Transcripts For CNBC Mad Money 20161128

Peter out, crash, i dont know, it has to run out eventually. On the other hand, no one could seem to agree on what might cause the rally to end. And despite todays down action, dow slipping 54 points, s p backsliding 0. 53, nasdaq declining 0. 56, i dont think its over. Its just morphing into other areas not yet picked over, which is what happens when much of the s p 500 is higher and the russell 2,000 index and small capitalization stocks goes up for an astounding two weeks in a row. I cant tell you how rare that is. Hallelujah. Sure, you heard people say maybe trumps appointments will bring things down, or maybe his trade policy could cause a backlash that could hurt our exporters. Or the media wont let up on him and the recount story might make waves, or the dollar has been too strong since the election. Or even that his reaction to the death of fidel castro with a couple of hard line tweets is to flaky to gain. But honestly, i heard nothing that stuck. Nothing is going to repeal this rally right now. Nobody complained about trumps changes in tax policy or the potential defeats he might suffer in congress or the problems with the debt ceiling or the notion of gridlock, all the stuff that kept obama from getting anything done since the gop took back the house six years ago. I heard nothing about how hes negotiating in the press or on twitter or youtube thats going to disrupt his agenda. This is somehow a negative for a guy who ran as the ultimate renegade . On the flip side, though, we have a host of positives for the market. Some involving trump, some not. Theyre really playing out. Something thats absolutely worth thinking about on a pretty soggy day. First, trump just isnt gaffing the joint with his appointments. There may be some picks that people feel as odd ball. You may not agree with them for reasons of politics, but the key here is he hasnt done anything that would make us feel like were in trouble on wall street. Remember, this is a show about money, not ideology, and the stock market doesnt care who you voted for. What it does care about is the fact that people who meet trump in his interviews for cabinet jobs, involving finance at least, the ones who swung by Trump National or by the tower, theyre almost all people who have been on cnbc multiple times. Many are savvy about the market. Were talking household names here, guys. These are people we listen to when they talk. We even think about buying the stocks they talk about. Theyre far from being goofballs. Theyre level headed Business People who are well aware of how policy impacts the market. So far, i think the only issue would be if companies genuinely stop offshoring and people wonder what that will mean for the cost of pretty much anything. I think thats very unlikely, and its worth pondering what kind of Economic Growth we could get if everything proceeds as planned when it comes to trumps tax cuts and infrastructure spending, especially if he rewards American Companies like deere and caterpillar with big contracts rather than giving them up to the koreans or the japanese, which i think personally would be unfair. Second, politics aside, its cold out right on time. Its cold. That matters tremendously for retail. People underrate this constantly. The promotions we always hear about at this time of the year often involve the heavier, more expensive stuff that people wont buy when the warm weather lingers. But one look at the way columbia sports wear stock is acting or vf corp. , not to mention the action in Department Stores fee. Everything from jcpenney to target, and thats before the cyber craziness of today. The natural gas companies, they need the cold too. Cost of storage has gotten too high. Less coal means a curtailing of this fantastic rally and the Railroad Stocks that have been among the leaders of this market. So we need natural gas to go higher. Yet theres a lot riding on the thermometer. Third positive, momentum. When you get ahead of steam like this going into the last month of the year, you typically end up with a rally that will gain fuel boys Money Managers wont want to look as negative as they may sound when theyre off the desk. I wonder if there wont be a catchup rotation starting in some of the packaged good stocks if the fed makes a muted statement when it raises rates in december. That could cause the bank stocks to stall out, but it might put a real bid, not just today, but a real bid underneath the names of clorox and kimberlyclark. We did see good buying in these kinds of stocks today on just a tiny sliver rally in treasuries. Some of these Companies Like procter and clorox, but they are terrific but entirely overlooked quarters because of the great rotation out of the safety place into the cyclicals. Finally, i really think that as the year winds down, were still not done with mergers. We have so many stocks that are acting too great, suggesting the takeover environment is improving or at least the deals will get done. Take one look at the price of the stock of rite aid, will you . If clinton had won, the attempted acquisition of rite aid by walgreen, that would have been killed. No doubt about it. Now it looks like its going to close judging by the action in rite aid stock. These telcos act too great for me too, not for me to believe somethings not going on there. The action in the semiindustry, its pretty insane. Insanely rumor mondgorred that is. Theres just too much smoke. There will be fire. Of course were way overbought. We dont know how some key cabinet appointments are going to work out, but we can say as long as as much as despised and as long in the tooth this rally has gone, it still does have a lot of good things going for it, especially seasonality. No, i am not arguing that you should go out and buy anything. Big mistake. What im saying is on days like today, they make refreshing pauses for those who need to get in, not exits for those who want to get out. At a certain point, the fact that the markets overbought is a good thing. It means theres real money pouring into stocks as an asset class. Thats why the bottom line tonight is that a soggy is a good day, a day when we can find stocks that are being rotated out of and get ready for the next rotation, like the soft goods, which seems to be a daily occurrence since the election of donald trump to the presidency. Phil in new jersey. Whats happening . My stage manager, kyle, wanted me to wear my number 10, which is our 10th anniversary mad money show shirt. Caller happy anniversary. Im putting it up like this because theres a lot of people who arent eagles fan, and i dont want to lose them. I think they have every right to watch the show. You dont have to be an eagles fan to watch the show. Go ahead. Caller my question to you is i own Johnson Johnson. Ive owned it for over a year. By the way, the ceo of Johnson Johnson is an eagles f fan. Im glad you brought that up. Caller i bought more at 113. Im trying to figure out whats going on because it hasnt participated in this rally. Should i buy more . No, now you have to wait, phil. The reason you have to wait is thats the kind of stock thats being thrown away. I am intimating i think there will be a rotation back into a j j, i would wait until it hits 110 and then [ trigger ] scott. Caller cramer. Im calling from the magnificent metropolitan. Im calling bud. In late september its been essentially flat ever since. Ive been buying it on the way down. My question is this. What caused the nosedive, and do you see it playing a role in the rally . A lot of it was the dollar. If you take a look at moulsen, thats done great. May i suggest you take advantage of constellation. Its been down because people feel theres going to be a tax. As much as President Trump is upset about mexico and the wall, i do not think hes going to target beer. Ann marie in new york, ann marie. Caller hi, jim. Thanks for taking my call. Of course. Caller im concerned about starbucks and their domestic comps because i noticed a couple things at their stores in november. There was a two for one holiday promotion avenue wi promoti promotion on beverages. One sunday morning, their fancy reserve bar was empty. If they dont grow these domestic comps, can the stock price still climb . Boy, thats a good question, ann marie. I know that did four. I was looking for 5 1 2. I think they have to i theyre think going to have to do a little more work on their mobile pay because i think theres just not everybody seems to be able to know how to handle the mobile pay at the starbucks that i go to, but thats just kind of anecdotal. In the end, i think china is a driver, europe is a driver, and the ulths is fine. Starbucks is up five straight points, and i think it goes higher. It is a huge position in my charitable trust, and i like it very much. Okay. To me, todays pull back is just a refreshing pause as the trump rally rolls into different parts of the market. This is a positive sign, and one that could mean weve got a long way to go before this rally peters out. On mad tonight, what could a Trump Presidency mean for spending and Information Technology stocks . Im taking the temperature of the group with the ceo of tech data. Then nothing runs like a deere, right . Im telling if the stock can continue to plow higher after earnings. And paypal said mobile shopping accounted for a third of thanksgiving and black friday sales. What could it mean for the stock, which has been stalled at the 39 level . Ive got the exclusive with the ceo. So stick with cramer. Announcer 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. Now that were back from thanksgiving, its important not to forget the companies that reported last week, especially the ones that shot the lights out. Take tech data, the supermarket of technology thats one of the Worlds Largest wholesalers of i. T. Products. They help apple and cisco get their merchandise to market. Recently the stock of tech data has been on fire. Ever since we learned that the company is acquiring its rival for 2. 6 billion, a little more than two months ago. The news sent tech data shares soaring correctly, i believe, more than 20 in a single day because the deal was expected to be very additive to the companys earnings. But then the stock sold off going into the election. Since trumps surprise victory, its come bouncing back. It certainly didnt hurt they reported a blowout quarter last tuesday. The Company Posted a fabulous 18 cent earnings beat off of 1. 26 basis, robust guidance for the next quarter. I always say if you want to take the pulgs of the technology sector, just listen to tech data. So does their latest quarter bode well for the rest of the industry . Lets check in with bob, dutkowsky to find out more. Welcome back to mad money. Hey, jim. Good to be back. Bob, i got to tell you i was trying to figure out how to explain to people how great the av net sleuth. Tech data will become the complete end to end distributor. How will that work so our viewers know what that means . When you look at the Way Technology is used around the world, its not segments into categories anymore. Theres not Consumer Technology and Data Center Technology and cloud technology. It all fits together in a seamless fashion. So by putting tech data together with Technology Solutions from av net, we build that end to end source of products for the marketplace. We like to say anything from the living room to the data center or from a printer cartridge to a mainframe, to the cloud. Tech data is going to be capable of delivering all of those solutions to our customers in a seamless fashion, and that really differentiates us in the marketplace. The everyday person who watches the show will not know that tech data is involved in the transaction, right . Yeah, because we work in the background. Were a distributor. We source products from the vendors, Companies Like hp and cisco and ibm and microsoft and apple. We sell them to outlets that then deliver them to the end user. So whether its a retailer or a valueadded distributor or a corporate remarketer, were the source of those solutions for the end users. The end user cant go to tech data. Com and by a product from us. But the technology they acquire from any other source is touched by a distributor like tech data. Therefore that av net acquisition makes it so youre an even better competitor . More customers, more products, and most importantly, jim, well bring a completely different set of skills and value to our customers that will allow them to get all this array of technology and help solve their customers business problems. It really does differentiate tech data in the market. We love the acquisition. I thought it was very interesting when you turn to europe, what an impressive performance in terms of the highest q3 nongap operating income in the regions history. What is going on in europe because that certainly seems different from what we hear from all these individual countries. Again, you know, i think the reason why we performed so well in europe, first of all, the tech data side of the business is executing exceptionally well, and its a combination of our people and the investments weve made and the systems and tools that help them do their jobs. And then its that breadth of products. So in the quarter, products like networking and Security Products and mobile products were really hot, and we were able to switch our focus to those hot products and use our exceptional execution to win in the marketplace. You use a great term in your call, which is that you are the switzerland of the i. T. Market. Please explain that to people, what it means to not necessarily be linked with just one company. Yeah. We have products on our line card from about 600 different vendors. We have 125,000 Different Technology products that come from a broad array of vendors. So were able to help our customers solve their business problem irregardless of the brand or the vendor. Our customer will call us and said they need to help their customer solve a complex product, and we can bring multiple technologies, whether its multiple cell phones, multiple pcs, multiple printers, all the way up to multiple servers and storage, and networking and complex software to help cobble together the best solution. So we dont really have a favorite vendor. We like all of our vendor partners, and they help solve their customers business problems. I had felt that one of your competitors, av net, did not see some of the changes coming in technology. Theyve adjusted, and its good. But there have been periods of technological disruption that weve talked about here. Have they helped or hurt tech data. . Jim, we love disruption. Disruption brings a different degree of value that we can bring to our customers and vendor partners, and we can help sort out the complexity that exists in the marketplace and sort out the complexity of technology and simplify it for our customers so they can continue to buy products and technologies. So when disruption happens, its a good thing for tech data. You know, jim, weve been in business now over 40 years, and we have managed through multiple disruptions in the industry where it be the mainframe or the clients server or the internet or mobility, and now the cloud. And in every case, after one of those c chansea changes of tech, tech data emerged as a stronger company. We can see these disruptions that exist today, well be able to navigate those and create a better tech data out the other side. I know there had been a delay around the election, but you talked about the possibility once again of a budget flush year end. Things look strong so far this quarter . Yeah. You know, we guided that we would have flat growth yearoveryear. Keep in mind we grew 11 last year in q4. So flat will actually be good, and, you know, the yearend process for acquiring technology, whether it be a business or a consumer, theres a lot of purchases that happen in q4. So tech data is geared up to deal with the market realities, and we hope we have a really good, solid quarter. Congratulations on that great acquisition and on the great quarter. I think the stock is headed much higher. Great to see you, sir. Thanks, gym. Guys, this is still a fantastic way to play technology. You heard about diverse clients. You heard about the soup to nuts. You understand they can deal with disruption. Tech data is the way to go. Good executive. Mad money is back after the break. Announcer are consumers keeping more money on their phones than in their wallets . Online shopping topped 3 billion for the First Time Ever on black friday, with more than 1 billion spent on mobile. Cramer finds out what cyber monday means for one leading payments player. Lets give our customers the choice of how they want to pay and where they want to pay when using paypal. Announcer when mad money returns. Energy is a complex challenge. People want power. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. When a moment turns romantic, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Sometimes companies can change their stripes in the blink of an eye. Take deere, the huge Farm Equipment maker. For ages deere stock was a total laggard after setting a multiyear high of just under 100 in june of last year, the darn thing sold off sharply as the company suddenly found itself facing a multitude of problems from weak end markets caused by declining crop prices to the super freakin strong dollar, which put deere at a big disadvantage to its foreign competitors. It sank as low as 70 in january. While it started rebounding after that, it was still stuck in the mid80s as recently as two months ago. The strong dollar stabilized and many Agricultural Commodities started to recover, but until recently, it was difficult to get enthusiastic about deere. Why . In part because every time they reported, even if they delivered a good number, the commentary on the Conference Call would be so grim that it would send the stock plunging. For a long time it felt like these guys were masters of selfsabotage frankly until last week. Last wednesday morning, when most people were prepping their butterball turkeys or devising plans to get through thanksgiving without strangling their relatives, deere came out and reported a truly stunning quarter. Actually the most exciting thing that happened last week to me. The stock, which had already started running after the election along with the rest of the market, exploded higher, rallying from 92 to 102 in a single session, an 11 gain with shares setting a new alltime high. It was a blowout. And its even more impressive when you consider the stocks of old line large cap Companies Like deere rarely move that much in a day. So how did they pull it off . What allowed deere to deliver such impressive results . Are farmers suddenly in a much stronger position . Is the Company Simply executing better, or are we maybe at the beginning of an upswing . Lets dig deeper to find out because i want you to get the next tenpoint gain in an oldline stock. First of all, deere blew away the expectations of every single line item you can name. The Company Earned 90 cents a share. What was the street looking for . 40 cents. Their sales came in substantially higher than expected, even if they still declined nearly 5 yearoveryear. That may not sound great, but youve got to put these numbers in context. Deere has seen doubledigit revenue declines in six of the last seven quarters. In fact, this was the companys best results since the First Quarter of 2014. Deere has two main divisions. Theres agriculture and turf on the one hand and construction and forestry on the other. Both these divisions did better than expected. Each down just 5 yearoveryear when wall street expected much larger declines. When you drill down, it was deere strength in agriculture and turf that drove their entire earnings boost. The companys agriculture and turf divisions posted operating income of 371 million. Thats nearly quadruple the expectations. Its up 37 yearoveryear. Staggering. Source of strength . Management said that improved price realizations more than offset a decrease in shipment volumes. People are paying so much more than it allowed the company to report what may have been the best quarter of this past earnings season other than maybe nvidia. Those are really it. If youre wondering why the company has so much pricing power, its because deere has done a better job of managing its inventory. All year this company has been struggling because its dealers got caught with way too much inventory. It means you have to mark down your product in order to get it sold. Lately, though, deere has been pretty successful at getting its inventory under control, particularly at the forestry division. While they still have more work to do, better pricer. The actual numbers were fabulous. What about the outlook . Again, better than anyone expected. Deere said that its sales would shrink by just 1 in 2017, a massive improve. From their 8 shrinkage the past year. In particular, management sees the south American Business coming back big time thanks to the recent improvement in brazil and argentina, better governments there. Even better, the key here is its 16 higher than what the analysts were looking for. On wall street, beating expectations is more important than what we call absolute performance. You can lose money. You can be negative. But if its better than the analysts thought, your stock, as we see from deere, can roar. One more thing. Deere has a Financial Services business where they provide financing to farmers and companies that buy their equipment, but this financial side of the business has been in free fall. However, the company sees its Financial Services business growing oh so slightly next year thanks in part to the recent rise in Interest Rates. Thats a major improvement versus this divisions 26 decline in 2016. Still one more head wind that feels like its become a tailwind. In short, deere reported its best numbers in nearly three years. However, management has a bad habit of reporting what looks like a decent quarter and then ruining it by scaring investors on the call. This time, though, the call was amazingly bullish right from the getgo. First josh jepsen, the head of investor communications, told us they reported solid results, quote, in spite of the continuing impact of the global farm recession and the difficult conditions in these Construction Equipment sector, end quote. Translation, deeres phenomenal execution allowed them to triumph over a tough backdrop, but the industry may finally be ready to start improving. As jepsen told us, there are signs in the large agriculture bott market has nearly bottomed. Reminiscent by the way of when bob iger on espn disney call said, hey, im getting bullish on something that had been going down. That change in pace made people excited. What exactly did deere do so much better . A lot of it comes down to controlling costs. Last quarter, the Company Announced a plan to cut at least 500 million in costs through 2018, and so far, its going swimmingly, adding more than 90 million to deere. Who knew they could cut these costs . Where is the money coming from . Deere Financial Officer laid it all out. The first component comes down to structural improvements, where the company is resourcing and designing costs. Deere is putting the squeeze into its suppliers, while also designing its machinery in a more Cost Effective manner. Second, peoplerelated cuts. In addition to deere saving money by changing its variable pay structure. He summed it all up saying the company would continue delivering significantly better performance than in the downturns of the past. Of course these same factors will provide a continued benefit when Market Conditions strengthen, end quote. Thats the key here. If theyre delivering tremendous numbers when the ag business is pretty suboptimal, can you please imagine how well theyre do when the ag sector finally rebounds. They made it clear on the Conference Call that the industry sure looks like its ready to bottom. One more component. Classic short squeeze. As of the end of october, deere was the fifth most heavily shorted stock in the s p 500. So when deere reported an almost picture perfect quarter, these short sellers panicked and were forced to buy back the stock in order to close out their positions. Thats again how a stock goes up that much in one day. Heres the bottom line. Short squeeze or not, deeres got a lot going for it. The stock remains a buy even right here, and if we get weakness, like the 2 and change bu pull back, just by it. Bert in south carolina. Caller kbr was mentioned by you a few years ago. It was down in the teens. It went up to 36, and i ignored it for a while. Now its back down to the teens. What do you recommend . If you believe there is going to be a lot of infrastructure done with president elect trump, then kbr at these prices does make sense. I saw a floor breaking out this weekend. Kbr can break out. Can we go to john in california, please, john. Caller booyah, jim. We love you out here out west. Thank you. Im doing well. How about you . Caller im doing great. I have raytheon, but i was wondering about adding Lockheed Martin to that mix. What do you think . Really should be one or the other. I do prefer Lockheed Martin to raytheon. I think raytheon is real good. Lockheed martin came down a little bit. Cowan came out with a piece about how General Dynamics is the best. We get the gist here. Its the defense stocks that work. All right. Nothing as we know runs like a deere, except for the stock of course. This companys prod cal moves are finally paying off, and while the bears bets against it helped make its massive move, i think there could be much more in store. This stocks not done. Theres much more mad money ahead. Paypal has revolutionized how the world drops coin. But as the payment space becomes more polarizing, im talk with the ceo about how it plans to stay ahead of the pack. Then these stocks have been trashed, but its their turn to participate in the trump rally. Im revealing which plays could be due for a move higher just ahead. And all your calls rapid fire on tonights edition of the lightning round. So stick with cramer. What are we supposed to make of paypal, the stock of the online payments kingpin has been running since we last spoke back in february. Since the election, paypals shares have been under pressure. Today, cyber monday, the Biggest Online shopping day of the year yet paypals stock actually went lower . First the companys most recent quarter was good, in line earnings, suddenly raised outlook for the year. And paypal inked some major partnerships with visa and mastercard. However, theres one serious issue here, and its with the stock of paypal, not the company. For a long time, Money Managers flocked to the nonbank financials like this one in order to get exposure to the Financial Sector without being exposed to the ultralow Interest Rates that were making life difficult for the banks. Since trumps surprise victory, though, long term rates have been soaring, and net month the fed is likely to raise short term rates as well, possibly the first of many rate hikes. All this makes the actual banks much more attractive, but it also removes a key reason for Money Managers to own stocks of paypal even if theyre doing terrific. The question is can this company do well to triumph over the headwinds created by the mechanics of the Money Management business . Lets take a closer look with dan shulman, the ceo of paypal. Welcome back to mad money. Good to see you. Now, before cyber monday and i know thats of course obviously today, so we dont have the number on that. But you were doing an attractive process, well over 100 billion in mobile payment volume. This was from your october call. Right. That would be still on track, better . Well, our results last quarter when we reported those were up 56 yearoveryear, so that 100 billion run that we were on was up 56 . What were seeing on this kind of black friday weekend is that for the first time youre going to hit 1 billion of mobile sales on black friday. 1 billion. First time ever. So youre seeing mobile up dramatically as all of online is right now, and were riding that wave, in fact leading that wave in many ways. Now, ven mow, the numbers were extraordinary. You had an increase of 131 yearoveryear as of the last quarter. Still accelerating. As weve talked about many times, ven mow is the way millennials manage and move their money. So we did almost 5 billion of transactions in the third quarter, almost a 20 billion run rate if you can imagine for venmo. It was just named times app of the year for 2016 and millennials are flocking to it. You made these partnerships with visa and mastercard, but you are much more, i think, ahead of them in mobile. Do you really need them . Yeah, so we made these partnership deals with visa, mastercard, facebook, vodafone, so were actually partnering across the world right now in many ways. And it wasnt that we needed these partnerships. What we did is we did a strategic choice within the company of basically saying lets give our customers the choice of how they want to pay and where they want to pay when using paypal. And that led to very interesting partnerships and opportunities with the networks and with Financial Institutions across the world. Is there anything meaningful you can report yet that shows that theyve caused a further acceleration in your business . So the early results and i just want to highlight theyre very early, right . So i dont extrapolate from early results. I like to see kind of how they kind of go over a multiquarter period. But the early results are very encouraging, right in line with the projections, maybe slightly better than the projections that we thought. So were encouraged by that. Terrific. Now, one of the things that i like about you, and weve been asking about a lot of companies that are getting and attracting the best young people. Fortune 2016 award for change the world. What are some of the things youre doing about changing the world . Yeah. So we think that doing good is a responsibility for all companies. We cant just rely on the Public Sector or the private sector. We all need to work together. And our mission and vision is to help businesses to grow, which of course is great for families of Small Businesses, communities, neighborhoods. Youre talking about businesses around the world. Around the world. Youre not just talking about Small Business . No. Around the world. Were in 200 countries, and were trying to help all of those Small Businesses to grow either by making opening up them to global consumers. We have 192 Million People using the platform now, up 4. 5 million just the last quarter alone. So were helping Small Businesses. Were also helping consumers to make it easier to do transactions, faster, simpler, more secure, less expensive to do basic financial transactions. Tell me what that will mean for giving tuesday. So giving tuesday is one of the largest days of charitable giving. Tomorrow. And the paypal platform is ideal for that. Okay. Last holiday period, 7. 25 Million People gave over 850 million to 250,000 charities through paypal. Really . We that is a statistic. Okay. Were all cynical. See, i sit back, and i just say, okay, just break the form here. Thats extraordinary. Its amazing. Last year we did 48 million in donations in a 24hour period on giving tuesday. Wow. That broke every record. Last year, we were 19 million. This past year, 48 million. Thats incredible. Now, you were down with president obama when he went to cuba, and you know theres a new regime coming. Can things really be unwound . Youre just beginning to get credit down there. Why would that be in any president s interest to roll back . I think we need to see with the new administration coming in what their congressional clarity is around the regulations concerning cuba. But when i was down there, i met with lots of entrepreneurs. Thats what i spent most of my time talking to. And they want to become part of the world community. They want to open up so that consumers outside of cuba can buy their goods, and they can sell their goods. Paypal could be ahead of every other Credit Card Company there. This is ground field, right . Isnt this just a total green field solution for you . We are perhaps one of the leading International Remittance players in the world. With zoom. Remittances of a large part of the gdp of many countries. So we can help facilitate global trade. Cu cuba, though, well have to see. We dont know yet. We dont yet. Also on stripe valuation, see its raised to be a level of 9 billion. I look at your company. Your company is a lot bigger, growing pretty amazingly. 20 . How do we justify some of these crazy valuations . Well, its hard for me to talk about another company. I looked at it, and its hard for me to justify. You can say, yes, jim, i can understand your confusion. Theres a competitive announcement almost every week. But think about it. The ecommerce or online Digital Payments market is 100 trillion addressable market. So youre going to have companies constantly trying to come in. But during that time, for all of those announcements, like since apple pay was announced, weve put on 35 million net new customers. Weve taken our transactions per active from 27 to 30. So were growing and separating ourselves out by having great value propositions and continually innovating. And stripe competes with brain tree. I put brain tree up against anybody in the market, and as we announced with brain tree, in the last three years, theyve grown 25 times their transaction value. Your growth is terrific, and the numbers are amazing. Thats dan shulman, president and ceo of paypal, undervalued because of what i was telling you about. But these have real growth, and thats what matters. Mad money is back after the break. gasp shark diving xerox personalized employee portals help Companies Make benefits simple and accessible. From anywhere. Hula dancing . Cliff jumping xerox Human Resource services. Soon to be conduent. Which allergy . Eees. Bees . Eese. Trees . Eese. Xerox helps hospitals use Electronic Health records so doctors provide more personalized care. Cheese . Cheese xerox healthcare services. Soon to be conduent. Announcer lightning round is sponsored by td ameritrade. It is time it is time for the lightning round thats where i take your calls rapid fire. You tell me the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Im going to start with fran in pennsylvania, fran. Caller hello, jim. Thanks for taking my call. Of course. How can i help . Caller im looking to invest in stocks that provide a monthly dividend. With that said, im looking to invest in blackrock capital. Youre not going to go wrong with blackrock. Its one of the best run Financial Companies in the world. I love those guys. How about wade in new jersey, wade . Caller jim, thanks so much. Big fan of the show. Wanted your thoughts on halliburton. Oh, man, i dont care whether theres a deal for opec or not, that quarter was the turn quarter. I like the stock. How about alice in florida, alice. Caller yes, jim, this is alice. Thank you for what you do for us. Youre quite welcome. Caller all about freeportmcmoran. If this stock goes down a dollar and a half, thats where id do it. I think its got a soft basis right now. Let it come down, but youre fine because i think copper has bottomed and i love what they did with the balance sheet. Lets go to luis in new jersey, luis. Caller hey, jim, thank you for having me. Of course. Caller quick question for you. Patterson companies. Theres something with the dental business. Its suddenly gotten very competitive. Were going to say right now. Dont buy, dont buy. Were going to jeff in new jersey. Caller mr. Cramer, what do you think about Chesapeake Energy . I said this afternoon when i was on halftime with scott wapner. I told the judge im actually warming up to chesapeake. I think its a because natural gas were exporting a lot, and mexico needs it. We were up there in ohio when we saw it with the late aubrey mcclen on. I like the stock. Thats a big change of heart for me. And that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Warren, to help me deal. Isnt that right warren . Well, you could get support from thinkorswims inapp chat. It lets you chat and share your screen directly with a live person right from the app, so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. You want a rally that includes everything and everyone. Thats the way it should be. You dont want a rally that just has the semiconductors or the banks or the oils or the financials. Today was the day for the bond market equivalent names, the ones that act like bonds. To me, thats fine. The postelection declines in stocks like American Electric power, pepsico, clorox, theyre pretty steep versus the rest of the market. Even though their dividend yields dont offer much protection, i simply dont think some of these moves can be justified. Consider clorox. Its gone from 140 in july down to 117 today despite reporting a terrific quarter although i know the stock peaked at the same time Interest Rates bottomed. I want to make a strong case for the stock of pepsico here too. Theres lots of stuff in the papers about city taxes on soda. If you believe theyre really going to have an impact, why dont you just bet against cocacola and go long pepsico. Coke is much more vulnerable than pepsi because pepsi has that fabulous snacking exposure. Speaking of yields, how can you not like Procter Gamble here. Pg had a fantastic quarter, but it got caught up in the posttrump bond slaughter. Stock isnt cheap, but procters organic growth is the best its been in years and the company has really hacked through the underperforming business lines. Procter gamble works right here. Now, i dont want to go overloaded on these stocks. Maybe just pick one of them because the dollar will go higher when the fed raises rates next month. Bad news for consumer packaged good because theyve got to repatriate the dollar hopefully. These companies dont report for a long time, and i think it makes sense to buy them because theyve fallen behind and are doing better than people think. Were simply reacting to the decline in their stocks as opposed to the decline in their businesses, which is nonkpeftent. Im not as sanguine about the Real Estate Investment trust, a lot of them got involved with health care and theres a lot of uncertainty there because of president elect trump. Brian cornell, the ceo of target did say that 90 of people still like to shop in brick and mortar. He also said that hes ago not tick. When i here that agnostic talk, i say thats not good, i say let those Real Estate Investment trust come in. But the utilities . Many of the utilities that we spend a lot of time with on mad money are trying to keep their coal plants in compliance only to find the rules keep changing, and they have to sink every more money into making them agreeable to an epa that keeps moving the goal post. But what happens if trump staffs the epa with people who are pro coal . Then i think a company like American Electric power, stock that we own for my charitable trust, could end up giving shareholders a much better than expected return. And dont overlook the very well run dominion resources, a growth utility that can rest easy on coal too if the epa decides its not a priority anymore. Lets not forget the phone companies. Look at those moves in verizon and at t. Theyre not idle. That is a real rebound, and their yields remain juice, and theyve not hurt themselves with these acquisitions. These bond market alternative stocks, theyve been trashed. I think its their turn to participate in the trump rally. Why not . Everything else has. You got the amazing new iphone 7 on the house by switching to at t. What . . Aand you got unlimited data because you ve directv . . Okay, just a few more steps. Door its cool get the iphone 7 on us and unlimited data when you switch to at t and have directv. If youre going to wish, mommy, yourwish bigme true at the lexus december to remember sales event. Get up to 2,500 customer cash on select 2016 and 2017 models for these terms. See your lexus dealer. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound all right. I just love that story about tech data. I think it is really good. Paypal is just continuing. But remember they do like the big bang. Big bang sold off today. The star of the show this evening was thor, thats right, that incredible recreational Vehicle Company weve had on. They put up these numbers that i cant believe people didnt recognize they were going to do because when they were on air, they said things were going great. Well have thor on tomorrow. I like to say theres always i like to say theres always a bull market somewhere. I promise to try to find it just for you right here on mad money. Im jim cramer, and i will see you tomorrow [ uptempo music plays ] tonight, a journey to cuba. A troubled country taking historic steps to survive. For the first time in decades, profit is no longer a dirty word. We already have it. [ laughs ] under new laws, cuban citizens can open a Small Business and strike out on their own. Now i know why you put the money up here. [ music continues ] my name is marcus lemonis. On my show, the profit, i use my own money to invest in struggling American Companies. Im 100 in charge. And help turn their fortunes around. Now ive c