kevin mannedia, and kevin mandia has done a remarkable job as ceo of fireeye. thank you so much, sir "mad money" is back after the break. [ applause ] hi, i'm specialist nick buck from kuwait wishing everybody a happy veterans day boo-yah!
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this special edition of "mad money" is sponsored by boeing. boeing values the hard earned skills that veterans possess veterans make us better. keep fe from a wall of fire. at the patrol base we hear this enomormous boom coming close by. when hurrican andrew hit while i was in the air force we helped a lot of families rebuild their lives. ♪ we helped a lot of families rebuild their lives. life didn't always look like this. i didn't grow up in a good area. when i decided to join the military, i told the recruiter, "take me as far away as possible." i served on a 283-foot long ship in the bering sea. the number one thing to know is that you're there to serve. at boeing, it's no different. i'm using the knowledge and experience i've gained throughout my whole life to inspire people to have new ideas and think differently.
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that's something that's everlasting.
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today's senior living communities have never been better, with amazing amenities like movie theaters, exercise rooms and swimming pools, public cafes, bars and bistros even pet care services. and there's never been an easier way to get great advice. a place for mom is a free service that pairs you with a local advisor to help you sort through your options and find a perfect place. a place for mom. you know your family we know senior living. together we'll make the right choice. welcome back to a special veterans day edition of "mad." take a look around i am surrounded by the bravest and the greatest >> happy veterans day. >> happy veterans day. >> happy veterans day to all my fellow brothers in arms. >> boo-yah
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>> i think it's important to thank all of the brave servicemen and women who have risked everything to protect this country, who favor service, selflessness, team, and brotherhood. every now and then it's worth remembering that some things are more valuable than money [ applause ] >> and now, and now it is time for a very special edition of "lightning round." cramer's buy, buy, buy. >> sell, sell, sell. >> buy, buy, buy. >> sell, sell, sell. >> and this sound. [ buzzer ] >> and then the "lightning round" is over are you ready, skee-daddy? it's time for the "lightning round. let's hit me >> boo-yah. >> boo-yah >> thank you for everything, jim you have out the me. >> thank you >> my ticker -- i'm larry from california, and my picker is pi. >> okay. wow, i just looked at this the other day. this one is way too crazy for me in this market, i want you identification rfid, not this
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one. don't buy, don't buy, don't buy. >> yes >> from new york i need your help, jim. what do i do i bought roku at $32 >> okay, roku, you're still okay it is coming down because it's one of those situations where what's happened is the markets no longer likes these very high multiple stocks. i would sell half and then see what happens, okay because it really did have a good quarter it was not a bad quarter yes, sir >> i am sergeant e-5, u.s. army. >> thank you >> i've been trying to ask that question for 18 years when you were kudlow and cramer buy, sell, or hold cypress semiconductor? >> i think cypress is way too loaded to give up. i think the quarter is going to be okay. people don't like that group, but cypress is doing well, and the management is excellent, and you can pocket that dividend yes? >> boo-yah, jim. >> boo-yah >> my name is joe marco. >> excellent. >> ticker siac what are your thoughts on that >> oh, my, i like that military
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provider and i think it's really terrific i tell you what, i don't understand why that company is still public i think it's only a matter of time i want you to stay long. i would even buy it right here. >> from fairfax, virginia. it's fallen to fast, what are your thoughts on micron? >> no, not cheap yet as soon as the estimates are cut, then we can look at it. until then, it can continue to go lower yes, sir >> hello, jim. big boo-yah from north jersey. knowing that real estate is pulling back, what do you think about real estate development company avalon bay community >> you know what that is doing well because people are having a hard time being able to afford a new home. that's why it's doing well i think it's a good stock here yes, sir >> thank you, jim. lucian vic from north carolina >> okay. >> my stock pick is prudential, pru. >> i like prudential here. i like the insurers. we are in a deflationary environment. the feds got it right. and i would day -- >> buy, buy, buy >> yes, sir. >> my name is dave and i'm from
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new jersey, philadelphia eagle territory. >> you bet and where my grandparents used to live. go ahead. >> i'd like to know your thoughts on eaton corporation. >> i think eaton is good the quarter wasn't spectacular, but it's a good industrial you tro deal with the fact that europe is teetering on recession. but all that said, i would hold it for the long-term management has done a good job yes, sir >> hey, jim, bob from new york long-term fan. very long-term investor. >> okay. >> i know you're lucky if you buy at a bottom and sell at the top. if you're a long-term investor, is this not a good time to start nibbling on nvidia >> yes, okay and nvidia reports on thursday i think the quarter is going to be just okay, not crazy. the next quarter is going to be a product gap. answer is i agree. i buy a little before, a little after. do not make a big commitment, but the stock is in free fall but i like your thinking >> jake from new jersey. i was wondering where your
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thoughts are on exxonmobil. >> you can't go wrong with exxonmobil but oil is probably headed to low 50s or high 40s and may be able to pick up little bit more. you can buy some now and some later. but the 11 straight days of going down is not a good sign. yes, sir >> my name is john conway. i'm from seton hall. do you like the sap merger with qualitricks? >> i think trying to stay in the game, stay realities with salesfers. i prefer salesforce. i'm going to talk about it wednesday and why it is good, not as good. yes, sir >> yes, sir, jim my name is chatham, an iraqi war veteran from new jersey. my question is on -- vno. >> oh, wow, very interesting the first time people have asked than in a long, long time. here's my issue. coronado simon property group,
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kimik co. bno is right this guy, steve roth who runs it, see tough. i like him. >> hey, joey from staten island. what do row think about mcdonald's >> oh, man, mcdonald's is probably best in show. we had a meeting this morning with my staff, and i said if that stock comes down -- >> buy, buy, buy, buy, buy, buy! >> but it doesn't want to come in doing a great job. and that, ladies and gentlemen, is the conclusion of the "lightning round." [ buzzer ] [ applause ] >> hi, my name is marcus bowling stationed at afghanistan fourth infantry division i'd like the give a special veterans day shout out to my great grandfather who served in world war ii and my father shawn who served in desert storm >> this special edition of "mad
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money" is sponsored by boeing. boeing values the hard earned skills that veterans possession. veteran makes us better. honor and integrity have a very immediate meaning. i've taken those same lessons with me for over 20 years at boeing. but it's those lessons you internalize that make you a better teammate. and boeing is a company that knows that. ♪
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♪ the confusion on a day like today is palpable, and it leads to a horrific market why? because we don't know whose doing what and why for example, while the rest of the market got obliterated today, people were buying the
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consumer packaged good stocks. why? is it because inflation has peaked or is it because they believe a recession is in the offing utilities hung in there. was it because interest rates have peaked or fed chief jay powell is going to throw us into a recession. did people sell tech because it had peaked or because china, a huge market for tech is slowing. there are so many different ways to interpret this kind of action that it's awfully hard to tell what anyone is thinking, let alone identify patterns that you might be able the use to game the market so let's try to figure out the motivations behind these moves we have seen oil lead most commodities down, and that dive continued today. too much supply is really coming to the market, especially with our country ramping up its exports. that could be a good reason why procter & gamble stock, for example, has been running, because it's a huge consumer of energy i could say the same thing about clorox, another wheel. but it doesn't explain why people are buying the food company hormel i mean, that's a bid of recession or at least a slowdown you could read the rally that consumer packaged goods reads
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the same exact way still, whether the cause is lower commodity prices or a slowdown caused by more rate hikes, this group does well. how about the cyclicals? unless we get a deal with china, these stocks will start doing badly because of china that's right so many of the industrials need the china economy to re-accelerate. but can that happen without a trade deal that does away with the tariffs? i doubt it, which is why the group is getting more and more suspect. tech, very, very tough the semiconductor stocks, a lot of them are in free fall the tech is connected with china, it acts terribly, and fang, oh, my, it acts absolutely the worst of all both tech seems very dicey given the chinese slowdown and the four more rate hikes the federal reserve plans for us but put it together and you get an ugly picture, hence today's heino heinous sell-off the toothpaste stocks are going higher the other strong cohort, health
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care that's not good either the buy-ing in health care has been voracious and that's one more signal that the slowdown bay be on the horizon. it's ugly. we need to see a trade deal with china or some sign that the federal reserve will wait and see before it hits was more rate hikes next year. the problem? we've been getting weaker for some time and the fed doesn't seem to care they're still very committed to the destroy the economy in order to save it approach. we just have a to hope the fed will recognize the reality of the situation and stop tightening after december. but increasingly, that's an awful lot to hope for and is looking as an impossibility when it comes to economic peace between the united states and china. and so another special salute to the troops, well, our show comes to a conclusion. i want to thank all the men and women who have served and are serving. i want to recognize someone in the "mad money" family, our director brian russo who served in the air force and the ee dries case who serves on the national guard i want to remind you that these shows started because i was and am so proud of my dad who served
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with the 6th army in the south pacific. i was always so thrilled when he would come say hi and talk about what the war meant to him. here is there is a bull market somewhere. i promise to find it just for you right here on "mad money." i'm jim cramer, and i will see you tomorrow >> narrator: in this episode of "american greed"... in grand rapids, michael vorce has money to burn. >> he was going to bars and tipping $1,000. he was buying expensive clothes, up to $20,000 at one visit. >> narrator: he drives fast cars and fast boats. >> he'd load the boat up with girls and go out and party. he was living the lifestyle. young guy, lots of money, throwing it around. >> narrator: he says he has a fleet of more than 50 luxury yachts. he has the papers to prove it.


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