Transcripts For CNBC Mad Money 20140724

Advancing. 05 and the nasdaq climbing, i want to talk about whats become the mustown stock of this earnings season. Facebook. If you paid any attention to the market Coverage Today you probably heard someone say that facebook with the newfound 190 billion market capitalization after the 3. 69 rally is ridiculously overvalued. You heard it. I heard it snc you know how they slam it wait a second. They use brand name comparisons like, what do you mean its worth more than intel or oracle for heavens sake . Thats wrong like theyre indig minu nant about it. Its past merck some merck is now tied with pfizer . No way no relatively recent upstart can be worth that much, right . It just came public two years ago, right . Its crazy that its larger than so many american, established dut companies, right . Wrong wrong. Ill do the real analysis that Portfolio Managers use, let me first explain just how stupid this kind of compare son, reasoning really is. I remember in the miden 1980s i was, woing at Goldman Sachs. I had this beat on merck. Yes, merck that was developing a new anticholesterol drug called mevacor. He was saying that mevacor could ref lugzize the way we treat hear disease, specifically, he envisioned a world where the link between high cholesterol and heart conditions at that time very tenuous and not talked about, hard to believe, but wasnt, but would be wellestablished and millions upon millions of people would be taking statens, the antistatens and merck was one of them. It was the first. I always kept in close contact with the drug analyst at Goldman Sachs so i asked to see his model for mercks future earnings. It showed that mevacor, this anticholesterol drug in the out years, a couple of years from now might be making as much as 200 million annually. Twr no one was talking about it being a big drug. In account fa, that was a loser. I had my clients buying merck. I had a feeling and then the stock was starting to run. And then a major magazine put merck on its cover basically saying how it might be the most overvalued stock on earth, so overvalued and that passed General Motors in capitalization. The great General Motors. Well, ill be. Guess what . A huge percentage of my client base read that article and i got my butt handed to me by so many of them. Sell, sell, sell they dropped merck like a hot potato and some of them dumped me for being a gunner. I had faith. I took pretty much every dime i had to buy merck options and when that drug hit and the publicity got it to blockbuster status, i cashed in on those calls and was wealthy enough to quit Goldman Sachs and start my own darn hedge fund with my winnings. Along with fiezors lipitor became the greatestselling drugs of alltime. Lipitor sold 125 billion worth of product. The moral of the story, dont listen when someone says the stock is too expensive because its bigger than such and such company. It doesnt matter and in retrospect, didnt merck deserve to sell at a premium sense gm went bankrupt . Which brings me back to merck and market cap and why i think it makes so much sense. I think facebook will overtake pfizer and many others as it achieves mustown status. Facebook has real earns,ed on wille eed onnels of them. They dont have the earnings at all, but facebook is doing so well i could see itting 3, write that down. Their 3 per share in 2016. Why does that matter so much, 3 . Because growthoriented Money Managers judge by what should be paid for them, meaning the price to earnings multiple. First, you figure out what the company can earn, and in this case im telling you 3, stick with me. Then you figure out how fast the company is growing. Right now it has north of 60 growth. You have to figure out what thats worth right now. I want to be conservative. Its selling at one time the growth rate and even though facebook is obviously far, far superior to the average stock. Lets pretend it isnt. Lets say it deserves to trade at just half of the growth rate which is an absurdly low number and heres the arithmetic. Its not math and you take that price to earnings multiple, pe multiple of 30. You multiply it by the 3 earnings estimate i just gave you and voila, you get a 90 stock. Yes. I see facebook going to 90, 20 higher than where it is now and ill bet that most growth managers infected with the mustown disease will regard my calculations as being ridiculously conservative. Why . Because facebook is run so well and has so much open runway, thats why. Last time they wrote down the terrific and medium short strategy among the dream Conference Call ive been on. Theres that thing of beauty. Martin zuckerberg had me from the first line when he said this was a good quarter. I love humility. Remind me to get some. I heard some critic today say its preposterous to say facebook has doubled since it came public. You know what . I agree, but im coming from the opposite direction. Its last nights numbers and i think it is preposterous that facebooks stock is cheap. It it deserves to be much higher. The reason . Mobile. Conference call was a total amateur hour, and management acted like it didnt even matter and it sounded like they put the call together that afternoon. What a change. I love this call. It was drama. Its like one of those really great things like hbo or amc. They established themselves as the king of mobile. Of the 829 Million People using facebook every day, more than 650 million use it on mobile. 62 of the 2. 9 billion in ad revenue came from mobile and thats staggering and every bit as staggering and i heard that and youve got to be kidding me. In less than two years this has gone from being audit with the advertising strategy which counts for half of the media spending within two years and you know i speak to the ceos often online and i believe facebook will be the bedrock of the entire media strategy hence why 3 a share by 2016. I think well see the the fruits of some of the facebook initiatives and virtual reality. The potential mron tiesation streams are mindboggling. Best of all, the actual content, who writes it . You . That makes facebooks Gross Margins insanely large and the expense structure is ridiculously low and a huge amount of revenue streams, facebook is offering advertisers a monopoly. A monopoly on you. Ill bet they can raise rates for every ad they sell and it wouldnt mean a thing. The advertisers would not even blink. They will pay. I think facebook is just realizing thats the case. One more word about the future. Back in the 1980s, its funny. Everyone wanted to work at merck. It was the hot place to go. By the end of the 1990s, everyone wanted to work at Goldman Sachs. They have the best of the best. You know where they want to go now . They upon a job at facebook and the young people are the annuity stream to the juggernaut. Dont fall prey to those who say it shouldnt be worth the comparison stocks. Understand this could be one of the most lucrative companies of the era to other mustown stocks. Lets just hope the stock comes in tomorrow so you can buy it lower. Sadly, when theyre this good they usually cant. Tony in new jersey. Tony hey, jim. Its me, tony from new jersey. Whats going on, man . Booyah. I had great paintball up in wane, new jersey, whats up . In the last month or so the solar sector has been volatile to the down side. What are your thoughts on first solar . Their solar is cheap. It did spike up after the Analyst Meeting and i think first solar is the bargain. I would own it. How about we go to ed in florida, please. Ed yeah. This is ed from florida. How are you . Im real good, ed. How about you . Soso, but anyway, i appreciate all that you do for us, okay . Thank you. Anyway, ive had had since 1999 and it went sideways and im down, like, four points, what should i do . I have to tell you, i was on that Conference Call, sir, and it was terrible. It does yield 4 , but they are in a huge secular decline and theyre in a world of hurt, but if you ask me where i think the stock is going. I dont think its going higher. It will stabilize at 4 1 4 and if it does jump, sell, sell, sell. Arthur in wisconsin. Booyah. Booyah. Ive been listening to you for years and enjoying the program immensely. Thank you the question of the night is ive been buying epd for the last three years for my retire am fund and reinvesting the dividends. The question is shall i sell some after the split or should i sit still . You dont snead to ask me. Youve been listening to how good the stock is because Enterprise Products partners is the best mlp. Dont you touch that sucker. That things going higher. Whats the must own of the moment . None other than the high and mighty fb, facebook. When, if ever, it comes in, i suggest pulling the trigger on mad money, tonight, skechers is hiding a stride . I dont know. Theyre running with the players after pulling past expectations. Can they keep up the pace . Im taking a lap with the man behind the brand. Get behind a 9 blue plate special served up by a hitter Hedge Fund Manager and plus ill reveal threeec broen stocks that could be the best bargains out there. Stick with cramer. Dont miss a second of mad money, follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. At every ford dealership, youll find the works its a complete checkup of the services your vehicle needs. So prepare your car for any road trip by taking it to an expert ford technician. Because no matter your destination good maintenance helps you save at the pump. Get our multipoint inspection with a Synthetic Blend Oil change, tire rotation, Brake Inspection and more for 29. 95 or less. Get a complete vehicle checkup only at your ford dealer. Could help your business didavoid hours of delaynd test caused by slow internet from the phone company . Thats enough time to record a memo. Idea for sales giveaway. Return a call. Sign a contract. Pick a tie. Take a break with mr. Duck. Practice up for the business trip. Fly to florida. Win an award. Close a deal. Hire an intern. And still have time to spare. Go to comcastbusiness. Com checkyourspeed if we cant offer faster speeds or save you money well give you 150. Comcast business. Built for business. Look at skechers run. This Footwear Company which has one the of hottest brands out there just reported a monster quarter last night in response, the stock rallied to 3. 89 and thats 8 alltime high. Skechers are earning 68 Cents Per Share and 28 cents beating the of mats and the revenues came in substantially higher than expected, rising year over year. Domestic wholesale business up 35 and international up a whopping 54 . Meanwhile, at skechers, the companyowned Retail Stores posted a 13. increase in samestore sales while adding 16 new looks bringing the total up to 413. The Company Plans to open 40 to 50 more during the rest of the year and thats a monster acceleration. Even better, theyve seen it from the first half of the year to the second half. What a turnaround. Many were writing skechers off, tarnished brand and the ftc sanctioned them for overaggressive markets for their shoes. Fast forward to today. We last spoke to management on june 4th and i pushed this thing hard after learning the story and yes, loving the shoes which i both wear to work out and on the weekend. Since then stocks have given us an 18 gain and lets check out with david weinberg, hes the cfo and coo of skechers. Mr. Weinberg, welcome back to mad money and let me do what everyone else did on the Conference Call. Congratulations, sir, for a great quarter. Thank you very much. We appreciate it. I saw numbers that, frankly, ive never seen before from a retailer. How is it possible to have triple digit sales increases in womens sport and sport active lines . Well, its all about product. Just like we showed you last time. When the product resonates around the world and times are good it sells well, and its when we had a great opportunity and we were ready for it, so we fulfilled everything we could and it really was a perfect quarter for us. Lets talk about around the world. Tripledigit growth in the following countries, australia, new zealand, mexico, south africa, south korea, turkey, united arab emirates. This stuff sells everywhere . It sells everywhere and thats the key. It sells everwhere and the same types of products sell everywhere to different degrees and it resonates throughout the world and its one look around the world and it is skechers and its doing very well. Youve often told me youre a Marketing Company that makes great shoes. Thats true. I want to know in terms of marketing. You signed demi layoff at on. You signed everybody thats both of my generation and the younger generation. You said youre going to have her do social media campaigns through 2016. Is it money for facebook or twitter . Whats with the sketcherlayoff at on relationship. It will be online and through normal channels. We use our celebrities everywhere. Its true, from young to old and weve done very well with it and they obviously love the brand. We get more calls for people to wear our shoes and to represent us than weve ever gotten in the past. People like the look, like the feel, are comfortable with it and love the brand. Where are you guys, you are still very small penetration for the world. We saw it in a great line for earned armour, but i look at where you are in terms of percentage, dont you think you could double your percent of the footwear business without a problem . Without a problem. Its only a matter of when. We think in the next three or four years we should be as big or bigger outside of the United States as inside the United States. Talk to me about the campaign that i like, the campaign where youre going to have people would say my age or maybe a little bit younger wearing the shoes, maybe perhaps for the football season. Is that when well see the ads . Theyll run the whole year. Some will start later. Weve had joe montana. Hes done well. We have namath and pete rose. They do great. Do people love pete rose even though, you know, he had people, im from philadelphia and he won us the world series, so i love him. We love him, hes great and he loves the shoes. We think hes great and we think that everybody will like the spot, as well. He did a great job. I wanted to ask you, all these different doors that you have. How is macys doing for you . Very well. The finish line group in macys which is where we sell has done very, very well and they keep telling us were one of the top one or two performers for them in the venue. You mentioned kohls positively. Kohls is doing very well. Every place the shoes are around the world whether its domestic in our own stores and our partners around the world or in the United States has done very, very well. We have heard nothing back where people dont do well with the footwear. Can you give me a view about all the ends that are selling well for men because the ones that i i bought some that are, you know, theyre like brown canvas, and im not kidding when people say hey, cramer, you look good. Im not kidding where are these ideas coming from and whats selling for men thats doing so well . Mens . The whole line. Our sport line, our performance line, our break and brown line which is what youre probably wearing in the canvas, and our work shoes all are selling very, very well and its all coming up and doing great. So this acceleration of stores. Where will we start seeing those . Everywhere. I mean, we read off a list when we did the Conference Call. Theyre around the country and all around the world. Actually, our stores around the world are doing better than the stores in the United States. We plan on opening more in japan. We have a big presence in chile. We have a presence in canada and we will continue to open more stores in europe where the Comp Store Sales are significantly higher than the states because the brand is catching on and its growing very, very nicely. As i said to you, i thought it was the most undervalued growth story out there. I think after this, it remains that way. Thank you so much, sir, for coming on the show. Thanks, jim. Appreciate it. Guys, its real and its not getting the respect of what happened a couple of years ago, people dont believe it. Skechers is for real. After the break ill try to make you even more money. 6 [ 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. [ male announcer ] if you cant stand the heat, get off the test track. Get the mercedesbenz youve been burning for at the summer event, going on now at your authorized mercedesbenz dealer. But hurry, offers end july 31st. Share your summer moments in your mercedesbenz with us. Last week i had a roll privilege. I hosted a panel on cnbcs delivering alpha conference, three of the smartest Money Managers i know laid out their very best ideas to me and david faber. Larry robbins, Fortress Investment and i dont like the fact that you have the conference and everyone gets all excited and then the names are forgotten in the ether somewhere. This conference was too good, but before i get you town to the specifics let me take a moment to explain why its worth focusing on picks from the Money Managers. These are long term. Needless to say were dealing with three brilliant guys who take tremendous pride in their work and put their money where their mouth is, they were chosen after rigorous analysis by the hundreds of Portfolio Managers and analysts they have working for them. People who were among the smart of in the business. These ideas are constructed after only much debate and months of bottoms up analysis and specific price targets based on specific valuations and theyve done the work for you and theyve come into the conference and we just forget about them . No, not on my watch. Tonight were kicking things off and one of the best stock pickers on earth and ive known lee who was a young kid when he was wruning research and he gave me an amazing recommendation, telling me to get behind Berkshire Hathaway and now its worth more than 192,000. Since last weeks conference hes given me an opportunity to do a deep dive into the thinking behind each of his ideas going into why he and his firm likes these so much. Coopermans super value, svu and ets. Why does he like super value, the Supermarket Chain that was fighting for its very existence less than two years ago . Super value has been on a tear with the stock just pennies below its 52week high, but this is a story with a lot of hair on it and remember on wall street, hair is a bad thing like finding a bunch of curly hairs in your salad. Oh so what does coopermans what does cooperman see in super value behind hairs in your salad . First of all, early last year, the country brought in a new management and the ceo of officemax and hes taken aggressive action to stabilize the business and selling four brands and acme, mime from philly, shaws to the 3. 3 billion deal and it did wonders with the balance sheet. He transformed into one that can focus growing and improving the operations rather than merely struggling to survive, shrink to thrive. Success, even after the asset sale sale they stole businesses from under the same roof. Theres the supermarket business and 191 stores under five different brands and theres save a lot and the Discount Grocery chain and 301 companyowned stores and 951 franchises and super value is a leading wholesale food distributor selling direct to other grocery stores. The sum of these three parts is worth than what the current market is paying for the stock, and yet its a breakup story. Coopermans sum of the parts and sotp, and the sum of the parts analysis gives them an 11 price target thats a nearly 20 premium where the stock is currently traded. Its likely that super value can sell the Retail Business and that would help unlock the sum of the parts value. Plus the company is planning an analyst day for the save a lot brand and cooper thinks management will paint a bullish picture and it will have a turnaround and the market is not giving it enough credit for. You have a cheap stock, a turnaround story and potential for potentialenhancing breakup. The risk is fairly limited and even if one of these plays out, and let alone beth of them and no wonder cooperman looks value, although you should only buy this for speculation. Im know crazy about the supermarket business and this feels like rite aid when it was at five bucks even though svu did hit a 52week high today. It could come in. Income up, cooperman recommended atlas energy and that symbol, atls, thats the general partner in two daughter mlps, Atlas Resource Partners and oil and gas producer and Atlas Pipeline Partners and thats a natural Gas Processing and Treatment Services play operating in texas, oklahoma. They have a 6 stake. Whats the thesis here . Simple. He thinks atlas energy is darn cheap and he believes company can keep raising its distribution by leap asks bounds over the next five years which is impressive because the stock is expected to yield 4. 7 for 2014. Atlas trades at a discount to its peers. We always have to do apples to apples and this is too cheap. The analyst forecasts think it can grow through 2016, must faster than the Group Average which works out to be a 5. 6 yield next year. If the stock stays at a 6. 9 yield in 2016. Wow Atlas Energies is the only publicly traded general partner of both the. Line mlp and the production mlp. We talk about this all of the time and it gives it two red hot industries, both through organic projects and potential for its subsidiaries. As a general partner in atlas resource and atlas pipeline the company has incentive distribution rights and idrs. These idrs mean that as the distribution of atlas resource and atlas pipeline rise, it is entitled to a greater percentage of the incremental cash flow from both companies. Right now the idrs are currently at the maximum level for 50 for the production mlp which means the company is raking in the cash hand over first. Upon where does cooperman see the stock going . Is bahhed on a Net Asset Value and atlas pipeline. He believes that atlas energy should be worth 59. I think hes being conservative. Atlas is paying you to wait in a very low yield environment and one last point. We see a lot of m a activity including with brightburn energy. I wouldnt be surprised at all if atlas energy which has a relatively small value of 5. 2 billion turns out to be a takeover target although they work with any takeover speculation and theyve sold another can company that lee liked. So heres the bottom line, and his ideas have almost been foolproof in previous years. I think it pays to sersly consider ideas hes receiving and i think they will outperform the market just like we have the to two. Atlas energy, cheap stocks and the sum of the parts is worth more than what the market is paying for. Super value and atlas are headed higher, remember, once again, best performing Money Managers come to delivering alpha, im not letting these picks die on the vine. Hugh in texas, please, hugh. Booyah, jim. From brownsville, texas. Thank you for making me 10 on emerge energy. Thats a good one. Thank you very much. Kraft, im 2 down. Do i go ahead and keep it or do i buy more of it . Sell it . I was talking with stephanie and this markets become difficult again. I know the s p is at its high and there are stocks that are all over the place and i think kraft because it has a 3. 6 yield i think its fine. I think youre fine on kraft and the only reason i mentioned this it is because we kicked around buying the stock for the charitable trust. Lets go to curtis in North Carolina. Hey, jim, a North Carolina booyah to you and the crew. We have a great crew. Whats up . I was with schlumberger and i see where they are at with the revenues and i want your take on schlumberger. Yes, as a core holder. The stock had run very big because there was a Brokerage House that just basically said this was the greatest stock since sliced bread and used a huge price target and they reported and they were want promotional in the call and they said things are okay and the stock sold off. I agree with you. Its a buy and look at how it held up today even though Diamond Offshore reported a bad number. Schlumberger didnt go down, schlumberger is higher and it is going higher and it is a buy, buy, buy if you cant beat them, join them. You learn a lot like cooperman. Theyre solid and they can be headed higher like most of the names he talked about the year before that and the year before that. Air gas is up big since winning a prolonged fight against a hostile takeover. Is there more gas in the tank or is it doomed to run on fumes . Trash or treasure. Im seeing if three brocken stocks can be bargains in disfwiez and plus your calls in the lightning round just ahead. Stay with cramer. Dont just visit rome. [ thud ] visit tripadvisor rome. With millions of reviews, tripadvisor makes any destination better. Your studied day and night with millions of reviews, for her drivers test. Secretly inside, you hoped she wouldnt pass. The thought of your baby girl driving around all by herself was. You just werent ready. But she did pass. cause shes your baby girl. And now youre proud. A bundle of nerves proud. But proud. Get a discount when you add a newlylicensed teen to your Liberty Mutual insurance policy. Call to learn about our whole range of life event discounts. Newlywed discount. New College Graduate and retiree discounts. You could even get a discount when you add a car. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. You want to get a broad read on the u. S. Economy . Its always worth checking in with air gas, arg. The big distributor of packaged gasses and related welding and Safety Equipment to a host of industries, manufacturing to nonresidential construction, life science, the food and beverage space, energy, chemicals, basic materials and health care. Historically it has a strong record of creating value for shareholders and if it makes sense for allergan to resister the hostile takeover bid from pharma . Remember that air gas fought off a hostile bid from air products in 2010 and 2011, air products final offer was 70 a share and air gas insistered it could reward shareholders as an independent company and three bankers agreed and sure enough, the stock broke up above 100 and never would have seen that if you were with air products. The stocks currently down slightly for the year. The company just reported this morning delivering inline numbers, hey, in this market only meeting the expectations the stock gets sent down, and 1. 48 decline pt upon company reignited its history of outperformance and its a difficult economy here and take a closer look of air gas founder with peter mckoslynn and michael m our, lonin ito find out whats new. I have to tell you, i think janet yellins job is hard. Unemployment was great this morning and best in many years. So many sectors are good, but you guys are the most consistent company ive dealt with in the last decade. I dont get it. Youve got trends, some great, some bad. Whats going on . Well, we do have some great and some bad. Right. We have over 1 million customers and were in all these different session ams and sectors and for the last two years all of our modeling has become disconnected. Give me a trend and give me something. I can give you one trend that we hope is beginning to materialize. About 20 of our hard goods business which is a 35 of our sales so 20 of that is a Capital Equipment purchase buy the consumer. By the consumer. Right. We sell the capital purchase by the customer and historically for years and years and years that was our leading indicator as to what was going to happen to the rest of our hard goods business which was much more directly related to production. Okay. And finally, for the last two quarters, we have started to see a positive volume growth across numerous sectors of our Capital Equipment component. Give us people at home what will be the good manufacturing and it could be in a nonrisk construction which for us is energy pipelines, power plants and things like that and it could be in plant maintenance and thats where that product is used, but historically when the customer loosens up on the capital strings and starts to spend on Capital Equipment they only do that when theyre comfortable that the production to use that equipment with is going follow. Thats a positive because one of the things that i saw when we first started talking before air products and the consistent numbers and you had the locals because of the economic slowdown, but safety products, medical sales, these have always been givens, what happened . Why are they not up a lot . El with, you know, until the great recession, we call them the noncyclical sector ones or the Counter Cyclical sectors, but you know, with all of the pressures on health care institutions, hospitals, cutbacks. I mean, surgeries are down and its amazing these sectors have always been steady growers and now theyre coming out of it, but theyve come out very, very slowly, but the growth weve seen over the last, lets say, two quarters looks like a bottoming out and the beginning of a restoration of growth. Meanwhile, oil and gas is on fire. Oil and gas is strong. Well our welding and. Tank welding. Rail cars, transportation equipment, very, very strong. Heavy equipment manufacturing, mining equipment, way down. A lot of defense is way down. Right. All these matter. Well, ive got peter here and im going to ask peter for some advice. Im jeff bouckus who runs time warner or david pyatt, a friend of the show candidly who runs allergan. These gentlemen have said to me that they think they can get much more value out of their own companies. What do you say to them because how right you were . Youre a founder and huge shareholder. Well, i think, you know, the process that you go through in a hostile or in an activist situation is probably a good process and it does really does test you, and it makes you look very hard and the boards got to make some really tough decisions. We got through it because we had 16,000 amazing associates who put in four great quarters and got the analyst again and they put target prices ma were higher than the bid. We spent a lot of money with bankers and lawyers, but the third factor and the really important one was we had a stagnant board and a poison pill and that prevented air products from committing grand theft company as you called it one time and, you know, we have on our proxy this year, a proposal to destagger our board. Its the third time its been on it. It only got slightly over 50 last time, but i cant understand how anyone would vote for that in the air gas context inasmuch as that staggered board saved our share hold over 2 million. Thats the way to look at it. To me, im looking at the Value Creation that you did at air gas and what jeff bouckous, theyre more clearly able to bring in these recalling companies that dont know their industries. Which is bigger . Hes an example. I tend to think long term and since our shareholder going public. There you go. It says everything. Thank you very much for coming by south africa and peter mccause lynn, and ceo and president michael molinini. [ female announcer ] theres a gap out there. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Lets close the gap between people and care. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. It is time it is time for the lightning round on cramers mad money, rapid fire calls [ indiscernible ] play until we hear this sound and then the lightning round is over. Are you ready skeedaddy . Its time for the lightning round on cramers mad money. Lets start with dave. Dave thanks fur your advice over the years and i want to start by asking about tupperware, tup. We have rick back on because i didnt like that last quarter and maybe im just missing something, so rick, come back on because i didnt see anything that would make me pound the table on tupperware, whichevers just announced, by the way. Lets go to david. Booyah, jim . Whats up . How are you doing . Want to ask about the information you did on the tv here and its very, very helpful and i think a lot of those guys on twitter should read your book instead of always hating on you. I like the haters. They drive me to do what i want to do my question is lenovo pharmaceuticals, i had them for a year and a half, my question is do you think eventually [ inaudible question ] i went to the camp, and these are the the kinds of companies that janet yell en doesnt like and the fed doesnt like, and i happen to like. I think theyre okay on a spec basis. Lets go to tom. Booyah good evening, mr. Cramer, how are you today . Couldnt be better. How about you . My question for you is candy technology group. I took some heat on this one because was it 18 . I said sell it. It went down to 12 and then it went back up and hey, cramer, why didnt you tell me to stick with it. The stock almost got cut in half. Heres the problem with kandi and im recommending in china. Those are the only ones im recommending and im not recommending any other chinese stocks, just bainu and cherry a. D. Lets go to mary. Thank you for taking my call. What has happened to United Technologies . This had stocks going lower and it got downgraded and the quarter was fine. They didnt like the organic growth and that was a mistake. They didnt like some of the defense and you own United Technologies. Its a Great American company and its a terrific situation, i do think it will go down another couple of bucks. Lets go to gray in california. Jim, booyah. Booyah. Ib, in. Look, ibm is doing that thing with apple will and i think its better for apple and ibm. I prefer to own apple, google or facebook. All three have real growth and have Good Business plans. Lets go to jordan in michigan. Jordan . Booyah, jim. Booyah, jordan. Im a finance student in a university in michigan. Fantastic. Im wondering about the Clean Energy Fuels corporation. He came on your show two and a half years ago and i liked what he had to say and so i bought and now its gone down quite a bit. Its gone down quite a bit for a particular reason and stocks with no earnings are not going higher at this time and the natural gas revolution never did be onning on you are. They did make a lot of money, but not the gas station kind. Not, woing. Lets take one more call. Lets go to mary in arkansas. Mary hi, jim, booyah booyah, mary im calling about insmed. Whats going on with them . I know they had fda approval. I dont know it well enough tobacco able to copilot on that one. And that, ladies and gentlemen, is the the conclusion of the lightning round the lightning round is sponsored by temperature d. Ameritrade. Time and sales data. Splitsecond stats. Its so close to the options floor, youll bust your brainbox. All on thinkorswim, from td ameritrade. Having a perfectly nice day, when out of nowhere a pickup truck slams into your brand new car. One second it wasnt there and the next second. Boom youve had your first accident. Now you have to make your first claim. So you talk to your Insurance Company and. Boom youre blindsided for a second time. They wont give you enough money to replace your brand new car. Dont those people know youre already shaken up . Liberty mutuals new car replacement will pay for the entire value of your car plus depreciation. Call and for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. Switch to Liberty Mutual insurance and you could save up to 423 dollars. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. You let them come in and then you buy them. Thats how i feel about three different dinged stocked stars today. Stocks that seem like theyre dimming and i think theyre simply digesting their gains, im talking about, write these down, boeing, celgene and qualcomm. Boeing has been under severe pressure for months now in part because the the aerospace cycle may finally be coming to an end and involving a resurgent airbus, a possibility that the government might put an end to the Export Import Bank which helps boeing go toe to toe again of the heavily subsidized european competitor. E and e coy, the former concerned pointblank and betting the aircraft cues arent as deep as they seem. Cancellations, they say, could be coming and they worries about boeings defense exposure. Republicans do seem poised to crush it even like jim mcnerney said on the Conference Call yesterday, it will be approved. Why am i not intimidated by merrills downgrade . Why would i go against it it . Why would i think that boeing after time in purgatory can bounce back . Aerospace is levered to overall travel growth and rising middle classes everywhere around the world. Take a look at the charts of wyndham and Royal Caribbean and priceline if you want to know about the growth in tour im. We saw that from delta the other day and southwest, i interviewed them and united and american air. These companies all need new more fuelefficient planes and boeing has them and they will be a tailwind for years and years to come. Its getting cot cost down for plane and the cash flow that everyone is fretting about. I think defense will go from being a hindrance because of a sequester because of a health. Plus the Aircraft Leasing companies have told me personally theyll buy the plans from canceled orders that come into play. Boeing is resting after being the best performer in the dow jones last year. Even as i recognize that the chart has turned against this stock, its almost down 10 for the year and i have faith and conviction that the stock is ultimately a buy. Im not an idiot. I see it. If it goes below 120 it will be terrific, but it was down 2. 31 today and i know, im no stranger to pain. It seems like its going lower, but i think its okay. Celgene, difficult, and it runs so 34u so much into what we call the print and i think it could last for more than a decade and i think pattern worries are overbooked and they are developing treatments for pancreatic cancer. The guideup was a for real one, but the ceo is notoriously nonpromotion nonpromotional. He lets drug approvals speak for themselves and i think theyre on the horizon, again, like boeing, you buy the stock on weakness and its on sale. Weve been getting many downgrades the day after downdrafts like celgene and ill bet you get one tomorrow and it most likely falls again after declining 2. 93 today and thats the opportunity, finally qualcomm, and incredible quarter. It has the best Cell Phone Technology by far. The company is having a spat with china overpayments and the stock is down with a 6. 6 meltdown and devastating. I think the situation is resolvable and when it is resolved the stock will hit higher than where it was before reported. Qualcomm has been a totally loved stock for years and it will be again some time in the future and look, i know intel is now the star and thats okay, but qualcomm dominates mobile and its the last of the future. Why am i doing this . When we actually get discounts, what do people do . They hold their nose. They flee and they look elsewhere. You have to be willing to take advantage of these pullbacks and not to run away from them. I know its easier to buy the winners and the ones that are going up than it is to bay the losers and the ones getting hit, but boeing, celgene and qualcomm are three damaged stocks, people. Not damaged companies. And thats the disconnect that makes for long term investable bargains even as the short term is a total house of pain that i dont get. It is over. Stick with cramer. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Were a force of nature, too. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So 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 doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. Sometimes you cant outthink it. Okay. You get a story like facebook that will probably earn three bucks a couple of years from now. Its inexpensive. Its inexpensive. Theres all a bull marsomewhereo narrator in this episode of american greed. In minnesotas twin cities, billionaire tom petters is the face of business success. He was a deal chaser and a deal maker. You know, he was a mover and shaker. You couldnt hold tom down. 8 million house out in lake minnetonka, i think the one in palm beach was 15 million. Narrator a local boy made good, who never forgets where he came from. We are a very caring company. Thats one of our core values. This is a hometown guy who cares about his hometown, who cares about people losing their jobs. This guy is the real deal. Nothing to worry about. There seemed to be no reason at all to suspect that something was awry. Narrator everything about