Transcripts For CNBC Mad Money 20170810

Overvalued is the market extremely dangerous . On a day when the dow lost 205 points, the s p sank 1. 45 , the nasdaq tumbled 1. 3 . The worst day for all three averages since may the second worst day overall this year for the s p, its worth wondering whether the endless parade of incredibly Bearish Hedge Fund managers are right when they say that weve gotten too greedy and too complacent after all, every few weeks some oldtimer comes on air and yells, fire in the theater and today the theater did get seared 200 points is not an inferno, okay but its searing again, look, these statements about the market being too high roll off the tongue too easily i can say it all the time. The bears were sure right today, right . They could be right again tomorrow that doesnt mean they could be right over the intermediate term that i like to think about im no more comfortable with the nuclear icbm armed north korea than you are and im not a big fan of appeasement. But i like Nuclear War Even less, which is why the president s increasingly vel i koes rhetoric is so frightening. I do worp ri about the debt ceiling not being lifted, because theres so much bad blood between the president and Senate Majority leader mitch mcconnell, which grows worse by the tweet. Those are two legitimate fears i have them, and you have them you should have them but there are still plenty of illegitimate ones that get trotted out on an almost daily basis. Consider, for example, we hear the market is so overvalued, just look at tesla which is now amazon the market is overvalued look at netflix which disney is backing away from. What happens if everyone backs away look at apple. Going up in a straight line. Of course, faang a reason to be cautious. Because everyone owes them everyone owns them i get that i dont think its true, but i get it one of my favorites. We hear the market is so overvalued that jim cramers name is a dog, nvidia. Something will come up tomorrow im sure while my dogs report was strong, one of the businesses data centers had weakness ahead of a new product cycle. Im sure after it gets hammered, buyers will circle back to my dog, knowing that the new product will drive sales back above consensus. Meanwhile, me . Im getting a new dog. And im calling him intel. Lets deal with these myriad overvaluation issues one at a time i certainly think that many stocks are overvalued. I can make the strong case that the big Consumer Product names are way too expensive versus the historical levels. Many sell at 20 times, some 25 times earnings that is way too expensive. But their dividends are often much higher than treasuries. Treasuries give you no upside whatsoever if you choose to hide in treasuries, im talking about clorox, procter gamble, you missed out on a big run. I call that a mistake. Some tech is overvalued. Faang was meant to signal overvalued hot stocks. But theres always some group of stocks that are overvalued and hot. Always at times, biotech has been overvalued not lately, given the amazons. Sometimes its the software, sometimes the cloud. They all take their turns at being anointed and expensive are all the groups overvalued now . Most of the drug stocks sell at 15 to 17 times earnings. One of the biggest five times earnings, that doesnt mean that the earnings wont be there. Intel is 12 times earnings yes, the cloud stocks, adobe, sales force. Com, now microsoft, they are expensive lets stipulate it but theyve been expensive for years. And then years, and years before that last year, this week, the stock of adobe was at 100 ismtss now at 145 was it expensive at 100 . Absolutely is it expensive at 145 you bet. Does that mean you were suckered to get the last 45 points . Or did you get it right . Facebook, it was at 98 two years ago. One year ago it was 126. Today its at 167. Oh, but look out, it was down hard, sell, sell, sell ring the register and make a profit i like to take a little longer term which by the way mr. Hedge Fund Managers out there, thats been the right way to think about the stock of facebook. Its been expensive the whole time how about amazon, two years ago at 478 last year 790. 956. Sell, sell, sell maybe expensive doesnt mean sell sell sell so heres the issue. The most disciplined thing you can do is stay long through the jeremiahs. You have to tune up the sirens of skepticism who said they were dangerous. Isnt that empirical some of the people back then were dead wrong, now tell us that were being glib to own them and foolish foolish for pulling the trigger as they go down. What do they want us to do own really cheap stocks that keep getting cheaper like the Department Stores or oils. Should we have owned treasuries the whole time and sat out this entire run was that smart let me tell you, im not allowed to own stocks, so i own a ton of treasuri treasuries according to the bears thats supposed to be a genius move but the truth is, i feel like a total idiot. Ive loved many of the stocks i just mentioned but i personally cant profit from them because of contractual obligations ive had to sit out the moves in all the stocks, including the colossal runs at apple and facebook and amazon. But unlike these negative managers, i didnt have a choice whats the point of owning stocks if youre not going to invest in Great Companies . You can say, wait a second, the market is obviously overvalued and due for a fall, and today one of the big runin, get out now. Heres the problem we dont know when it will be cheap again. You hear the guys say, yeah, i want you to get back in. Its like, whoa, its scary. Hey, maybe we start going back up you want to miss that . Fine lets look at it another way think about all the companies that have gotten takeover bids that were expensive. Xp semi was expensive. All overvalued before they got bids i can go on and on but i keep coming back to one major issue, even as i expect the market to go down. Almost every winning stock ive mentioned was overvalued basically overvalued, before its run. You know what was the most overvalued stock of alltime apple when tim cook came here at 93 holy cow, that was ridiculous, right . I can show you analyst after analyst who showed you that stock would get crushed, because the earnings are going to be down in 2017 oh, yeah, thats right the stock went to 160. But they were smart. Years and years ago when karen cramer was running the trading desk, karen, who had no formal training whatsoever, did not go to Harvard Business school, was not a Computer Scientist from stanford or whatever, told me something really important she said, sometimes you need to discipline to hold on to the stocks of Great Companies. The hardest money she said, and she was a tremendous short seller, the hardest money to make was the kind of money made when the bigtime Hedge Fund Managers came on tv and told you to sell or short the stocks of companies that were about to have fabulous runs why . Because they reinvented themselves, theyve done great things or had new management or she would put it right to me in my face, you listen to those rich people who come on air and tell you everything is too expensive. You know what . Theyve already made their money. Weve got to find winners and stick with them. Stop listening to them and start listening to yourself. If these stocks go higher, and you let them scare you out of them, you know what should happen you should be fired. Bottom line, listen to yourself. Do your own work but understand that it takes a ton of discipline and conviction to own a facebook or amazon or apple through these runs and you arent an idiot if you do youre smart in fact, i have one more for you. Congratulations. Mark in maryland mark caller booyah professor cramer thank you. Caller this is mark from columbia, maryland jim, i have been learning from you on mad money since your very first show. Thank you im as fired up as ever. Everybody else is stale. Caller youre my professor of all things investing. I have become a much better investor because of you, so thank you. Thank you, man. Thank you. Caller hey, jim, my question is about elf beauty. They reported a gross margin expansion. Even today an analyst commented that e. L. F. May of a partnership with the Boots Walgreen Alliance does elf meet your thesis that invest in companies that serve millennials . Not only do they cater to the younger generation, but diverse Millennial Women first of all, thank you for the kind comments. Second, i spoke with elf last night. I wanted them to raise numbers after that quarter they said, no, were fine with our guidance because they didnt beat and raise, and raise being the operative term, people did not come in and buy the stock. Lets think of it this way, okay you do need to beat numbers, top and bottom line, and then you need to raise forecast for a stock to go up its cutanddried i talked about it in this book they didnt do it. So the stock didnt go higher. Some stocks are overvalued, thats stipulated, fine, okay . Theyve been overvalued since they were created. They were overvalued in the womb doesnt mean theres no opportunity. The most disciplined you can do sometimes is to stay long and ignore the haters. Do your own work hold on to the ones you have conviction about its more important than ever to feel good and look good. Stop by Planet Fitness get your portfolio into shape i sit down with the ceo. Live nation may be one of the best plays in this market. You know what they say if you build it, they will come and they being the mad money production crew. I got to check out the u. S. Concrete plant im showing you what i learned thank kate coleman for lining that up. Stick with cramer. Dont miss a second of mad money. Follow jim cramer on twitter. Have a question . Tweet cramer, mad tweets. Send jim an email at madmoney cnbc. Com, or give us a call miss something head to madmoney. Cnbc. Com. Troubling trend for ipos the second round of quarterly numbers. Squawk alley tomorrow, cnbc. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. Thats why at comcast were continuing to make4 7. Our services more reliable than ever. Like technology that can update itself. An advanced fibernetwork infrustructure. New, more Reliable Equipment for your home. And a new culture built around customer service. It all adds up to our most Reliable Network ever. One that keeps you connected to what matters most. Last night i talked about how the millennials are taking over the world im tired of that. These days the rest of us need to adapt to them for example, everybody wants to look like the selfie generation. Look at that age group hence, we diet and exercise and why its so popular even with older people like yours truly. Which brings me to Planet Fitness, the largest and Fastest Growing chains in the u. S. More than 10 million members 1,403 locations. When Planet Fitness became public two years ago, they took over the New York Stock Exchange for a day. Handed out tons of purple tshirts, with the motto judgmentfree zone they want their gyms to be places people can feel comfortable, not selfconscious, as opposed to the gyms that everybody looks like theyve been pumping iron. The stock has performed very well since the ipo today it went higher again on a lousy day. Planet fitness with a 3 cents earnings beat, with higher than expected revenue phenomenal 9 increase in samestore sales the stock rocking up over 9 wasnt pulled down by the rest of the market. Chris is the ceo of Planet Fitness. Lets find out more about the quarter. Welcome to mad money. Good to see you. Thank you for having me how do we get judgmentfree how do we get it so we dont feel like we are the only people who are not in shape first, we start with culture. We live it every day, day in and day out. The purples and yellows, even our pens write purple. We have the right equipment, olympic benches, squat racks, tons of cardiovascular equipment. So lets say i walk into a gym, all right and i look around and i see that there are a lot of people in their 50s and 60s, and im a younger person do i still want to be at a Planet Fitness absolutely. You talk about millennials 49 of our partners are millennials, 18 to 80, and everybody in between members who make over 100,000, some make under 50,000. How do you make it a franchise . We have 7,000 members per store. 7,000 members per store we have 10 million today were very refined operating model. Not a lot of fluff, the pools and basketball courts. A lot of heavy payroll we dont have the day cares and juice bars, and so on. Fixed Business Model every member, once you break even, is making a profit you guys make money three different ways, royalties, equipment and processing, the parent company, right . Yeah. We have a third party that does the processing we have the franchise company, Corporate Stores and Equipment Companies where they purchase their equipment from us. I understand that theres something thats really working well, this black card. Explain to me when i become a black card member. Starting membership is 10. But 99. 99, use any company for free. I get my app, it shows me where a Planet Fitness is, im flying out to san francisco. And i need a gym ive got a gym. You get guest privilege bring a buddy in for free, no charge you also have a black card we call in the clubs, exclusive area hydromassage, massage chairs like you see in the airports and use them all for free. Let me ask you about some of these other guys i have a friend whos got a woman who runs oh the specialty gyms where you walk in, and you do want its aspirational for me. I want to get a trainer, i want to maybe thats Planet Fitness isnt for everybody. We have a different clientele. Its pretty expensive, a lot of the things are 150 bucks a month. You need to make an appointment to work out in many cases. I do want to talk about that. In your Conference Call you talked about how there would be like one hot trader at a certain time one really amazing bicyclist whos got a spin class everybody converges at that time yours is the opposite. People dont like that what happens, you have the peaks and valleys. Every day is black friday, right . 5 00 for a class, what you do is the parking lot is full, the locker room is full. Our members are 24 hours a day they come in on their own schedules. Like a table turnover in the restaurant, very fluid, in and out. Who is your real competition . Is it pelaton . My answer is the movie theaters and restaurants. Hastings says from netflix, the competitor is time Something Else maybe using your time thats what youre up against. Youve got to work, pick the kids up at school, ballet, whatever youve got to do, and get into the gym real quick. You stop in, 30minute workout, in and out, on with your life. This 9 surge, did something happen in the country or you have good marketing . You know, people ask that a lot. One is, jd power just said highest in Customer Satisfaction if you think about our Business Model, our marketing, the marketing machine is what i call it every incremental member that joins, 9 of that dues goes to marketing. So we went public just two years ago. We had 7 million members we have 3 million more members today. 10 million members, amazing. 9 of those dues every month goes to marketing. Its like a fly wheel, it goes faster and faster. The fly wheel is the hot gym that my wife goes to the momentum. No problem. Just joking with you thats chris ryan the ceo of Planet Fitness thank you, sir. Thank you. Coming up, mad money takes a trip to the concrete jungle. Cramer mixes it up with the ceo of u. S. Concrete we can have onspeck concrete on time, day after day, minute after minute, to help our customers make money as well. From a plant in brooklyn, new york mad money will be right back your brain is an amazing thing. But as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. Thankfully, the breakthrough in prevagen helps your brain and actually improves memory. The secret is an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. Sometimes you stumble on a clinic, a tutorial about what the heck is going on with the consumer what shes interested in what shes spending on and more important, whos getting more of that wallet share. Last night live nation entertainment, lyv, a company that produces tons of live music and owns ticketmaster put on one of the best clinics of the year. A triumphant presentation following the news of its truly astonishingly strong Second Quarter results. Now, ive been studying and recommending this stock since it traded at 22 bucks a couple of years ago. After i met the ceo at dream force, the annual sales force. Com showcases the future, pretty much, well, everything. Repeal outlined a plan to buy festivals around the country, something he talked about on mad money several times, hamming the new venues, along with nearly every other venue on earth. I should have been more aware of it given that john malone, the incredibly investor bought back in 2010. They continued buying, as the stock stayed low they own 34 of the company. Its always made sense to follow what malone and his group, the ceo of liberty media, and chairman of live nation do now, the Companies Plan to build the network of festivals, generating staggering numbers worldwide. With operating revenues of 29 operating income up 53 . And free cash flow, spinoff cash, up 32 they created a platform of 7,000 festivals and shows. Ticketmaster sold more than 68 million tickets this year so far. 12 million more than last year the holtest venue for the millennials. Our Growth Continues to be strongly driven by our strategic relationships with over 50 sponsors that each spend more than 1 million with us each year across our onsite and online platforms, to reach that highly soughtafter millennial customer, end quote. Sponsorship revenue up 32 the ease with which tickets are bought on live nations platform, information on 550 million fans lots of ceos claim they have a fly wheel effect thats very fashionable to do so but they really do have one going here because of the growing base of personalized tickets, like on your cell phone for airline tickets. Live nation is taking advantage of all the Customer Relations products at salesforce. Com, to sell the millennials goods and services when theyre most thinking about them. Hes even come up with a verified ticket approach, and prioritized the distribution of tickets for rabid fans for algorithm for such behavior. Why does all this work so well he doesnt spend a lot of time on that. Its so obvious. Nothing looks better in your Instagram Page than videos youre swaying and dancing to the music, not that i would know, but a concert set up the perfect facebook background. Even better than going to sporting events which he actually told us were down year over year. Hit people when theyre most interested the best platform ive seen to date for these folks is live nation the stock gave up much of its gain today after amazon announced it would launch a competing Ticket Service but apparently couldnt agree on who would keep the data. In fact, at one point the stock was down more than a buck on the amazon news after being up four. It finally bounced back to close at two bucks the tickets are only one piece of the pie here. Live nation now owns so many venues and festivals amazon will just be another vendor for them. Thats why i think it remains one of the best stock on millennials. Any giveback on the amazon foray is the best opportunity to buy stock of live nation otto. Caller i have a serious question i need to ask you do i keep riding this epic wave known as the world of wrestling entertainment, and this months biggest slammer . Do i sell it now while the momentum is high do i sell now while the momentum is high . No, i happen to love their subscription model they changed over their model to be really, really, really recovering revenue inventive at 21, i think you still have a winner lets go to emily in arkansas. Emily . Caller great staff, jim. Thank you caller six flags has a nice profit after the ceo retired they didnt have great earnings do you this i im okay to ride this out or what im so glad you called on this i wasnt happy with the quarter and i wasnt happy with that ceo, what happened there and weve got to get them back on theyve been a frequent guest. I will not opine on that stock until they come on the show. Its just too, lets just say glib for me to do otherwise. Live nation posted a dropping quarter. The older millennial play. I think theres still room for stock to run much more mad money ahead including my exclusive with the ceo of u. S. Concrete on location a new leaf with a fresh ceo at the mel am rapid fire in tonights edition of lightning round so stick with cramer tomorrow, kick off the trading day with squawk on the street, live from post 9 at the nyse. I give presents to everybody. So i just got the list, when she retired all right, not everybody. Because you didnt shop with me. Had you shopped with me high frequent yeah. It all starts at 9 00 a. M. Eastern. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. At the lexus golden opportunity tesales event before it ends. Choose from the is turbo, es 350 or nx turbo for 299 a month for 36 months if you lease now. Experience amazing at your lexus dealer. How u. S. Concrete is ready to build but will gridlock in washington stop this company from cementing their place in a growing economy. When it comes to the infrastructure stocks, we need to stop fixating so much on whats not happening in washington, and instead focus on all the things that are happening with individual companies. Take u. S. Concrete which is a major producer of concrete here in the United States and it will be one of the biggest winners if trumps huge infrastructure plan ever sees the light of day i know the president just reiterated that something will get done with infrastructure when he spoke to the press im not sure, though, if what he talked about today can get passed through this fractious tightfisted Republicancontrolled Congress it doesnt matter, though. U. S. Concrete stocks rallied more than 50 just since the election not so much because people expect a lot of projects from the federal government but because the company is doing very, very well with private sector jobs. Just two days ago, u. S. Concrete delivered an excellent 9 cents earning beat off an 86 cents basis. Even though the revenues came in a tiny bit light, it still increased 23 year over year theyve seen Strong Demand in new york, d. C. , dallas, ft. Worth and northern california. So can the stock keep climbing earlier today i had the luxury, the fantastic opportunity to speak with bill, the ceo of u. S. Concrete its right in my backyard. Bill, your company had a fantastic quarter. How important is this plant to whats going on in your business jim, thank you. This plant is the smith street plant in brooklyn which supplied most of manhattan and Lower Manhattan from this as well as brooklyn its very important to us. Lower manhattan means World Trade Center which i know youre heavily involved with the whole way. The sad part to the good part. World trade center, hudson yard, one of the biggest projects out of this plant we built the entire World Trade Center complex supplied out of this plant as well now, brooklyn itself is booming. How much of, lets say just in general construction do you have in brooklyn we stage 150 trucks a day we have eight plants on five sites in brooklyn alone. Thats how busy brooklyn is. Nationwide you have an unbelievable business. When i see your book of business, its facebook, and its google, what i see is the in you economy and how important, what theyre doing with u. S. Concrete. Death of retail has not been the death of concrete. All the fulfillment centers, all the data centers that have to be built to supply, all the facebooks of the world, we do most of that work around the country. At the same time our infrastructure is falling apart. The federal government not doing all that but you have the Port Authority of new york, gigantic institution. How much business are they giving you next year 32 billion Capital Budget Laguardia Airport job, one of the biggest jobs delta building a 1 billion new terminal there, were on that job as well. Big for you. Big. How important is pricing, how important are these kinds of units and how important is acquisitions because youve got a scaled platform you need to run more through it. But we go for the high end concrete supplied to the World Trade Center, the bridges, the tappan zee bridge. Not many people can do it. To our contractors, our Value Proposition is that we can have onspec concrete on time day after day, minute after minute, hour after hour to help our customers make money as well. On time, those stuck in traffic jams because of construction we hate people who are doing the construction if we get u. S. Concrete, do you literally say, our time to completion versus other guys because we have such a robust Plant Network. In new york city we have 17 plants if you have one plant in the bronx you cant effectively service Lower Manhattan. You have 17 plants with 350 trucks, you can supply concrete on time. Even when our trucks are stuck in traffic. Has the federal government surprised you in how little theyre doing versus state entities, and versus private industry very good question. 26 states have raised their gas taxes. 26 states. 26 states in order to support infrastructure spending. Its a dereliction of duty whats going on with the federal government slow playing Infrastructure Investment texas and california seem to be, lets say outdoing the rest of the country. Job growth. The inflow of dallas, 100,000 people a year. A great economy. No state taxes in texas. New yorkers would like that. And california, the technology sector, and california still very attractive to a lot of people. Theres a sense from people that a new plant, a new factory really doesnt have a Multiplier Effect but when i look at this, you get a new factory, and a lot of things happen. A lot of things happen. The people have to live somewhere, they have to work somewhere, they have to shop somewhere, they have to go to a hospital somewhere, have a school for their kids. It brings jobs into a local economy. A man on the ground like you knows that better than the economists why is that . I live it every day all right describe this. Because someone said to me, what the heck is concrete really . What is happening . Concrete is not cement. Cement is in the silos. Thats an important point tell me the difference. Concrete, you mix cement. Cement is a material that binds concrete and makes it hard but concrete is actually whats on the ground. Cement is just one of the raw ingredients, as is sandstone, water and chemicals. Then we mix it in various proportions various specifications and the truck right there, its a perishable product not only are we limited by distance, were limited by time. You need a robust Plant Network to service your customers. People want to know if the concrete is better than blacktop. They last longer. The blacktop is cheaper correct its kind of a bandaid when you overlay a road with asphalt as opposed to a 20, 30year life cycle with concrete. I see in your book of business, laguardia, youve got union tower, amazon fulfillment. Number one, facebook data center, but its in ft. Worth. Thats one of those data centers that we hear about from the cloud. Absolutely. A massive data center. With a massive amount of concrete now, these projects, they did not exist ten years ago. No, they did not. That is incredible. That is just incredible. Now, you do have something behind you that is so noteworthy and says a lot about u. S. Concrete and you and the country. It is Army Black Knight eastern concrete west point. Thats our army truck im a graduate of the military academy. We bring that truck to all home games. Its a tribute to the academy. Im very proud of that truck its a beautiful truck and its a working truck, it works every day. Lets talk about the military academy. Your Company Previous to you, a lot of people dont overexpand it, what did the military academy and your Service Bring to the organization of u. S. Concrete the ability to listen, an ability to take various inputs of a diverse nature, and figure out the right path, the ability to strategize and correlate our strategy with the direction of the economy. And i like to lead people. I like to build teams. Its all about teams. You have to oversee everything, not necessarily, youre not down there at facebook every day. No, im not i have a great team of people. All the way from my director to the truck drivers. Were a Union Company in new york and california. I have a great group of employees and a great group of managers. I thought the Union Companies always went out of business. Union companies have a huge advantage in new york. Theyre very well trained. Very good individuals. I love my Union Environment on both coasts. Companies that have unions, this is something gray is talking about in United Technologies company that have unions that know how to manage them, they make a lot of money. Not everybody wants to be union. So it kind of limits competition to some extent but theyre great guys you have to manage it. Its not the easiest environment, but we love our union operation. A lot of money is flowing to the bottom line. Absolutely. All right, sir. President and ceo of u. S. Concrete thank you so much, sir. Youre welcome, jim it is time the lightning round are you ready . Lets start with harvey in florida. Harvey caller hey, jim. Booyah booyah caller calling from boca raton, the second Promised Land and sixth borough of new york city i am interested today in under armour dont pull the trigger. I prefer nike to that one. Now, all those stocks have run so weve got to be careful ben in colorado. Ben . Caller jim, big colorado buffalo booyah. Booyah. Caller wondering about weight watchers. Weight watchers is a short squeeze after this run i dont think you should pull the trigger. Derrick in illinois . Caller jim, derrick w i bought a stock you recommended a couple of months ago the day after the stock price spiked forward earnings after it spiked north of 114 today it closed at 101 should i back the truck up we dont back trucks up after we had a run of 22,000 what we do is pick gingerly. I think they had a terrific quarter. I do think you should buy it but not all at once, not with this market, the little press conferences, now with the fire and fury lets go to shayi in texas caller how are you doing doing well. Caller always a pleasure listening to you. Thank you. Caller i have a couple of questions. One on trip adviser. Its been trading sideways. Yeah, but that was not a good quarter. That was not a good quarter. Expedia had a good quarter but let it come down that was not a good quarter for trip adviser my home state of pennsylvania, bernadette. Caller jim, how are you . Real good, how about you . Caller im anxious for the game tonight huh caller the game, eagles. Oh, my god, against green bay . Yeah ive got to tell you, were playing utah with the packers. Whats going on . Caller good luck, eagles. Yes, go birds caller thera cycle. Its actually had a couple of good quarters in a row im tempted, but i still think the Business Model, people felt that last quarter wasnt as good as i did vance . Caller booyah, jim. Booyah. Caller my stock is trvg. I purchased this stock for an Earnings Report and after the report come out, the earnings soared 67 but the marketing and sales expenses increased 60 . Yeah, i know. See, this whole travel business is under a cloud of priceline. Were going to have to hold off. That priceline, i did not defend it this time i think this group is pausing. And thats the conclusion of the lightning round so you dont need a comfort pony. Oh, so what about my motivational meerkat . Inapp chat on thinkorswim. Only at td ameritrade. What are we doing with the semiconductors at a time when so many other Semiconductor Stocks have been soaring Higher Companies that top maker of chips, power touch screens, programmable screens on chips, many different applications, theyve also got a lot of exposure to static, access to memory or sram, as well as memory chips for the auto market thanks to management drama, lets call it that, cypress has been treading water for a long time the ceo, and frequent guest on mad money, retired but hes still the largest shareholder. Things got heated between rogers and the board. Last month, cypress sent rogers into a nondisparagement agreement. Now that this is all wrapped up, can we start focusing on the companys fundamentals again dont take it from me, lets dig deeper with cory, the in you ceo of Cypress Semiconductor welcome to mad money. Thank you, jim. Thanks for having me all this stuff is now behind us, right . You know dr. Rogers was a frequent guest it did seem to get a little ugly can we just say thats the past tense, new page . Absolutely. Absolutely were focusing on the future. The future includes some pretty good quarters, a lot of leadership im saying leadership in internet of things and terrific auto business at the same time, we know the auto business itself has slowed. And people are worried about internet of things, and stock gets hit assure us that perhaps even though these end markets may not be as strong for cypress, they could be getting stronger. Theyre absolutely strong for us also. A lot of our performance, our last performance and also forecasted performance is lerchling a lot of the strength in the markets you know, 30 of our revenue comes from automotive. A lot of content although theres uncertainty, or some concern about the volume. We are expanding our leadership, and expanding our content. Thats driving a lot of the growth shortterm, but also on a multiyear period. Iot, i can tell you, everything is getting connected when you supply the radios for everything to be connected, you will enjoy that growth now and over a multiyear period. I understand toyota, giant contract is that for the dashboard . Thats actually for the instrument cluster all the cars are moving to digital gauges versus your mechanical gauges, absolutely. Lets say i walk into i sit in a car, how much of what i see is powered, do you think, as a percentage versus all the other chips by cypress you know, when you sit in the car, the first thing you look at, about 38 of that cluster is cypress. Thats our market share in instrument cluster overall thats expanding as more and more clusters turn to display. When you look to the side, you have the touch interface with true touch and cap sense we have over 50 market share there as well. As cars get more and more connected, we have a leadership position there were in eight of the top eight aoms doing connectivity today. Providing across multiple products and applications. I know that the dispute with dr. Rogers is behind you, but how has the Company Changed its direction, if at all whats the difference between this cypress and cypress two years ago . First of all, its the markets that were focusing on thats automotive, industrial and consumer and then the technologies that were providing in there, you know, programmability, but more importantly the connectivity the biggest change i would tell you is how we go to market the days of customers taking multiple chips or products and putting it together are past theyre behind us. The future is how can a Semiconductor Supplier transform itself to a systems enabler, in order to solve higher level problems that add value. Thats where we are. Thats where a lot of our investment is. Its no longer in hardware and technology, its a lot of it on the software, and the System Integration side of it thats really fueling the growth that we have. Can you talk to us about the usb business it seems youre a dominant player absolutely. You know, usb is changing from your standard usb plugs to what we call usb type c, which is to simplify it, the one plug to rule them all. If you look at it, it provides power, it gets you data, it gets you printer data, display data, audio data, everything going through a single plug. Just think about the simplification that this provides to the end user we provide that technology across all markets, you know, from the mobile to the pcs, printers, you know, wall adapters, cables when you have that ecosystem being deployed, you have to have a portfolio thats able to give all of that to the customer. So thats simplicity, its driving the growth and that growth is accelerating in the second half of 17, for the next five, six years. Im really glad you came on a lot of people said, jim, you dropped the ball but there was expansion change you came on and its a new story. But its also a continuation of the old. I like your whole product portfolio. I want to thank you for coming on, the present ceo of cypress semi good to see you, sir. You, too, thank you. As the semiconductors go, this is an inexpensive one, especially because weve had what weve been trying to figure out what theyre doing well, you just heard, theyre really good in the internet of things we like those businesses stick with cramer. And at 4. 95, you can trade with a clear advantage. Fidelity, where smarter investors will always be. Wont replace 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 Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 782 on home and auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Going somewhere . Whoooo. 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