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tv   Mad Money  NBC  February 19, 2016 3:00am-4:00am EST

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>> hey, i'm cramer! welcome to "mad money," welcome to cramerica. my job is not just to entertain but coach and teach. so call me at 1-800-734-cnbc. or tweet me @jimcramer. the s&p back slid, nasdaq dropped. we need to roll up our sleeves and figure out what can be bought now that we're having a pullback from the monster rally we've had for the past three days. for the dow and nasdaq, it's the best since august of last year. we're far along in earnings season so we have a real good feel now for how companies are doing. which means we can figure out what stocks are going to become appealing as the market comes in for profit taking as it almost always does after real rip snorter of a rocket rally. you may ask why is it worth
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many real problems out there. why not say we missed it, sorry? first, the problems are a little less problematic than they were. for instance, the federal reserve is more on our side than we thought. last night, james bullard, the hawk to end all hawks, the st. louis federal reserve president who was so optimistic back in the fall is now openly questioning the need to even discuss more rate hikes because of all the turmoil out there maybe even from the last one. that's my addition to it. man who recognizes the facts have changed and thus he needs to change his mind, too. that level of flexibility is a good send, a tip to the hat to mr. bullard. second, the dollar, the bane of so many companies' existence has ceased to climb relentlessly against the basket of currencies i follow. sure, it's roared again versus that venezuelan currency where a dollar buys you ten bolivars
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woe to the companies that have made big bet there is. venezuela, like brazil, just keeps getting worse. and we know we're still flirting with danger when it comes to oil. the price of crude has been able to hold steadily at around $30 of late, i want to talk about a deal between the saudis and russians not to pump everybody more than they are doing if iraq and iran keep their supplies down but they have pledged to pump more, not less so who knows how there can be a deal. meanwhile, rusty brazil, my energy expert, remember i brought him on, author of the best selling "domino effect" reports not only is the gulf of mexico oil production about to rise this year over last year because of wells that are finally coming online but the heavy oil out of those canadian tar sands, it's now flowing in the states. unbelievable. the cost to bring that gunk in from up there to the market, in many cases after transport costs, they're selling this stuff at a loss of a couple of
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i mean, come on, you can't make it up that way. on top of that, warm weather has made it so natural gas can't get out of its own way. that adds up to producers being short of capital which is how you can see dvm offering 69 million shares last night at $18.75. four months ago stock was at $47. someone must be smelling a bargain because initially it was going to be 55 million shares. the company up sized the deal and the stock is still going to it was up almost a buck from the pricing, you price an oil deal low and they will come. boxes of worry, the lack of mergers and acquisitions seems to have been checked by the second largest deal we saw last week. a chinese company launched a bid like a supermarket tech. that purchase comes on top of a huge bid for adt, the home security company by the
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listen, you don't get a couple bids for $6 and $7 out of thin air and not think something has changed for the positive. so what has done so well during this earnings period that you can take a good hard look and maybe do buying given the circumstances of the pullback? i am enamored of mcdonald's here, off a $1.40 turn today. that's right, that stock finally has pulled back. why not? why not buy this one in? the turn, it is for real and the weaker dollar could only help things. sure, wendy's, we spoke to them last week, burger king firing on all cylinders but we discovered last night but that competitor jack-in-the-box is feeling the pressure and you have to wonder who else will be felt by mickey d's marketing. by the way, i am as furious at jack-in-the-box as i am appreciative of panera. because the former overpromised badly and severely
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has underperformed and overdelivered. jack off 12 bucks and change today. truly hurts, especially since my charitable trust bought it in the management and now wrong reassurances but panera has made up for it as you can learn if you follow along with my web site where i play with an open hand filled with both jack agony and panera ecstasy. let's include panera bread in the mix of stocks we want to buy here. it's down almost six smackers. that's why it's a slight to see them going lower, no one ever says it's great things are going lower but you missed this so we're getting chances here. same goes for clorox, that was down $1.53. we just spoke to the ceo of that last good quarter, remember when we were in service?
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in the meantime, remember, clorox the is the only large cap consumer package goods company that had the foresight to ditch venezuela, literally gave up on the darn place, thank you former ceo. what a brilliant and gutsy decision. congratulations. how much do you hope cisco comes down? a wee little bit here? it was only down three cents with the nasdaq down a full percent. this company reported an amazingly strong quarter, now it's a 15 dl a year buy back and reduced the dividend that it yields 3.93%. you're going to be a long term winner, cisco. maybe the decline allows you to get into honeywell and 3m. the latter nearly $157 is still way off its high of $170 but it's doing a remarkable job. honeywell is pocket change from its $107 peak. why is it doing so well? one reason is that it's benefitting from what truly is a robust aerospace cycle. it had been written off by a lot of people. it's being bought by investors who want knowing to do with boeing and its alleged accounting issues.
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irregularities equals sell and while i know this principle has kept me out of terrific opportunities for what could be boeing, i have to stick with me what's kept me out of trouble more than let me make money. why focus on these two? 3m and honeywell have been hammered by a strong dollar. even as though they've gotten so much right. their earnings could get a tail wind instead of a head wind if the dollar stays on a weaker path. by no means am i slating ge which is 3% yield but any break in oil will allow you to buy that $29 stock at $28. am i being penny-wise? i'm sticking with the hope for a downturn that has happened so regularly after this much of a barn-burning rally. i say buy, buy, buy, then it's sell, sell, sell. how about white wave foods? remember that old friend. it had been brought down by a competitor as well as worry that natural food is going out of
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but this reported a good quarter, down for the year after those robust results. i love what david said, dr. aggis about eating well. white wave is eating well. the company reaffirmed the numbers it gave us last week while admitting it hasn't gotten china right yet. i think that means it's pure upside given how much better and cheaper plant-based milk would be versus the kind that comes from cows living in a highly polluted environment. do cows wear mask there is? how do they eat? they mostly sit and eat. anyway, here's the bottom line. now that the rally is petering out, some opportunities are going to start knocking. instead of saying darn it, i missed it, remember these three-day bursts like we've just had tend to be followed by multiday declines despite terrific improvements in the actual economic backdrop. so get ready and let the bad times roll -- at least when it comes to stock prices as we let
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dave in california, dave! >> caller: booyah, jim, from southern california. >> excellent. >> caller: jim, thanks for taking my call. i'd like your opinion on ventis. in 2015 for the reporting they did over $5 billion in acquisitions at historically low interest rates and their profits were up by 15%. based on their earnings report, what else should we know, jim? >> you know, i actually -- i don't usually talk about behind-the-scenes stuff but i sent an e-mail to my staff saying we have to get deb back on, she's the fabulous ceo and chairman of the company and there's been a host of downgrades as if something bad is about to happen and i think
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her in "get rich carefully." she'll be the one i trust, not analysts so deb come back to the show. how about matt in florida. matt? >> caller: booyah, how you doing, cramer? >> real well, how about you, partner? >> caller: fine thanks, i've been watching you for a long time, appreciate the enthusiasm only you can provide. >> thank you. >> caller: my question is on ulta salon. i'm a long-term shareholder. i saw your interview with mary dillon several years ago and was so impressed by her that i bought shares and i've been holding ever since. today pre-science point came out with a scathing 81-page article, i guess, research report, kind of scalding the stock, it was someone. i'll let you talk, but what do you think about ulta long term. >> i saw this. i'd never heard of them, i don't have access to the report, i have access to the earnings ulta spectacular but i'm be remiss to
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to send it to me so i can learn what they don't like about ulta, back on. i want you to be optimistic, roll up your sleeves and go to on mad tonight, the amusement park operator stock is on the are you tall enough to get on the wild ride? get ready for a great adventure when i speak with the ceo of six flags. then alliance state is the company behind the curtain of so many of your favorite retailers but its shares have been anything but loyal lately. what happened? don't miss part one of my rise and fall series. it's garbage day.
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the nation and it's no longer just a summer story. it's no wonder when six flags reported the winter quarter they earned two cents a share when three cent loss. revenues were up 18% year over year. attendance. that's huge at these levels stock gives you a 4.5% yield. that's why we want to check in with jim reid-anderson, ceo and to be executive chairman and cfo and incoming ceo john duffy. mr. reid-anderson welcome back and welcome to "mad money." >> thank you, jim. >> i don't like to bury the lead. the last thing you had to say on your conference calls, remember, i remain one of the top investors in the company, i'm confident our talented team will deliver tremendous results" and that you have had an eight-fold increase since the day you started. so congratulations. >> thank you, jim. >> and you will be staying on and still have an office and be able to help john, not that you need it but you'll be.
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help, he's an amazing executive. i am staying on, i'll be the executive chairman with a focus on bigger strategic issues, including governance of the company and mna and areas like that. i have to tell you, jim, after our sixth record year and we're set up for what i think will be a seventh record, this is a great time to be able to hand over leadership to an amazing person john duffy and marshall barber who will step up as cfo. >> we'll go to you, you had a great moment on the conference call, you said when we were talking about how the company does, it's not just july and august, you were answering one question, you said i had to visit great adventure during holiday in the park. it was 30 degrees and the park was packed. how is that possible? >> we've made substantial investments in both our fright fest offering in october and our holiday in the park offerings in december. and, jim, that's one of the reasons why, you know, now if you think about the fourth quarter, years ago it used to be part of the off season.
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our financial performance. as a matter of fact, just five years ago it was a quarter that generated a loss and now we just generated $62 million with five million in attendance which is roughly 20% of our overall attendance for the year. so it's been a great performance and we continue to invest in both those franchises, particularly in holiday in the park where we'll open it to even more parks going forward. >> now, the company is more levered at this point to your past but also to new rides and your excellent presentation, best is coming in 2016, six flags new england, they all seem to have a refresher that is very exciting stuff and that's the fulcrum of your numbers. >> that's absolutely correct. for us it's all about innovation and having something new and exciting that you can go out and market at every single one of our parks and that's what -- the strategy we put in place for a few years now and i can tell you that 2015 was a phenomenal year in terms of our new product offerings but 2016 is our best yet. as a matter of fact, it's the
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had in a decade. >> is that because it's the scariest? the most difficult? because i know that the ones i've been on are so scary but may kids don't regard them that way. what is the twist? some are for little kids. >> it's a balance. it's some very exciting roller coasters, thrill rides but also family rides. so for us it's a nice balance between, you know, 50% of our attendance is teens and 50% is families. so we want to make sure it stays balance so we continue to keep guests happy and coming back to the park. >> you came up with the idea of the pass which gives you the great cash flow and that also leads to some more spending in in the parks, these are going in the right direction.
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the right direction. we've seen tremendous growth in our active pass base, both season pass holders, members. john was proudly telling everyone that this morning that our active pass base was up 26% at year end. very strong, building on the best product lineup in our history, jim. >> definitely true. john, you've made no bones about it, although you know i feel otherwise, that it's not a play on cheap gasoline. at the same time, you are 80 miles from my house and i know that if it costs half as much to get there, i can spend more when i get to the park. so there's obviously a spare change prospect. it's not what you base the story on, though. >> that's correct. we've looked at historical data around gas trends and gas prices and the correlation with attendance and approximately 80% of our attendance comes from within 100 miles of our park. but, jim, you're absolutely right. it puts more money in people's pocket so when they come to the park they're sending a little bit more and that's obviously helped us in terms of our -- the
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>> last question i want to give to you, jim. fall and winter. how did you know it would work? when i first heard about it i said, geez, it's chilly and cold, i don't know if i want to do it. how did you know? >> in many cases, it's a matter of belief and i think we have the best team in the industry, jim, and there was a strong view that we had a franchise in fright fest, which is the halloween event, that we could build on and we have gone through the roof there. and the view we could take it further using our active passes to be able to expand into holiday in the park or christmas events. and that has been amazing, just amazing and it will continue to grow, i feel very strongly about. >> that i want to congratulate you on the incredible run you've had. john, i wish you the best, you know i care tremendously about what you have done. that's jim reid-anderson, six
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chairman, and john duffy, cfo, the incoming ceo. stay with six flag, stay with cramer. coming up, the market has a fever and the only prescription are for the stocks that it once hated. don't miss cramer's take on the ones that have been knocked down but are not out. just ahead. pet moments are beautiful, unless you have allergies. then your eyes may see it differently. only flonase is approved to relieve both itchy, watery eyes and congestion. no other nasal allergy spray can say that. when we breathe in allergens our bodies react by over producing six key inflammatory substances that cause our symptoms. most allergy pills only control one substance. flonase controls six. and six is greater than one. complete allergy relief or incomplete. let your eyes decide.
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stocks are now well off their all time highs. many of which were set in the first half of 2015. this downturn has effectively broken many formerly enticing growth stocks that were so loved. so how bad has the carnage been on an individual company level? over the next couple weeks we plan to look at the most notable rise and fall narratives of the present moment. stocks that had soared, soared higher only to be viciously crushed and humbled by the recent selloff. and if we're talking about broken stocks, it's worth starting with alliance data systems, ads. the company that works behind the scenes to power credit cards that customize marketing loyalty programs for retailers. for years air, lines data
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do no wrong with a classic growth stock that just kept roaring inexorably higher. from the beginning of 2009 through the peak last spring, alliance data stock gave you an astounding 570% rally. it started trading sideways then pulled back. there was a brief period last fall where it seemed the stock had found its footing but by some time before 2016 began, well, the darn thing just collapsed, including an epic 20% decline in a single session just last month and alliance data has now fallen from 276 at the end of december down to $198 as of today. that's less than two months later. so what went wrong here? before we can understand the decline and fall of alliance data systems, admittedly not as exciting as the decline and fall of the roman empire, good read, we need to understand what made this stock a perennial winner in the first place before everything fell apart.
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alliance data systems. this incredibly multiyear run began with the company's appointment of its current ceo who has been on the show. this was during the depths of the great recession. this guy oversaw an incredible period of growth for alliance as retailers embraced the loyalty card model in droves. they also made a series of smart acquisitions in 2011 and 2012 giving them more exposure to private label credit cards, big growth industry. all told, this led to a period of accelerated revenue growth or arg, for alliance data. and money managers can't get enough of stocks with arg. fast forward to 2014, the company made a pair of acquisitions that wall street was initially bullish about, buying brand loyalty and more important conversant, an advertising technology company. by the end of 2014 the wisdom was that alliance would have rip roaring growth for a long time
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company provided by for some very bullish initial guidance for 2015. management forecast a tremendous 25% revenue growth. wow, the market loved that. by the time begot to february of last year, alliance data was revising their forecast data lower. but only because of currency issues related to the super freaking strong dollar and at the time companies were given a pass right at that moment for currency-related weakness. by the time we get to alliance data's peak last april, things still looked pretty darn good for these guys. very strong first quarter and even though the valuation was getting a nose bleed around 20 times earning there simply wasn't much to worry about as the stocks stalled out and traded sideways basically from may through july. sounded like a consolidation move, right? if you want to identify the moment where the fall of alliance data began, it was late last july when the company reported its second-quarter results. the numbers were solid. even though ads missed wall street's revenue estimates, they delivered nice earnings. what really killed the stock was
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mixed. management gave you a pretty pessimistic the fourth quarter, at the same time their card business was down 15%. and while this is the smallest of the three maybe divisions, other segments were doing fine. but it was a shocking decline. the stocks spent the next couple of months in purgatory in part because all things growth went out of style, that was in august and september. but then they rebounded along with so many other stocks in fourth quarter. many analysts defended the name but when the company reported again in october the results were straight up positive and even though guidance for 2016 came in below what investors were looking for, it wasn't bad enough to derail the bullish narrative.
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november, alliance data pretty much spent the rest of 2015 slowly drifting lower, stock brings us to 2016. during the second half of last year, we started to see the cracks appear in the story, but by the time the new year rolled around, the barbarians were at the gates and the fall of at hand. when 2016 began, the stock fell about 10% the first four weeks along with the group selloff with the rest of the market. then the company reported at the end of january and while the results were mixed, they weren't awful. however, what's more important is guidance and the guidance for the next quarter was particularly weak and the guidance is what matters here which is how alliance data could lose an astounding 19.4% of its value in a single session. and over the next two weeks, the stock sank another 10%. now that was a pretty extreme move. but let's consider some of the costs, first, when alliance data misses revenue projections, that resulted in a four year revenue miss for 2015. in other words, the company missed numbers that had been forecasting since february of last year, uh-uh, we don't like that. further more, the revenue growth for 2015 came in at 21%, that sounds good, right? it was deceleration what from
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alliance data for its accelerating revenue growth and when that's gone, shareholders leave, too. at this point, alliance data has developed a bit of a credibility problem which makes it harder for investors to believe the company's seemingly solid full year forecast for 2016. management is saying they expect to earn $17 this year. but they'll only bring in $3.83 in the first quarter. that works out if you do the arithmetic to $15.32 if you annualize. so it's hard to take that forecast on faith even as the guidance represents a real deceleration down to 10 .8% growth. that makes it a different kind of story and it ain't a high-growth story. so where do we go go from here? that's what matters in "mad money," that's what matters in cramerica. the stock has come roaring back, first during the rally over the previous three days then up another 2% on the news today, just today, that alliance data doubled its buyback by $500 million, that's 12% of its
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now i'm intrigued. while this story isn't red hot like it used to be, the recent weakness needs to be viewed as a buying opportunity, especially since the company will be in there buying stock with you. even though the growth has slowed, the fact is alliance data trades at just ten times next year's earnings estimates, i would pay ten times earnings for a company with 10% growth even if you believe management has completely lost much of its credibility and the guidance for 2016 is too hot. i'm telling you, the stock is cheap. here's the bottom line, no matter how cheap alliance data gets, though, if this market goes back to growth stocks and it will hate alliance data, too, be careful, nevertheless, the company is benefitting from a host of major secular growth trends like the rise of big data, customized marking hand it's too cheap to ignore. this stock may have been humbled by the recent selloff but the story, while not perfect, is sound enough to be worth investing in as long as you remember to be patient after a 20-point move up and buy it on the way down. the rise and fall of alliance data.
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jeanette. >> caller: i need some advice, jim. you are my guru about palo alto networks. it went down 7% today and roughly 20% the last few weeks. i called my broker ask-to-ask her what to do and she said she can find no reason for it so you, my guru, tell me whether i should hold, buy, wait, or should i just watch? >> okay, thank you for calling me your guru, i hope i live up to that. there was no doubt today it was one of these kind of notes that said palo alto isn't doing good, i didn't know the research firm. we spoke with the ceo when we were in san francisco. the company is doing well but the market doesn't like certain high growth stocks and that's one that it doesn't, either. where would you buy it? i think you said the right thing, maybe we have to wait. i think the quarter will be good, but you know what? right now good quarters aren't
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alliance day's story isn't completely over, it's not perfect but it still sounds like enough. be patient and buy it on the way down. the decline and the fall may have finally gotten overdone. much more "mad money" ahead. is it trash day already? waste management has been cleaning up the town for decades. what's in store for the company's future. i'll talk with the ceo. apple is front and center on my stock screen, but maybe not for the reasons you think. don't miss my take. a storm is coming, your calls, rapid fire, tonight's edition of the lightning round so stick with cramer! i think we should've taken a left at the river. tarzan know where tarzan go! tarzan does not know where tarzan go. hey, excuse me, do you know where the waterfall is? waterfall? no, me tarzan, king of jungle. why don't you want to just ask somebody? if you're a couple, you fight over directions. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. oh ohhhhh it's what you do.
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we know the market can be day to day volatile, difficult, even for the amazing three-day run that ended yesterday. that's why it's worth searching for high-quality stocks that showed us they could transcend the downward pull of the averages during the big selloff. which bricks me to one that really did and that's waste management, wm. they're the largest trash collection recycling company in america. stock is up 9% since we last spoke to the ceo of late july in last year. no small feat, s&p 500 is down. waste management reported this morning the company missed on the top line but it did report a nice three-cent earnings on the bottom 68 cent basis, plus the full-year guidance was very solid. waste management give you 6.5% dividend boost, you know how much we love that. it's yields back to 3% because it raised the dividend not because the stock went down. stock is less than a point off its highs. can it keep climbing?
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management and learn more about the quarter and where the mr. steiner, welcome back to "mad money.." >> hi, jim, thanks for having me. >> i thought this call was really a quintessential steady as she goes. it looks like that everything's kind of going your way in terms of actual trash collection when it comes to industrial and construction. >> yeah, no doubt about it. you know, we're really liking right now. everything's clicking. we got the right team in place. we got the right salespeople in place. now if we can get help from those recycled commodity markets everything will be clicking on all cylinders. in the meantime, the rest of the business is performing well. that most companies would love, you had a better -- labor shortage because freeing up by the oil patch actually worked in your direction. >> no doubt about it. anyone that wants to pick up waste has to have a truck and a truck capital actually favors the bigger companies that have needs access to those drivers
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that a competitive advantage, by offering great benefits, by offering great working conditions. we've tried to make getting -- being able to get drivers a what's happening in this market. we're better able to get drivers than our competition and that helps us pick up more waste and grow the top line. >> i want to talk about recycling. i know a lot of the actual end product is weaker, but in other countries, you're in germany, you recycle wrong, it's not a crime but the penalties are so great that you recycle right. when i look at the recycling, it seems like there's two problems, one is that what you end up with is not worth as much as it used to, but second, these contract, in our country you look at what's recycled, it goes into a blue box and this's trash all over the place. if they made it so that it was illegal to put certain bottles and certain bins, would you have a good business? >> oh, absolutely no doubt about it. that's what we're working with
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do you have two sides. you have what you can sell the commodities for but on the other side, what it costs to collect it and process it. the more waste that gets mixed in, the more it costs us to process it. so if our customers can help us to keep that garbage out so it's easier for us to process, it's cheaper to process it and we can do more recycling because we can make it a profitable stand alone business. so we're working with customers to do just that. how can we get cleaner materials that can make money for us and make money for our customers and be good for the environment? >> wouldn't it take citations, speak, like they have in europe, to make it so people take it >> absolutely. and it really is a big cultural shift and there are some places in the united states where they've done that. we'd like to see that done more often, what we call recycle often but recycle right. >> i think people would favor want to be good at this stuff. churn came up as being fabulous for you. and yet people don't think of in the waste business.
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>> sure. well, you know, every time we lose a customer, we lose that profitability that comes to the bottom line. this tone replace that customer you have sales costs and different costs to bring customers on board so every time we can keep a customer, we're making money on that customer. we're really sort of like an annuity policy with our customers. most customers are staying with us seven to ten years so keeping those customers is paramount. how do you keep them with good service. that's what we saw this quarter. we had a 9% churn rate, half of that is structural, companies going out of business. but the 9% churn rate is the lowest since 2002 and we didn't use prices to keep those customers. our rollbacks improved in 2015. so we're keeping the customers in the right way, by providing excellent service. >> that may be one of the secrets about why you've become so automatic in terms of these >> yeah. well, you know, you know, jim, that first and foremost we are a cash-generating machine and that's what we owe to our
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$1.41 billion in cash in 2015. we're saying in 2016 it will be $1.5 billion to $1.6 billion and in the past we've always said come heck or high water we'll generate 1.2 to $1.3 billion in cash. we now say under any circumstances we're going to generate at least $1.4 billion in free cash. that's a nice step up for us and we hope to step it up even more. >> one last question. i found curious, i'm from pennsylvania originally, that you talk about transportation costs, fuel costs down means landfills can be further away. there were a lot of landfills near where i used to live. i guess new york landfill more expensive even though you own a lot of them versus where if you have lower fuel costs you can take them to someplace cheaper? >> yeah. so when you're getting rid of waste there's two costs, the cost to dispose at the landfill
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landfill. so as the price to get it to the landfill goes down, you know, we're able to move it further distances, we happen to have the biggest landfill system in the entire country and so as fuel prices come down it allows us to stretch out that landfill system so definitely good for us and, you know, obviously as a transportation company low fuel is good and then as an american business low fuel prices are good for the american economy. now, look, there's a bigger segment than there used to be where it's not good, the energy segment, we're located in houston so you can see some of that but overall low fuel prices put a lot of money into the states and long-term that's good for the united states. >> well, you've been consistent, i know a lot of people have bought it off of how cogent you make the story. david steiner, president and ceo of waste management, thank you so much for coming back on "mad money." >> thank you, jim. >> here's one of the stocks you hope goes down so you can buy it. it's so consistent it is like clockwork. .
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.time to get your ducks in a row. to learn about medicare, and the options you have. you see, medicare doesn't cover everything - only about 80% of your part b medical expenses. the rest is up to you. so if 65 is around the corner, think about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans, they help cover some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. so don't wait. call to request your free decision guide. and gather the information now to help you choose a plan later. these types of plans let you pick any doctor or hospital that takes medicare patients. and there's a range of plans to choose from, depending on you needs and your budget. so if you're turning 65 soon, call now and get started. because the time to think about today.
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it's time for the lightning round. are you ready? time for the lightning round. let's start with david in illinois. >> caller: dr. cramer, am general, buy, hold or claim? >> i like amgen. everybody hates biotechs, i'm not hating on them. joel in north carolina, joel? >> caller: a big booyah. thoughts are on lpl financial. >> i have to look into them again.
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technology company i do get concerned. let me do some home work. bob in montana, bob? yo, robert, what's up? >> caller: booyah from montana. >> nice. >> caller: my stock is cell dex therapeutics. >> they have taken this one to the woodshed. it's incredible. if you want to like a speculative stock, this is probably a good one to get started right here they've killed celldex. let's go to gene in tennessee, gene? >> caller: booyah, jim, love the show. got omega health care investors, solid concern. >> i am concerned about the health care real estate investment trust, they've been breaking down, i need more information on what the ceo comes on. i was speaking with a real estate investment trust say being careful health care trusts. i have to be careful. let's go to seth in florida.
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>> caller: booyah, jim, from the sunshine state and thanks to you and your staff for making us collectively billions. >> we're trying. wow, that's nice. >> caller: thank you, you and your stuff. my stock today is november alpha tango, nordic american transport. >> look, the stock dropped too much after that quarter which was not a bad quarter, it does yield. it has a nice high yield of 13% and we had the owner on cnbc and he told a good story but in the end this is a wild rider. i think the yield is good because there is a demand for his tankers. linda in texas. linda? >> caller: love the show. >> thank you. >> caller: tso. >> we're not recommending any refinery stocks, period, end of story. dave in illinois. david? >> caller: jim, booyah from chicago. >> excellent. >> love you, love the show. i've been following you since forever. you being the michael jordan of wall street, i know you've been
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and i just wanted to see what is your recommendation as of these prices. >> i was right fitbit, i told you to get in, told you to get out and told you to get back in again and i have been dead wrong but i think when fit fit reports it will be a good quarter and james park won't let us down. dr. david aggis agrees. and that is the conclusion of the lightning round! i'm going to share a photo of my eggo waffle when it pops up. that's so interesting honey because i'm going to share a photo of my eggo waffle when it pops up. l'eggo my eggo l'eggo my eggo (answering machine) hey! leave a message. hi, i know you're there, 'cause i can see you. i'm calling you to tell you to l'eggo my eggo!
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does value matter all of a sudden? this is a market that has endless disdain for low-valued stocks. its mantra has been sure, sure they're cheap, but so what? however, the market's suddenly not saying that anymore. take, for example, the much-maligned airlines. these stocks have been selling at price-to-earnings multiples that are equivalent of roughly half the value of the average stock. now, it is is true each airline has issues, southwest might be hurt. last week steve holmes, the ceo of windham worldwide told us his texas business is in severe decline because of the crash in oil and gas. but southwest doing fabulously, delta and america have the zika
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against them. but people are willing to overlook these negatives now that it seems oil will stay lower longer, we have been the russia/saudi promise not to pump more oil if iran and iraq agree to limit production. i don't think the latter two will play ball which makes the airlines a good bet here given that jet fuel is the biggest expense, especially now that the dollar is getting weaker. i like the group here. i know you don't want to hear about cummings and emerson, two deep cyclicals that seem to have caught a bottom in orders. but both are starting to talk about a return to growth. each yields around 4%, i like that. yes cummins has rallied but if i'm right about an impending pullback, this engine maker could be a value play. cummins traded $49 higher a little more than a year ago. i would call emerson the deepest of values that are of good industrials because it's been beaten down for ages. i look at monthly orders and they seem to have been weak forever but january orders came
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don't give up, that's an improvement from the 10% to 15% decline in december and that's an harbinger of a good spring from a stock that's rebounded from $41 to $48. emerson is down from $62 at the highs. and let me give you one other value play that is front and center on my radar screen. apple! apple at $96, down $1.86 today. that got hammered. it trades at just ten times earnings. the company just announced a $12 million bond deal, some of which can be used to buy back stock. at the same time its apple pay feature went live this morning in china where electronic payments are far more prevalent than here. i know people have been focused on the rock and hard place that tim cook the ceo finds himself in over the encryption issue. does he betray his clients to stop terrorist acts or stick to his gunnings have promised privacy is a hallmark of the company's basic existence.
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let the court decide. but you don't need a tort to remember that apple is getting $30 billion in service sales a year and if you check your regular apple bills as i do, it's a fast-growing revenue stream. reminds me of cable. yeah, that's the consistent service dream that everyone wants but it's just not talked about enough so i'm talking about it. i bet it becomes a huge part of the company's business in no time and it's not reflected in the stock. i mention apple today because its value doppelganger ibm caught an upgrade from morgan stanley and soared on a hold to buy more than 5%. even though a lot of tech was down today. ibm stock is now valued much more highly than apple because everyone is so worried about apple's current cell phone sales. i mean, that's insane. no-no universe should ibm be getting a higher price-to-earnings pull than apple. let's not forget about the iphone 7 that the ceo of verizon, the ceo of t-mobile told me they are so excited about. how about the incredible gains apple could have if the dollar
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listen to its conference call. other than ibm, no company i follow has been this hurt by the super strong greenback. if ibm can rally big, what would happen if one of these newfound bears on apple changes his mind. value is making a comeback. there's finally some urgency here with stocks that have been caveated with, yeah, cheap but so what? well, now being replaced by yeah, cheap, so get it before it's hot. that's what may be happening in this market that suddenly craves exactly what it hated just a few short weeks ago. stick with cramer. my son and i used to watch the red carpet shows on tv now, i'm walking them. life is unpredictable one thing i need to be predictable is to be flake free. because i have used head and shoulders for 20 years. used regularly, it removes up to 100% of flakes keeping you protected every week, every month, every year you ready ma? always
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i like to say there's always a bull market somewhere and i promise to try to find it for


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