Investors have reverted to seeking growth regardless of the state of the economy. That was the under current behind the averages down gaining a point. And then nasdaq advanced 0. 19 . Where did we see growth . Today it came in three sectors, bio tech, housing and the group i like to describe as the cold stocks. We are always trying to find order in the market attempting to link the stocks that are going higher with some established pattern or data point. Todays session without official release of data made for erratic pattern free trading. The context of the nfl we have broken field running today, divorced from data other than perhaps singles day in china. Housing. The one thing we know Housing Needs Going Forward is low Interest Rates. We got them and we are beginning to see results. At last we have strong pricing and data from Toll Brothers and dr horton which reported today. You can always tell when a new trend overwhelms the negativity of a sector because investors will start overlooking something wrong. This case the fact that d. R. Horton missed the quarterly estimates but charged ahead anyway. Housing is only about 10 of the u. S. Economy but it punches above its weight in so many ways. The length of the reach is always a surprise. So not only do they move up today but so did the ancillary plays. Whirlpool that springs higher even as nothing in particular is happening there right now. So does williams. The paint market as prices are lifting. A terrific state of affairs that allows for serious expansion. House of pleasure. I said the action had to be on the lookout for the housing index breaking out and the fall through today makes me believe this last leg of Interest Rate declines, the one you least expected seems they are having more of a positive impact on the economy than all of the feds bond buying did. It has more to do with european bond yield going down than anything happening in washington. The second group bio tech. Speaking of the Federal Reserve being irrelevant the gigantic move started after fed sheet janet yellen railed against stretched valuations. I put this out not to poke fun at everyone but because of the irony. The group is not trading with anything but itself. So often they led the bio techs. Today the cohort was pulled along by noses of regenron and isis pharma. To further expand the pipeline which includes atrophy drug. Cooks has been on the show talking about the pipeline. I think the stocks run is far from over. The more visible move from regeneron. The treatment approved for diabetic macular edema. As much as i love this stock i thought it might be down more. I attribute the decline to sanafi which seems to buy that stock every time it goes down. Every share in the company is they can buy more than they are already buying. I think they will continue to buy the rest of the company. Today i realize the excitement comes from the possibility stemming from a formulation we dont talk about on the show which is being used to control asthma. Put out a release describing how the positive effects of the drug were seen across a broad population in phase two b trials. This was unexpected by many people hence the analyst supports with titles i love. Asthma data reinforces potential or home run in asthma. Usually dont get that positive headlines. The drug can turn out to be wondrous as it is showing results against all sorts of Allergic Diseases including dermatitis and chronic rhino sinusitis. You tack these on to Companies Developing anticholesterol and it is clear regeneron is developing into a major pharmaceutical powerhouse. Almost 400 where it trades today. The cold stocks that trade to the beat of their own drum. Stocks prices have nothing to do with traditional valuation metrics. Amazon and tesla on first glance on nothing. Ceo was tweeting a hosts of positives about the car. He has become his own pr machine. I used to joke that some companies have high press release to earnings ratio. This guy has a sky high tweet to no earnings ratio. The run on amazon strictly trader central. We had a classic news situation with alibaba as traders piled into the stock of singles day, the celebration of capitalism that includes christmas, birthday, valentines day, mothers day, fathers day. They return the stock post holiday and put the proceeds into amazon. I used to be one of these. I saw small unit combat action in todays battlefield. 103 million shares owned by black stone that unleashed buyers in marriott and hyet hotels. Restauranteurs chipotle and Buffalo Wild Wings broke out. Near the bell, the spinoff of pfizer jumped 8. 8 on word that the fund had taken a stake in the company. Here is the bottom line. Today was what i call consolidation day where the market in the absence of macrodata solidified gains. It was an unimportant day unless you find yourself in the pocket book of winners or if you are a veteran. If you are we salute you for everything you have done for our country. Why dont we start with ann marie in new york. How are you . Im good. How are you . Caller great. I have verizon and at t. Should i be selling one of them. I like verizons growth more than at t. Lets buy verizon. Lets speak to austin in california. Caller how are you doing . Real good. How about you . Caller good, thanks. I love watching your show. Thank you. Caller i had a question about inovio pharmaceuticals. This is one of the speculative stocks. I was saying yesterday i no longer want to fight someone on a speculative stock because if it hits home as long as you understand it is speculative but it means you also could lose a lot of money. That is an interesting speculation. How about ken in michigan . Caller the best automotive ceo of our time, i bought it at 9. 40. This would be the one you want to hold on to. My Charitable Trust owns gm. That is a house of pain. This seems like a house of pleasure. Thanks to all who serve our country. This veterans day lacked new data. Its a federal holiday. You still saw growth in bio tech, housing and the cold stocks. On mad money tonight the price at the pump has been nice but falling oil giving investors a scare. I have one energy stock that could be at a critical turning point. The difference between winning and losing on wall street can depend on one metric. 44 shopping days left before christmas. If you want something nice to stuff your stocking i have a play on the Holiday Season with a market opportunity. Stick with cramer. When will this hideous decline in oil come to an end . Last month the price dropped down. It is down another 4 and change since the beginning of november. We have gone into fundamental reasons for the decline but tonight we have to go into charts. We have to see if technicians give us insight on where the oil is headed. We are calling on the founder of retrowallstreet. Com. Collins thipg thinks it is time take a binocular approach and stand far away and look at the monthly chart of west texas intermediate crude. Unfortunately still not a lot to like in this longer term monthly chart. Collins doesnt think it will be improving anytime soon even though it has been in the red for an astounding five months in a row. The last two months have been real killers. Before september oil trading low end of the long chart and then dropped below the channel. Suddenly the relative strength indicator, momentum indicator fell below its mid line at 50 and then turned bearish. The vortex indicator, this is a new one, a tool that helps technicians identify the start of a new trend move from bullish to bearish. And not just slightly bearish. This is huge. Colens says this suggests we have a strong bearish trend developing which means any bounce in the price of oil is likely to be sold. When you do that that is like sell. That is like the signal. If west texas crude will find footing it thinks it will have to break out above 80 which is a key level that has been serving as a floor of support. Now that oil is broken down below it is a sealing of resistance. If we get a move above 80 it might allow to trade side ways which would be a definite improvement. Until the monthly chart closes over 80 thinks there is absolutely no reason to consider taking a long position in oil. He says no. But just because oil, the commodity, looks like it is in bad shape doesnt mean the oil complex is in trouble. I told you many big independent Oil Producers can be owned here because these are very well run companies that hedge the bulk of the production so day to day price of crude matters a lot less to the results than you might think. Collins has a totally other idea i never thought of. The crude he thinks the best way to play oil patch is to go big and boring. And yt oil business when it comes to big and boring exxon mobil takes the cake. Check out the monthly chart. The first thing that jumps out here is the line at the very bottom. This is the exxon oil sorry correlation with tween exxon stock and west texas intermediate crude. Exxon always trades with oil. The reality is different. Right now the correlation is close to no meaning exxon will go where it will go where it wants and do what it wants to do despite oil. There are moments like this one where the correlation is 0. The key thing here is that exxon doesnt have a history of jumping from no correlation to a strong positive correlation. That usually takes months and months for that to return which means it is not in danger of trading with oil for some time. Long term uptrend slowly but surely chugging its way higher. The index around 50. That is pretty good news. Rsi been for four years and remains in bullish territory. The vortex indicator up top is still bullish. At the moment on the monthly chart exxon sitting on long bullish channel. Within this trend collins points out that a wedge has developed. If exxon can rally it will break out above the wedge. Should that happen collins thinks the stock will be headed to 105. If we have a break down pulling to 86 before we pull the trigger. Closer look at this wedge. Look at exxons daily chart. You can see here that the stock has had a short term sealing of resistance just below 98. The floor spoerded 94. Collins sees real positives here. The relative strength index, look at the top here because this is where the vortex has been, broken out above the mid point at 50. That is very, very bullish. It is firmly in bullish territory. This is up in the face of the bear market. Dont you find that incredible . I did. I like it. Then there is the correlation of west. Since the beginning of last month oil has done nothing but go down. While exxon followed suit the stock changed direction in mid october breaking correlation with oil. Exxon is negatively correlated with the price of oil. It is unbelievable. It is almost like exxon is a consumer of oil rather than a producer of it. According to collins the price of crude is not dragging exxon down. As the stock can simply rally breaking out above the resistance collins thinks the next stock will be 105. Nice 9 move from those levels which would be pretty impressive for such a large capitalization stock. It would be trying to mimic the s p without being actual indexers. Here is the bottom line. Just because the price of oil has cratered. Look at eog roaring. Charts dont give us much reason to be positive about the commodity of oil. Dont let that frighten you away from exxon mobil. Collins read on technicals is bullish with well defined risk reward. I like this chart and offers a safe yield with these levels. I think it makes sense to inspire weakness. I still cant get over this. Much more ahead on mad money including one metric driving your stocks. Time to put this on your radar. It is that time of year again, the count down to christmas is on. I have a Company Selling everything every person will buy including me. The real story behind the jobs number. Ill talk to the ceo in the trenches of americas future. Also, Affordable Care act. Stick with cramer. Your show is the best. Im so glad you are on tv. You have transformed me. Thank you, cramer. Im always telling you that execution matters, that the way a company is run can have a huge impact. At times deployment of excess capital can matter even more. I keep thinking about how yesterday right here the ceo of clorox and distinguished veteran, so important to remember on this day, accounted for stellar performance of his companys stock and growing revenues in a meaningful way. He said it in one word, dividends. Shareholders want a return of capital and they deserve it. Old brands like clorox, Hidden Valley ranch, pine sol, kingsford throw off so much cash there is enough room for dividends. To grow its market capitalization from 7. 7 billion to 13 billion. Why does this particular increase in value matter so much . Those spent better part of professional lives dismissing it as all about the fed simply dont understand it is fair game for a company to make money by being a better than bond market equivalent. Those who blast dividends dont understand the idea of wealth creation. It was his job as ceo to create an environment where workers thrive so they can create the best cash flow possible and then returned as much money as it can to shareholders. In other words, after all the innovations and acquisitions are put into place used companys cash flow to create a steady alternative to Treasury Bonds at a time when consumer package good industry has little to no growth. Its not like clorox has just been sitting still. It can and has put up 2 to 3 organic growth but the Stock Performance should make nay sayers realize there should be a point because a company does not have tremendous revenues doesnt mean the stock cant trade higher on the strength of bountiful cash flow. By getting the most out of cloroxs brand he got the most out of his stock and gave the shareholders the best reward he could possibly deliver. Three years ago noted activists slashed corporate radar trying to take a run at clorox and challenge management. He talked about the 78 bid with the stock in the high 60s. Now totally credible, tremendous support from the board and from shareholders who believe he could produce value well in excess of the bid. Three years later you have a stock going up about 30. Going to sell you a 70 basis and stands at 101. A far better return. The Value Creation wasnt done with smoke and mirrors but solid consistent dividend boosts, a Sustainable Way to achieve higher prices for those don knauss answered to during his tenure. Chuck in california. Caller jim, hi. Im a long time listener and im trying to decide between kroger, whole foods and safeway knowing all of them are involved in organics. That is absolutely true. Safeway is number three. I do not touch it here. Kroger number two. It has had a big run. That brings me to whole foods down substantially from the high and getting a turn around. Larry in massachusetts. Caller jim, first happy veterans day and speedy and complete recovery to your dad. Thank you for thinking of pop. Caller whatever it is let him continue to celebrate the eagles. Oscar harris describing when he wrote i get weary, sick of trying, tired of holding, scared of buying. We all thought 1050 after brazils election continued the antibusiness atmosphere and anecdotal evidence, jack ma suggested it makes it grow with bricks and mortar and no Institutional Support to think of. Is the dividend even safe . That sounds like to be left at the stadium. It has been an extremely disappointing stock for the Charitable Trust. We made nice money in it. Iron ore producers wont stop. I dont want you in my personal house of pain. Rick in illinois. Caller booyah. Booyah. Caller i have 1,600 shares of kapstone. I want to know if i should continue to oversell. Let me think. My dad, veteran, sold international paper. I think kapstone is very good. I like packaging and international paper. I think the group goes higher. I want to thank larry for the kind words about pop and i hope he feels better. Clorox deserves a thank you for its solid consistent dividend increases, a Sustainable Way to achieve higher prices. Much more mad money ahead including a gift card player giving investors a pop this year. Kellys services is a company you call when you need temps. Ill ask the ceo, maybe there is hope for a turn around here and a storm of your calls in a brand new edition of the lightning round. Why dont you stick with cramer. We needed 30 new hires for our call center. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. As we head into the Holiday Season it is time to look at the gift cards, black hawk that process 10 billion of transactions last year and growing like a weed expected to increase by 38 for 2014. I think black hawk is one of the hottest stocks you probably never heard of at least until you listened to me when i recommended it about a month and a half ago. The Company Provides gift cards for 600 different brands and hold incentive programs for 2,000 business partners. They have an online gift exchange, too. This is a rapidly growing industry where it is taking market share for strong execution and smart acquisitions. Most recently sent up. Black hawk shot the lights out when it delivered a 6 cent earning and management gave terrific upside guidance. In japan we are heading into the Holiday Season most important part of the year for the gift card industry. I think the stock still looks inexpensive, 20 times next years earnings. Lets take a closer look at the chairman and ceo of black hawk Network Holdings and learn more about his company and the prospects. Welcome to mad money. Good to see you. When i buy by gift cards for my kids what im doing is buying black hawk stuff. We distribute all of those gift cards. We print many of them and put them on the racks all around the world that you see in the grocery stores. You make a commission on each one of those. The people with the gift cards provide commission and we split with the people who distribute the gift cards. I see them from amazon and apple. You have all the big players. We do. There are a few missing players. A sense that all retailers that matter we are moving to regional and local cards because we figured out how to customize the racks we do and put localized content on there. I see cards for restaurants nearby but taking international by storm. Japan is a big market and google play is a big market. Far east, japan, china are huge gamers. So google play and apple are just gigantic in those markets, literally biggest markets for google and apple itunes. So we have the couple of the biggest retailers in japan. And those products which people use for gaming just go off the shelves like mad. That is part of the Digital Strategy that you guys also outlined. You have Digital Content and trying to take gift cards so they can be e gifts. We have about 60 now and we are trying to get through that. The second is to try to identify anybody who might distribute gift cards and do what we did at retail, make them our distributors and we made a lot of progress in that area. I think one of the reasons why people havent heard of you is because you were buried within safeway. What has changed for you since you were spun off . What has really happened, of course, is we have become under a spot light. People were able to look at us independently. We are not out trying to talk about a company but are part of a safeway company. We got free to do a number of acquisitions. Well talk about that. I think that is a break through. We focused about a year ago on this incentive business. Essentially incentive business is selling gift cards to corporations instead of selling to retailers. Corporations use them to reward consumers or employees. All of the back end functions, though, the way you distribute, process the cards are the same with our business. Tremendous economics when we put the businesses together we become the low cost producer. We bought two of the Biggest Companies in the space. It is very fragmented. We think we are probably not done acquiring companies and increasing our shares. Corporate work is pretty big here. It is bigger than our current business. How can that be . It is a huge way of corporate life and use merchandise and travel. Now the cards have become a much simpler way people prefer to get them as their reward for whatever they have done for the company. A top sales person might have gotten a suit maybe but now get a car. And there is a catalog and we produce the catalog and the catalog could be for a number of kinds of cards. Lets talk about the wallet business. The whole world is wondering when we are going to pay for things with our phone instead of the wallet in our back pocket. The problem today is all retailers int United States cant take mobile digital payments. Apple when they came out with apple pay said 220,000 retailers will take apple pay. There are 8 million retailers. Having said all of that, it is going to change. As a Gift Card Company and gift card supplier inside everybodys wallet. We signed contracts with pay pal, amazon, google and right down the line with anybody we think might be a player in this space. You guys are everywhere. It is a fabulous story. I wish i had caught it earlier. We are in for the long term. This is a Good Business. That is bill tauscher, easy s symb symbol. Mad money is back after the break. The lightning round is respondered by td ameritrade. The people entering military life have extraordinary skills, unbelievable assets that we can provide to our society and to business. Its not charity or pity. It is just Good Business and we need to hire them. That was last week when i had the chance to sit down with ceo of starbucks. It was a proud moment, one of many we had in the show. Yesterday when we had no fewer than 75 cadets from west point right here with us in the studio along with veterans and active duty military. It was a great honor for all of us. This veterans day for me and everyone in the mad money family we salute the u. S. Military past and present and their families and a sincere thank you for the sacrifices you make for all of us. And now it is time. It is time for the lightning round. Play this sound and then the lightning round is over. Are you ready . Its time for the lightning round. Lets start with dan in michigan. Caller booyah to you and all of the veterans out there from the great lakes state. On lyd taken a hit as crude prices have fallen, about a 20 hit. Is it a good time to buy . I want you in dow chemicals. A lot of restructuring going on. Lets go to debbie in florida. Caller yes. Jim, good news, bad news. Great news is my National Champion Florida State seminoles are doing a lot of winning lately. Go noles. Caller thats not the case with kex. They sold off badly after they announced earnings. Will it recover . This is a stock that is uniquely linked to oil. I am not a fan of kirby at these levels. Tom in maryland. Caller thank you. Booyah to you. Thank you for taking my call. Of course. Caller my 89yearold dad and i always watch your show. Cypress semi conductor. I pleev that is a division that will be almost as much as cypress. Rogers is a man of his word. Im a buyer. Ken in florida. Jersey booyah even though he is in florida. Caller thinking about circling back around to adobe. I think that is a great idea. Earnings go from being a regular play to a cloud play, one of the few companies that pulled it off. Ibm would love to do it but adobe has. Patrick in arizona. Patrick. Caller hi, jim. Calling with the asu sun devils. Not bad. I like the sun devils. Whats up . Caller im asking about chart industries. I didnt sell it. So my question is two parts. Do you think that it will ever recover . And what is the reason . I dont know if it will recover because i think oil has fallen so low in price and the country did not adopt natural gases and has a weaker Chinese Business so i will tell you right now the stock is in no mans land. It has been not a good stock. I need to go to karen in texas. Caller im calling about lrn, k12 Virtual School and wonder if their Business Model is sustainable. Im not a fan of that one. So many good ones out there. We dont have to try to catch the bottom in a stock. Christian in massachusetts. Christian. Christian . Youre up. Caller hi, jim. Thank you so much for you and your team and all the hard work you do. Good team. Caller you are the magical team. So i want to get thoughts on cbs and time warner. Thats easy. Time warner. Mike in texas. Mike. Caller how are you, jim . Im good, how about you . Caller okay. I was looking at at t. Looks like they are topped out. I think it is fine. I like verizon for growth. I prefer one over the other right now. That is the conclusion of the lightning round. The lightning round is sponsored by td ameritrade. In an environment like this one where the job market is improving even as wages remain stagnant you expect temporary Staffing Companies to be on fire. To a certain extent that is what is happening to Staffing Services for highly skilled workers. Not all the Staffing Companies are performing as well. The socalled commercial Staffing Companies have been having a tougher time. Kelly services has been crushed. Down almost 40 year to date. It is a Small Company that mainly provides Staffing Services for office, data entry, clerical and administrative support works. Kelly services is trying to transform itself from a commercial standing play into more of a higher margin professional and Technical Staffing play. The company has a outsourcing business that provides clients with integrated Talent Management solutions. The transition towards higher skill and technical workers makes sense longer term. Shorter term it is a lot of investments. Kelly services reported last wednesday the market didnt like it and sent the stock down 10 . The Company Earned 10 cents a share and revenues came in lighter than expected. But perhaps the thing that really got people down is the fact that Kelly Services gets more than 25 of the sales from overseas staffing and exposure puts serious pressure on the companys margins. The United States may be in good shape economically. The stock took another hit down 2. 9 . You have to wonder how much lower this thing can go. It is still a profitable company, real business. Eventually i expect the talk to bottom. Lets check in with the president and ceo of Kelly Services and talk more about his company and the staffing industry in general. Welcome to mad money. Thank you for having me. You guys do a ton of work with veterans. Tell us on veterans day what you have been able to do to help put veterans to work. We have hired 14,000 veterans in the last five years. It has been a very successful source of talent for us in terms of commercial staffing and a lot of technical disciplines. Besides the veterans themselves we put a special focus on looking into employing military spouses and they have been an excellent source of talent for us in substitute teacher programs. Do you find employers maybe didnt realize the advantage of hiring vets and ask for more vets . I think a lot of employers arent this familiar with the tremendous qualifications both in terms of Technical Skills but also in terms of teamwork and leadership skills that veterans bring. Our experience is that once you hire the first few into a company it is easy to get them to hire more. It is a great Talent Source for us. While people might think out it is an obligation, something we should do to help veterans it becomes not an obligation but tremendous sourcing strategy for companies. Thank you for saying that. Your business has been hit lately. You are trying to do a different model switch. Let me ask you, once Affordable Care act kicks in will this new model really start producing . I think the Affordable Care act is going to be a very important transition point for our country and its use of free agent labor. Right now about 40 of americans go to work as free agents, temporary employees, independent contractors, freelancers and so on. The biggest reason that more of the technical and professional people dont do that is access to health care. What the Affordable Care act is going to do is make it easier for people to be able to work in this free agent mode, have access to health care, i expect the market for free agent labor to increase partly as a result of the Affordable Care act. Your model switch that some people are saying really put a damper short term on earnings, how quickly can you get that so that you no longer feel the effect of the spend . We begin to start seeing positive impact on what we are doing we believe as early as next quarter. What we also mentioned in our last Earnings Call is that we were now able to restructure significant parts of the company to take advantage of the new company. We were able to reduce our brick and mortar by 50 more branches to take out a layer of management. We announced we would be taking over the course of the last quarter and the next quarter about 10 million in charges but that would allow us to reduce sg a expense by more than 30 million. That type of reduction taking advantage of changes we made in our strategy will provide a nice boost to earnings. One of the things people dont realize we have a really great economy. When i look at your numbers it looks like the strength of the United States and real weakness in europe and seems like i guess you had more of an Eastern Europe bias than i realized or is it so bad there it could pull down any company . Russia has been one of our strongest performing markets. As we said on the last Earnings Call the effect of sanctions are biting hard in Eastern Europe and russia in particular. That served as a significant downward pressure on our earnings in europe. The u. S. Economy is outperforming the rest of the world not by a little but by a significant margin and right now the world outside of north america is not performing at anywhere near the levels that you would have expected at this point in a recovery. I want to thank you for all you are doing for veterans and for coming on in a fortuitous time and i think it will have results in 2015. Thank you so much, sir. Thank you. The stock is down a lot. It is kind of interesting company, Kelly Services. Stick with cramer. Once again i want to thank all the veterans out there. All of mad money supports what you are doing and what you have done. Thank you so much. The s p did hit an alltime high again today. I think the only hot zone i am worried about right now is ukraine, but you have to keep an eye on it. Ukraine is saying that there are rebel troops massing and we know germany is saying the same thing. This is the one area that we can be blind sided by at an alltime high and have to start thinking about what is wrong and not what is right. Im blessing taking a little off the table. I think it is not such a bad idea. I like to say there is always a bull market somewhere and i promise to try to find it just for you here on mad money. Im jim cramer and i will see you tomorrow. Lemonis tonight on the profit, just 30 miles outside of new york city, im at a chain of hair salons that operate on long island. Carolyn unique salon spa. Lemonis the owner, carolyn devito, was badly burned by her expartner. Carolyn you expected us to do the work in the salons for nothing lemonis . And is now drowning in debt. Carolyn i juggle every day of my life. Lemonis her salons look tired, and her staff is feuding. Susan my job is to know that youre doing your job right. Lacey i am doing my job right. Lemonis without leadership. So, what do you do here . Debbie um. Lemonis . Some investment. Carolyn i havent taken a paycheck in like six months. Lemonis . Unique salon spa will likely go right down the drain. Somethings got to change, cause this model doesnt work. My name is marcus lemonis, and i fix failing businesses
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