Transcripts For CNBC Mad Money 20170127

Being his spat with mexico over who will pay for the border wall. Its the kind of tiff that has people recognizing that Political Risk is being ratcheted with caused some of the move to stall out todd, dow dipping seven points. The nasdaq did advance 0. 10 . But you know what . Earnings are driving the show here, not politics. Seems like politics, but its not. I mean, look, you can evaluate them through a trumpian prism with one eye on twitter, but when companies deliver great numbers, their stock goes up no matter what happens in washington. And when companies disappoint, their stocks get dumped too. So since next week is filled with Earnings Report, lets go right into the game plan. On monday morning, we hear from one of the best Pipeline Companies on earth. Its called enterprise products. Im hoping they talk about what trumps deregulation agenda means for the future. This company knows. After the close, packaging corps reports. We typically dont talk about these companies but the paper stocks are fabulous barometers for strength of the economy. This one has been breaking out. Great sign for economic growth. Tuesday, huge. Exxon speaks in the morning and it will control the action in the oils. I expect no surprises, but chevrons earnings sent the oil patch down today, so we have to be mindful that the Largest Oil Company can create a big runle in the group. We get results from one im really interested in, sprint. This stocks up on both takeover speculation, a possible merger with tmobile, but also because i think the numbers are much better. I think theyre taking business from verizon. I embrace it either way. Many of you asked me is under armour bottoming. I never want to bet against ceo kevin plank over the long term. That said, i think you know i really dislike anything retail or even retailrelated right now. Retail has got too many issues, competition, materials often not made in america so subject to president ial tweets, not to mention a slowdown in bricks and mortar stores. So you got to call me unenthused. After the close, apple reports, and in the wake of this frantic run to over 120, ive got to tell you that the traders will likely be selling it both before and after the quarter. Maybe short selling going into it because i doubt that the numbers can actually surprise positively. I figure the bears will be out in full force saying that apples best days are behind it as they sad at 93 when ceo tim cook last visited the show. If you dont own it at this point, i want you to wait. I think youll get a better chance to buy. Remember, apple has about 40 per share in cash overseas. It could be a huge winner on any repatriation deal that trump brokers. In the interim, its a mighty cheap stock. I want to hear that their Service Revenues are accelerating. I want something on the iphone 8, not just the blather about super cycle. But im a realist. Im ready for profit taking. You should be too. Now, heres an interesting one. We get results from advanced micro devices. Judging by what we heard from intel this week, i bet amd delivers a real good number. Im intrigued, and i think that owning some amd remains a very good idea especially because they have those fabulous gaming chips that compete with cramer fave nvidia which has recharged and is breaking out of the range. Wednesday well hear from facebook, and this ones another that has run from the 115, 120 level. That makes me nervous, because today alphabet, which you know as google, reported an incredibly good quarter, and its stock got hit anyway. I know you might have heard it was a miss, but thats just inane prattle. The fact is alphabet is diversifying away from search, which we know is dependent on advertising. That makes the stock worth a lot more. The diversification is good. It costs money, though, to diversify, particularly into hardware, into phones, into home devices. But you know what . If they dont diversify, were not going to pay a lot for the stock. Theyre making the right move. All right. Facebook will most likely talk about the need to spend a lot of money on video. You know what, if they have to spend to make it better, its going to hurt this fabulous stock. Im telling members of actionalertsplus. Com club to think bigger on both facebook and alphabet because these companies are doing everything they can to dominate the world. So you cant worry about a given quarters spending as long as it has a clear path for a payoff, just as everything that Ceo Mark Zuckerberg spent money on so far. I think that apple, alphabet, and facebook are pretty much in the same boat. The stocks have had gigantic moves of late. Therefore, theyre all vulnerable. Now, this is one i just want to listen too. Tuesday, its merck. Why merck . Im no fan of big pharma here. I believe the president is one tweet away from taking a whole group down. I actually think theyre not on the agenda. I think it starts next week. Mercks got some great drugs, real growth opportunities. You know what id be pounding the table ahead of that quarter if it werent for the president s disposition. Lets see the reaction when this pristine drug Company Announces its numbers. If its best of the best and it doesnt go up, you dont want anything else. After the close, amazon reports. Boy, its a big week. I told you that. Now, this is what we call a spend period for amazon. One of those moments where you know it needs to build out infrastructure, this time worldwide, in order to duplicate what its done so successfully in america. I say you cant worry about the bottom line. You have to look at the top line. Thats the revenue or sales line. Thats what will matter. I think it could be spectacular because it includes the holiday season. It wont be unlike what we saw from netflix. Between amazon and the possibility of a border tax that could hurt the profitability of brick and mortar retailers, this cohort has been decimated. The world is going online, and if you dont own amazon, i think you might get a chance to buy it if it shows an earnings per share number thats disappointing because of all that spending they need to do to dominate the world. Now, were going to hear from chipotle. I keep telling you that there will be no real turn in this companys stock until 18 months away from that last illness incident. That was in december 2015. I wouldnt jump the gun, but i do think that the stocks put in a bottom. Chipotles earnings probably wont be anything to write home about, though, until we get to the point where e. Coli is no longer in the mind of the person walking by a chipotle and saying, you know what, im not stopping in. I know its earnings week, but micron, the commodity semiconductor company, has a very important analysts meeting, and i think that this is going to be a fabulous meeting because they are roaring on all engines. Think about t. Intel was just good yesterday. Thats going to be part of their business because micron makes drams which go into a lot of commodities like personal computers, but they also make flash. Both are strong. I think this stock is a buy ahead of the analysts meeting. I think that means its going to go incredibly well. Finally friday we get the labor departments nonfarm payroll number, and im betting it will be strong because so Many Companies have reported that business has gotten better in this country. Now, we need the number to be strong because we need the Federal Reserve to raise Interest Rates in order to keep spurring the bank stocks higher. Theyre resting right now. Remember, they were the original leaders of this rally. Without them, it could unravel. We also hear from auto nation. Its been a red hot stock. I like that. Good sign consumers are spending on cars. And we get results from clorox too. We need to know if it falls into the camp of Procter Gamble and kimberlyclark, which reported excellent numbers and saw their stocks go up a lot, or whether its going to be like colgate and uni lever. I think clorox will be a winner. Even those these are soft goods stories, a good Earnings Report can launch a stock higher even if its from that sector. Yep, weve got a huge week ahead, and the bottom line here is if that if this weeks like what weve seen so far in earnings season, the best chances to make money come when the initial negativity i mean when the news story comes out brings stocks down and then upon closer inspection, people realize maybe those stocks shouldnt be down at all. Lets look together for those situations. Theyre the easiest, least risky, and often the best because their just given to you by morons who havent done the homework. They just read the headlines and take silly actions because they have no idea of what theyre doing. Lets go to justin in texas, justin. Caller hi there. This is justin from texas. Just recently opened a brokerage account for my 5monthold twin girls. Looking at possible options to start investing. My uncle recently told me about mattel stock for the girls. Lots of risk, potential attractive dividend. Just seeing what you think about that. When i read the research on that, what was truly a miserable quarter, sir, i found there were questions raised about the sustainability of the dividend. So i think that when i see a 5. 7 yield in this environment, i believe it is a bit of a red flag. So i am going to say no. If you want to own anything in a kids category, its got to be experiential. That means its got to be six fl flags, or disney. Lets go to cody in new york, please, cody. Caller hello, dr. Cramer. Let me express my continued gratitude and admiration for you and your show, which i watch zealously. Thank you very much. Long week. I love to hear that. Whats up . Caller my question today is about an i have stock. Not a trump stock, as you say. Not a trump stock. Which i bought a substantial amount a year and a half ago from 66 to 67. They have a number of drugs undergoing phase three trials in the pipeline. Since then, its hovered in the high 50s to low 60s. Consid considering im a long Term Investor and youre stressing the importance of patience, i should like to know your outlook. Im glad you mentioned patience but unfortunately, you will need it. Its in the wrong group, and it does its got some challenges. You know the quarter today was not as strong as we would have liked. I am not going to tell you to sell abbvie because it is a very good company. I am going to tell you that i dont think it can give you much of a return, at least for the next, lets just say, four or five quarters. Theres some drugs coming off patent, and we know that it is not a trump stock. As you admitted yourself. All right, listen. Theres negativity in the market. Its going to bring down stocks when it shouldnt. Thats when i want you to pounce. Get a retail level and then a discounted level, okay . Almost wholesale. On mad money tonight, United Rentals is the largest rental Equipment Company in the world. With trumps push for a border wall and two pipelines, hey, maybe its the right place to be. Ill tell you who can continue to dig up profits. Then carnival has sailed past a series of pr nightmares over the past few years and has docked at the true masterful comeback. Can it keep making waves . And is it time to check the travel stocks in your portfolio . Im eyeing a down and outer that has come back to life. Mare yet vacation worldwide. See if it can be a fivestar accommodation for your catch. 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. My business was built with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. With it, i earn unlimited 2 cash back on all of my purchasing. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Which adds fuel to my bottom line. Whats in your wallet . Bp engineers use underwater robots, so they can keep watch over operations below the sea, even from thousands of feet above. Because safety is never being satisfied. And always working to be better. Did you see the monster run in United Rentals yesterday . After reporting an incredible quarter, the stock of this Equipment Rental company roared up 12. 80 or more than 11 . This is a stunning move, and really this was simply the icing on the cake because United Rentals has now more than tripled over the last 11 months. All which begs the question how did they do it . And more important, can this phenomenal rally continue, or do you just have to say, okay, i missed it . First let me give you a little background about this company, which is run by mike kneeland. You might have seen him before on the show. He will be our guest on mad money on monday. United rentals is the largest Equipment Rental business in the world. They sell all sorts of heavy gear for construction, industrial applications, and even energy. In short, if you think theres going to be a big economic expansion coming up or a huge increase perhaps in Government Spending on infrastructure, its the stock to buy because more building means more customers renting earth moving equipment from United Rentals. Its generally cheaper to rent than to buy new stuff from, say, caterpillar. Historically theyve been a terrific performer because were still in the middle of a secular shift as more and more construction firms rent equipment rather than buying the equipment. In the u. S. , rental penetration is in the midto high 50s, but in the uk and japan, its at more than 80 , which means theres still plenty of runway. The equipment space is highly fragmented which means United Rentals can negotiate better prices with equipment makers and since theyve got a national footprint, they can move their equipments from areas of weakness to areas of strength. Its never just sitting idle, and thats why the stock gave you some fabulous gains year after year. But then in 2015, the stock of United Rentals fell off a cliff, losing 29 of its value. The reason . The company got slammed by the slowdown in energyrelated construction caused by the obliteration of the oil and gas market in this country. Of course the stock bottomed last february around the same time the oil started rebounding and since then its more than made up for all of its losses. Its more than tripled. Heck, just in the last three months, the darn thing is up nearly 70 because its widely seen as, yes, the ultimate, ultimate, ultimate trump stock. As its tied to both infrastructure and oil and gas through drilling as well as pipeline laying. Yeah, you got to use their stuff for all that. Let me start by putting this move into context. While United Rentals started picking up speed last february and march as the price of oil began to rebound from its lows, in truth the stock probably never should have traded below 42 where it bottomed less than a year ago, which is why im not so discouraged about the fact its already moved up 85 from its lows. Starting last april they began to report a series of very impressive quarters, some of which moved the stock nearly 11 like yesterday. In april, they blew away the numbers even though the guidance was a bit murky. Then in july the company delivered another huge earnings bit driven by stronger than anticipated rental rates. Throughout this whole period, management kept insisting that the cycle is intact. The cycle that drives other companies to rent their equipment rather than to build projects now that the economy improving. Over the summer they got a large backlog of projects but there were still some weak spots. Now fast forward to october and United Rentals posted yet another strong earnings beat even as the companys revenues came in a bit light. Nevertheless, management pointed to healthier demand, volume increases and strong results from crossselling. They also told us they were seeing very strong numbers in construction, especially nonresidential construction, and the companys heating, ventilation, airconditioning and powerrelated equipment business grew by 17 . However, you or i continued to face many of the same headwinds like weak demand from the oil and gas industry. Then after Donald Trumps surprise election victory, the whole narrative here changed. United rentals wasnt just a company that was coming back from a bad year. It was suddenly the quintessential trump stock. If you believe that the president s tripod of lower corporate taxes, deregulation and repatriation of foreign cash will help accelerate the economy, then that is fabulous news for United Rentals. If you believe frump can get his infrastructure package through congress, then thats great news for United Rentals. This company has a lot going for it as they laid out at their analysts day. United rentals pointed to major strength in nonresidential construction markets on both the east and west coast. They talked about how demand from the oil and gas business is now coming back, perhaps in a big way. Management said their rental rates were stabilizing and their time utilization numbers were improving. Theyve been having a lot of success renting out Specialty Equipment because theyve gotten good at cross selling and opening new locations. The company rolled out a new plan to boost profitability. Its called project xl which they believe can boost the Companies Earnings by 200 million as of the end of next year regardless of the economic environment. Management thinks they can do this by expanding their Customer Base in part through crossselling while also cutting costs and doing a better job of allocating capital. And while United Rentals doesnt expect any shovel ready Infrastructure Projects until after this year, if trump gets his way on an infrastructure bill, particularly with his plans to rebuild roads and airports and bridges as he just reiterated, thats going to give a huge amount of business to these guys. Since that analysts day, the stock continued to rocket higher, in part because of the companys positive outlook and because more and more investors identified as maybe one of the clear case winners in a trump administration. Thats what made yesterdays quarter so impressive. United rentals proved they didnt even need any president ial assistance by blowing away the numbers in their final quarter before trump even took office. And make no mistake about it, these were truly terrific numbers. The Company Posted when i saw it, i thought it was a typo, honestly. I always look when they come over the tape. They posted a 43 cent earnings beat off of a 2. 24 basis. I thought it had to be 4. 3 cents or maybe 4 cents. It was 43 cents. Plus United Rentals also told us theyre making this really spectacular acquisition, buying nes rental holdings for 965 million in cash. This is a top ten Equipment Rental business that will help expand the companys footprint on the east coast and create some enormous opportunities for synergies. Remember, United Rentals is number one in this industry. They have huge scale that their competitors lacked. So whenever they buy one of these smaller players, they can make it a lot more profitable simply by integrating it with the rest of their network. Best of all the commentary was so encouraging. Management talked about a healthy level of demand while saying they believe canada, a big market for oil and gas equipment, has finally turns the corner. Thats why the stock roared up more than 11 yesterday. I think its got i know this is going to look, i should have done it at 40, 50. Ive always liked the company, but it does have more room to run. Even up here, United Rentals trades at 14 times next years earnings estimates. Compare that to caterpillar and cummi cummins. United rentals is all about north america. Heres the bottom line, not only is United Rentals a total trump stock, its a cheap trump stock. Its finally firing on all its sill enders after playing with one hand tide behind his back for most of last year. Its not too late for you to buy this surprisingly inexpensive stock even after this run. I know were not early. I reiterate that. But i also know that this stock will be bought on any dip during the trump administration, and you want to be in there buying too. Brian in florida, brian. Caller jim, thank you very much for taking my question. Of course. Caller the company i own stock in is frta, for tara. Its an infrastructure water and Drainage Pipe company. Mmhmm. Caller and considering trumps infrastructure plan along with our nations desperate need for pipe modernization and expansion, where do you see the stock price going as a possible huge participant . Its funny, i would have thought it would have done as well as quanta, pwr, which is the big winner. They have the same price to earnings multiple. I do prefer quanta because its got a more visible pipeline into pipelines, which is the part of the administration that i want to be most levered too. Thats my suggestion in that group. Lets go to mike in West Virginia, mike. Caller hey, jim cramer. Yes. Caller a West Virginia booyah to ya. Sweet. Whats up, mountaineer . Caller ive got a question about marathon oil. With regard to the executive orders and the pipelines and i think they still have some plays in eagle ford. But is it a good fit . Its not one of my favorites. Its not. I do Like Marathon Petroleum for a host of other reasons. They report next week. But marathon oil, i think, really does not have the high quality access that i want you to have. Its not in the league with a pioneer for instance. It doesnt have the fast growth. Remember, you want fast growth oil, and you also want good balance sheet. Marathon oil, im going to disqualify as part of that equation. Its tool time. I need you to make some room for United Rentals in your holds, especially if you watched our envelope with mike kneeland, who is the ceo on monday, all right . I think theres still more to come. I know its moved up a lot, but you know what . It may be the ultimate trump stock. Much more mad money ahead. Pack your bags and an extra bottle of sun screen. Im sitting down with the ceo of Carnival Corporation to see if the company can continue to deliver. Then the vacation doesnt end there. Im eyeing marietta vacations worldwide. Could its rally signal theres still time to hop aboard the travel sector . The border wall debate is hae heating. Theres an important part of this debate that i think could have a real impact on your money and your portfolio, so stick with cramer. 0 you might have noticed a theme. All night weve been talking about comebacks, about companies that have turned themselves around. If youre looking for one of the greatest stories, its harder to fine one than carnival. 3 1 2 years ago this company was in a difficult position. Reputation had been tarnished by a series of high profile mishaps that set their business back. But then Arnold Donald stepped in as the new ceo and immediately got to work fixing the operational issues, finding cost savings and of course rehabilitating the image. It was a task that most considered impossible but not mr. Donald. Fast forward to right now and these efforts have paid off with some amazing numbers. 28 earnings per share growth for 2016. The stock is creeping back to its old all time high not to mention an 8 gain since the year started. Just yesterday the Cruise Lines International association released their Cruise Travel report which suggested that millennials are embracing Cruise Travel in record numbers. So can carnivals stock continue its recent rally . Lets check in with Arnold Donald, the president and ceo of carnival. Mr. Donald, welcome back to mad money. Good to see you, sir. Glad to be here. Thank you. Have a seat. Thank you. You are at the forefront of a generational move. People younger people want experience. Actually, everybody does, but the millennials in particular. They want experience. They want personalization, and they want relaxation. How have you figured that out, and how have you capitalized on it. You just said it. Its not just millennials. Its everyone. Everyone wants to have a travel experience thats customized for them. The millennials do take more selfies than most, but at the same time, everyone loves it. So how we capitalize on it is our product is just engineered for it. We go to the most beautiful places in the world, 700 destinations around the world. We have the most fabulous chefs in the world. We have the best entertainment in the world, and we have 120,000 dedicated employees that are passionate about exceeding guest expectations. You also have a passion for technology. You actually gave a key note at ces. No one from travel has ever done that. But technology has allowed your company to do a lot of things that other companies cant do. I happen to be youve given me a medallion. Right. What does this allow me to do . How do you know me, and what does it let me do on a ship . All right. We think this potentially is the wave of the future. I call it our ocean medallion. Its part of an ecosystem, our ocean platform. What it does its basically a beacon, but you can put it in your pocket, put it on a wrist band. You can wear it on a necklace. Its up to you. Its for the guest. Its free to the guest. You can choose it or not. What it does is it connects you to this ecosystem so that we can give you realtime what you want, when you want, how you want it. Personalized travel. Thats what people really want. Now, there are times when people say, wait a second, this business, its plagued by things. You say in your conference call, just in the last year, a rare occurrence of simultaneous negatives from fuel and currency, Global Political events, as well as concerns about brexit. Those dont seem to really play a role in your business. You know, they can impact the business, and obviously they do so some degree. But those things or things like that happen every year. So we have to assume theres going to be cyclones and hurricanes and typhoons that disrupt itineraries. There are going to be geopolitical tensions. At times fuel and currency will work against you. We assume that is going to happen. O weve more than doubled our return Investment Capital over the last two years. Were on a path to do that regardless of those external things that can impact you in a given geography. Who came us with this great idea of the tv programs that are doing so well . We have our innovation center. I recruited a young man named john pageant. He was a great experienced innovator, and hes the force behind ocean medallion, and he was also the force he and his team around these programs. So we have three extraordinary programs that are experienced based, based on cruising but showing different ways you can connect with culture, you can connect with places, and you can connect with the inner part of yourself. Youve been at the forefront when thinking about connecting with culture. Cuba, also doing things that are sustainable. You get what people want. You understand the zeitgeist of younger people in particular. Yeah, well, we keep working on it. Were always learning. But we think weve connected. Our experience in the dominican republic, obviously we were able to be the first Cruise Company in over 50 years to go to cuba and back. We even were part of cuba changing a National Practice they had that no cuban born could come and go by sea. That was a major move towards normalization of relations with the u. S. So were very proud and honored and privileged. The cuba experience is fantastic. I would encourage everyone to experience it. Were working on other ships to go later in the year. Speaking of personalization, you have figure the out that china, its not one size fits all. They like their own ships. The majestic princess in april of next year, what i think is interesting, the communist party actually does get to tell people what they favor. They favor cruising over everything else. Well, what theyve done is china has put into their fiveyear plan cruising. So its in the fiveyear plan. Thats huge. Its actually in the fiveyear plan . Its in the fiveyear plan. But gambling is not. The reason is because of the multiplier effect, the number of jobs it creates in ship building but more importantly shore side jobs, development of ports, and to give the Chinese People an opportunity to explore china, but outside of china by sea. So were very excited. Our partners, cssc, which is the largest ship building entity in china, weve got a number of agreements were working on with them, and of course we have six ships already home ported there. As you mentioned, the majestic princess. The first purposebuilt ship for china in our princess line. Princess is an innovator also with the ocean medallion. Last question. The medallion is reminisce interest of something that really boosted disney, made it so they have a band. Can this actually be a multiplier for earnings . Theres no question it can be a multiplier for earnings, but its very different than the band. So the band gave you access, and you tapped, and it gave you access. This gives you access, but it gives you the opportunity to have Personalized Service youve never experienced before. You walk in. They know your name. They tell you they offer you a drink. Somebody sees a whale off the bow. You go out. The drink comes to you, okay . You leave that bar, go to another bar. They say, jim, we saw you were just in the other bar. You ordered a tom collins. Would you like another. When you spend money, you always think youre entitled for people to know who you are, but no one ever does. Right. Except on our ships, you know, we do. Arnold donald, you have done a remarkable job. Ive watched every single time. Everybody has been thrown at you. Its just been another opportunity for what youve done. I have a great team. You do, and you are a great ceo. Thats Arnold Donald, the president and ceo of carnival corp. , the symbol is ccl. This one is still a very inexpensive stock. I think you should think about buying it. Mad money is back after the break. bell chimes nice work brother dominic. Now we just need 500 more. Translated into 35 languages, personalized oh and shared across the 7 continents. other languages spoken look abbot, i got it. Its a miracle. And theyre absolutely right. They say that its hot. When really, its scorching. And while some may say the desert is desolate. We prefer secluded. What is the desert . Its absolutely what you need right now. Absolutely scottsdale. Way back in october of 2015, we spoke with stephen weiss, the ceo of mare yet vacations worldwide, at the time he seemed pretty darn perplexed about why his stock kept tumbling. Mare yet vacations specializes in time shares, a business thats been very strong of late. But back then its stock was stock in a multimonth downturn. From its highs to its lows, the darn thing was cut in half. Since then this time share play has come roaring back. Its rallied 88 from its february lows of last year, up 40 since we spoke to the ceo in october of 2015 president right in the middle of the decline. At this point its undeniable that Marriott Vacations has made a terrific comeback. The question is can it continue to rocket higher . Has the ease money been made . For those of you not familiar, vac is a leading vacation ownership play that was spun off by marriott itself back in 2011 in order to split their hotel and time share businesses into separate companies. Now, initially Marriott Vacations got off to a fabulous start right after the breakup. From the spinoff in late 2011 through the summer of 2015, the stock vaulted higher almost in a straight line. But from the summer of 2015 until roughly a year ago, the darn thing stalled out and then went into a positive just actually a nightmarish freefall. Since last february, though, vac appears to have resumed its long march higher and now just a little more than five bucks away from its all time highs. So what made Marriott Vacations enticing to investors and why did it lose that luster in 2015. First its got an attractive Business Model. Selling time shares is a very lucrative business as is financing those time shares and managing time share resorts. Since the great recession, demand has ticked higher because while a normal vacation is seen as a luxury, buying a time share is more of an investment, and over time it can be less expensive than staying at hotels. Send, the fees this Company Generates produces a nice and steady revenue stream that varies less than your typical Management Fee for running a hotel. However, that didnt stop Marriott Vacations from getting slammed in 2015. The stock had peaked at nearly 92 in july of 2015 when the Company Reported modestly better than expected results, but they werent enough to keep the share price from getting hit down 9 . Even as many of the analysts who covered the Company Actually raised their price targets. Problem . Marriott vacations seemed to be having somewhat more trouble finding top tier buyers for its units. After that the stock pretty much went into the free fall. The next time they missed on both the top and bottom line by a substantial margin and lowered their guidance. Stock went down 15 in one day. Some of this was because the company got hammered by the strong dollar, which made it more expensive for foreigners to buy time shares in the u. S. Some were worried about competition from air b and n eating into their business and some had to do with the slowdown in latin america. So what turned things around . Okay. When Marriott Vacations reported last february, the company blew away the numbers with a monster earnings beat and an excellent revenue beat. Even better, their guidance was stronger than people expected. At this point the term wasnt a sure thing because when it reported again in april, the results were somewhat mixed. Small earnings beat on weaker than expected revenue. Stock took a 7 dip. The real problem, though, was that the company saw a 9. 7 decline in Vacation Rental contract sales worldwide. Thats the key metric. Still management maintained a guidance of 4 to 8 , contract sales growth for 2016. You had to take the leap of faith. If you did, you made a killing because the next time they reported in july, numbers were mixed. Earnings beat fueled by a nice buyback on top of weaker revenue numbers. But management stuck by that aggressive forecast. The stock jumped 10 on the news because while the quarter was only soso, boy the commentary was terrific. Unfortunately when vac announced its third quarter, results this past october, they missed big time on both the top and bottom lines, also revised down their fullyear guidance, trimming that 4 to 8 contract sales groethd down to 4 , slashing their earnings forecast. While management continued to give positive commentary, the market didnt lap it up this time. Stock lost nearly 9 the following day. Investors became a lot more skeptical. Then a funny thing happened. Up, down, up, down. But then donald trump got elected, and the market became intoxicated with the idea that the economy could accelerate thanks to his probusiness tripod of lower corporate taxes, deregulation and repatriation. Since the election, Marriott Vacations has rallied nearly 30 with little news from the company aside from their reiteration of the previous guidance. Now, the Company Reports again in a little less than a month on february 23rd, and a lot is riding on the numbers this quarter. I think they can do it. The company has rolled out a ton of new Sales Centers which should help fuel their growth. More important, if the economy really does accelerate, this is exactly the kind of company that will benefit because theyve got a lot of leverage to increase discretionary spending. Is it worth buying up here . The stock has run up more than 80 from the lows in february, but even at these levels, it sells just under 17 times next years numbers. Just like that United Rentals i talked about earlier, it should never have gotten to where it went. It should never have traded as low. Theyre both playing catchup. I dont think the catchup is finished. Heres the bottom line. Things seem to be back on track for Marriott Vacations and i think the company is too well run and the Business Model is too attractive for this stock to be ignored. I recommend buying part of your position before the Company Reports next month and then using any postearnings weakness to buy some more. Stick with cramer. Announcer lightning round is sponsored by Td Ameritrade. It is time it is time for the lightning round on cramers mad money. Thats where i take your calls rapid fire. You tell me the name of 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. Lets start with dan in nebraska, dan. Caller booyah, jim. Yes. Caller been with you since the radio show. Thank you. Caller as youve been saying, the pharma stocks are not trump stocks. Unfortunately im on one of the favorites at a loss. Should i hold allergan . Allergan is the only stock that the actionalertsplus. Com club owns. The reason is because i think Brent Saunders is going to turn it around. I say you can own agm, but its the only one. Joshua in florida, joshua. Caller booyah, from florida, jim. I wanted to ask you, abg, is this going to keep going down or is it about to rebound . I think the stock can rebound. I have to tell you. In the auto parts business, you know i like aap. I know its not a car retailer, but advanced auto parts i think is a terrific situation. Lets go to mark in florida, mark. Caller a bog gi bayou booyah from niceville, florida. There you go. Caller my stock is teva pharmaceuticals. It has been crushed and is near a tenyear low. Is it a buy yet . Not yet. Not yet. Thats pharma. I think that is really in the crosshairs of president trump. Matthew in new york, matthew. Caller hey, how is it going, jim . I am good. How about you . Caller im good, thanks. Im calling today about sp micro electronics. That thing is too hot. Lets swap out of that and go into micron ahead of the big analysts meeting next week. Lets go to peter in connecticut, peter. Caller 20,000 booyahs to you, jim. I see you 20,000 and raise you a thousand. Whats up . Caller id like to get your take on gas la partners, super bowl glop. They just did a public offering. You know, it went up immediately. Very good sign. I like the company. I know its a little different, but i do like the company. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by Td Ameritrade. For almost his entire investing life [ buzzer ] i am revved. I am revved. Im tired of everybody scaring people. [ crickets ] which hat youre going to have to put on. Whether its the dr. Cramer hat, the professor cramer hat, or you might even have to borrow matt damons good will hunting. Matt damon, i have not been confused that often. I like that. Just the smell of money. There you go. I always eat with my mcdonalds robe that Steve Easterbrook gave me. Hes the ceo. That way i dont mess up my tie and my shirt. Is that larry from massachusetts . It is. Jim, i want to tell you im on blue hill ski area teaching because you have helped me so much with the portfolio that i can practice law between my spare time in 2 00 and 4 00 in the morning. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade and theyre absolutely right. They say that its hot. When really, its scorching. And while some may say the desert is desolate. We prefer secluded. What is the desert . Its absolutely what you need right now. Absolutely scottsdale. Lets talk agenda as in my agenda. Lately on twitter where im grateful to have almost a million followers, theres been a raging debate about whether im protrump or antitrump. You want to know the truth . Im neither. I care about the stock market, not politics. Youre certainly not watching this show to hear my political views. My agenda, its always been the same for 35 years. Higher stock prices. Thats my true north because most of you home gamers own stocks, i want you to make money. Its simple. So when i see the tripod of trumps economic agenda ahead of us, deregulation, lower corporate taxes, repatriation of foreign assets at low rates, i like t. I like it because i think it could lead to higher stock prices if the president gets his way. I believe that much of the recent has been about the fundamentals. Theyre improved largely because employment has gotten better but also because the Global Economy has gotten stronger. However id be oblivious if i really thought the election has had nothing to do with this run. In truth, the election had two positive impacts on the market. A surprising win by the republicans, who are perceived to be probusiness, and the end of gridlock with a probusiness president. This shouldnt surprise anyone. For ages the democrats have been the party of labor, the republicans the party of capital. Stock market is capital. As long as the gop majority in Congress Remains in favor of trumps economic agenda, i think good things can happen to the stock market. But if the Republican Coalition breaks up, then the president s agenda will most likely be defeated and well have only one leg of the tripod, deregulation, which trump can kind of enact, lets call it unilaterally. Heres where things get complicated. While the stock market is very much in favor of the tripod, its also very wary of anything that distracts from the tripod. Whether you love or hate the idea of a wall with mexico and whatever your feelings about who should pay for it, this issue is clearly ratcheted up the Political Risk to trumps economic agenda, and thats suboptimal for me. The real issue with mexico isnt the wall. Its not illegal immigration. The issue is jobs. The mexican peso is so darn cheap and i have to admit, yes, in part because of the president s negative attitude toward them, that it draws in corporations that might have otherwise built their factories here. Its simply too cheap to make things in mexico versus the u. S. When nafta was passed, the dollar bought four pesos. Now it buys 21 pesos. That gives the mexicans a terrific, huge advantage. Thats what needs to be addressed if the president wants to stop companies from shipping jobs south of the border, which brings me back to the tripod of lower taxes, deregulation, and repatriation. In just one week, the president has upended washington. However, until now, i hadnt heard anything that would make a republican senator defect and join the democrats in knocking down the tripod. But this tiff with moorexico co be a problem, for the market. Its not just about a 20 tariff to pay for the wall, or come to think of it, my need to jack up the price of corona and modelo at bar san miguel because my distributors will jack up their prices. Its not about who pays for the wall. Its about whether this issue causes republicans in congress, partly senate, to say count me out. I dont care anymore. Mexico is our friend, been for years. Im not going with trump. If that happens, the president s whole economic agenda could get derailed and the market will go down from here. In short, this pay for the wall issue has raised the Political Risk. It needs to go away. But i have no idea how that can happen given that trump campaigned on and i doubt hell give up on any of his campaign promises. You need to know the tripod got shaky. Its the shakiest its been since the election. It makes me more concerned, and it should concern you too if it isnt resolved in a civil and lasting fashion. Stick with cramer. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley the full value of your totaled new car. The guy says, you picked the wrong insurance plan. No, i picked the wrong insurance company. With new car replacement™, well replace the full value of your car plus depreciation. Liberty mutual insurance. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Okay. Mobile pay. Lets talk about it. Thats whats hurting starbucks. The numbers were not that good in part because theres what i call a mosh pit. Too many people waiting to pick up their coffee, too much confusion. If they solve that, starbucks stock can go into the 60s. If they dont, it will go into the 40s. Thats my takeaway after speaking to Howard Schultz today on squawk on the street. 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 monday male announcer the economy is in crisis. Many hardworking americans blame wealthy ceos, out of touch with whats going on in their own companies. But some bosses are willing to take extreme action to make their businesses better. Each week, we follow the boss of a Major Corporation as they go undercover in their own company. This week the boss of americas largest trash company, Waste Management a 13 billion business with 50,000 employees and 21 million customers. He is going to trade his executive office and expense account for a hard hat and a bagged lunch