Transcripts For CNBC Mad Money 20160712

Getting better . What if the Global Economy is truly gaining momentum . Hey, thats what were starting to hear, but few people seem to be listening. Im certainly paying attention, though. Especially as the dow reaches an alltime high for the first time in over a year. Hallelujah the s p sets a record close for the second day in a row. That was easy. Bold claim. Things might be Getting Better but how about i give you some evidence . I always tell you to listen to that alcoa conference call. So many uses. Alcoa is plugged into so many end markets. Better than any economist at any Brokerage House thats ever going to give you. Last night alcoa painted a truly remark bl picture of a world on the move. Ceo klaus klein fell has been talking about illuminizatoin. Replacing steel in car parts, expected to grow at a 20 climb at least until 2020. Kle kleinfeld knows about autos. Unequivocally bullish. Strong demand not just behind us, but ahead of us. Much more important, though, remarkable reads on vehicles in western europe and china, two areas we thought were, lets just say. For example, europes auto production is rising at 4 . Europes auto exports increasing by 4. 8 . 1. 9d just last year. Registration are up an astounding 9. 9 year to date. China is simply running hot, no other explanation. 5. 2 increase in auto production year over year, sales up 9. 3 . 44 rice in crossover and suv sales. 34 . These are stagnantly good numbers. Hear anyone talk about them . First time i heard it. Best of all, though, are the truck numbers. Trucks are a sure sign of commercial activity so it matters when western europe has an 18. 4 increase in, yeah, you heard that, 18. 4 increase in truck registrations year to date. 9. 4 rise in production. China, chinese truck sales, what are they up . 25 year over year. Increased just over the last six months. Productions on the rise. 25. 8 year to date. That is eye popping, people. I dont know a soul whos talking about that kind of growth. No wonder truck engine ex popor cummins just raised it. We thought the dividend was in jeopardy of being cut. Cfo, i quote, chinese growth is driven strongly by stimulus in the market. We went on, weve seen improved electrical use and Strong Demand in the transes port and packaging seconders. I thought china was supposed to be done. Thats got to be why that i use to gauge chinese growth has almost doubled in the last few months. That explains why Copper Companies have started performing better like freepo freeportmcmoran. One of the most heavily shorted cyclicals. Im talking about caterpillar. Which now seems to be breaking out of that tight 70 range that its been trapped in the last four months. Oh, man, that stock could roar here. The shorts, well,s lets just say buy, buy, buy. As good as the news on autos and trucks might be, the most spectacular is space. Very big changeovers going on in engines and softening demand for wide body jets ceo kleinfeld indicated the lull should disappear in the second half of the year. He told us, quote, we see robust commercial jet order book, fundamentals, end quote. Klaus looks at cancelation rates. I like that idea. He said they stand at. 6 . Thats lower than last year when things were booming. I suggested the lulls were temporary. Then he forecasted doubledigit growth in 2017. Hallelujah thats amazing. This industry employs millions. Aerospa aerospace, honeywell keeps hitting record highs. Alcoa is splitting into two companies later this year. Until last nights numbers, i figure you should keep the high value added proprietary segment, called arconic, makes all the airline and auto parts and sell, sell, sell the peer commodity busine business. I think you buy the stock and hold on to both pieces after the breakup. What else could be better than expected . Last night i talked to you how difficult it would be for this market to keep going higher without the participation of the airlines. This morning, United Continental announced a stronger than expected passenger number, a wee bit better. Thats all right. Still a shocker. All weve seen for ages is estimate cuts. The result, this group soared today. Continental advancing 9 . Maybe the lull is related to terrorist activity in europe which has seemed to die down at least for the moment. Weve needed the airlines to have a rally. Its finally happening. Transports positively on fire. What a bullish sign. How about the turnaround in the fortunes of the disk drive makers . Did you see that . Last night cgate shocked people with a guide up in its forecast. For so long the stock has been a oneway ticket. Sure, you could argue it came after multiple cuts. Thats shortsighted. The average selling price, asp, for disk drives, a real commodity are going higher. Theyve been laying off people. It could also be a signal of increasing demand hence the 21 run in one day in cgates stock price. Thats usually what you get for a takeover, right . Finally, theres oil. I no longer think oil i said that niglast night. Oil rallied 2 bucks. Allowing for monster runs in the whole group. I could not believe things, how they did tonight, continental resources. These stocks never really sold down, last weeks definitive dip in the price of crude. You made fortunes if you bought the secondaries from the bedrag ld oil companies. However, what really matters to me, you know were headed into the Bank Earnings season later this week and keep forgetting it wasnt just the Net Interest Margin decline what they make off your money and deposits. Its been hurting the bank stocks. Its the resumption of bad loans. The possibilities they were on the hook for tens of billions of dollars in bad loans to oil company and therefore wont be able to return more capital in the form of buybacks and dividends. Maybe the regulators will come back to haunt them. Since the banks last oil almost doubled. Aef time oil nears 50, Many Oil Companies sell crude in the futures market to raise cash so they can meet debt obligations. Any bank that wanted to cash out on its loans had ample opportunity to do so. This huge worry everyone on edge a few months ago no longer has the power to hurt the bank group so badly. Sure, it would be better for the banks if the fed raised Interest Rates. Strong job growth and lack of loans, a strong combination if you ask me. I know plenty of people say, oh, jim, come on, its another fakeout. Others might say its all propped up by central banks. I dont care. The bottom line is i think the low Interest Rates might finally be working and china and europe could be ready to join the u. S. With decent growth. Not great, but decent. Sure, Interest Rates might therefore be going higher. We saw that in the u. S. Market today. Eps growth, that would be a gigantic totally unexpected positive. House of pleasure. Yet the fact alcoa started the earnings season not with a whimper but with a bang. And maybe thats what this big move in stocks is really all about. Tony in california. Tony . Caller booyah, jim, from west lake villagvillage, califo how are you today . Doing very well, how about you . Caller good. Jim, im split on r. R. Dolly. Ive been holding for the announced threeway split. Right. Caller i have a nice profit and decent yield. Now theres the rumor of the takeover. Should i sell . Im glad you called it a rumor. I didnt like the reporting. The reportage the ceo is going to split the company. Valued between 20 and there are 21. The takeover stuff i cant take it. Are 21. The takeover stuff i cant take it. We like a company with fundamentals on mad money, not a takeover. Id hold on to r. R. Donnolley. Steve . Caller hi, jim. Go packers. Bank of america, im interested in five to ten year outlook. Bank of america really has to get its act together. Maybe this is the quarter that does it. They werent able to buy back as much stock as i would have liked because of the previous problems they had. I like the fact they are the number one in actual mobile banking. Heres the problem with bank of america, though. They need rates higher than every other bank because thats what theyre really levered to and they didnt get it. Bank of america will be fine. Its a big discount to its book value, but i cant pound the table bac. Mike in california. Mike . Caller jim, my question is on twitter, i bought in at 14 a share. Is the turnaround due to jack dorsey coming back . Its entirely because linkedin was bought. People feel this is the last one that really does fit the mobile, social. I will say this, bob peck yesterday when he downgraded it saying, listen, you want to take over basis, 202 1rks that made me feel like you know what you ought to do, lets to half the position and let the rest run. Thats how earnings season begins not with a whimper but with a bang from alcoa. Last quarter was not good by the way. I say be a skeptic at your own risk. We could be seeing actual signs of strength developing that no one else is talking about. Mad tonight, its a piece of the stock market that can act like a rocket to a rally and hasnt started to pick up yet. Ill take a look at these major names. Plus our breakdown continues with hitters. Moves in costco, hersheys and campbells soup tell you about the rest of 2016 . Stay tuned to find out. Plus its a leading provider of Renewable Power in the u. S. I know you love sustainability. Will the winds of change keep this stock roaring higher . Stay 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. After another day where the averages roared higher both the dow and s p 500 making new highs, i think its worth checking in on one particular group that can act like real rocket fuel for a rally especially when things are going well. Talking about semiconductor stocks, the schchips. Were going off the charts with the help of bob lange, founder of explosiveoption explosiveop. Get a better sense of how the semis are doing, where they might be headed, what it means for the broader market. When it is in bull mode, thats a terrific pillar the rest of the market can lean on as it continues to rally. He points out we seem to be witnessing positive reaction here. Take a look at the daily chart of the smh, what everyone looks out, semiconductor etf which got hit with a nasty downturn in late april, okay, you can see it goes down here, all right, but then managed to hold on to its 200 Day Moving Average. Despite all the by the time we got to june the smh had broken out to the upside in a major way. Since then, its been a strong performer though it plunged 5 quickly on brexit. Its managed to bounce back since then recovering all its gains and some. Whether it can continue to rally now that earnings season is upon us. This has been all emotion so far. Lang thinks it could be a buy opportunity. Im going to give his reasoning. Lets start with intel. It reports on wednesday of next week and its the Worlds Largest Semiconductor Company which will potentially give us a fabulous read on whole group. So check out intels daily chart here. The stock has been breaking out like crazy for the past couple weeks. Look at this move. Lang points out this tremendous run has happened on very high volume. See the volume here, okay . Its the real deal. And its not like the move came out of nowhere. It might seem that way to you. According to lang this rally has been building in intel stock since is bottomed in may. I told you brian krusanich is toi doing the right thing and should be in intel. Its propelled by two pieces of research on friday. A very bullish upgrade from bernstein and nice price target bump from rbc. If you want to understand the bizarre ways charts anticipation look at this, at the beginning of the month, all right, it flashed a buy signal, when the black crosses across the red line. Thats been one of the reliable patterns weve seen since we started this segment years and years and years ago. Its perfect technical analysis. Sure, intel has been screaming higher ever since. Take a look at this one. Cmf measures the level of buying its frankly been extraordinarily positive. This is a very long period. And it didnt even go negative during the brexit selloff. Meaning big institutional managers have just kept buying intel hand over fist in any weakness. With intel pushing up against its ceiling of resistance at 35 lang thinks it could have a lot more room to run. This is straight up. Hes saying it goes straight up even more. It is a wellrun company now. Next up, how about Nxp Semiconductors, what ive liked as a longterm investment. The connected car, internet of things. My Charitable Trust at actionalertsplus. Com. Nxp has been terrible. May through june, a heads and shoulders pattern. What do we know about that . Thats a straightforward pattern. The shoulders, the head. Its the most negative formation in the book of charts. Near the end of june, look at this, nxp broke down below the neckline of that pattern. After that which coincided with the brexit, the stock got crushed because of rumors there was going to be a very big shortfall. Lang believes the head shoulders related selling is now done and completed the negative pattern. Now that the nxp is trying to make a recovery with momentum indicators, relative strength, rsi up top here and coming off low levels and the macd looking like if could be on the verge of a bullish crossover trying to anticipate here. Still Nxp Semiconductors had a powerful ceiling of resistance at 82 bucks and also happens to be where its 200 Day Moving Average is located. Okay . This could be a very difficult thing for it to get to. Lang wants to see nxp clear 82, okay, before hes willing to give it his endorsement. You know my view, if you like it at 82, you should like it more at 80 where it is right now. Whabt what about a semiconductor stock, makes parts for the iphone, and has been punished along with apple for the past three months . Take a gander at this daily chart. This is really intriguing. The improving technicals made lang believe skyworks may already have bottomed. In recent weeks the stock has made a really good pattern. Its called a w. Okay . A w bottoming pattern. 58, it held easily the last time it tested which is very bullish. It was actually upward. Plus today the stock jumped over its main ceiling of resistance right here, all right . Thats rallying above 65 bucks. Very bullish. Meanwhile the money flow, i described that, about money going in, its a web measure of institutional buying. Lang thinks its doing great. There it is. I think its a little anemic. He likes it. He thinks this stock can go to the high 60s, can climb past 68, little more than 2 bucks above where its currently trading. The stock could potentially work its way back to 78. Hey, thats an 18. 5 gain. Skywork solutions would be a mustown. Doing a good job there. Again, linked to apple which has been the kiss of death. Finally, what about qualcomm . Which owns so much of the intellectual property that makes Wireless Communications possible. If you own a smartphone, the odds are good it has come qualcomm in it. How about the chart . Since the breakout in late february, qualcomms stock has been stuck in a tight trading range as it fails to break above 55. Right . But lang, lang thinks the stock could be ready to roar. Near the end of may, qualcomm made whats known as a golden cross. Okay . Where the shorter term 50 Day Moving Average, thats the blue, okay, went over the 200 day. Something most charts find extremely bullish. You know, i dont know. This is you can see it better here. This is where this is where we are right now, im sorry. This is the golden cross and the stock has been very good since then. Qualcomm made the w pattern that lang likes to see, all right. Bullish crossover. The stock has been basing at a higher level. Put it all together, lang believes qualcomms stock is everything it needs to break through the ceiling of resistance of 55 and keep climbing. Its losing market apple share to intel. I prefer intel because its got more catalyst. Im worried about qualcomm losing that apple business. Not lang. He loves the chart. Oh, boy. Its a tough conflict for me. A lot of cash in that company. Heres the bottom line. Last night i mentioned ten stocks that need to rally before we can believe the bull market is real. I sfwot to tell you, if bob lang is vigt about the semiconductors stocks, think theyre ready to roar and they do, that would be a Huge Positive for the overall stock market, not to mention the semis, themselves, some of which very attractive here and could be part of the fuel needed to take this market up to even higher levels than weve seen to date. Wow. That would be something. On mad money tonight, what chocolate, chicken and fertilizer can tell you about whats ahead for the market in 2016. Then its been one of the most aggressive eni investors in wind energy in the United States. Can this utility power your portfolio with Renewable Resources . And the real way to play the pokemon craze. Has nothing to do with nintendo. May have more to do with something thats in your bathroom cabinet. Ill explain just ahead. Stay with cramer. As the stock market continues to rally, now that weve entered the second half of 2016, we need to look back on the first half of the year to understand exactly how we got here. Thats why every night this week im putting the first half to bed sector by sector. Last night we drilled down the best of the best. The three Top Performing sectors in the s p 500. Ultra safe utilities. Telecom stocks. The Energy Cohort which rebounded dramatically along with the prices of oil and natural gas. Tonight were covering the best of t of the rest. Mainly the Consumer Staples, the materials and industrials. Lets start with the Strongest Group of the bunch, consumer staple stock up 9 on average. House of pleasure. The rally in the staples was similar to the tele cocom stocke talked about last night. A flight to safety caused by economic chaos overseas. Buy, buy, buy. As well as the search for yield as the return from Treasury Bonds got weaker and weaker. But while the utility sectors were up double digits the Consumer Staples only gave you a 9 gain because their gains are lower, many have Big International exposure. 9 is pretty darn good especially for a group that tends to be pretty darn slow moving. Lets drill down to the five best performers in the staple sector and get to the five worst. Top performer in the group, hershey up 27 . That makes sense. Makes a lot of sense because the Company Caught a huge takeover bid in the last day of june. Hershey shot down the offer but the stock hasnt given back much of its gains. Now regarded as potentially buy bl takeover target. I do not think weve heard the last of mondolese. The second best stock, campbells soup. Campbells has made a series of acquisitions that have helped the company bulk up in its natural and organic exposure. The last quarter was widely shows you the power of the group being able to move to override shortterm stumbles of earnings. Third, tyson foods which fell to 25 . Tyson started seeing the benefits from its purchase of hillshire farm, gave it jimmy dean sausage, ballpark franks. A packaged meat name that has a higher price earnings. The fourth best consumer staple stock was mccormick spice. I mean, what a company. Its the king. King of spice. Up 24. 7 . I keep this in my desk. Not just to remind me about the ravens who i dont care for, anyw anyway, because im an eagles fan. Mccormick is a winner. Sixth, cisco corp up 23. 8 boosted by the involvement of nelsons trian fund. Took a gigantic stake in the company. Beyond the top five, the big tobacco stocks did pretty well, too. Theres a common theme here. Investors like to buy nice, safe, consistent companies with slow but steady growth in an environment where its hard to come by. What about the five worst performing stocks in the Consumer Staples sector . One exemption, theyre all supermarkets or drugstores. Too competitive. Walgreens, castco, going up against everybody including amazon. Kroger 12 . Theyre really retailers. The one exception in the bottom five, hormel, the maker of spam. Given how the stock rallied more than 50 last year, applegate farms, king of Natural Organic meats. The expectations got ahead of themselves. Hormel is an International Business being the main source of disappointment. Next up, how about the material sector . Drop off in performance. Plus 6. 7 in the first half. If the Consumer Staples group was a lesser version of utilities, the materials h s co was a lesser after crushed in 2015 thanks to worries about global growth, especially china, many with bounded in the first half of 2016, that allowed the Materials Group to begin making a comeback. The range is so diverse that you see a stunning range of performance. Best material stock more than doubled, worse declined by 40 . Lets go through the biggest winns and losers. Best performing materials play was mining. Wow. Its been a long time. Thats a gold miner. Get this, it rallied 117 in the first half aided by 24 increase in the price of gold plus on the last day of june newmont announced, indonesia. Number two, freeportmcmoran, that ran up 64 . Why . The underlying commodities were covered. Investors realized freeport was no longer in danger of potentially going under. Something many people worried about the beginning of the year because their stressed out 20 billion Balance Sheet debt. We got albomar. Dont talk about this enough. Chemical company saw its stock rally more than 41 mainly because of its involvement in lithium. So essential for the batteries in your devices and even electric cars, tesla. Fourth and fifth are Martin Marietta and volca materials. Up 40 and 27 respectively in the first half. When you look at the bottom five materials, two fertilizer plays. The whole ag sector is bad. Westrock, a corrugated packaging company. Alcoa, aluminum maker. What you see in the materials sector if you had exposure to a commodity that was going higher, your stock did well. If it didnt, stock got left in the dust. Go buy alcoa, please, aa. Its starting to soar after the last robust quarter and the split into two. How about the industrials . Another group on average did pretty well up 5. 6 in the first half. When you drill down, you find a wide variety of performance. While makers of machinery and heavy equipment gave you excellent gains, there was decline in airlines, the s p industrial select sector es etf. I might group things differently but im not the ones who make those decisions. The strongest industrial, tyco, whittled down to a tyco rallied 43 in the second half. Why . Taken over by johnson controls. I love that combo. Number two, cummins, cmi, big engine maker. The Company Bought back a large quantity of its stocks. Nice dividend boost this evening. Fourth, waste management. Waste management is a stealth play on Residential Construction because new homes mean more routes for the garbage trucks and more trash for landfills and of course the construction of a home produces a lot of waste. L3 communications, defense contractor focused on commandcontrolled communications, surveillance, reconnaissance systems as well as avionics and training devices was next. L3s 22 gain in the first half em emblematic of police are forced to arm themselves, watch nato here. Fifth industrial, roy, xlyem. The Water Technology play we talked about two weeks ago, among other things helps build out residential water and waste water systems. Stocks up 22 . Part of the water bull market we talked about yesterday, including waterworks. Worst performing stocks arent really what i call industrials. Talking about robert half, which we know did terribly in the first half although they had a great move today. If youre an actual well run defense contractor the last six months, lets say they were pretty darn good. Heres the bottom line. Consumer staples outperformed the first half. Part of a flight to safety trade. Many material stocks did very well because their underlining commodities rebounded like with the Energy Cohort. The industrials have pockets of real strength like Construction Machinery that were all set by weakness in the transports. Will past be prologue . Thats what matters. If the economy does strengthen here, then it will be the materials and the industrial stocks that likely will have a lot more room to run. Buy, buy, buy. John in california. John . Caller booyah, jim. We love you out here in sacramento. Man, i love sacramento when i live ed there. Whats up . Caller my question is, we do Like Unilever and were wondering if the brexit thing would have an effect on the company. Unilever is great. The Charitable Trust owns procter gamble. Manuel in illinois. Manuel . Caller how are you, jim . Thanks for taking my call. Of course. Caller xte, constellation. Xte, someone was criticizing me on twitter saying it hasnt moved up in the last 24 hours. Thats a high quality criticism, isnt it . Constellation is a buy. It has the best growth. The start of 2016 could give us some hints as to whats ahead. If the Global Economy is strengthening as i say it is, the materials and industrials. Still more mad money ahead. Utilities are some of the Top Performing stocks to begin the year. Next im speaking to a ceo whos pushed his company hard into what many consider to be the power of the future. Find out why avangrid is big in wind energy. And everyones talking pokemon go. The truth behind the trend reveals a big new technology taking shape in Silicon Valley. Ill tell you where it may make sense to invest, make some money. Got to hear some names in that one. Finally a lightning fast lightningpowered edition of the lightning round. Your questions are coming right up, so stay with cramer. Hi daddy gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Buy one now and get the samsung gear s2 for free. Exclusively at at t. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Back in december, holdings emerged with eberoil usa to create a brand new utility, avangrid. Combined gas and electric operations in connecticut and new england, the utility business in new york and maine, not to mention their large wind portfolio. Were going to talk about that. I bring this up because the utilities were the best forming sector in the market during the first half of 2016 and the newly created avangrid gave excellent gains as well. Stock over 25 since the merger last september. Not only does the company has a traditional utility business, supports a solid 3. 8 dividend yield, a major developer of Renewable Energy with wind farms all across america, plus avangrid blew away the numbers when reported at its most recent quarter at the end of april. Can the unconventional utility keep climbing . Lets take a closer look with james torgerson, ceo of avangrid, to find out more about his company and his prospects. Mr. Torgerson, welcome to mad money. Good to see you, sir. Have a seat. This is exciting for me because like many people who have kids in their 20s, i always do, they always say sustainable, sustainable, sustainable. Give me some company that is. You got a traditional utility business but youre also the major wind company, youre the parent, major wind company in the world. Is it competitive . Yeah, wind power is competitive today. When you look at the cost for wind, its very comparable to a gas combined cycle plant. You can generate wind at the same price as you can get for any other electricity source. Let me just go there. I mean, sometimes its not windy. Well, its not windy but the factor they have, the capacity factor they call it, its how much of the wind blows. For the newer ones, its like 50 of the time. So then the other part were going to need is more storage to be able to generate the electricity, store it and use it other times. You do have to have backup. Youre right. The wind doesnt blow all the time. But its possible because spain has got such a huge component thats done by wind that we could have that in this country someday. Yeah, between wind and solar, too, but both of them, yeah, you can as long as you have another source to back it up. They use hydropower. Use pump storage. Pump up, bring it down at night. When the winds not blowing, they use the electricity from that. There are other alternatives. Your utility has exceptional growth, much higher than traditional ones we follow. How much of that is wind and how much can wind add to growth over multimilli multimilliple years. 8 to 10 growth. Youre talking about an area of the country thats true. The utility is growing. Rate base probably growing 6 . The wind is adding quite a bit more. Were adding more. We already have contracts, burr chas power agreements, well have up and running by the end of 2017. Were looking to add another 600 megawatts on top of that by at least the end of 2020. When you look, 5,700 megawatts of wind power today. Were going to put in another 1,500 megawatts in the next 5 years. Hopefully we can do more than that if we can get more purchase power grid. Who do you use . Whose technology do you use . A number of them. Ge, all the major ones. We bid competitively. Technology is actually fairly comparable. Theyre all a little bit different. You know, theyve gotten so much more efficient and theyve gotten better because they use software now that can help dynamically control how the wind when the wind shifts a little bit, they can dynamically control the Wind Turbines so its getting the maximum output from those plants. Is this internet of things, Machine Learning that were talking about . Somewhat, but its actually we control everything in the u. S. From one control center. We can control all of our Wind Turbines from one spot and shut them down, bring them up, do whatever needs to be done. We check them to make sure theyre performing adequately, we can maintain them, so, yeah. One thing thats amazing to me, were all convinced the only place the wind works and is cheap is the great plains and texas. Youre building in new york. Where in new york that has enough wind . Up in the adirondacadirondac. Along the ridge lines. You get more wind. Were building them in new york, new england, texas, out in the west, california, up in oregon, along the Columbia River gorge. And also in the midwest up in the upper midwest. The capacity factors are different. Right. Okay. You also have an interesting project going on with metronorth. Right. How do you make money on that . Thats our transmission business. Were, you know, weve had our transmission lines run along the catanaries for metro north. Those are about 100 years old. We need to move the transmission lines off of it, keep it on the right of way. Were going to spend about 150 million moving that to make sure we can get the power back and forth along that corridor. Now, i look at your Balance Sheet and its actually its very strong. Its Even Stronger than i would necessarily think a utility could be. So that would mean that you could also grow by acquisition if you wanted to. Yeah. M a is always a possibility. Were very happy with our organic growth we can do. We got 8 to 10 Earnings Growth from what we know right now. From what we can see. We only have 24 debt. We have capability to do quite a bit right now. The more the better. Well, i think its an exciting story. For those who are looking for something, a younger person whos looking for growth, as we talked about yesterday, with sustainability, i think this avangrid is a good one. James torgerson, the ceo of avangrid. Mad money is back after the break. Whats better than mad money . How about more mad money . Follow mad money on facebook, twitter and instagram to go oneonone with cramer. Reaction. What other questions do we have . Ah, i always tell people you got to start with an index fund because i need you to be diversified. Get more with guests. How do you stay and go behind the scenes with the most interactive show on television. If you cant explain in three bullets why youre buying a certain stock, dont buy. Follow mad money today. You both have a perfect driving record. Until one of you clips a food truck. Then your rates go through the roof. Perfect. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you twentyfour seven. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Lightning round is sponsored by t. D. Ameritrade. It is time. It is time for the lightning round. You say the name of the stock. I dont know the calls or the name of the stock ahead of time. I tell you whether to buy or sell. When you hear this sound [ buzzer ] then the lightning round is over. Are you ready, skeedaddy . We start with harvey in virginia. Harvey . Caller yes, sir. Its an honor to ask you about tractor supply. Obviously they preannounced that last quarter. You know what, i got to tell you, when i look at what they kid, i still think it was weather related and im sticking by it. Lets two to edwin in alabama. Edwin . Caller hey, booyah. And war eagle, jim. This is edwin in birmingham, alabama. Okay. Caller my daughter, sidney, is a premed major at auburn university. But anyway, thank you for allowing me to ask you a question. Okay. Caller my question is on cambrex. We like that. Up nine points. This group is on the move. I like it. Buy, buy, buy. Go auburn. Lets two to bob in vermont. Bob . Caller hi, jim. Im a firsttime caller but a longtime listener. Okay. Caller my stock is symbol mtn, vail resorts. Im going to give you a hinlt, zika, the mosquito does not survive north of 6,500 feet and thats why that company is doing so well. Lets go to jackie in new york. Jackie . Caller hello, jim, booyah. Booyah, jackie. Caller you have a great show. I look forward to your show whenever i can catch it. Thank you. Caller my question is about Apple Hospitality this has been comiing back along with the other hotel reits. They have a good place for you. Lets go to mike in nebraska. Caller booyah, jim. Mike in husbakers country. I remember the huskers. Lets bring back that football team. Caller amen. Ive been watching you for two weeks. Learning a lot from you. Thank you. Im a first time investor. Ive been researching general dynamics. I like gd. Number one is lockheed martin, over 250. I still like it. My action alert owns it. Number two, northrup garman. How about randy in wisconsin . Randy . Caller booyah, cramer. Booyah, go packers. Caller hear, hear. I want to know if cat is a good buy. Okay. Cat is at the precipice of a breakout here. The shorts are going to press it. I think the news out of china is good enough that you could finally have a quick spurt as the guys realize they have to cover. I say buy, buy, buy. Even though it was up two today. Lets take one more. Ben in texas. Ben . Caller booyah. Booyah, ben. Caller looking at verifone. Verifone, you know when you put the credit card in the machi machine, makes you wait 27 minutes and approves you . Its upsetting people. I want them to set the word straight because it sure aint their fault. That, ladies and gentle hemen, the conclusion of the lightning round. The lightning round is sponsored by t. D. Ameritrade. Or jerry getting dumped every third tuesday. Jerry every third tuesday. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. In new york state, we believe tomorrow starts today. All across the state, the economy is growing, with creative new business incentives, the lowest taxes in decades, and new infrastructure for a new generation attracting the talent and companies of tomorrow. Like in rochester, with worldclass botox. And in buffalo, where medicine meets the future. Let us help grow your companys tomorrow today at business. Ny. Gov does something about getting older somehow disqualify you from being able to make money . Thats what i keep wondering as i watch the stock of nintendo levitate because it owns a piece of pokemon go, a craze that my kids are caught up in which makes no sense to me. When i picked up the front page of the New York Times today, saw an article not about the game, thats already old news, whether the game may be better for you because its played outside. Then i saw a story about the s p 500 hitting a new high buried all the way back here on b7 of the times. The irony wasnt lost on me. Stocks dont matter as much as pokemon go. Yet the world of youth has overtaken the world of stocks. Like bob dylan says, if youre going to invest, the times are a changing. Our sons and daughters are beyond our command. Doing things with technology that we cant understand but better start learning or left by the order thats rapidly changing. This isnt some sort of midlife crisis im having. If i can go by the midlife rubric. Im talking about the need to keep up with instagram, snapchat, boomerang. And a host of other applications. Or you simply want to understand why a cohort of stocks are going higher. Hitting new highs. You also want to understand how a hamburger can be made by two people instead of three because of automation, saving minimum wage. Or how machines can produce millions more oreos per hour than humans. Now lets put this into dollars and cents terms that can help us make money. Its still mad money. Pokemon go may be a craze but a craze based on augmented reality. A few weeks ago i was in Silicon Valley. I asked people what was the next big thing, half a dozen of them said a. R. Fortunately enough, i was aware enough that the abbreviation stood for augmented reality. Ive made it a point to read as many trade publications about Silicon Valley before i tgo out there. Ill never let that high ro glisk get me again. Most of the people truly involved in working on a. R. Werent sure, may be next year, may be the year after. Instead it happened last thursday. Younger people adopted immediately. I dont know at this point when i was the age of the pokemon go players, i was holding down two jobs. My mother would have charged me rent for this stuff. Theres no way of making money off it in any sustainable way. The stocks can go higher. I cant recommend them just on the fact theres a motion. The game could be here today, gone tomorrow. The concept. Instagram made it you cant walk outside without wearing makeup, ulta salon, estee lauder. Cant make money on uber, airbnb. Some people say uber will never make money. Knowing what they are, you should be thinking about buying. Yes. Twilio even up here as the Software Infrastructure Solutions Power a lot of whats behind the two companies not to mention facebook. Twilios way of working with customers as part of the contract makes me think the stock could, yes, im going to use the term, double after these levels. T. Twilio, 15 bucks made no sense except for the negative environment were currently in which is so punishing even to the best growth unicorns. There was a terrific ad campaign, pepsi for those who think young. For someone like me that resonates with buying the perfect stock, pepsico. The stock market for those who think young or at least youd better because your old road is rapidly aging and the times, they are a changing. Stick with cramer. Americans are buying more and more of everything online. And so many businesses rely on the United States Postal Service to get it there. Because when you ship with us, your business becomes our business. Thats why we make more ecommerce deliveries to homes than anyone else in the country. The United States Postal Service. Priority you will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. F[announcer] is it a force of cards annature . Ces or a sales event . The summer of audi sales event is here. Get up to a 5,000 bonus on select audi models. Very exciting interview tomorrow morning on squawk on the street. Ken powell, ceo of general mills. What a horse that stock has again because ken has reinvented his company. Much more natural and organic. I cannot wait to interview him along with my pals from squawk on the street. Like to say theres always a bull market somewhere. I promise to find to just for you right here on mad money. Im jim cramer and ill see you tomorrow. Today when it comes to motor vehicles, there are lots of rules. Were told where to drive, how fast to go. There are rules that dictate design, rules meant to keep us safe. [snores] [engine revving] but tonight. [airplane engine roaring] we turn the world upside down, and we throw the rule book out the window. My wife is gonna kill me. Im diving headfirst into the insane world of sidecar racing. Ill get behind the wheel of a monster truck. Ive done some dumb things on this show, but this is right up there. To fulfill that primal urge to flatten everything in my path. Whoohoo and well find out what well be