absolutely worth a look. >> guy in. >> mr. softy, think they are going to reach for it. >> interesting. >> our thanks to bob peck of sun trust for manning the conference call on twitter for us. i'm melissa least. see you 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. 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 money. my job isn't just to entertain but to educate you. call me at 1-800-743-cnbc. or tweet me @jimcramer. i want to do something tonight that shows i'm a washed up has been on this, my 50th birthday. hey, give me a break.
when the show started i claimed i was 61. it was better to be a young-looking 61 than an old-looking 50. yes. on still one more day when the market was all over the place the dow seeking a hundred points. nasdaq .35%. i want to talk about the old fashioned notion of judging companies not by what they are, but by what they can be. consider the walt disney company. disney reported much better than expected earn ings. to quote bob eiger, i am thrilled to report that the performance was the single greatest quarter in the history of the walt disney company and a start to fiscal 16. he said revenue is up. net income up 32%. adjusted earn ings up 28% to a buck 63 which is the highest quarterly per share ever. and the tenth consecutive of earn ings share growth. our long term strategic focus in
investment and brands and franchises are drawing value in the businesses. with this good news how much did the stock go up today. three, four points? wrong. in fact, it plunged. it lost more than three bucks or 4% today. [ booing ] >> it hit a new low of 86. now in heck is that possible. how can a stock like clorox with meager growth sell 26 times earn ings while disney sells less than the average stock in the s&p 500. how does hormel, the maker of spam, trade literally at twice the price to earn ings multiple of this amazing company. the answer on wall street is simple. much of disney's growth comes from espn. though ieger tells us 95% of americans with a bundle watch sports with 81% of those viewers
watching espn which engages more than 200 million adults across its platforms. the fact the espn doesn't have as many people watching over cable as it used to. that's all the analysts care about. just listen to the questions in the conference call after the presentation to see how laser focused the wolf pack analyst community is on this one issue. almost nothing else mattered. not the theme parks, the "star wars" down the park. not pirates. it got so bad that a respected analyst on the call asked eiger maybe it would be better to split the company to nonneed wra side. get it away. bring them value. i almost fell out of my chair. eiger was too restrained and said i don't want to talk about separating the assets. when you go on disney rides, it's two years after the movie
and disney has to do with the integration of the business. eige r and i share birthdays. the old guy looks younger than i am though he's are from a younger vintage. disney works because it is under one roof. a disney divided won't stand to paraphrase another great guy with a birthday two days from now. when i was a hedge fund manager i, too, would have pronounced disney dead. why not? eiger talked about an uptick in subscribers but didn't give us details. i would have laughed. i could have said if the up tick is so big, show me the money. otherwise shut up about it. i would have viewed this babel about "star wars" video games, disney cruises as dodges for hiding the real flaw of the company. the rise and tragic fall of espn. back then i would have thought eige r should accept defeat gracefully, not talk about the
future. espn is all that matters. read mickey mouse's obituary, bob. get a grip. i'm not a hedge fund manager. i'm a guy who tries to think long term. it is true espn was slowing. i know that it's important for 2016 earn ings estimates and people aren't watching entertainment the way they used to. then again when i think about how many times disney has been written off over the years i have been invest ing whether because of the bombs of john carter or tron which signalled the sun setting and the movie studio. including abc by other channels or the tired nature of the theme parks that were played out at one point. nothing new under the sun. i remember when i thought the company would collapse under the previous ceo. each time disney reinvented itself through pixar, marvel or "star wars." through the rise of espn and the leverage ing of the property.
when you have capital, cash flow and reputation that disney has you can reinvent yourself. even if espn is falling off a cliff which it isn't. all ma mattered was the next quarter and maybe i think about the quarter after that. if there isn't an up tick in subscribers and slowing in the degradation of espn why not short it. there is no interest short term. the package is too expensive for many to afford. those have to come down. there are too many ways to watch that aren't lucrative for the company. i watch espn on the cell phone. there aren't many derivatives we don't need. too many big sports contracts they paid out fortunes for. the stock has come down huge. it got great value from pixar, lucas film and the wall street community had a gu faw about each one including the over pay. i was there when it happened for lucas film. a price that would be halfway
paid by this time or the first "star wars" runs its course with many more behind it. it was a steal. hopefully there are more laughable deals coming. maybe there is something else out there that can replace the shrinking rev new stream that's espn or the stream that was abc or snow white or mickey mouse or whatever. i don't know where it stops going down. disney doesn't have much protection. it could increase the payout and become a high yielder. it has so many opportunities. i don't know how much the earnings will be hurt when it comes to how much money espn is going to get per subscriber. i know this. at a certain point soon disney stock will be trading as if it is a big dumb cyclical rather than fabulous brands like procter or colgate but with more growth than the packaged goods and cyclicals combined. calling every day after the close of the market asked how i
could be so stupid as to own disney. don't worry about how the next quarter could be disappointing. you are thinking of the next year, two, three, five or your kids or maybe their kids. you can short disney until the cows come home if you are a hedge fund manager you may make money but the decline from 122 to 88 was the one you were supposed to get. or acknowledge that eventually the cows come home. when they do, you will want to own it. i would start a little bit at 86. buy it down slowly but surely. it flies back and you have some at a great price for an investment. that's what matters for you. not the next 2 million, 4 million or 10 million lost espn subscribers. long term, disney is going higher. i forgot what a 61-year-oldle fool i am. who cares about the long-term. george in florida, george. >> caller: yes, cramer, boo-yah. >> boo-yah. >> caller: my question is carnival cruises. it's had excellent growth.
22% since december especially with the buyers. >> this is -- i hate to put this deadly to boel but this is similar. the stock is down to 2.76% yield at 43. you know arnold donald. he's come on the show. i wish he'd come back. great guest. it's down 20%. just buy it. you put on half today and the next bit of bad news you buy the other half. it's ridiculous. mike in delaware. mike, mike, mike. >> caller: hey, jim. i'm 28, just starting a new job and going to be invest ing in retirement for the first time. i heard to invest in cbi and cbs, but with the market how it is i'm nervous to invest. should i invest in those? >> i love the question. cbi is too rela lalate tos foss
fuels. cvs which is charlie victor run by a fine merlot and is doing well. the stock reported a great quarter. i would buy that. don't be afraid. buy 25% of it now. say you want a hundred shares. tomorrow buy 25. 90, another 25, 85 another 25 and at 80, buy 50. buy in stages and admit we are all fallible. andrew in florida, andrew. >> caller: hey, jimmy. happy to speak with you again. what an honor to wish one of my heroes a happy birthday and also say i share a birthday with you. >> oh, my god. you have to come back and go to bar san miguel tonight. we are celebrating with the from a diavolo shrimp dish. it's good. >> caller: my question is about mcdonald's. i am of two minds on it. you say nobody got hurt taking profits but i see how well it's held level s in the market-wide
downturn. do you think it's been consistent because of the safe dividend a la clorox or it has room to run with increased sale s in the states and most recently japan. >> this is an unbelievably good question. i think i believe in easterbrook and it will go higher. the fact that it didn't go down big in this exactly as you said. exactly as you said. if it's telling you the stock isn't going back 108, 110 you buy 50% of it here and then hope it comes down. i bet you get that and not much more. all right. hakuna matata. disney has the magic long term. you have to think long term. on "mad" tonight, call that is the cell phone business peaked. has it been overly punished? i have the ceo. then 211 ipos in 2015. this year we have had two. head scratch. i'm telling you why the public has had it with ipos and the
largest hotel company in the world reported winnings. windham worldwide at lows. we talk to the ceo. 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 email@example.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
right now the conventional wisdom is am has peaked. as much as the market views these stocks with fear and loathing we have to take a more considered approach. not just because of the new iphone coming out this fall. at the same time a great many people would be eligible for upgrades from wireless providers. look at skyworks solutions.
the maker of high performance radio frequency and analog chips for cell phones, tablets, cars, wirelessle networking and various industrial and military applications. sky works is seen as a play on cell phone components, particularly for apple. the stock will be down 20% year to date up nearly 50% from its highs last summer. a brand new low just today. sky works just reported less than two weeks ago. the company delivered off 1.58, revenues that increased 15% year over year. growth margins expanding. those are good numbers. management indicated the next quarter might be lighter than usual thanks to weakness at a major customer. wonder who that is. i have to wonder if the stock has been punished enough. let's look at david altars of sky works solutions. to get a sense of how the
company is doing. welcome back. >> thanks for having me. >> commence volume shipments. first mass production vehicle communications gm. flag ship sam sung launched nest. i could go on and on. these are 2016 highlights. when would they mean more than one particular customer and that customer's window where it is not making cell phones. >> well, thanks. that's a great question. as i think you know we were an early mover in taking and deploying technologile that we perfected in cell phones and wifi and connectivity into a host of iot applications and vertical markets. we are in the home or nest thermostats, smoke detectors, google and roku entertainment. we are in lightbulbs, continuing to round out the portfolio.
they are operating over multiple frequencies with lots of communication bands and we are able to simplify that with the scale and breadth of technology. make it easy for the consumer and easy for customers to integrate the technology. it is 25% of re new today growing year over year. it will continue to outpace the market to become larger and larger component of the business. >> how do we get the story other than in your great and transparent deck that you are a play on gaming, 20 hours a month. streaming music. standard def video, high def like hbo and espn and 4-k video, netflix. you might be the best play on netflix other than netflix. >> i think thanks for saying that. we are in google devices in the home. we are in virtually every high speed stream ing entertainment device, gateway inside the home in the enterprise.
all the devices needed together and the complexity of knitting those different solutions together in the home whether it's speakers, television, security monitoring systems. they are all operating over different frequencies and in different modes. sky works, better than anybody in the world is able to simplify that in concert with customers, make it affordable, make it small, make it consume less current. i think equally important, drive high speed reliable high speed. that's going to continue to be a big piece of the business. >> you mentioned something important to people at home. extend i extending we didn't say we want to be an iot player or smart vehicles, vehicle to vehicle or in the connected home or machine to machine. we are solving the problems we had to solve with the kre lou lar and smart phone customers for new companies entering
markets that have never been connected. if you look at it as a rolling hub, all the devices and connectivity is something we could play a major part. that's a bigger part of the business. >> it's like you're the patriots. we just presume they will win the super bowl. then they don't win it and suddenly they are beatable, not that great. vonn miller could beat them, one player. i feel something happened where the stock went up a lot. you became the patriots and when you didn't win the super bowl they had to cut you in half.
we delivered earn ings up 30% year over year. we are a 40% operating income property with growth that's far in excess of the market because we are playing in the right space. we are in mobility, connectivity, increasingly in vertical markets going connected for the first time ever. i think that -- and as we become more important to the end customers, we are seeing a great deal. we have more visibility now into the second half of 16 we'll have a terrific second half of calendar 16 and have to work through inventory collection in march and investors will see beyond that. >> we have been around for a long time. when the company was in trouble, you said the company was in trouble. this is certainly not the situation now. our midterm model, one and a half to two years is to get to $8.
we'll grow faster than the market. we'll do it in a careful way. we are quite kentucky in how we manage operating expenses. we are now into the low to mid 50s gross margin. not many companies growing with 40% operating income. we event missed a quarter. we are conservative and going after the markets. the iot, connected home and the automobile. >> you keep delivering, i think the stock got too high. what can you do, that's not your fault. now the stock is too low. david aldridge of skyworks solutions. great to see you, sir. >> great to see you. thank you, jim. >> stock's come down a lot. somebody bought it at 120. now half that. give me a break. "mad money" is back after this. >> announcer: coming up, rock paper scissors is more than just a friendly game on wall street. when the federal reserve chair and the most precious commodity, the results can be anything but fun for the money. cramer helps you avoid getting
not one. just a big fat goose egg making it the first month without a deal since september of 2011. [ booing ] so why has the market for ipo dried up rapidly? the reason is simple. the losses people have been enduring from last year's horrendous ipo vintage. yep, look at what's happened to the companies that became public in 2015. the ipo class of 2015 has been a debacle. [ booing ] of the 211 stocks that became public last year only # 45 are up from the offering price. four are unchanged and the remaining 162 stocks are down from where they became public. 76.8% of the stocks that ipo'd in 2015 have lost you money. even if you got in on the initial deal. take that unicorns. [ bowling pins ] pin action, you are going nowhere. has the market turned against
fresh faced ipos which are more risky than established companies or can we sift through the wreckage of the deals? well, the biggest losers among the class of 2015 are too small to talk about on television. incredible how they have shrunk. i would love to give you the names. that's not our style. many are tiny bio techs that are tinier. one of the worst performing stocks that i can talk about, one of the worst performing ipos is terra form global. that's the spin off from the troubled sun edison. it became public at $15 in july. now trades at just under $3. that's a monster 80% decline. on the flip side the best ipo in the class of 2015 is large enough to discuss on television is shake shack which became public at 21 in january of last year and now is up 65%. wait a second. shake shack can hardly be considered a success story once it started trading given that the shares opened at $47 and spiked up to 96 and change in
may. the stock is down huge from the highs where people did buy it. if that's the trajectory of one of last year's best performing ipos imagine how bad the others are. there were too many deals last year to go through. but the class of 2015 one by one. i think it is important to get a sense of what happened here. by analyzing the performance of last year's ten largest ipos. biggest deal was first data. the electronic payments conglomerate taken public by kkr in october. i warned people away from this one inned a vance. including the truly rid use decline today in the wake of a disappointing quarter. this looked like a loser from the gichblgt with tepid revenue growth, lack of earnings and a heinous balance sheet the thesis was based on saving money on interest payments by cutting the debt because it had $20 billion.
with the persistent turbulence in the credit markets it's hard to see how first data can make the better balance sheet story come through. with today's quarterly result and you have a real stinker of a stock. man, what a foul smeller that is. [ booing ] >> the second largest ipo of 2015, another stinker. tall grass energy, an oil and gas pipeline partnership. they have just been obliterated. [ train wreck ] no exceptions for tallgrass now down 60% despite repeatedly boosting the distribution. who cares? we built out too much pipeline sfrux if oil will stay lower and i believe it will. last year we saw a bunch of these limited partnership ipos. it was ridiculous. in the top ten largest deals there were two more pipeline companies, columbia and that was the third biggest ipo. and gp holdings.
columbia pipeline down 40% since it became public. [ booing ] l a year ago. gp is off 31% since last may. this is in a house of pain. [ house of pain ] >> i don't think there is any end in sight. it may not be near time to bottom fish. for the record on "mad money" we dislike all fossil fuel stocks because you don't need a weather man to tell which way the wind blows. these are hardly unique. consider ferrari. it was spun off by fiat chrysler in october. since then they have lost 42% of value. some of it because it went public with a sky high valuation making it far more expensive than other plays like tiffany, coach or louis vitton. it was like tesla. when the company reported the first quarter out of the gate it
gave like guidance. investors believe the super high end cache could trump weakness. i'm glad i told you to jetison this one. the number five deal in 2015 was univar, second largest global chemical distributor. basically the middleman connecting small and mid sized customers with the major international chemical companies. this is another one that's totally horrific. stock is down 50% since the ipo in june. some of it is because it is practically a roll-up as it has a history of borrowing money to make acquisitions. not the best place to be now. worse, oil and gas and mining represent the largest end mark at 17% of company sales. no danke. that's a poorly timed ipo travesty. next up, fitbit. the wearable fitness device maker that became public in june and has come down more than 27%. yes, i know. the investors saw that released today. i like fitbit.
the company has a great eco-system, profitable, has postpost ed numbers since becoming public. it's dogged by increased competition. the stock sells only at 12 times earn ings. . le of the whole piece here i think it is a buy. it's a bargain. ahead of their next quarter in less than two weeks. you need to be ready for pain. the market hasn't cared about great numbers from these guys in the past. last year's 7th large e ipo was blue buffalo pet products. the fastest growing pet company in the u.s. with a focus on high quality dog and cat food made from natural ingredients. blue buffalo is down 20% since the ipo in july in part because the stock went public at roughly 40 times earn ings, undeserved even as the saels growth was decelerating making no sense. a total dog even as i feed it to both bug and ef rest -- everest
the dogs of my life. trans union only down 4% from the ipo last june. ♪ hallelujah not to mention the other members of the class of 2015. with worries about the high yield debt market putting pressure on the banks, the stock plunged more than 20%. while analysts are fans, i say if you want to own a nonbank financial i would go with one of the credit card companies. kierney financial is not a true ipo. it was a publically traded entity but they followed the acquisition of atlas bank formed the new corporate entity. while they are unremarkable the shares are up. you heard me. up. a genuine winner. this is a vanilla stock. still, if you need to own a bank now, this is not the one i choose. it shows the market could recognize value. this is the bottom line.
when you examine the ten largest ipos from 2015, nine are down since becoming public. eight are down double digits. the only winners in the top ten were kierney financial. if you are wondering why companies are reluctant in this environment remember the rhideos performance of the ipos. keep your powder dry until brokers recognize that they inflicted a lot of pain on you. finally allowed you to make money on the deals to come. joe in my old home state of pennsylvania. joe. >> caller: boo-yah, jim. >> boo-yah, joe. >> caller: love your show in montgomery county, pennsylvania. >> that's where i'm from. we had courtesy from shorty's today for my birthday, thank you. what's up? >> caller: here's my question. u.s. foods. for a company to apply for an ipo when the market is in
disarray, they have to have a lot of confidence in the company. so my question is when they open are they a buy? >> this is what's important. you have to listen to me. it's one to the brokers to make everybody money. they should do what sin crony did with ge. price it low so everybody comes in and buys. we'll be all over the pricing at a right price u.s. foods is a buy. wrong price, i'm sorry, brokers. [ bell ringing ] the bell has tolled for you. the ipo market has dried up and if you look at last year's roster you will understand why. more "mad money" ahead. when is the last time you stayed at a ramada, howard johnson or went up to the windham grand. we are talking about start ups like air bnb and they are playing rock, paper and scissors. no better way to celebrate than with a new edition of the lightning round and the fr fra diavolo shrimp at bar san miguel. stick with cramer.
quarter? think ramada and days inn as well as the purveyor of vacation ren talls. when they have higher than expected revenues not to mention a robust guidance pay attention. even if you have to rally nicely in the wake of the numbers the stock is four bucks off the 52-week low selling for less than 12 times earn ings because of the big picture fears about a slow down in travel. the board just approved of a $1 billion increase in the buy back bringing the toe tall repurchase authorization to 1.3 billion. that's 17.7% of the karkt map. there was a 19% dividend boost to bring the yield up for a growth stock. all of these moves suggest the stock has gotten too cheap to ignore. steve holmes is the chair mand ceo. hear more about the prospects.
welcome back. >> thank you. >> two things tell me the stock is cheap. first, your company has bought back a mon mental amount of stock. i'm talking about shrinking in the last five years. second, you have been a buyer of the stock. there is no reason for you to buy the stock other than if you think it is going up. >> i have a big holding in the stock. it is my net worth. i just bought some today because it was beyond the point of being cheap. our company has been buying it. >> $166 millionle down to $119 million in five years. that's almost like making it private because it's so cheap. >> we produced the cash flow and we said consistently if we don't have acquisitions to pursue we will devote the money to payingle larger dividend, as you noted and buying back the stock. >> one thing i love is that you don't sugar coat it. here it is. you talk about, okay, listen.
we have a downturn in brazilian travellers. flowing to miami and orlando is still okay. you have to mark it. it's not like you are sitting there thinking everything is fine. you're saying those things have driven the stock down too low. >> without a doubt. those things affect one part of the business which is the hotel business which is frankly not the largest segment. this largest segment by far is the timeshare. it's doing spectacularly. i never thought i would see revpar in the oil producing markets in the u.s. go down by 30%. that's an incredible drop. despite it we have an increase. without it we would have had a healthy increase. >> one thing i like about the business model is you are kind of both air bnb and the hotel. you have the fabulous reservation system. if you wanted to. you have the home away deal. not like you couldn't be air bnb but people keep telling me be
care of, air bnb will kill them. >> it's a competitor in a sense but not really. they take listings of people's homes or the condos and rent them out. we do professionally managed ren talls. we take on your property. we handle your rentals, hand the keys over, collect the money, make sure the place is lean and looked after which is important if you own a house like that. >> isn't it a better business? >> we think so. it is a business that doesn't get as much attraction from wall street because it's not high tech. it's not social media. it is more of a nuts and bolts business. great business, tremendous loyalty. we have been in the business for 70 years. some of our businesses in europe have been around 70 years. these are long term sustainable businesses. >> there was a downturn because of a credit crunch. are you seeing anything that makes us worry about credit and a timeshare.
>> not at all. our credit statistics are as good as they have been. our provision improved as a percentage. no. we feel really good with the dynamics of the business now. there is nobody like us with the mix we have which is wonderful. the diversification makes us strong. >> there is something going on in the stocks. we have had marriott and starwood. many of them are more hotel. we did have marriott vacation rentals on. the stocks keep going down. i have known you for a long time. maybe you can help me. is there something i'm missing? you mentioned texas. you mentioned the brazilian market and the stronger dollar. those shouldn't equal the price decli declines. >> no. if you look back you mentioned the downturn 2008, 2009. we'll handle the e but not the p. the market has to decide what will happen there. we'll continue to produce. we'll be consistently producing.
we tell you what to do and do it. we are very predictable. that's a good attribute for a company. >> is there something secular, millennial about travel. i know millennials aren't getting car it is way they used to. they would search for value. is the timeshare -- i know you say they need to be sold. have they gone out of fashion? >> absolutely not. the millennials, the average age of buyers of a timeshare has gone from 56 to 39 years. it is coming down. frankly millennials love to travel. they want to get out there. we think what we'll see over the next ten years or so is really the democratization of travel. more countries have larger middle classes that will be traveling. not just the u.s. but around the globe. those will start traveling. when they do they might be value conscious, right up our alley and they might like timeshares. basically the first sharing
economy. >> i'm looking at it two ways. you made sense and you wouldn't have bought the stock if you didn't believe in it. thank you to steve holmes of wind ham worldwide. the stock is cheap but more importantly he's buying. "mad money" is back after the break. [bassist] two late nights in tucson. blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there.
>> announcer: lightning round is sponsored by td ameritrade. it is time. it is time for the lightning round. you say the name of the stock. i don't know the calls or the name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round on cramer's "mad money." i'm starting with jose. >> caller: if gas prices stay below $2 in florida. my stock is spirit airlines. >> i like spirit. i feel bad. he had moxy. i like delta and southwest. the charts are awful. nick in pennsylvania. nick.
>> caller: my question is about rite-aid. >> buy it either way. they either get the big finish or go higher. either way i like the situation. sage in california. >> hey, jim. wep. >> just gold. no one can live long enough to deal with the pain of williams partners. dave in illinois, dave. >> caller: happy birthday, my friend. my stock is intrexon. >> it is a jack of all trades. bill miller likes it. people think they have a killer for mosquitos. they can do a lot. it is a nutty stock but a great spec. chris in florida. chris. >> caller: boo-yah, jim. >> boo-yah. >> caller: jim, opinions on continuing to hold my short position in coneco phillips. >> you're right. mike in new york.
mike. >> caller: hello, jim. thank you very much for taking my call. >> my pleasure. >> caller: i'm thinking of buying master card and visa. what's your take? >> six and a half dozen. they are both unbelievable managers. i won't rule against either one. it might be a coin flip. let's go to mike in puerto rico. >> jim, good afternoon. can we get your opinion on tupperware? >> i think it is down too much. we have to have rick back on the show. we have to deal direct with rick for the answers. that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late.
rock, paper, scissors, shoot! did i win? i won! >> hey, i'm a sore loser. every day this market plays rock, paper, scissors and it is a curious game -- i'm sorry about that. it goes on endlessly but starts up the next day. maybe you want to play with me sometimes. the scissors are the federal reserve. the rock is oil. and oil can smash anything that the federal reserve's scissors throws at it. if oil goes higher like it did earlier today before pulling back in the afternoon janet
yellen can yap all she wants in front of congress about the need to raise interest rates without considering the chaos around the world. oil is that powerful and has the added advantage of being dumb as a rock. when it goes higher it's good for the whole overall market. it's especially good for companies that do poorly in the real world when oil goes high. if gasoline plummet s to a buck a gallon it would be amazing for consumers. they would do more outside. it would be fabulous for all the consumer goods makers. almost everything they do from packaging to ingredients to shipping requires feed stock made of oil. you can raise earnings per sharest mats for all the companies just from having energy go down in price. of course the stock market has a ridiculous disconnect where the stocks of all the companies go down when oil goes down. the opposite of what would happen in a rationale universe. now how about the scissors of the fed ? what can they do?
when janet yellen smacks of going on auto pilot, she can slice through the stocks in a heart beat. you have to hang on every single word because the wrong one can cut paper stocks like no tomorrow. don't rule out the power of paper. of individual stocks when we get earn ings from facebook or google they can smother oil as long as crude isn't in a free fall. paper earn ings can be not so hot like disney, time warner or below expectations. i'm sorry. given that we are in a rolling bear market, whatever is on the agenda whether it's negative like last week or banks like today or forever it seems anything can cover up the rock
of rising oil prices. that's tough. rising oil prices can make even the worst stocks go higher. here is the problem with rock, paper, scissors. it is basically zero sum by the hour. every single element of the game is in play at all times. we can have the rock of oil, yellen shreds hope before stalling a march rate hike and crushes the uplift in stocks. then you typically expect it when oil goes higher. it's an infantile game that proves one thing. if you play it long enough you will lose n. a good market rock can't trump anything. nor can paper or scissors, they work in concert and we go high or they cancel out and nothing happens. in a bad market you get like we had today where the objects are in motion and the lose er is the portfolio, especially if you tried to win with paper because you thought the hand was set up for a triumph. it's too much for many which is why so many people leave it every day and honestly who can
lori: hey. lemonis: two years ago, i bought an interest in mr. green tea ice cream. young man: this is actually amazing. lemonis: and while we've been able to increase sales by nearly 100%... -is that your car? -michael: that's my car. lemonis: ...success has spawned a whole new set of challenges. michael: the entire future of the brand is based off of my vision. richard: that's something i'm not so sure of. lemonis: the owner's son is pushing for a piece of the pie. michael: i think 7% to 10% would be more than fair. lemonis: but his cavalier attitude isn't helping his case. michael: who cares about a $10,000 up-front cost? lemonis: i think we all kind of care about the $10,000. and now a family feud is brewing in the business. richard: what's important to me is the most important thing. michael: you're not making any sense. you're making stories up! lemonis: if i can't help this young man mature as a leader...