Transcripts For CNBC Mad Money 20140527

The s p gaining 6 , record this, record that. You get picture. What do i mean when i say this is what a bull should look like . First and most important, a bull market must climb a wall of worry. At no point can there be any joy, no celebration of a new high. All of our biggest advances have come on the backs of gurus who emerged after a couple down scares and say they are worried, they are frightened that valueations are too high and the whole edifice could come tim go when down. Any market thats dependent on a couple people talking it up isnt safe. What i like about what happens when some very high profile bulls get cautious, is how they immediately set off lots of chatter about how theres too much come placency and the market is subject to a wholesale appeal of a huge chunk. I always like to listen to that 20 to 25 decline chatter because it shakes out all of the weak holders. Rallies come on the backs of the weak holders. As long as there are prominent flipfloppers, were going to have the wall thats so necessary for scaring away the sunshine bulls and the summerment on mists, thank you, thomas payne. The negativists had Russia Ukraine going for them. But now it is decided thats a regional conflict without much staying power. And i have to point out the selling crowd got it wrong. Maybe they should adopt my less catchy but more accurate mantra of stocks in may go away. Maybe thats too rational. Do i look like e. E. Cummings . Second, a healthy rally needs some real leadership. My favorite leaders, it will be the same, have always been cynic i broke into the business. The trans ports. Thats the group most sensitive to commerce. When commerce is strong, the earning will be strong. Several stocks come to mind. How about the fedex breaking out . Theyre the personification of a Strong Economy as goods need to be shipped. Same with the rails. When you look at the breakdown of rail cargos, what do you see . Along with oil and coal doing well, a terrific cross section. Will you just go buy American Airlines already . Byebye bye the banks have to do well. They provided the credit needed for an economic expansion. Dont buy, dont buy until today they can really change the coloration of the action because theres so many darn banks out there. We had the right banks leading today, the big money centers. Theyve been the ones in the cross hairs of the u. S. Government. Once that runs its course, the price will start to expand. If you stick around, ill tell you some of my favorites in the group. You need retailers to rally too. Weve let a couple of large discount players cloud our judgment about the whole group. Namely, walmart and target. I think thats a big mistake. Theyre both executing quite poorly. Boo target is a well known fiasco by now although i bet it could catch fire with new management. Walmart is just missing the mark. I have become so polite. Ive just gotten too old to say it the way it should be about how bad they arism just say theyre missing the mark. It sounds much more professional and diplomatic. But who isnt doing poorly . How about the Dollar Stores which have become better merchants and are now nipping at the heel of walmart. Listen to me. Go to one. To go your dollar trees. Ive got three dollar trees and i love them. It always surprises me how little i spend there. Do you know who else is executing fabulously that nobody cares about . The drug stores. It is as if wall street doesnt even talk about it. Rite aid. Every single aisle is like the supermarket. We know that the gatsby index is on fire. Thats good for the tiffany, nordstrom, i think it will deliver a good quarter. Knocked down by a reality piece. Street and cnbc. I know the stock has been heavy. I think it is a buy. Home depot, it had a fantastic quarter. And everyone is taking a share from the likes of walmart. We would like to see housing do better and right now the housing stocks, maybe Better Mortgage rates. But after a prolonged period where housing is cooled, i wonder if lower rates can now start igniting the group. Remember when the high flying biotech and softwares were crashing every day and so many people who dont know their history believe the weakness was bound to affect rest of the market . Remember that . The 2001 scenario that you heard about enendlessly that we debunked and no one listened to us . Remember, what i said caused it. The whole breakdown started when sales force, mark benioff started seeing a hideous direction. Then plunged the next day. I was calling that the pu. Look at last week. The Stock Plunged and plunged hard despite reporting truly stellar results. And now its reversed and is now up nicely from where the quarter was. Thats it, guys. That was the all clear. That was it. The change in sales force. Let us down, let us back. Work days rallying huge tonight. Off a quarter that would have sent it rallying a few weeks ago. Now theyre off to the races. The analysts will be screaming buy, buy, buy. The slow growth techs like apple and cisco are fine too. As far as biotech is concerned, this group was overwhelmed by new supply from a torrent of ipos. However the underwriting has finally stopped because they couldnt jam the deals on the tape. And ever since then interesting big gun sells. You see that monster . Theyve started roaring back. I think the analysts will begin returning to them. If you feel like you missed the move in the big ones, do you know what . I think youre wrong. Theres two speculative guys i really like. Especially the latter kroxt we heard from last week. The market loves growth wherever it can find it. I think it is so note worthy. It played a serious role in the advance. The real winners hear, continental, eog, pioneer and so many others. Finally you need market where there is verification of value. What could be better verification than the huge take overall from pilgrims pride, jimmy dean, jimmy dean. Ballpark franks. It comes right from hill shire farms. I know the food group is no growth. What these deals tell us is that even if these stocks are unloved by the market they have tremendous value to other companies. We know that pfizer walked away from astro zenica. But they take advantage of the cash and lower tax regimes. They see real value in companies and thats what you want to see. Ultimately the real grist for the bull market as i told you earlier is the need to have these periodic pullbacks. Shake out the weak hands. We now have major advance. So of course were due for a little comeuppins. The same guys that apologized for going bearish are now bullish, youre liable to go lower before you go higher. They will change their minds after three down days giving you another entry point to do some buying. Theyre funny. The bottom line, this is a legitimate rally built on many sectors where weve overcome lots of worry. In other words, it is a bull market. And one that is not to be trifld with lightly. Why dont we start with charlie in texas, please. Charlie caller hi, jim. Booya to you. Its a good day. How about you . Caller im doing very well. I wanted to see if you can tell me whats going on, by the way, thank you for the call. That worked out. Thank you. Retail me not had to do with, they ran afoul of what is known of a google algorithim. Google changes what comes up in the cue. You cant beat that. Google too powerful. Google is the most powerful force on earth, some say. Lets go to lets take a video question. Caller booya, jim, miky in new york with the whole family. We wanted to ask you about celg. Its been a roller coaster ride for the last few months. Where are we going from here . Thank you for asking that question. Heres the deal. It had whats known as a markman hearing last week and we got a preliminary read from a judge and made it sound pretty darn good. Thats why it was up five today. Heres the thing. This stock could go to 180 if Goldman Sachs capitulates and recommends the stock and i do believe it is selling at no more than ten times 2016 earnings and i appreciate the whole family also including those two poodles. Now to go john in arizona. Caller a number of stocks in my portfolio are tips from your show so thank you so much for that. Thank you. Caller the company in question is mtw. They had a very disappointing first quarter. I like your thoughts on the remaineder of 2014 for them. If they were simply to take a, literally, just take it and divide them, the 27 stock would be at 40. Will they listen to me . Probably not. But it is a really good yfld i would stay low in the stock. We have overcome. There is a bull stam playeding this market and thats not something to be taking lightly. We might go lower before we go higher. As soon as those guys who are bullish come on and theyre bears, you got your entry point and theyll do it, too. They are funny. Find out what the markets fear could be signaling about the road ahead. Then america is producing more oil than it has in decades. Ill fill you in. And eating your beans and making some green has a lot more in common than you think. Not just my beautiful garden at jim cramer on twitter. Er on twi. Relax into childs pose. Sfx bing. Whos got two hooves and just got a claim status update from geico . This guy, thats who. Sfx bing. And i just got a. Oh no, thats mom. Sorry. Claim status updates. Just a tap away on the geico app. We know from some of these reports after the close and in general the stock market is emotional. Throws tantrums, get blindly terrified. Hey, euphoric and everything in between. Thats why it always hems to have an expert take markets emotional temperature. Just today the s p 500, the bench mark for u. S. Stocks hit a brand new all time. Do you know what gives us more insight, the volatility index. It uses option prices to measure the level of uncertainty in the s p 500. It is a terrific way to measure the level of terror out there as it often rally whens the market is getting pounded. On friday it closed 11. 36. It end the week before 12. You heard complacency. So tonight were going off the charts with our resident volatility expert. Director of trading and investment at swan wealth advisers. Remember a couple years ago in i am a of 2012, sebastian looked at the behavior of the vix and predicted that stocks could have a magnificent bull market run. The guy totally nailed it. How about now . What does he think . I want to you look at this chart which shows the performance of the volatility index from 2012 through last friday. When the vix closed at 11 36 on friday, sebastian points out it was only a few cents away from hitting the lowest level since 2008. Took out all of these. Plus, this is the lowest it has been in over a year. What does that mean . Put in it context. Sebastian, he thinks if you want to understand the current moment, you need to look for parallels in recent history. Lets consider another period of time where the volatility index went lower and the market had a similar bull run. Do you know what period that is . 2002 through mid 2007. People have no sense of history in this business. Check out this next one. It shows the s p 500 and the volatility index during the year. Remember 2002 it got pounded. The vix soared with recession talk. And the tragedy of september 11. Once it became clear it was going to get out of its slump, assisted by extra low Interest Rates, sebastian knows that the vix experience ad very sharp drop for about a year and a half followed by a slow but steady decline for the next few years. Running from 2004 to early 2007. Over the period the vix hit extremely low levels. And crucially, while it was making the gradual decline the s p 500 was able to steadily keep rallying year after year. You probably didnt know that. Thats why the panic mongers pointing out the vix could be very wrong. Sebastian thinks this is an analog. If we want to know whats next for the market, we need to see how the last bull run ended. So take a look at this from 2005 through first few months of 2007 where we know the s p 500 peaked. The horizontal blue line is at 1130 which is where it went out on friday. As you can see, there were many times in late 2006 and early 2007 where the vix actually traded well below this level. In other words, sebastian wants you to understand just because the vix is at 11 and change doesnt mean in and of it spefl the mark wont be headed off the cliff sometime. More important is the pattern. Sebastian says as the vix was declining in 2005, 2006, would you get these intermittent spikes. There will always be spikes. When the spike was over, the vix would fall back down to make the lower low than the previous one. Cool. This was the pattern that held out for years and as long it is a holds where the vix is consistently hitting lower lows, sebastian says were in good shape. What happens when the pattern breaks down . Look at the volatility index behavior in 2007. The vix had a big spike. When it pulled back afterwards, it failed to get anywhere near its previous lows. Instead it reestablished itself had a much hire level. For sebastian when you see that action, the jig is up. So lets take these lessons from 2002 to 2007 and apply them to where we are now. Take a gander at this. It shows the volatility index from 2011 to today. Sebastian thinks it is very important to recognize when we see here looks exactly like the pat western sfrau 2002 to 2006. Good for the bulls, right . Big spikes in 2011. Then for the next year or so it declines rapidly. Ever since its been going lower. Thats all good. Crucially the volatility index is making lower lows. For sebastian thats huge. It means the s p 500 can keep rallying from here. The time to start worrying is when the vix pops and then rather than returning to its previous lows, it starts includinging along at a higher level. That was 2007. Includingly we havent seen that pattern. However, there are other volatility indices. The v how about a different bench mark that has a lot more worry to it . The russell 2000. That contains 2,000 of our smallest publicly held company. Lets take a look at this. This is not pretty. Guess what, there is a volatility index. We call it the rvx. It works like the vix except it tracks the russell 2000. Sebastian really does not like what hes seeing in the rvx. Take a look at this pair of charts showing the rils 2000 and the rvx. Sure enough the behavior looks exactly like the bad era, the vix circa 2007. Rather than going back to the previous lows, it only pulled back to about 18. See this . This is not good. Pull back. You have to see, look at these numbers. 18. Sebastian views this as a red flag for the russell 2000. And if the small cap is in trouble, you cannot be too complacent, just keep that in mine. This is a caveat. Heres the bottom line. With the s p 500 hitting a new high, sebastians chart suggestions it could still be on course. While theres no definitive sign that thing are going arirk sebastian says you must keep a close eye on vix for the telltale warning sign we just saw with the russell 2000 volatility index where it spikes and then fails to return to the previous lows. If you see that with the vix, sebastian would recommend getting a lot more cautious. After the break ill try to save more money. Coming up, cash crop . From whole foods to hay, youve heard plenty about the move from natural to organic food. Cramer bites into the one stock that stayed under the radar. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. When a new Company Becomes public, i like to talk about the blood lines. Normally it is a metaphor for where the Senior Executives come from and what theyve done in the past but with the terrific ipo last friday of Parsley Energy, an oil producer operating in texas red hot basin, with the stock rising 20 on its first day of trading we have a story that is about literal blood lines. You see the ceo of Parsley Energy brian scheffield hams to be the son, it has a ton of acres in the exact same region of the basin. Thats right. We got a genuine fatherson faceoff. It is shelffield versus shelffield. When Daniel Day Lewis freaks out. Weve got two Oil Companies pioneer and parsley run by members of the same family and operating in the same area. This gives as you terrific chance to keep to you compare oil stocks in an apples to apples basis. Especially since the Production Company are some of the hottest names in this whole market right now. How do we figure out whether to bet on the father pioneer or the son at parsley . First we need to look at these companies prospects. What kind of acreage do they have . How many wells can they dribble on before they run out of room and it becomes counter productive . Parsley is leased to require just under 100 net acres. About 60 to 70 of that in their core area. In comparison, the 29 billion pioneer is a giant. With 825,000 acres in just the region which shefield sr. Says is the biggest on earth after saudis. Pioneer has been operating 30 years but now theyve begun doing horizontal drilling. Thats that technology that helps to get all the oil out that was previously thought to be uneconomical which is driving so much of the north American Energy revolution. In just this part, they have 50 billion barrels of recoverable resources. Plus they have 2ly the,000 acres. Another major texas find, along with Additional Holdings in places like barnett, the rockies. Man pioneer is unbelievable prospects. Superior prospects. Next you need to look at the production quote. Another hugely important key metric and here parsley wins. This is because parsley is so much newer and smaller. It was only founded in 2008 so theyre growing off a very low base but man, is it growing. Last area it tripled its overall production in 2012. Still only produced five hours a day. A pittance from pioneer which produced an astounding 160,000 Barrels Per Day in 2013. Going forward, parsleys production should continue. Were talking growth well in excess of 100 for this year and next year, too. This is one of the benefits of owning a junior growth well. It is still small enough that it can grow like a wed. Pioneer on the other hand is a senior Growth Company meaning think larger, more established. While it has terrific growth, they wont see that double or Single Production in a single year because theyre working of a very large base. Pioneer is currently ramping up its rig count and this should allow them to that you it up rates of 16 to 21 over the next three years. That used to not be shabby. We would be hallelujah not anymore. So yes. Parsley is increasing production. Much faster than pioneer. Because it is still in the early stages of the growth story. However, the thing to keep in mind is that while pioneers Production Growth might be slower, unlike parsley which will never slow down as it becomes larger, we know that it can keep up its current level of growth for a very long time. I find that exciting. Thats why i like the stock so much. We know this because pioneer is more than 20,000 potential drilling locations. That means the company can stay in this kingd of Production Growth for years. What else matters to an oil company . We need a healthy Balance Sheet so you can financial the operations. Theyre in good shape. Raised 925 million. Funding much of the exploration of production budget. As forrine ear, it has a nearly pristine Balance Sheets. Thats even after spending a great deal of money to build on the horizontal capacity. Something that should start to pay off next year in shocking number. Then of course theres management. Even though brian shefield probably has as much crude running through his blind as much as blood, the fact is i would rather invest with the father than the son. No offense. This has nothing to do with the shefield family in particular or any family. Scott shefield, the chairman and ceo, hes been running the Company Nearly 14 years. He knows it. He was cheryl of parker and parsley the company that merged with mesa to create Pioneer Resources in 1997. For eight and a half years. Thats 22 Years Experience running an oil company. And scott shefield has made you a fortune if you invested with him in the last five years. Why do you keep harping on pioneer . Do you know why . 700 gain im calling that a bankable track record. As for brian shefield, 35. Hes a lot younger than his 61yearold dad. He has a lot more experience. It would be really weird if it was the other way around. Finally, you have to consider the stocks. Specifically how theyre valued. Right now they are far from cheap. Hey, thats almost workday like pioneer is more expensive than parsley which has an enterprise multiple of 8. 5 despite the much faster Production Growth. I think pioneer does deserve to be traded at a premium. Parsley is cheaper and i bet it could trade up to 29. Thats about 28 higher than where it is now. Thats before it gets too expensive. The bottom line here of this unbelievable fatherson duo. The difference between pioneer run by scott shefield and parsley run by his son brian are like the differences between any junior and senior growth stocks. If you want a consistent oil company with many years of consistent yoeds stock, a steady handled on the tiller, pxd is for you. If you want the up and comer, you might want to buy parsley. Im willing to endorse either stock. It depends on your investing style. Stan in michigan. Stan caller hey, hey, big booya from detroit michigan. It used to be the motor city now, it is the recall city. Only one real company but thats in the recall business. Whats up . Caller exxon holder share meeting tomorrow. Interested in my money will be safe there long term and with these electric hybrid cars. You have the ceo of fee at chrysler saying dont buy my product. In the long term is oil and gas still going to be the product that we need and is all this alternative green energy just a joke . Not a joke. I think the next 25, 30 years it will be a gasoline based world and exxon has a 50year plan. Theyre not my favorite. I but theyre a good company, a good Balance Sheet to buy back stock. As they told me at Goldman Sachs, no one got hurt. John in ohio. A big booya were to you from hey high. Whats happening . Caller i recently got to invest earlier this year. One of may stocks im at is qed resources. Bought in rate before march during the dip. And i noticed the estimates for revv new and earnings. Kind of stag than around 30. Kind of wonder. If you want rocky mountain, im going to send to you noble. Noble is down because Woodside Petroleum walked away from their deal with the great leviathan field off the coast of israel. But they have the best assets. Im saying buy some noble. Like father like son. Blood lines matter. Pain e pioneer and parsley. If youre for consistency, stay with pxd. But if youre a risk taker, you have my besting. And stick around, while the trend of Healthy Eating may have taken a hit at whole foods, theres one stock that stuck around. For an investor, not a trader, there is Nothing Better than riding a huge long term year after year to reap serious profits. Right now one of my favorite themes is this idea of Healthy Eating. We know from whole foods that theres way too much competition in organic and Natural Grocery store space. But their pain is the organic and natural food makers gain. As everybody is rushing to get this stuff on their shelves. I told you about haines celestial. I want to introduce you to a smaller one. Stkl. A 900 million maker of Natural Organic foods. It is the number one organic soybean producer, the number one packager of soy milk and the top label fruit snacks is in the whole country. Worldwide theyre the top producer of oat fiber, the number one processor of confection sunflower. It has shared its businesses in order to focus on being an organic and natural. They just reported a stellar quarter two weeks ago. Dramatically higher than expected revenues. 16 internal growth in its core food operations. The stock has been on fire of late rallying 35 and up 80 since i recommended it three years ago. Even up here it sell for 24 time next years estimates despite having a 30 long term growth rate. Lets take a look with steven. Find out more about his company sgher it is headed. Welcome to the show. We were talking off camera. We got a revolution on our hands. It is a twosided revolution. The babyboomers who want to live longer and think it is the food that will let them and it is the millennials that demand your kind of food. Right. The millennials, theyre the most socially engaged generation ever. They had information that you and i never would have found in our day so theyre very engaged. They want to know where the food is coming from, how it was made, did you cut down rain forest to get it. They want to know whats going on. And then they read labels. Theyre the first generation to learn, they learned to read labels at school. It is incredible. I dont have the eyesight im used to. My dads are telling me, just read the label. Who ever cared . Nobody cared back in the day. Today theres a real awareness and then you lay on the boomers. Our generation getting a little older. Weve connected the dots. There is a connection between your diet and how you live and we want to live as long as we can and have fulsome lives so paying attention to what you eat makes sense. Ture cradle to grave. In this case, it is field to table. You monitor and take care of the whole chain, right . Thats right. Our core strength, where our Company Started is in the sourcing of Raw Materials. They are nongenetically modified Raw Materials. So you dont turn an organic farm on overnight. It takes three years to develop an organic farm. Weve been involved in the sourcing for years. What weve done over time is trans its igsed our business from being Raw Materials provider to raw ingredients and consumer guidance provider. Were adding more value for the customer. You have a split model. We wont see this. Well see this under another companys name. But we also see some of your products under your own name. We have some small brands. Those are brands that we provided to the customers. We dont con promote them as consumer brands. You wont know us by our brands. We work the full integrated chain from the Raw Materials through ingredients and into the packaged products. And we put other peoples names on the product. Okay. When your partner, a special venlor partner with ihop, what i am a getting . Youre getting the fruit toppings there. Theyre look forg a healthy fruit topping to put on the pancakes so were one of the key providers of those products. Thats an example. I figured it is the same sugary supery stuff. People dont use that anymore. Not anymore. Theyre a healthy alternative so were providing that. Are the farmers getting with the program . They are on a global basis. In north america it is a little tougher. The transition to organic growing has been a little bit slower. Especially in the granls that we handle. The soy, the corn. Those are primarily genetically modified. But here you have sesame see seeds, ethiopia. We can have those sources of supply, bring them to our markets, north america and europe being our largest markets, and be able to supply the products. We dont source from one area. If a xlod at this is in two or three areas, we want to be in those areas so we can guarantee supply for our customers. Last question. When we listened to target last week, they said it is not a fad. We have to have it. Walmart moving in aggressively. Maybe i should buy this or that. It will most likely come to sun opta in some form. They want to put their own name on it. We sure hope so. Weve benefited from the growth in private label. Today in our top ten customers forecast are retailers, private label. And they love soy milk and the almond milk. We want to provide all of those. Anything grain based, fruitful. What a Great Company you are. Its been a real win in 2014 and totally in sync with what this country and the rest of the world is going with. Hes the ceo of sun opta. I know it is up a lot. Has the long term play. Stay with cramer. [is engineered for comfort. Hing that goes into a lennox system like parts that create your perfect temperature and humidity or the parts that purify the air. Together these parts can cut your heating and cooling bills in half. Which is quite comforting. And heres the best part. Call now to get up to 1,700 dollars back or special financing on select lennox home comfort systems. Offer ends june 13th. Plus download our free lennox mobile app with an energysavings calculator. If your Current System is 10 years or older, start planning now. And take advantage of special financing. So call now to get up to 1,700 dollars back or special financing on select lennox home comfort systems. Offer ends june 13th. And download our free lennox mobile app. Lennox. Innovation never felt so good. It is time time for the lightning round. The lightning round is over. Are you ready . Skeedaddy. Time for the lightning round. To sam in new york. Sam . Whats up, cramer. Booya from albany, new york. You almost had a big win in lacrosse. Caller i know whats up . Caller i have a question on 3d systems. I like stratus. There is a justify organic secondary coming from 3d. This is what weve come to expect. It is why i like it and dont like it. I go to helen in california. Caller hello, jim, it is helen in california. You got that right myself question for you, jim, is about bioscript. Bios. I bought it last cement at 9. 05. Last september. There is a fulfillment cost to stay down. I think it sold off with a lot of stocks and it can come right back. Lets to go john in my home state of pennsylvania. John. Caller thanks for taking my call. Of course. Caller i own stock in morgan stanley. Youre a lucky man. I want to you stay long. Wellrun company. Ed in texas. Hi, from the wind surfing paradise of corpus christi, texas. Yeah. Caller i have a sizable position in hxl. Well, i have to tell you, it is tied, joined at the hip with cramer fame. So i think youre fine. Stocks come down. Probably even represents greater value. I need to go to rob in florida. Caller how are you doing . Pretty good. Caller i have a question. Time line 10 to 15 years. I want to buy four shares. The only concern is it is 83. I bet you there is a team. There im be concerned about it. I think the man has put together a great team and i want to own it. People who knocked him and his team. Get a life. Lets to go jim in kansas. Caller booya, jim. This is jill from wichita, kansas. Home of the 2014 regular season undefeated Wichita State basketball team. Absolutely. Absolutely. Caller my stock is Kansas City Southern railways. All right. Its making a comeback. It did have a very disappointing quarter. I think brian ashtonburg here writes the breakout stocks newspaper will swear by it. I went and visited. I think it is fine. Not my favorite. I am a Union Pacific fan. May i go to simeon in rhode island. Caller the ocean state rhode island. How are you . Just great. Not as great as you because you live in a beautiful area. Whats up . Caller my question is twofold. Cedar fair a good stock to hole in a roth ira. Symbol fun. Its fabulous. It is a Real Estate Invest many trust. And they do have a problem in iras. Theres only so much money you can get from one. A very complicated tax consideration. Lets go to mark in wisconsin. Caller my stock is sandridge. People are getting tired and i said get a little patience. I need steve in new jersey. Steve. Caller booya, dr. Cramer. Thank you for restoring my portfolio to health again. Sure trying. Caller i have all your books, jim and i have a question. You always say research. I have a stock. Uve. It is a very good, a very good insurer. A decent yield. Insurers wont run away and go up too fast but i think it is fine in part of a diversified portfolio. 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. Did the guilty plea from credit sweeps represent the High Water Mark for bank prosecutions . Have we reach the point where our banks are back to being banks and not just repositories for legal fees . With the 3. 4 rally in bank of america today, it sure does look like it. The banks have been horrendous. It is a nightmare. From one indignity to another. First we had the endless prosecutions. Given the nature of litigation in this country the judgment for reserves has always been open ended, therefore incalculable. Time has passed cynic the pre financial misconduct that the statute has run out. Second, the Justice Department has reserved the big guns for the foreign banks. Bnp from france. Maybe the Justice Departments jihad against banks has finally run its course with the possible exception of bank of america. Of course, bank of america has written a huge number of checks. It is finally possible that additional reserves might not need to be taken. Plus, it may be a 10 . As the new application to return capital was filed in a timely manner and with little change just today, hence why the stock rallied so furiously. Wouldnt it be something if it allowed banks to return much more capital than before . It sure seems possible. While Interest Rates are not going higher, the nonzeks Construction Business has proceeded at a pace. Sure the Interest Rates arent going higher. But to edge the litigation with an overall prime rate appreciably higher, nothing to sneeze at. Plus many banks have very robust practices that are raking in hefty fees from the least regulated part of the businesses. The group itself is so far behind the market when youre looking for values, these are natural places to hunt. Theyre so cheap. Versus the historical levels. It is easy to see why they would take the plunge. Many are down big for the year. A good solid fee business. Overall i think many funneled managers are underweight this group. Meaning they have way too little exposure to the banks versus what percentage they are to the s p. They will to have put more money and work in this basin and that means they will go even higher over time. In short the banks are at long last the place to be in a sky high market that wants value. For me the cheapest banks are, about a of america. J. P. Morgan which i cant believe will have its hornldous a quarter as last time. And there will be no cheering here. U. S. Bank corps and wells fargo, the bank the best exposure. I dont want to split hairs. The whole group is so cheap that a sector could rally 5 to 10 from here and still be inexpensive. Stick with cramer. K with cramer. Do you know what this means . The greater the curvature, the bigger the difference. [scifi tractor beam sound]. Sucked me right in. Its beautiful. Gotta admit one thing. Cant beat the view. Introducing the worlds first curved Ultra High Definition Television from samsung. When sales force record and went down and then up, that was the signal. Check out workday. There is always a bull market somewhere. Im jim cramer and i will see you tomorrow flying high with jack utsick. This former pilots living a 300million dream. Hes one of the top concert promoters in the world. Jack utsick presents the rolling stones, jack utsick presents madonna, jack utsick presents elton john. It looked legitimate. It looked profitable. Narrator but when the securities and Exchange Commission investigates, utsick dumps his partners and disappears. It seemed like we got Stuck Holding the ball, and he goes off and escapes. Narrator and later, dont let his youth deceive you. David kaup is only in his 20s, but hes no child when it comes to running devastating loan and realestate scams. I think he just believes hes superior to everybody else no one can touch him. Narrator in just five years,