In charge. And they were behind whatever lift we had today, dow stayed flattest, we gained. 17 , nasdaq was up. 52 . I say we take nerd roll call at the top of the show so you know exactly what i mean. I got ten nerds. Dowdy leftfordead companies that people didnt care about anymore because theyre wall flowers or boring cheap stocks that have fallen totally out of favor. These are the stocks that wear pocket protectors and wing tips. Okay. They have their own nonanimal house. The name of their fraternity . Its not fhi slam ma jama, its phi beta kappa. Consider the chief nerd apple. This company has become the sherwinwilliams of tech. Like watching paint dry . No offense to the great maker which is a perennial winner. Apple didnt have growth coming into the quarter. It was getting pants by samsung. It didnt even have china the company lost its way. Apple was amazingly the uncoolest kid on the tech block. And dont i know it, my trust has owned apple for ages and ages and ages. When i was asked why by my partner on squawk on the street yesterday before the Company Reported, i said nothing. I just went like this. Like a real nerd, you know . And that was the tell right there. I mean, that was the one where you had to go buy. Especially when a guy liked apple then mouthed some boilerplate stuff. I said its a cheap stock. Damming with faint praise. Then afollowed up with some reason, laughing scornful mocking it, mocking myself. You know what you do when you hear a guy mocking himself for owning stock . You pull the trigger. Bingo. Next thing you know you learned that apple has real growth. The cosystem is back. Its a rain forest. Suddenly the stock cool, samsung has become ice man, chinese orders are amazing. The company is brimming with cash and returning to shareholders with the biggest buyback ever. The darn thing trades at just 12 times earnings. Almost almost double digit grower of what people are paying for soda and cereal stocks. Corn flakes and corps ban nation. Plus apples management at one time openly scorn admit. Somehow its doing a split that will give you seven shares of an 80 stock. You Better Believe people will buy more when that happens. Apple pie voila. Apple closes up 4 3, 8. 2 . Nerd no more. How much Lamb Research that were talking about. This stock sold for ten times earnings, half the valuation of head and shoulders. Crest. We know lam because it bought one of our Favorite Companies a couple years ago. Since then theyve taken out an immense amount of costs while taking about a huge amount of market share and this company is the only game in town for product lines where they used to compete. If you want to make deram chips you need mama cheens. The derams are good. It wont be this quarter but it hastens the inevitable. The new products for lam, the fabulous execution, the amazing share take, thats how you get lam to rally 6. 11. 5 . Speaking of nerds, people were so busy focussing on the exci exciting Semiconductor Holdings like qualcomm, they forgot good old geeky Texas Instruments, an industrial analog play that merged with another geekster national semiconductor. So Texas Instruments climbed four bucks. What else . Is anything cooler than biotech coming into the year . Anything more out of fashion thanes a ran t s astrazeneca . Maybe Zimmer Holdings that used to be a high growth smoke show but it showed many of the devices are elective and people didnt have money during the Great Recession so it became horribly out of fashion. How are these two nerd balls doing . Many of the companies supported terrific earnings, not astrazeneca, it laid an egg but stock rallied anyway because the quarter didnt throw on the idea of a possible merger. We heard pfizer might be interested in buying them. All there Conference Call did is suggest that could be reality. No wonder it jumped a buck and change and trading higher. How about zimmer . I saw this thing up 11 oipoints before the opening, you watch that ticker tape, i immediately said i have to go to favor and find out whos buying zimmer. Nope, it turns out zimmer is buying one of its competitor farce pretty nice price. Its become the one stop baby boomer joint replacement bionic man overnight and its been rewarded with a 10pointed a vance in a single day. Lam buys novell las, now zimmer roars in with biomet as a consumer i love competition but as an investor i hate competition. These are all winners now courtesy of reduced competition. Not that long ago everyone loved the highflying restaurant chains, right . The chipotles, they offered the hottest choices, were the definition of cool. People forgot good old nerdy mcdonalds. After the latest in a string of not so hot quarters, its breaking out at a string of almost 100. And chipotle has dropped a hundred bucks. At a time when food prices are soaring mcdonalds has the clout and the sourcing to cost the costs under control. Love mickey ds. Want boring . Hand trool, saws, drills. Dumb as a bag of hammers. Uncool. Im talking about stantly black decker. This company has found reasons to miss quarters as they have aisles in home depot not this morning. They got every right with every division excelling including the underperforming european business. That was tour deforce performance from this Ugly Duckling turned swan. Rallied three bucks. There could be anything more out of favor than the Home Builders after you got one of the worst new home sales in ages yesterday. One that signaled the psych is over. Then huge home builder d. R. Horton reports so high i have to read it twice. Our last two nerds, how about a hated Steel Company and a despised machinery company. My Charitable Trust has been sweating out this timkin ever since the company disappointed a couple quarters ago. One that rivalled game stop, benchmark ugliness. After the company told a good story on the show. Then this morning we saw the deals got hod and honestly let me tell you something, i was going through wikipedia and stuff, steel hasnt been as hot since highman roth companys passed u. S. Steel in size before castro took over cuba. Thats how you put on nearly four bucks in one session. 6. 5 gain. Finally thes caterpillar. What do we know about caterpillar other than they seem to double down on china in the countrys downturn and theres a guy who comes on our air all the time and shorts it. This morning caterpillar reports and we discover the United States is driving the bus, terrific numbers, in construction. Not mining, construction. Whoopi we matter plus cats taking out cost meeting firing a thousand restructure ago thousand people out of the company and its costs are coming down. Caliper is no longer ugly bug creeping down a tree branch. Its a butterfly that flew up nearly two bucks. Meanwhile, the cool kids, underarmor hammered. Hammered it looked to be a terrific quarter but too much spending. Down more than four smackers. Service now a Cloud Company that reported huge revenues last night was coming along later this evening crushed the estimates and then got crushed falling more than three smackers. Its zpliem no earnings. Hey did that that didnt matter a couple months ago. Hershey the only food company with actual growth didnt have enough growth when it reported. Hershey gave you huge performance until this quarter. Now it just gives you pimples. And a loss of four points. Revenge of the nerds. I have to tell you, i dont think the revenge last just a day. Especially judging now how king of the nerd throne microsoft is getting jiggy tonight. It looks to be a terrific quarter. The bottom line the nerds very in control of the frat house and theyre installing inaugurate hide couches and water beds, rolling out the contact paper and suddenly theyve gone from embarrassing to, yes, embarrassingly rich. Hey, how about mat in california . Matt . Caller how are you doing. How about you there, mattster . Great. What do you expect yahoo to do as it goes past the ally ban ba and what do they need to do to get up to par. I think ali ban be is worth 250,000. Facebook im going to have more on that later but facebook did the unthinkable. It reported a terrific quarter but didnt give you a dividend or a buyback and threw cold water on the future. We dont want no cold water thrown on the future. Get me a picture of the future ill throw cold water on it to demonstrate the facebook problem. Lets go to lorraine in minnesota. Or will rain . Caller thank you mr. Cramer for taking my call. Of course. Caller your books have been a big influence on my two young grandsons and just now ive been watching General Motors, thats always been a good company and wondering if its been a good time to buy its stock. Im pounding the table General Motors but every time i do that i need to go to the chiropractor. General motors reported a great quarter but people are still worried about the headline risk and there was always a nitpicker. Gm, my trust owns it. Ive been buying at this level. I am telling you General Motors is the right level. Why dont we go to dave in florida. Dave . Caller yes, jim . Dave caller happy to talk with you. Been listening to you since the cramer days and the kudlow days. Whats he got . Go ahead. Caller i got a perplexing problem. I have owned a thermal fisher since it was around 125 and yesterday after they reported earnings it went down quite a few points and right back up. I bought it while it was down and then it went right back up. And right back down again today. And then while i was thinking about it i said im going to call my man and find out why this thing acts the way it does. I have to tell you. I think that Thermo Fisher is a part of a paragon we saw tonight even with facebook. They report a really good number. A really good number and then they dont guide high enough and thats why its going down. I think theyre being conservative. I am a buyer of tmo, Thermo Fisher. My mom always told me not to bully the nerds because one day i would be working for them and thats exactly whats happening right now. Its a revenge of the nerds. Later in the show, whats up with facebook . They crushed the quarter but wall street didnt seem to like it. Im going to tell you why and this is your chance to get in, not out. Plus apple is getting all the buzz but its not the only tech star that sent shock waves through wall street. I have stock up more than 10 . Just getting started. Lets do what facebook did so you have a full figure. They threw water, cold water, on the future. Stay with cramer. Cramer. Coming up, the iphone maker may be flying high today but the real money to be made might be hidden inside its devices. Cramers checking the tech that makes your mobile world happen. Find out if your next investment is right in the palm of your hand. And later, the selloff in high momentum stocks hit service now to the tune of 25 . Is the decline a chance to buy into a company transforming technology . Stay tuned. Cars are driven by people. Theyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Hey, whats the matter we facebook . Didnt it just report the worlds greatest quarter . Didnt they deliver on every metric . Doesnt it have accelerating Revenue Growth or arng increasing User Engagement in the ultimate and worldwide reach . Yes. And much more, frankly. Heres what facebook did best in the Conference Call. They underpromised about the future. I was joking about cold water. These guys spent a huge part of the call telling you that business net really these slow, comparisons are going to get tough, that they arent going to mo monetize things that fast and now theyre just company with fast growth and earnings. This market doesnt want just really good Earnings Growth anymore. Its certainly hating just good Revenue Growth. These guys have earnings, it wants dif den s dividend, it do the Company Spending like a drunken sailor even though the sailor is at the top of his game. So after the opening the stock didnt rally. Heres the rub. Unlike stocks that have sold off because theyre not just trading theyre trading on multiple sales not earnings, facebook is a cheap stock on earnings. Particularly on 2015 and 2016 the way the growth guys think. I dont know what will happen tomorrow. I know the company spent tons of opportunities and great growth reward their shareholders over time. This is an opportunity and ive not said that about a lot of these disappointors. I do think that they are radically underpromising and i bet they equally radically overdeliver when the time comes. I feel the same way about american airlines. This 27 billion company which happens to have 10 billion on the Balance Sheet reported sales and earnings this morning. I think people were expecting it to be over 40. It seemed like an aberration. It was. It was aberrantly low because of the cancelled flights. Who knows what american can earn now that they have friendlier skies. But the company had the misfortune of reporting the same day as United Continental and that was the one airline, the only airline that delivered a night mare number. It obliterated. If the Company Reported yesterday i belt it would have faulted through 40. Finally there are two others that im not giving up on even though it is very clear that the market sure has. [ boos ] xyli xylinks got eviscerated. Its owned by my Charitable Trust. So did celgene. Its nasty when you own a big loser. They make you feel like a loser. Thats me, a real loser because the trust owns celgene and yylnx gave horrendous guidance, just hideous. The trust bought something and it was hideous. This isnt the first time theyve done that. Several times the company has moved in a quarter only to be reigned in my management. This time the ceo didnt reign in the stock, he slashed it, slashed it and sent giettothe glue factory. It was vicious off a hideous 9 decline single day. Listen to me, man, you killed us. Come back on and explain where we went wrong or you went wrong. And celgene . Scratching my head at how its best selling drug could fail to deliver on its sales line causing the company to report a barely inline quarter. Its selling at the same price as some of the low singledigit growth big pharma, except they dont have that dividend. This is the hockey playoff time. This one got a tenday major. Ten days from now it might settle down and perhaps begin to go higher. Not yet. Its cheap. So what . You know what, celgene feels like apple before the quarter of course not after. Down three and change wasnt bad after being down seven but thats an easy compare. Still theyre down 17 year to date. The worst big pharma stock the worst big pharma stock is doing better than the best biotech. Thats harsh. Bottom line, what can i say . The market made a statement today. It wants corn flakes and sham o shampoo. Maybe some steel, machinery. But it doesnt want the stock it favored for the last couple years when the economy was week. Holy cow, who would have thought the sweet embrace of growth would become in seven short weeks the ultimate kiss of death . Lets do something new. Lets take a video question. Caller booyah, jim, im from penn state university, i wanted to give a shoutout to my sister brianna and my question today is ariel pharmaceuticals. Id like to know where you see the company going, if you see a buyout happening and what price range you can see the buyout happening . Booyah, and brianna, a worthy shoutout to brianna. However not a worthy stock. The reason i they is because just like i mention there are some stocks that are speck or revenues. This one happens to be at the lower end of the spec cancer quadrant. Efcell gene doing a magnificent job and the stock is being hammered. You cant go down the food chain and i like penn state, Everybody Knows that, too, we did the show there that was a wakeup call celgene, so im not going go for that. Now we have to go to one of my favorite, this is not first time, long time, maybe first time long time. Fozzee in colorado. Caller im looking at your poll today. Theyre supposed to make 330 this quarter. Do you see that happening, jim . As the owner of that in brooklyn we have a guacamole apocalypse going on. But the food prices are outrageous what its doing to your bottom line. Give the market what it wants but what does it want for heavens sake . Somebody wants corn flakes . It wants the shampoo . It wants the crest . The colgate, head and shoulders . Throw in buybacks, machinery. I tell you what it doesnt want that same old good growth that we used to love so much around here. After the break ill try to make you more money. Turning on snek the selloff in shares of avnet is causing some question the future of the p. C. But is the worry warrant . Cramer talks with a ceo to find out. Sometimes a Company Report results so good they knock your socks off. Take lrcx. Lam makes equipment that used to produce semiconductors, especially plasmaetching machinery. Basically a superhigh tech try carve into a silicon wafer. Creating the features and patterns of a given chip. Semiconductor equipment is a boomandbust business. When times are good for the chip makers they spend big and when times are tight their spending evapora evaporates. At the moment were seeing a move to new smaller generation chips which means chip makers need to upgrade to the next generation of equipment but when you factor in the relatively benign environment, when you remember lam Research Made a smart move buying novellas, the quality was down right amazing. Lam earned 1. 26 per share, an eight cent beat on top of revenues that climbed 10 . Analysts were only expecting a 9 increase. At the same time the company had report shipments 11 year over year thanks to de ram and semiconductor founding business. Not only that, the company gave darn bullish guidance for the next quarter and the rest of the year, hence why the stocks soared six bucks 1. 1. 5 . How is lamb doing this . Theyre not just riding a rising tide, theyre taking market share left and right as semiproductor Production Technologies requires using machinery thats lams bread and butter. Thats how the company grew three times faster than industry. It should grow twice as fast as 2014. Even after todays move the stock sells for just 12 times earnings, a discount to where its traded historically and i wouldnt be surprised if the 58 stock heads for 70 in a heart beat. Dont take it from me. Lets look at the president and ceo of lam research to hear more about the quarter and the companies prospects. Welcome to mad money. Thank you, jim, its a pleasure to be with you. This quarter blew me away. Im trying to figure out, you have cash generation, execution, share take. All these happened in one quarter or it was just this was building up to this quarter for lam . Thats a great question. So inevitably in our business it takes a lot of time and a lot of hard work from many people and were blessed to have some of the best engineers and technologyists and Field Support organizations in our industry and this is two to three years of work in the making and so it was really nice yesterday to see not only the results presented in the Financial Statements now see the recognition of that value in the Investment Community this morning. So were really pleased. We set an ambitious target this year having outperformed the industry last year to outperform again in terms of revenues to grow our operating income at twice the speed of revenues and cash from operation at twice the speed of operating income and were certainly off to a great start. That was nice day yesterday. I see you spend 60 of your expenses are in deep. You spend a huge amount of r d. Are you seeing the fruits of that with new machines that just happen to be better than what the other guys have . Inevitably the way you gain market share in our business is that you deliver results on the wafer that are better than the competition and in large part as an Equipment Company thats a byproduct of having very competitive hardware that delivers technology and also Productivity Solutions but increasingly its about the integration of the hardware with process and software that delivers the results and certainly that integration of capabilities and the result that our customers value is the key to gaining market share. It takes a long time but with perseverance and hard work and a great team the results are certainly beginning to show which is nice. One of the things thats clear, we profiled micron last night and said its been an amazing stock but the deram companies, the companies that make derams havent been spending. You mentioned that they have discipline and i think that bolsters the case for deram stock. But you also mention that they are starting to spend. Are we at a Tipping Point where finally these deram manufacturers are saying you know what . It is time to give lam some money and expand our expand our supply. You know, i wish it was quite as simple. I mean, the reality for us, obviously, is there has to be a need in the customer to add capacity or to upgrade capacity and one of the really nice thing things about discipline is it tends to support profitability levels were seeing today and profitability levels enable investment by the semiconductor companies. So theres capability there and emerging need and to a large extent the investment customers make are responding to the challenges of the consumer. We all want Cheaper Products and we all want products with more performance and functionality and whether thats battery life or speed of processing, the investments that our customers are making today and the investments theyre making with lam research are directed to achieving that result so its a very important cycle and whether its in memory or in logic or in foundry, one of the realities for lam research is by virtue of the integration of lam and novellas a couple years ago, weve put in a portfolio in etch and clean that is placed almost better than any other Equipment Company in the industry to exploit the technology inflections that are occurring in the next several years. And the reality of outperformance today should we continue to execute with support for from our customers, i hope to be an increasingly positive theme in the next several years. Rick hilton was a good friend of the show and we recommended novellas for years. He was always talking about the cash generation. On the Conference Call people were asking you about taking down more deabt. But onethird of your market cap is cash. That what are you going to do with all that . Its something were very pleased about. We put a lot of hard work to accomplish the 24 of revenue wes dealt with yesterday and the primary purpose for cash on a Balance Sheet is to invest in the profitable growth of the company and were excited organically and collaboratively about the opportunities for growth and certainly to the extent at any point in time that we can include that Growth Opportunity isnt there thin we would return excess cash to shareholders. But at least for now we have with an authorization for repurchase that keeps our share accounts relatively stable in light of equity grants to employees in the company and our principal focus is investing in our business, in r d and in profitable growth and i think it will be an exciting story in the next several years. I couldnt agree with you more. The stock is headed much higher. This is way too cheap a stock for opportunities you have. Thank you so much for coming on the show. Thank you very much. Been a pleasure. Weve liked the predecessor, we like this one. This is martin antstis. A lot of Stormy Weather when it comes to the cloud stocks. Up next well talk to the ceo of one of the biggest players in space. See whether this is the head and shoulders stock much lower. Stay with cramer. L. Coming up, avnet is one of the worlds leading suppliers of the electronics that make it happen but with its shares in the red, is there something wrong with the story or is the selloff hiding an opportunity in stay tuned to find out. [ banker ] sydney needed some Financial Guidance so she could take her dream to the next level. So we talked about her options. Her valuable assets were staying. And selling her car wouldnt fly. We helped sydney manage her debt and prioritize her goals, so she could really turn up the volume on her dreams today. And tomorrow. So lets see what we can do about that. Remodel. Motorcycle. [ female announcer ] some questions take more than a bank. They take a banker. Make a my financial priorities appointment today. Because when people talk, great things happen. What the heck are you supposed to do with a highquality cloudbased service ware and Service Company in this environment . All things cloud are getting pummelled no matter how well theyre doing. Do you keep your powder dry and wait for it to end or do you use this to build up a position on the way down even though theres no telling when the declines stop. Thats what were facing with a company like service now, for all you home gamers. Thats a cloud based firm with an easytouse platform that allows Technology Departments at Large Companies to develop their own applications as well as being a stock that we own for my Charitable Trust. This sonds like a so riff i can business but it has an Addressable Market of 12 billion because every big Company Needs to create its own computer programs. Plus service now has superior technology and Customer Service acknowledge bid everybody. The total cost of ownership for the software is 50 cheaper than competition. That i built a better mouse trap. The problem is that the stock market currently despises superfast growing Companies Like service now that are not yet profitable but trade at high high valuations relative to their sales. Until a few months ago these cloud names were market darlings. Thats how they rallied from 51 up to 70 at the beginning of march. Less than two months youve given up those gains and then some. By the way, this is why i say to pick some profits on the way up because who knows how long things last . The Company Reported last night delivering an eightcent loss in line with wall streets expectations on betterthanexpected revenues that rocketed 62 year over year. The key metric is billings which came in higher than anticipated, up 64 year over year and 9 from the previous quarter. Service now raised its guidance for the full year yet it got slammed anyway. Service now, like all cloud names, is a broken stock, but is it a broken company . Lets check in with the president and ceo of service now to get a better sense of the quarter and where the company is headed. Welcome to mad money. Good to be with you, jim. Were trying to suss out two things here. First, how swewell is the compa doing and its my job not yours to figure out the stock but i want some insight. To understand, you said you won a client, walmart, we all know walmart. It would help for our people who are just being introduced to service now to say, okay, well this is what service now does for walmart. Can you give us some innight . So service now is a Service Management company and Service Management may not mean much to the general audience but n an enterprise i. T. Department its a very well known very well understood class of software. Every i. T. Department has one. So the i. T. Departments of walt mart and all the other companies, they have to own a system like that. And what service now has done in recent years is weve gone through that massive refresh cycle in terms of upgrading systems that have been ten, 15, 20 years old. So Service Management systems are essentially systems that manage issues, problems, incidents, task, and so on. As we all know from experience with i. T. , theres always problems, theres always requests, theres always need for information, need for change. That is what our systems manage. So walmart needs that, as does everybody else. We know that yours is dramatically cheaper than the competition but who exactly are companies ripping snout is it when a contract comes up . Is that when you come in or can you be layered on an existing i. T. Provider . No, they typically replace the legacy systems from Companies Like hp and bmc, ibm and ca, thats the top four rewe replace throughout. To me, until this critical moment over the last six weeks when a company was sending a lot in order to be able to get great revenues the market liked that. Im trying to get my arms around what the market doesnt like anymore. When you talk with people today, this was a blowout quarter, frankly. Thats exactly what i was looking for. Are people are some of the investors giving you feedback that, you know what, given the way the market is we want you to accelerate when you can show a profit . Thats really not happening with our growth investors. They want us to keep doing exactly what were doing. Theyre as puzzled as you are and i am about the sentiment developing in the marketplace. But in the event that in the end it will all sort itself out and we were very clear during the ipo process two years ago that we were going to build a multibillion dollar enterprise. We were gong to do it for the long haul. We would have an investment model, a growth model and we would be very focused on the top line metrics and well continue to do that. Thats all i can ask. One last quick question. Theres a moment where you talk about going in and doing hr stuff. Do you think people are just saying hey, listen, all of these guys are competing, work day is going in against service now and these guys are all looking at going into other peoples markets and thats going to create too much competition . Work day is actually a very good partner of ours, we really manage the work of hr whereas work day manages the records of hr so we have a very good synergistic complimentary relationship. The irony is that i. T. Service models that are very well underand known in the i. T. Department actually equally a lick to believe hr departments and facilities, organizations and engineers organizations and thats whats driving a lot of the expansion that youve seen from service now and why our revenue model has been on fire for years now. It sure has. Well, look, i mean the market has changed its coloration. Youre delivering what you said you would do and then some so thank you to frank slootman, the president and ceo of service now. Thanks, jim. Okay, look, the market likes value. It just turned on Revenue Growth. Anyway, were going to stick around and do the lightning round. All stations come over to mission a for a final go. This is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Who would have thought masterthree cheese lasagna would go with chocolate cake and ceviche . The same guy who thought that small caps and bond funds would go with a merging markets. Its a masterpiece. Thanks. Clearly you are type e. You made it phil. Welcome home. Now whats our strategy with the fondue . Diversifying your portfolio . E trade gives you the tools and resources to get it right. Are you type e . Its time time for the lightning round. Are you ready . Time for the lightning round. Lets go to john in maryland. John . Caller jim, thanks for sharing your knowledge and experience. My sons and i have been reading your books, its made us better educated investors. Thank you. I wish i were better myself. But thank you. Uri, united rental. We did this on technicals the other day. On the fundamentals its good and that was a great read through from united rental for caterpillar because caterpillar turns out to be the one business thats really, really strong, it is indeed construction. Just as mike said. Lets go to howard in connecticut. Howard . Caller hi, jim, longtime follower. I own lng but they have a new stock out called cqh. Which one should i own . At this point i am preferring cqh. I think it represents a little bit ill tell you, boy, i didnt know it had moved up that much. You know what . Were pausing. Were going pause on lng until we get a fullback. Its just right to pause. Give it a little break. You know we like mr. Sookky but we have to give it a graek. Jared in new york. Jared . Caller hi, jim. Shoutout to mo at university of oregon. Completely go. Ahead. Caller i would like to know what you think of the stock cvr findings. Its kind of a not great refiner frankly. Ive been recommending holly frontier but them the day before they report because this may be a peak quarter. Lets go to craig in pennsylvania. Craig . Caller booyah, my man. How are you doing . I was calling about gwph. They had a bad reversal today and this has become we went we went antispeculation at the opening. Thats what happened. Gw pharma ended up big after Morgan Stanley recommended it. Let them come in a little bit. This is the only cannabis stock i have supported. Mark in california. Mark . Caller jim, thanks for taking the call. Question about two bioteches, isis and tang gamo. Isis has a very good product portfolio. We like it but seng guam mow were not as crazy about. When celgene doesnt go up. When gilead doesnt go up these cant go up. These are hostage to the big invest and the big invest arent going higher. And, that ladies and gentlemen, is the conclusion of the lightning round [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. With the mobile trader app. Carstheyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Theres some companies that are true bellwethers. Companies that give you a terrific read on an entire sector. One of these bellwethers disappoints, you have to be concerned. Take abnet, abt. I like that part of its business is its the largest supermarket of technology on earth. They values a large Tech Solutions business where they distribute i. T. Hardware, software, and services. 34 the past abnet has been a fabulous way to take the pulse of tech hardware so when the Company Reported numbers in morning that missed wall streets estimates, fivecent earnings miss off of 1. 0 the 3basis, stock got clobbered falling 3. 15, or 6. 7 . Is that a sign for all Companies Whose products abnet distributes or is it a oneoff stumablble th they can bounce off quickly. Lets look talk to the ceo rick hamada. Youve come in at great times, this was not a great quarter by your owned a mission but what midwest phied me was that it seemed like the business was going well for the first 12 weeks and then it went soft youre so consistent. How did that happen . Jim, it was localized in our north american computer business, that week 13 anomaly. If you look at our components business globally and you look at our computer business both in europe and asia it was much more on track to our expectations. So overall even though our performance both at revenue and eps was in the guidance range, we didnt it that allimportant midpoint but the gap here was really highly concentrated in that shortfall in north america that showed up late in the quarter. So, rick, heres what we have to deal with. Im dealing with American Companies saying things are getting bet sore then i start thinking is this execution in america by you or is there some cohort of the customers that i dont know that arent doing well . Its, again, very, very good question, jim. What weve done is weve taken a look at the pipeline we had specifically identified in our sights for that end of the quarter and weve watched it transition over into the fourth quarter, were taking a look at whats being booked, whats being still tracked through that pipeline overall and we laid out guidance for the june quarter that is very much in line with normal seasonal expectations. So right now we dont believe theres some major secular trend due to that late quarter signal but at the same time were going to watch our dashboards and we always share the best information we have at the time and today on the call and on this interview is the best information we have of april 24. Okay, now this makes me sound like its not demand creating but there are pushouts because of what you guided. Again, in Industrial America, maybe some the only guys that have numbers that werent exactly blowout were server companies. I sold one Server Company that didnt report great numbers but most of the Industrial America is strong. So where would a pushout be . What kind of character of a company would be pushing out orders . Yeah, so, again, in the i. T. Space at the very end of the quarter they didnt eliminate it, they just decided man im not going to issue that purchase order this quarter. These are highly qualified specifically identified projects where a company is planning to deploy capital to invest in servers, storage, technology, to bolster on to their data center, build out their private clout or add maybe to their hybrid environment and that we were on a linear track through that first 12 weeks and its not a major industrial, this is in that i. T. Space in the small to Medium Business segment that we and our services for those major servers storage networking vendors that we represent. On our component side of our business, the Americas Region was the weakest of the three for components but at the same time they had some of our suppliers are highlighting pockets of strength in some very direct areas like highend auto, et cetera, that normally arent the domain for the distributors to service. What ive known about avnet is when avnet feels that things are one off or that theres just this moment where the stock is being misinterpreted, you do go back into the market. You have not bought back stock in the of any consequence in the last eight quarters, i thought that was right. The stock took off. You had told me 29, 30, that was interesting is this the kind of thing where you feel confident that perhaps that buy b. C. Should be deployed given the fact that youre not cutting your demand forecast . Yeah, we were very pleased with the cash flow for the quarter, jim, we thought that was one of the highlights and we are evaluating our valuebased approach. Remember, we treat buyback as think of it as an alternative form of acquisition opportunity and when we believe our own equity represents a compelling proposition, well get in. Ive always shared that we tend to triangulate looking at discounted cash flow, we look at forwa forward pe and we put a Standing Order in place where a certain strike price where if the stock does recede to a certain point, were in. We did buy a very little bit last quarter because there was a dip after last announcement and well be evaluating that getin point and reestablishing that to make sure its in as we go through cycles. But you recognize that im ive always felt avnet was totally consistent. This was an inconsistent report for you. Yes, it was. No way to hide behind it. Jim, ill show up rain or shine to tell you what were seeing. Thats why i like avnet. Thank you so much for coming on mad money. Thats rick hamada, straight shooter, ceo of avnet. I tend to believe it is one off. It is surprising to me. Ive told you how consistent this company is. But you have to puzzle through it yourself. Im still puzzling through it. Stick with cramer. 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Looks like starbucks, lots of people are betting because of the price of coffee it will get them. Didnt Howard Schultz tell you on mad money not to worry . Looks like he was right, the bears were wrong. Hell be on squawk on the street tomorrow. I promise ill try to find a bull market for you somewhere. Im jim cramer. See you tomorrow. Type goalie mask a true piece of sporting history. If this items real, it could be worth 50,000 or more. It looks like something out of one of those horror movies. Its got, written, plantes name. This could have been written on there last week. If his nose was broken, the silicone is gonna copy that. Not an easy one. And. A 40foot mural that could be worth a fortune. Has anyone seen anything like it before . Not seen anything like this at all. What do you see now . Yeah, yeah, i can see it. Yes even we, the team, were shocked