Transcripts For KPNX Mad Money 20161005

In the market . Dow lost 85 points. S p shed 85 . You ill tell you how, you come out to San Francisco for the week, thats how. Were talking about all of the companies and these arent acceptable for the wins of the fed and lock of Economic Growth worldwide. We are talking to companies that are trying to win your affection. Either for themsel f you the same old same old. They want to give you some things that are bigger than what you need right now. Because they are trying to give you what they think youll need. In the future so you can stay ahead or the competition just beats you. All right . Thats what its about. Think about it like this. Action in the daytoday stock mark set hostage to what some Federal Reserve governor says about raising Interest Rates or the price of oil. Whether it is 50 or back to 45. Whether Deutsche Bank will escape the Death Penalty for the matter in Companies Traded because these issues can impact their earnings per share. But when you come out here to silicon valley, what you see is a group of companies trying to anticipate what their competitors might do or their customers, either businesses or individual might want. Now there are plenty of Tech Companies that are in charge of their own destiny but because of their sheer size, the stocks on the daytoday basisen do the s ps future. Think of amazon, facebook, alpha bet, or even apple at 609 billion, these are all major component of the averages which is why they can often not escape the gravitational pull of the big indexes. They will rise and fall and not on anything theyve done themselves. Remember most of the money involved in the mark set related we have hedge funds with oil reverse they should sell s p futures which have the power to knock down any stock. Especially the ones overweighted in the industries. We have the s p 500. If they get money in, that money is applied. Boosting stock valuations across the board. And vice versa, i suppose. As is the case today. Because of widespread aversion as an asset class, aversion years in the making, money tends to flow out and not in. Morning, didnt start out in the red, before the fun flows turn negative based on worries and fed tightening. Amazon stock hit an alltime high and talking about how the quarter is going better than expected. We saw alpha bet stock go higher. And rally once again that its capacity restrain on the new iphone 77. And they were surrendered as the session went on. Let me ask you a question. Caused by the daily ebb and flow of funds . Come on. Only a fool would believe that. No. These valuations come from ingenuity and accurate sense of what you, the consumer, are thinking about. Take sales force, hosting 171,000 people in San Francisco this week. When ceo started sales force it was all about making Companies Better and selling things. Those people who i know sold goods with sales force used to joke it was big brother and your bosses knew your every move. Appalachian and became a tool for knowing what the customer wanted before they knew themselves. Then social in the cloud to make you a more efficient and probable sales person. The now its buying Companies Like formerly public demand wear or like crux to help manage billions and billions of bits of data and interpret them. Learning. Thats how sales force can have intelligence, that while artificial, is anything better than our actual noggins can come up with. Its that kind of thinking that links sales force of rumors to take over twitter. Twitter could be the ultimate predictor of what people want while at the same time off the level of Concierge Service to customers that doesnt exist right now. This has nothing to do with what twitter looks like if you think of twitter as it is. It would be a colossal mistake, i think. If you look at twitter as it could be, snagging corporate customers by interpreting its data, then maybe it would rival amazon and facebook and knowledge game for their customers. Why arent they more customized to ma macro event. The digitizing of your efforts and mobile, social, cloud and artificial intelligence. Our trip to San Francisco with an analogy. These Cloud Computing companies that were speaking to are mechanizing your horsebase army. So it can compete against the other guys tanks. Like with the oldfashioned horse calvary a century ago. You either adapt or you get annihilated. Lets take calls. Dan in texas, dan . Hey, cramer. Big texas sized booyah coming at you from dallas. Im a longtime follower from so i have a core position, sketchers, and i saw fundamentals in the organic Growth Opportunity but its been static recently and im curious to see if an acquisition of sketchers makes sense. And do you think the leverage is larger International Presence to advance sketchers quicker than they could grow organically to get sketchers back to the huge static recently and im curious to see if an acquisition of sketchers makes sense. And do you think the leverage is larger International Presence to advance sketchers quicker than they could grow organically to get sketchers back to the huge growth rate it used to have . How likely do you think that is especially with such a low first of all, thank you for the kind words and for the way back compliment about when youve been watching me. Look, i recommend a stock to take over basis. I think sketchers guys look forward to talking and i do have to tell you they did lose momentum. Stock is coming down. Its cheap. Saw upgrades the other day. Would it make sense for adidas to buy them . I think it would make sense if sketchers wanted to sell. Thats not my orientation with them. Lets go to rocco in oklahoma. Caller booyah, jim. Im calling from university of oklahoma. Thanks for taking my call. I bought taser a few weeks ago in a government contract opportunity and continuing civil unrest against police. They lost nypd body camera contract. So do i buy more or sell my loss . First, thank you for coming from a school that we did our show in in 2009. Thank you mike price for doing school you have. I know taser stocks now dropped. I think im not saying that anyone knew that the stock had been very weak and i like the longterm story. Yes they lost their customer. No, i would not sell the stock. Now suzanne in california. Caller hi jim, love to have you in San Francisco. Love, love your show. Thank. Caller so getting down despite the upgrades on thursday conference, i know they bought Swiss Company and they have three new drugs in the pipeline. So i would like to know your thoughts and where do you see the stock going from here . Thank you so much. Thank you, suzanne. I dont like to sell gino on daily, monthly, weekly or quarterly basis. They have a lot of things in the pipes. They have the best pipe there is. I think it should be held as core holding for those that want high quality pharma. Here it is, adapt or die. Thats the lesson on the west for the rest of the coast, a peak of the companies that help businesses beat back competition and get your business. Defining the future from cnbc 1 market. We heard quite a bit about high profile taxes this weekend. Why not sit down with the ceo of turbo tax markets. I want to hear more. Plus the digital data is make cybersecurity more important. Business behind keeping your information ma just ahead. But first, the shark is in the house. Billionaire investor shark tank star and Great American friend also of the show, mark cuban, joints me to talk about entrepreneurship, economy and yes, the election. So stick with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Tweet cramer at madtweets. Or give us a call. Miss something . Head to madmoney. Cnbc. Com. Take one of those pillows and take a big smell. They smell really fresh. What if we told you we washed these sheets 7 days ago. Really no way downy . Downy fabric conditioner. Were going to prove just how wet and sticky your current gel antiperspirant is. Now, were going to show you how degree dry spray is different. Degree dry spray. Degree. It wont let you down. Looking for balance in your digestive system . Try align probiotic. For a nonstop, sweet treat goodness, hold on to your tiara kind of day. Get 24 7 digestive support, with align. The 1 doctor recommended probiotic brand. What do you do with the stock of intuit . Assisting millions of americans each year with turbo tax, helping people with quick books. It has gone up 6 since we recommended it on tax day. It is cooling off late. Giving cautious guidance for the next quarter even as they quarterly result were fantastic. Can. Company deliver growth the Companies Want or do we need to be concerned . Lets talk to the ceo of intuit. Welcome back to mad money. Thanks for having me. Taxes have never been sexier. Do these stories intrigue you just about giant losses and carried forward by someone running for president . You know, we have seen a lot in three decades when it comes to taxes and it is hard it surprise us these days. Fair enough. Thats true. Thats a big Business Real Estate from mr. Trump. One of the things i found that is so refreshing about what you do, initially thought of you as a Desktop Configuration tax company. It seems like now you are the evener of the odds for Small Business. Youre trying to get a odds from 50 that fail over fiveyear period to lower than that. Thats really seems to be your goal now. That is. Jim, i have to tell you, were proud of having that as a mission. Thats backbone of the economy. Whether it eat u. S. Economy or worlds economy and the odds are stacked against them. We have seen a big shift in the cloud. Two years ago about a third of we have seen that same tipping point. Thats the great equalizer. Can you do things with machine learning. Data. Connecting your different apps and seamlessly through the cloud and we are seeing real success for Small Businesses. We wouldnt know how to do it otherwise. Im trying to figure out, how do you do it otherwise . We just said, lets do it from the start. Its crazy. About 40 of Small Businesses are still paper and pencil. Shoe boxes and small spread sheets. You dont have to know accounting. Payment, and everything happens for you. It is one of the things you do besides even the odds. You save time. Yes. And people dont have time. Youre creating time for businesses. It is. And Small Businesses want to focus on the business they started. They want to work with their customers, have the ability to make the place look the way they want it to look. They dont want to deal with what would historically be back office functions. So just accept the payment. Just go ahead and do your accounting goes away. It disappears. But you are still best friend and want to win heart and mind of accounts. Absolutely. Other critical success for Small Businesses we talk about those that fail in the first five years, odds of success are 89 if they work with an accountant. We have to help your Small Business client succeed and if you use quick books and do your taxes, we save two hours for every return and an accountant down loads data and their software. Thats how we found you. I went to my accountant and said, we need quick books. I dont want you touching it. Because we dont know how to do it then we screw it up and get in trouble. We dont have time for that. Is now you have a great analogy. And you even talk about dissatisfaction with what youre doing. But you talk about how do you want for individuals, you want a mowed lawn but you dont want to know the lawn, right . Right. Payroll. Theres a group where they know if it is simple they would be empowered and do it themselves and save money. There is another group like the lawn mower analogy and i will pay the neighborhood kid to pay the lawn because i want to spend time with my daughter. Those are called the cant be bothereds. I think gee i think you can do it. Your goal is to grow 10 organically and you will meet that goal, arent you . Our longterm history is achieving doubledigit growth. We came out of this last year with the wind at our backs. Guidance of 90 . I know a lot of people would like to see that be a doubledigit number and we will see how it plays out. It is clear that tax store model seems to be old. Well i will say this, there has been a secular trend for ten grew up with smart phones in the palm of their hand. They are able to take pictures of everything and get their taxes done. Thats empowering the do it yourself solution. This year we picked up three point of share. We are at 65 share in turbo tax. Whats my cost if i want to use you guys . For 70 its free. This is the best this is the best freemium mold i have seen. You do want to upsell. But if a person just want to use you, they can use you for free. Yes. Living paycheck to paycheck or just coming out of college. Let them use you for free. And then as their taxes are more complex, we will charge them when we have a paid relationship but for now, let them use it free. 150 million filing taxes. Only 45 million right now. We have a lot of opportunity for growth. I tell you, i thought the quarter was great. I think you guys are doing fantastic job. Mad money is back after the break. From the court to the shark tank and on to the campaign trail. In Hillary Clintons america, the American Dream is alive and well. Bad boy billionaire investor, mark cuban, makes his return to mad money. His uncensored take on technology, entrepreneurship and the election just ahead. . . Ive never used one of these before . . Thats fun. That is fun. . . Its already dry it dried right away. It doesnt feel wet at all right now. No wait time. This is great. . . My skin feels loved. Its very soft. Theres no white stuff. It does the moisturizing for me. Its everything i love about dove. Can i keep it . laughter all the care of dove. Now in a dry antiperspirant spray. Dand grease in just a minute mr. Clean will clean your whole house and every room thats in it floors, doors, walls, halls hes so tough, he cleans em all mr. Clean whatcha doin . Just checking my free credit score at credit karma. What the . Dont you know that checking your credit score lowers it. Actually, checking your own credit score with credit karma doesnt affect it at all. I guess i could just check my credit score then. Check out credit karma today. Start the interview with a firm handshake. Ay,no dont do that try head shoulders instant relief. It cools on contact, and also keeps you 100 flake free. Try head shoulders instant relief. Its not often you get the chance to speak with a genuine selfmade millionaire. Earlier today got the chance to speak to mark cuban, charismatic tech billionaire who you recognize as the owner of the dallas mavs or one of the main stay investors or shark tank. Cuban has made headlines about his controversial opinions about a certain candidate. Whatever your politics, you need to know this guy is a real deal. Always worth listening to and we talked earlier, noholds barred. Mark, dream pitch first ever. Extension of shark tank . Kind of. What marc benioff asks, i do. Why is that so important to you and you dont have to necessarily support anybody . Ca i just love it, right . Thats where i get my juice, right . Helping young entrepreneurs, women entrepreneurs, military entrepreneurs. Anyone who has taken that idea and the next step. Theyve started a business and if i can support you, help you in any way, i will. Thats why i do shark tank. Shark tank sends the message that American Dream is alive and well that anyone from iowa, arizona, poughkeepsie, wherever, can start with an idea. Turn it into a little business out of their garage and boom anything is possible. The one thing you can control in life is your effort. No one can stop you from that. That has to do with sweat equity and a belief in yourself. Right. But also i guess not being able to let people say no to you. Right. Im terrified of failure. Ive also learned about the more i prepare, the more confident i become. Bobby knight had this great saying, when i was a senior at indian yeah, thank you for joining t swoosh swoosh. But bobby and i said everybodys got the will to win but only those with the will that prepare that do win. People lose sight of that sometimes. Not just about, i have the idea or now i got to raise funding. Thats not that at all. Youve got to know youre going to be competing with somebody. So youve got to know your business better than your competition. If you dont, if you dont have a better solution, a unique proposition, then your what i thought was the most amazing is confluence with domestic politics. You have been a huge supporter of making it big and then paying taxes. Yeah. You tweeted again today. Theres nothing wrong with getting hugely rich but youve got to pay taxes. Got to pay your taxes. Do i take net operated losses . Yes. I do use the tax code as its written . Yes. But theres a fine line between pushing the tax code, taking risk and hoping an auditor you can negotiate with. Or 100 million this year and if i pay 25 million in taxes, which some people is not enough, im okay with that. The idea that it might be genius to avoid paying taxes, which i know is trump the problem i have with what hes done with trump. With trump. Isnt that he hasnt paid taxes, is that he wont own it or explain it. If he comes out and says, i took i tried to start these businesses or invested in these businesses and i thought they would turn into something special. I just failed at it and i learned from it and i became better going forward. Okay. Right . Thats what entrepreneurs do. We fail. You only have to be right one time and everyone tells you how lucky we are. We are talking about a 915 million loss. Own it. That the example of a potential president needs to say. We have failures. Own them. N youre not an entrepreneur. Youre not a Good Business person. Theres nothing good about what you are doing. Obviously he is ashamed of it. Talk about failure, go to melon bank. The you have a great idea. The bank says, you go around me, thats no good. I went to the university, i snuck into mba program. All of these programs are different. Back in the day, right, when they had cards to get into classes, i snuck in. So by the time ways 19 i had most of my mba done. Then melan bay says, he will put you to work. I thought my only job was to help them make more money. They didnt quite see it that way. I went to another job, got fired. Went to another job. Went to another office in dallas and got started. Youre trying to help people. Let me tell you this story. Sure. These were really big cookies. This guy out of florida sent me this really big cookie. I tried it, this is a good cookie but it would crumble. Then i looked at nutrition. Oh, my goodness. Theres like no calories. We just have to come up with a different form factor. Doug, i will give you there is just a guy working out of his garage. Like 45,000 in sales going into health food stores. Doug, 10 of one of my advisors that will help me on this and we will turn this into a big company. We smushed them into the bites. Now they are in Grocery Stores across the country. From 75,000 we will do 10 million in sales. Huge. 10 million, huge. Yeah. This is just our fourth year of business. And i eat these for breakfast every morning. I cant stay slim and trim as you, but thats how i lost 150 pounds. Lightning round with our time left. Everyone talks about twitter, facebook, alpha bet, what theyre doing. Sales force. Just put it in perspective for us. Oh, my goodness. A race. Right . A race right now to try to come up with the next big thing. And so theyre all you know maybe not twitter but the rest sticks. Wow. And thats a Virtual Reality. Augmented reality. So theres Virtual Reality and augmented reality. Which im an active user of. People think pokemon set the stage. But the grand slam is from machine learning. I have a machine vision. And deep learning. As we create more data through our own use, apps, bots, sensors, that data can be processed now in ways that we werent able to process before. All winners . Yeah. Theres enough room but we dont know what that next big thing is. I can argue for precision medicine. And thats why they are all acquiring artificial intelligence. Because they dont know where itll take them. The beauty of deep learning in particular is you know, we create so much data on the ongoing basis. We have only had our tuition really and data driven opportunities to do it just trying to figure out what to anticipate. Right. And the benioffs. But with deep learning, you process all this data and, you look for not the hundred percent conclusion but look for the 51 . 60 opportunities that can send new a new direction. I think thats why it is so big. And we went through a period where we automated the analog. Now we are automating automation. Last word, after dream pitch, wh im not sure yet. What do you have in mind . I understand youre involved in politics. I know at one point when i spoke to you, you said listen whatever party has the right idea. But youve gravitated. Im obviously supporting secretary clinton. Im an democrat. Im an republican. Ive always known you as just a guy you want to vote. I created an app called register to vote. Takes 30 seconds to scan your id. We are adding more as quickly as scan your id and you are registered to vote within 30 seconds. Im going to support secretary clinton tonight because i think its important. I think shes capable. She would make a great president. I think donald trump is just not fit for the job. Again, and i also want to be clear. I dont have any deals. I am not getting a penny. Im not looking for a job in government. I wouldnt take a job in government. Im not an ambassador. Im an entrepreneur. I think that sums up where you are. Where mark cuban is. Star of shark tank. Every night on cnbc. Tomorrow, kick off the trading day with squawk on the street. From post 9 at nyse. If theres a problem, john connor will come back in time and fix it all retroactively. It all starts at 9 00 a. M. Eastern. Ck, huh . Ill take it from here. Im good. I just took new mucinex clear and cool. Ah whats this sudden cooooling thing happening . Its got a menthol burst. You can feel it right away. Wow, that sort of blindsided me. And it clears my terrible cold symptoms. Ahh this is awkward. New Mucinex Fastmax clear cool. Cold symptoms. Start the relief. Ditch the misery. Lets end this. Im lucky to get through a shift without a disaster. My bargain detergent couldnt keep up. So, i switched to tide pods. Theyre super concentrated, so i get a better clean. Tide. Number one rated. Hey, its the Phillips Lady theres a more enjoyable way to get your fiber. Try these delicious phillips fiber good gummies, a good source of fiber to help support regularity. Mmmm. These are great. My work here is done. Phillips. The tasty side of fiber. Wi 80 of recurrent ischemic strokes could be prevented. And im doing all i can to help prevent another one. A bayer aspirin regimen is one of those steps k to your doctor before you begin an aspirin regimen. . . Dry spray . . . Thats fun. . . Its already dry no wait time. This is great. Its very soft. Can i keep it . laughter all the care of dove. Now in a dry antiperspirant spray. Awarded best of beauty by allure. You wanna see something intense . Whenever im out here in San Francisco, you know i like to check in with the Disruptive Technology companies. And whether you like it or not, take work day, maker of cloud based software, everything from payroll, employee expense management, procurement, they do all sorts of relations, okay . And help businesses become more helpful in the back office functions. And the quintessential cloud day stock and past february and part of that border sell off class and social media stock and they come right back. Company reported a Strong Quarter near the end and i tell you, i thought it was the best quarter ever. And theyve had their big work day rising and analyst day just last week. Announcing a new partnership and revolutionary new product. And could be the first real digitization of education information. Stock is up more than 13 year to date. Day, hear more about where his company is going. Welcome back to mad money. Good to see you. Good to see you, jim. We are here with dream force, but youve got work day rising and this thing has really come on strong. What does it mean for work . So we had our last week 10,000 attendees. Some partners, some employees. Not yet the scale of dream force. But for us, its a great conference. We make it all about the customers. We introduce new products. We have sessions where we educate them on whats coming, questions that come up about when they are in production. Most of our customers are in production. Right. Something different than competitors. And we just also have fun. We had one direction as our band to close out. My kids would love that. Now, when i first Start Talking with you, you had a big total addressable market. You talk about 65 billion. New creation. What . New product lines. So hr was our first 4a financials. 25 million market opportunity. Then into analytics. Student systems. Planning and analysis products. So it all adds up too 65 billion. And in my view, all of that will convert from historically on Premise Technology to the cloud. Its just a matter of time. It is revolutionary now. And we first talked about missionary. Not any more. Not any more. It is life or death. Cycles work similarly in Technology Even though they might be 20 years apart. You dont see Companies Using main frame software. Everyone is main frame to Client Server. And now everyone is transitioning from Client Server to cloud. Including education. Since we talked last, it is important to talk about some of the educational product. Something that is suh susceptible digitization that needs it everywhere. It is called a Student Administration system or student system. It allows to you automate the process of enrolling students, having them pick their classes. And check their grades. Financial aid. You name it. All in a consumer friendly way. Works on mobile apps. What students expect. And what the set of analytics that help teachers and sure that they are providing the right courses for their students. And just literally right through the process. Still paper. A lot of it is still paper. Still paper and sometimes it is archaic, updating the last 20 years. We started into that market and the University Said lets build it all. Build a student system for us. We went down that path. Great for you. Now, i think that we have talked and your analyst really clarified a lot for me and should for people at home. It is easy to read. But supporting business change, dell at amc, now these are gigantic deals and youre at that moment, right, that is your purchase moment for work day. Typically at one of the places. So the case of dell emc, we were the solution for dell. They look at this big population coming over from emc at has to go right for them. They are bringing out all the new employees. You want to get one unified view of all of your employees across the globe and we have the track record of making customers successful and in the shortest amount of time so we end up winning almost all of those opportunities. You get Human Capital and financial. Down the road financials. Starting out with Human Capital management. What are they using now for financial that they cant just take you . One of the legacy systems. Okay. Like morgan stanley, a legacy run parallel with accounting systems. You want to get your people into one system as soon as possible. Organization structures. Otherwise, how do you run the company . How does michael dell run the company with five different views into five different businesses. He is a good manager. He needs you. Now we are students of what oracle says and this time they only mentioned you three times. But one of my favorite moments, Larry Ellison says we mention work day a lot because they are our primary competitor in erp. We should talk about that in the cloud. As mark pointed out, ten times more customers than work day. We have sold more, more than half of these are new customers. They are really just again taking the shot. Is it old . So the cree reality is they put the cloud label on all of their product, even if it isnt the cloud. One of the dirty secrets in our industry and most everybody looks at it. We look at high rates consistently over eight beat them 2 out of 3 times. You didnt want wake forest . Yeah, we won wake forest. But youve got others here. No we won wake forest. Oh, fantastic. Okay. They will sometimes mention customers that actually did choose work day. Okay. Wow. All right. Forgive the response. Next, that combination could be something for you. I think it is a great first of all say net suite is a good company. Nelson did a good job in a small medium sized marketplace. Their Financial Product is in the small medium market. They havent had much success in the marketplace. And it is a desperate move . Double down. Double down low end of the market with two different technologies. You could have gone trash talk but you took the high pend cofounder and ceo of work day. Mad money is back after the break. I asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure, but dont just get any one. Get one inspired by dentists, with a round brush head go pro with oralb. Oralbs rounded brush head cups your teeth to break up plaque and rotates to sweep it away. And oralb crossaction delivers a clinically proven superior clean vs. Sonicare diamondclean. My mouth feels super clean im never going back to a manual brush. Theres a bazillion ways to top your kids rice krispies. Whats yours . . A dash of fruit in their favorite color. . . A bunch of pineapple cause hey its summer . . Bananas and berries cause the letter b rocks. . . A little bit of yogurt . . . Sure why not . . The fun never stops it is time. Lightning round, and my staff here in the sound. And then the lightning round is over. Are you ready . Lightning round. Start with michael in connecticut. Michael . Your take on life lock. No, checkered history. At this point i would rather be in some of the companies that try to protect you with. I say master card or visa. Caller jim, cvr energy, buy, sell or hold . Thank you. I dont trust that gigantic deal. Thats red flag for me. I would throw it if i were in the home office. Jarod in california. Caller big booyah to you from california. Nice. Caller how much value could a stock chuck chuck if that value chuck was xerox. Petec aint going higher. George in new york. George . Caller jim, do you think that valon laser light wave or do you think another company will come in with another bid . I dont think so. I think is time for caching. Where is my caching in San Francisco . Dont have it. Matt . Booyah. Iu. Iu. We were there with mark cuban. How can i help . Caller cvs, buy, sell or hold . Cvs is way too much. Never sell. I was in napa this weekend and this company is run by merlot and he is a finer merlot than in napa. Justin . Caller hi. How are you. Fine, how are you . We profiled this company then it came down a lot. We think its time. We think it is time to buy in. In good shape. Carol in florida . Caller hi, booyah from southern california. Hurricane matthew territory. Oh, good luck. I hope everything works out fine. I see the warnings and i worry. Hopefully everything works out fine and misses you. Caller i hope so too. I lost 10 on texas road house. The Restaurant Group is under a huge amount of pressure. Dont expect the stock to turn around any time soon. Well run but that does not seem to matter right now. Group is for sell. Lama in washington, d. C. Caller yes, jim cramer. My stock is anf. No reason to own that one whatsoever. That one is completely more. Only ones i recommend at the mall are Urban Outfitters and elle brands. Not that one. Caller my stock is cnc. Is this an opportunity we have come around. Very volatile group. Favorite is unh. Stick with that one. One more. Curt in michigan. Curt . Caller ill keep it short. Kroger. Buy more or dump it . When you said dont sell kroger any more it is too low. Im sticking with that. But cant pound the table. Thats a hard business. Thats the conclusion of the lightning round. The lightning round, is sponsored by td ameritrade. Dont let dust and allergens get between you and lifes beautiful moments. 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Here on mad money we love powerful longterm themes. I want to help you make money for years, not months. And it helps in the wake of cybersecurity. Especially with the yahoo data breach we learned about. Individuals need to spend more in order to protect their data. Sometimes these sexy longterm stories can get overheated with and fall out of favor. Thats what happens so cybersecurity stocks earlier this year. In recent months they are making a big come back. One of the best performers is business where they are most vulnerable, their email sift peoples. Cloud storage, instant messaging and social media. Can this break away from the pack . Lets check in with gary steele and learn more about his company and product. Welcome back. Good to be here. I will start from a line from your conference call. You said we had a great Second Quarter supported by healthy macro environment and suite of cloud based solutions. You were the only one i know who thats because of the proprietary nature of your product. And threat landscape. It is what is happening today. Individuals are attacked everyday from hackers, foreign states, just other kind of malicious individuals. As a result of that, organizations are prior advertising our type of technology over other things and the move to the cloud. Organizations putting security in their networks with appliances and software, moving to the cloud. Area as well. When yahoo was hacked, 500 Million People and people are just yawning at these things. Companies are yawning. Is the yawn the right response . Its not. Everyone is vulnerable. Implications are huge. I think unfortunate because there have been a good number of high profile breaches, people are tired of hearing about it. But in reality, it is a big concern and what we see today in the marketplace is the companies conto cybersecurity than in previous years. As a result of that we benefit from that. One of the things that youve added when i follow your company for a long time, i love the fact that you make money is one of the reasons most of the companies are on a dime gap basis. But youre talking about social media hacking. Specifically youre saying that the social hack is something we should worry about. Who should worry . Everybody who is active on social. Were helping companies basically protect users as they their product. So we stop lookalikes, people acting like jim cramer for example. We stop cyber criminals from posting malware or malicious links on peoples sites and other people get affected. And organizations and used more broadly and help with compliancerelated issues. Who can help with situations where it looks like a company, i got one from wells fargo today, restriction on my account. I am a valued customer. I got one from am does not and neither were from wells or amazon. You are protecting from, would those be stopped . So we do help with that exact kind of issue. So a big part of what we do is stopping fishing attacks. You get something from someone, looks legit, maybe youre targeted because they understand something but and what you might click on. Because of the prevalence of these attacks, thats key demand driver for us. How i do stop people from getting my Social Security . Well you know, at the end of the day you are giving that information into organizations posture and improve it over all. Weve got a long ways to go and frankly it is why cybersecurity is a big secular trend and organizations frankly underinvested in the past. And they need to continue to invest to get to where they need to go. If they can get way with it, why would they bother . They cant. At the end of the day brand damage happens everyday. One of the big cyber attack breaches happens. Organizations know that theyve got to do something. We today. So five years ago this was not a board room topic. It is today. We recently bank in the news, wells fargo, creating a lot, a couple of bad actors. I say a couple because there are tens of thousands that work at wells. Not everybody implicated, small amount. But creating false emails according to the papers. Is that something that can be stopped . We focus where it is spoofing. Where you cant rely on that from address as being legit. Your boss sent you a message saying wire money or send confidential information. We help identify and stop those kinds of attacks. And in august we bought a Small Company to help us drive this initiative to knock down what is known as busy mail compromise. Thats where im worried. But ibm, splunk, that youre teamed with, whos left . Microsoft . Going against you . We pick people we thought we could work with. We love palo alto, we love splunk. They are all on our show constantly and we love these guys. We believe if we can deliver better security together to give the customer a better security clearance, thats good thing to do. I think one of the things industry missed in the past, is we all got to Work Together because theres this broad group of cyber criminals we all need to fight. Thing for everybody. Great thing for proof point shareholders. One of our favorites because they actually make money. Stick with cramer. Thanks so much. Thank you. A pleasure. Why are you checking your credit score . I wanna see if it changed. Credit scores dont change that much, do they . Really . Ill take it. Sir, your credit. Is great right . When was the last time you checked . Yeah, id better check my credit score. Here, try credit karma. Its free. All right. No more surprises. I absolutely love my new york apartment, but the rent is outrageous. Good thing geico offers affordable renters insurance. With great coverage it protects my personal belongings should they get damaged, stolen or destroyed. [doorbell] uh, excuse me. Delivery. Hey. Lo mein, szechwan chicken, chopsticks, soy sauce and you got some fortune cookies. Have a good one. Ah, these small new york apartments. Let geico help you i think this is a fedfree zone. We are talking about companies that make sense that are making money. I love it out here. Its just so different and so enjoyable. So coming from this place all week. Tomorrow, sales force dream force conference in downtown San Francisco. Weve got interviews with some of the biggest names in tech and i say theres always a market summer. We will find it just for you here on mad money. Hurricane matthew continues its deadly path towards the eastern seaboard with over a million already ordered evacuated. Latebreaking details ahead. The number twos on the ticket go headtohead. Each attacking the top of the ticket six times tonight i said to governor pence i cant imagine how you can defend your running mates position on one issue after the next. On all hes refused to defend him. Lets dont put words in my mouth. You have to give me time. Yet he is asking everybody to vote for somebody he cannot defend. Then ben stillers life saving revelation to howard