Transcripts For KPNX Mad Money 20161103

. . I think that in many really bizarre ways, the world Series Finale feels a heck of a lot like todays market where the dow dipped 77 points. S p declined 0. 65 . Nasdaq lost 0. 93 . Now, you know me. I care about the players for certain, and the game is definitely of interest. But when i think of cleveland versus chicago, im defaulting to a map of cramerica and the players that rule those two cities. In chicago, its walgreens boots alliance, boeing, Archer Daniels an allstate. Cleveland, eaton, sherwinwilliams, Parker Hannifin, keycorp and cliffs natural resources. I have no idea who wins the big game tonight, but i also dont really care, not because im not interested in baseball. I used to be a vendor selling ice cream at Veterans Stadium in philly. I threw out the first pitch last year against the diamondbacks. Mike schmidts my hero. Its that i like both the cubs and the indians because theyre both underdogs like my teams for me too choose. Sadly, though, its not hard to choose which city will win when it comes to the stocks of their Largest Companies in terms of business. Chicago beats cleveland by a mile, and im going to tell you why. Maybe youll learn something about stocks through this. Lets go head to head like a pitching duel. First, the two big dogs, the aces. Eaton versus walgreens. When the chicagobased walgreens last reported it delivered a very strong number and management made it clear they felt confident the regulators would let them buy rite aid, a transformative acquisition, sometime next year. I like that. It would be fantastic for shareholders. But even if the rite aid deal falls through, walgreens will then do a gigantic buyback. Pretty darn good. You know what else i like . This morning kkr, the private equity firm with a stake in walgreens, announced its stilling its remaining 20. 5 million shares to the public with another 2 million shares going to the companys ceo, stefano pessina, a man who already owns 13 of the company. That will clear kkr out. It shows a level of commitment of walgreens thats about as strong as ive ever seen from a ceo. My Charitable Trust owns the stock. Were advising club members of actionalertsplus. Com that wed be buyers when the secondary is completed if we were allowed. The restrictions probably wont let us. Against walgreens, all cleveland has to offer is eaton. Eaton sadly reported a disappointing quarter last night pretty much across the board with weaker orders, particularly in truckrelated businesses. The ceo, craig arnold, said the indecision surrounding the election and the weak macroenvironment had softened demand, causing him to trim the companys forecast. It was a very heartfelt and downbeat Conference Call quite frankly. It sounded like the tribe had lost already. Game one, chi town. Next up in our world series of stocks, weve got boeing versus sherwinwilliams. When boeing reported last week it traced out a scenario of terrific orders, huge cash flow body planes but also for defense. Given all the recent handwringing about how aerospace had gotten weaker, i found the boeing report a total wakeup call. This industry isnt done. Its in full bull mode, just got to think longer term, nine years. Hey, maybe theres some softness in wide body aircraft. Hello. As boeing gets cranking on these narrow bodies, though, i think its going to make a ton of money. The stock has taken off since then although in the past few days, its pulled back a bit. But let there be no doubt. This was indeed a dynamite quarter. Sherwinwilliams. Talk about getting knocked out in the early innings. Sherwinwilliams was shelled after it reported a week ago, dropping from 278 to 247 thanks to weaker paint sales. Many people came in expecting a real good quarter, a cant miss even. Kind of like where the tribe was a couple games ago. Oh, well, was it really that bad . Yeah. The bleak report started a parade of weakness involving a host of Home Improvement plays that even ended up darkening the this one was an easy call. Boeing went eight scoreless innings. Cleveland threw in the towel, and sherwinwilliams by the fourth called the bull. How about game three . Archer daniels midland versus Parker Hannifin. Oh, this was supposed to be a battle royal, but it was very clear who people were favoring. They were favoring Parker Hannifin. I heard people say it was a gimme, a gimme for cleveland because despite so many different industrials struggling, Parker Hannifin posted some good numbers and get this, for an industrial, it reaffirmed its forecast. Not many industrials have been able to do that. In fact, when Parker Hannifin announced its results, it actually set off a mini rally in the industrials. Money was flying out, and health care was looking for a home. By virtue of its solid process control sales and its robust instrumentation business nitty gritty mental bending from the capital city of nitty gritty metal bending it looked like this was definitely going clevelands way. By the end of the first inning, it was a walk. Midland, a former rubber arms serial disappointer in the agricultural space, actually reported a monster surprise. Huge margin expansion, terrific ag services. The sweeteners were fantastic. I was astonished. This felt like clevelands game to win. This was a home game for cleveland by the way. But then chicago delivered a huge upset, one that took the bettors to the cleaners, as than three bucks in one session and then climbed again today. Its been ages since this thing got off the schneid, and suddenly its among the s ps biggest winners. Talk about rising to the occasion. Archer daniels has a really sneaky changeup. Now, just when the talk was of a chicago sweep, who goes to the mound but beth mooney of clevelands keycorp. Oh, shes got a mean curve. Trade to chicagos United Continental from csx, the railroad company. I love oscar. Hes kind of like bo jackson. But mooney has delivered at a level of play that no airline, including cramer fave United Continental, can deliver. Now, it is true that the Federal Reserve left rates unchanged today, that wont always be the case. I expect a hike next month, which will allow keycorp to instantly make a ton of money off your deposits. But hike or no hike, it doesnt matter. Mooneys numbers this quarter were fabulous with terrific loan growth. Consider that the strikeout number. Amazing, that interest margin. Thats the e. R. A. Of course. Which brings us to the final, tonights game. Actually its not much of a contest. At least in cramerica. Chicago didnt need seven games to win this world series. You see, tonight well, actually last week, allstate, the giant insurer, reported solid top and bottom line numbers after the close. But, you see, it didnt matter because its up against cliffs natural. Thats what we could find from cleveland. Thats an iron ore and coal producer. Winner in a higher Interest Rate environment because it can make more money off your premiums. The trophy goes to the championship star cubbies. Now, im not ducking that facebook is down badly tonight. I can see that. Im not ducking it just because the giants arent in the series. In truth, i want to make my own call and not relying on the tape like so many suckers. And im not dodging the election, but candidly arent you getting like a ton of that in other places . I think you dont necessarily need this guy opining every minute on it. Sometimes its okay to focus on the national pastime. So heres the bottom line. What does the series say about the overall stock market . I think it captures a little of the zeitgeist of the moment. An Aerospace Company like boeing can still get you a win. And a Regional Bank is a Solid Holding in a rising Interest Rate environment. Whats winning in the series is winning in the market. I just wish there were more ws to go around. Janet in washington, janet. Caller hi, jim. Congratulations. Were almost to the end of the election, yay. Yes yes, we are caller yes. Im considering a bank stock because of the rise in Interest Rates. I am skeptical of the big banks because of their ethics. So is there a good Regional Bank like bbt or should i just stick with visa . Why dont we go with key . Bbt is good. Kelly king, very good. We just talked about beth mooney with key. She did a really good job, and i think theyve got the mojo, meaning theyve got really good long growth and good net i say key is the one. Go tribe. Lets go to wes in maine, wes. Caller hey, jim, thanks for taking my call. How about some cubs in seven booyah, my friend . Partisan statement. Caller thanks for helping me out here. Ive got a position in t. Rowe price. Great company. Well run company. Well respected. Nice yield, 3. 4 or so. But the stocks been a laggard over the last three, four years, just kind of going sideways. I wonder if thats, you know, a fundamental weakness in the Financial Services industry or price if. I think whats going on there, to be clear is that theyre considered to be active Fund Managers and people dont want that right now. What they want is people are putting money in with outfits like blackstone, okay . I mean blackrock, im sorry. Meaning what they want is passive money managers, and blackrock stock is a better buy. I prefer to be in frankly, if anyway, youve got my take. Yes, i know, facebook down huge. I should just be focusing about that. I should be focusing on the election. But, you know, sometimes you take a little break, and we root for im focused on finding some winners. Youve seen players like walgreens, boeing, Archer Daniels, key bank that rise to on mad money tonight, with oil hitting the lowest level since september, im comparing the quarters of exxon and chevron, telling you how the two companies could have two vastly different results. Then its been a busy time in splitsville as of late. Ive got one company thats spinning off on wall street that youve got to know more about. Im eyeing the upcoming breakup. You probably have its products in your pantry right now, my exclusive with the ceo is just 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. Anything meant to stand a body without proper foot support can mean pain. The dr. 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He decided to save money by switching his motorcycle insurance to geico. Geico motorcycle, last friday the unofficial energy portion of earnings season got started with a bang when we heard from exxon mobil and chevron. I have delivered a more different pair of results. Chevron posted a strong top line beat and trounced the earnings per share expectations whereas exxon missed badly on the top line even as it solidly beat the earnings numbers. Thats why chevron quickly rallied 4 on friday while exxon declined by almost 2. 5 . And it didnt stop there. This week the Analyst Community chimed in and they were suddenly much more bullish about chevrons prospects while being incrementally less positive. But youve got to wonder how is this even possible . Well at a time when exxons performance is, say, suboptimal . These are two of the Largest Energy companies in the s p 500, two integrated oil titans. So you would think they would tend to have the same results, wouldnt you . The truth is that exxon and chevron have always been a little different. Exxon is more of a steady eddie story. Throughout the downturn in energy, prices weve seen in recent years, exxon has always managed to stay profitable. Its dividend has never been called into question. Chevron, on the other hand, has been all over the place. Their numbers are a little more volatile. Actually, theyre a lot more volatile. For example, in the fourth quarterly losses, something that continues for the First Six Months of 2016. And as chevrons profitability wanes, many investors started worrying about the sustainability of their dividend. Thats why the stock traded down to 70 bucks in august of last year although since then weve been assured about the dividend. Chevrons share price surged back to 105 as of today. Now, going into friday before either company reported, both stocks were up 11 yeartodate. So its not like one had run up massively at the end of the quarter and the other hadnt. How do we even explain these divergent results . First letlk headline numbers. Chevron delivered a monster 31cent earnings beat over a 37cent basis, substantially higher than expected revenue that nevertheless shrank 12. 2 yearoveryear. Exxon, on the other hand, gave us a much smaller 5cent earnings beat off a 58cent basis, but their revenues came in at 58 billion when wall street was looking for 63 billion. That is a gigantic miss. The other key metrics seem to be pretty similar. Chevron cut its Capital Expenditures by 35 , exxon by 45 . Chevrons overall production declined by 1 . Exxons declined by 2. 7 . Chevrons Refined Products sales shrank by 1. 3 . Exxon saw a 3. 5 decline in Petroleum Products and a 0. 8 decline in chemicals. The real difference, though, chevrons stock to rocket as exxons stock went lower was the commentary on the two Conference Calls. They were so bizarrely opposite. Chevrons management painted a much more bullish picture. In particular, cfo Pat Yarrington called out the Liquified Natural Gas facilities that the company is building out in angola and australia, and the payoff for all that investment is just getting started. Beyond that, chevron talked at length about its presence in the permian basis in texas, which has become the hot place to drill for lowcost crude, and chevron has more than 2 million acres of land there. That land is lucve the exxon mobil Conference Call on the other hand, much more subdued. Management spent a large portion of its prepared remarks talking about potential impairments to the value of the companys proved reserves, which understandably spooked investors. Personally, i think they spent way too much time talking about accounting standards, not enough time laying out a positive vision for the future. But to their credit, theyre never promotional at exxon mobil. Its not in their nature. One of the most surprising reactions came from goldman upgraded chevron from neutral to buy while downgrading exxon from buy to neutral. Mehta called chevron a super major at an Inflection Point and says its poised for some major volume growth thanks to its liquefied gas products, its permian acreage, and its holdings in kazakhstan. As numbers continue to improve, he expects chevron will get a higher priced earnings multiple. Plus mehta thinks management will give us a positive update its upcoming analyst day in march. At the same time, mehta is a lot less optimistic about exxon. As he put it, quote, lowering to neutral as limited catalyst to drive shares higher, end quote. Going forward, he thinks chevron is in a better position to great its production and its cash flow while exxon doesnt seem to be doing too much that can move the needle. To be honest, i agree with him. And its not just goldman. Same thing, upgraded chevron. The reason chevron roared in response to its quarter while exxon got slammed is chevron has been doing a heck of a lot more to improve its position. At this moment, chevron sure seems like a better company. But how about their stocks . Chevron trades at nearly 23 times next years earnings estimates. Decent size premium to exxon, which sells at 19. 5 next years numbers. But if you go out to 2018, chevron is trading for just 16 times earnings. Thats a tiny discount to exxons priced earnings multiple on 2018. How about the dividends . Chevron sports a 4 advantage chevron. Put it all together, and i think this recent differential in performance could be just the beginning. Chevron appears to have a lot more upside. Exxon seems like its just sitting there. Heres the bottom line, though. Going into this quarter, we expected a boring, predictable quarter from exxon, but it instead made us worry about accounting issues that could harm the paper value of the reserves. Chevron, on the other hand, has been more of a wild card in recent quarters. So when the company came out with some very bullish at the end of the day, chevron is transforming itself into a permian basinoriented growth play that could have a lot of upside Going Forward from overseas asset while exxon seems content to remain the same old big integrated oil company. Given those parameters, ill take chevron over exxon any day of the week. Much more mad money ahead. Snack packs, slim jims, jiffy pop. From favorite snacks to healthy choices, Conagra Foods is buying some of americas biggest brands, but theres big news here you need to have on your then clorox has been cleaning up for more than a century. But after the companys earnings miss, has it created a bit of a mess . Ive got the exclusive with the ceo. And four trends that have held up during this turbulent earnings season. Ill reveal them all just ahead. [dad] alright, buddy, dont forget anything [kid] i wont, dad. 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Then yum brands splits off its Chinese Business as yum china, which now gets more favorable treatment from the communist party among other things, including the laserlike focus on the growth of the chinese middle class. Weve got one more big corporate divorce coming up a week from now. Its conagra, the packaged food company, separating its consumer packaged food business right here from its commercial food business for restaurants that will trade under the name of lambweston. Conagra announced this move a little less than a year ago, and no upon us, we have to figure out how to play the split. These are getting really difficult to play candidly. First let me give you some background on how all this came about. Conagra is one of the largest packaged Food Companies in the world. You might recognize them as chef boyardee, hebrew national, egg beaters, hunts catchup, pam, slim jims, a host of other brands. They also have a big commercial business selling food and ingredients to major restaurant chains. Thats that lambweston division thats being spun off. Now, before we can really talk about the breakup, its worth noting that conagra had a in 2012, the company massively overpaid for a Company Called ralcorp, buying the leading private label food maker, for 5 billion. Conagra was betting consumers weary of the Great Recession would continue buying cheaper store brand options at the supermarket even as the economy recovered. But by 2015, ralcorps business was still in steady decline. It was this weakness that caused the activist investors at Jana Partners to step in. They bought a 7. 2 stake in conagra in the summer of last management to sell the private label business while cutting costs and generally improving its execution. Thankfully conagras management listened and announced it was getting out of the private label business as part of a farreaching attempt to unlock value for shareholders. They ended up selling it to Treehouse Foods for just 2. 7 billion, a lot less than they paid. That was about a year. It ended up being a good deal for everybody involved. A few weeks later, conagra told us it wasnt finished. It needed to transform even more. Split into two businesses, a packaged food company, and you see a lot of this here, and a food service play focused on frozen potato products. Conagra brands will get all the consumer business, the ones i just outlined. The new lambweston gets all the frozen potato appetizers, vegetable products, businesses that are targeted toward the restaurant market. Theyll also have some exposure to the frozen food aisle of the supermarket, this kind of thing im holding up now, which brings us to the big question. Once this brp should you own . We went over whether you should own yum china versus yum. I actually like both of those. Arconic versus alcoa. I liked arconic, but its doing quite poorly. If you owned conagra since the breakup announcement, since last november, youre already up 21 , so you got a win. Most of that is coming in anticipation of the split, though. Since its almost upon us, i think weve now got to make a decision. When you look over the past four quarters, its clear conagras Retail Business is in real the Consumer Food division has seen its sales fall by 3 , then 2 , then 5 . In the latest quarter they started breaking the business out differently and grocery and snack sales were down 5 . Refrigerated and frozen sales down 8 . International sales down 6 . Theres some very real weakness in the supermarket industry right now courtesy of hideous food deflation, and its clearly been hurting conagras numbers. Plus the consumer continues to switch away from processed foods in favor of healthier, natural, and organic options as weve seen from campbells, as weve seen from general mills. Its not these guys alone. On the other hand, the commercial business thats being spun off as lambweston, thats been doing a lot better. In the latest quarter, the core lambweston frozen foods business saw sales increase by 4 . Operating profit vaulted 33 higher. The Company Already sold its commercial spices business, so now lambweston can really focus on the frozen and refrigerated potato market. I know it doesnt sound exciting, but everybody likes french fries. Last month conagra held an investor day to lay out the new story. After the spinoff, the new bit of an iffy turnaround story. Management is more focused on generating value rather than having a giant stable of brands. The Company Plans to triage their brands, figure out which ones deserve lots of renovation, lots of attention, which ones get lots of marketing and product extensions and which ones get put on the back burner. Conagra has a multipronged approach to restoring the growth of its consumer business. The company intends to invest heavily in innovation. In order to come up th want to keep cutting costs in order to expand margins and intend to make a number of small acquisitions while possibly selling off some brands. Its been a tried and true formula for a lot of the Food Companies. If conagra executes well, they might be able to turn things around over the next couple of years. But if you want a company doing well right now, i think you need to go with lambweston. When it comes to selling frozen potatoes to restaurant chains, lambweston is the number one player in the u. S. Consistently growing at a 3 clip. Told you they all like french fries. Lambweston believes they have a tremendous opportunity to expand the business overseas. I agree with them. Thats why the Company Believes it can deliver low to mid single digit Revenue Growth and high singledigit Earnings Growth over the long term. This is a terrific steady eddie business, and as long as a quarter of all restaurant transactions involve french fries, lambweston should do just fine. This is the food we love. I really do love them myself. I dont eat them, though. Conagras consumer business has a lot of exposure to the supermarket aisles that have been doing quite poorly in recent years even though it was good to see kroger reaffirmed guidance today. And the food deflation issue thats now hurting the whole category is also a real problem for everything in this pantry here. Maybe conagra can get its business back on track after the breakup. But what i like about lambweston is its already on track. Its more of a service business. Now, the one really worry with lambweston . Its one week away from the spinoff, and they still dont officially have a cfo. But i still like lambweston better than the new postbreakup for those of you who currently own conagra, heres my recommendation. When the company breaks itself up next week, you want to hang on to the lambweston spinoff and think about selling conagra. Lambweston is a lean, mean, potatomaking machine, and theyve got everything they need to generate decent numbers Going Forward, whereas conagra is waiting for a turnaround that may or may not pan out. All that said, theres no hurry to making a decision. We know theres big time confusion in the first couple of days after these spinouts. We saw it in the crazy trading in arconic after its spinoff from alcoa. Report back to you about the timing, tell you if you need to make a move, or tell you if you should wait for a better price. Ben in texas, ben. Caller booyah. Booyah, ben. Caller yeah. Rr donnelley has split into three companies, donnelley sons, Lsc Communications and Donnelley Financial solutions. Since the split, the value of the stock seems to have declined quite a bit. Is this a buy, hold or sell opportunity . See numbers. We did a piece about how we were not happy with the way things shook out, and weve got to be able to do we want numbers. We want models. We got to have more information. We dont have enough information to make the decision yet. But we can refer you on the website. We did a big takeout on each one and what theyre worth. But without the models, you see whats happening. The exact same thing is happening, by the way, with arconic. Withou really sure what to do. We dont know what the company is going to earn. Lets go to paul in tennessee, paul. Caller jim cramer for president. Well, thank you very much. Im not a political guy, but i appreciate it. Caller jim, several months ago, Cracker Barrel had a good run, and i believe one reason it appears to be a good stock is its dividend and especially its dividend bonus. Besides that, i never go into our local Cracker Barrel a time its not packed. But certainly weeks ago, its before the downturn. I like Cracker Barrel stock. Whats your take . I didnt like the quarter. The quarter was really nothing to write home about. As a matter of fact, it was bun of the weaker quarters it actually started the theory that maybe restaurant dining is not so strong. And i will go even one step further frankly. It really took, lets say, darden was good and Cheesecake Factory was good, but thats really about it. And Cracker Barrel was one i expected to be really good because gasoline prices are low and people go on the interstate. It didnt happen. Im going to say not yet. Im going to say penalty box for Cracker Barrel. The secret is potatoes. Skip out on the troubled consumer business of conagra and take a look at the menu for lambweston. Much more mad money ahead. Is clorox looking washed out . Im eyeing the company after todays earnings miss although i still like it. Lets get the full story from the ceo. Ill reveal and tell you how it could impact your portfolio. And all your calls rapid fire on tonights edition of the lightning round. Ouch. This latest quarter from color exsent its stock tumbling. The maker of glad bags, kingsford charcoal, burts bees personal Care Products and plain old clorox bleach. Lower than i would have preferred Earnings Guidance for 2017. What is going on . Within the company, the results pretty wildly varied. Cloroxs cleaning products saw 13 volume growth. Lifestyle categories up just 1 . The company internationals volume grew. I think the real key here is that when youre a Consumer Packaged Goods Company with a stock thats trading at 21 times earnings, your stocks going to slightly lower forecast or even talk about price competition if you think the fed is on the verge of raising Interest Rates. So is this a temporary blip . Lets check in with benno dorer, the chairman and ceo of clorox. Welcome back to mad money. Its good to be back, jim. Benno, im trying to figure out the narrative. Im trying to figure out whether you guys were more down beat than the analysts. I heard a lot of about Price Inflation of commodities. I heard a lot about competition. I heard about not wanting to lose share. I did not hear enough about the are sustaining the company in a period where a lot of companies arent doing as well as yours. So im giving ah chance to theyre the narrative on air. Thanks for that opportunity, jim. Indeed, the highlight of this quarter was the very strong top line growth that weve seen. We have a lot of growth in an environment where growth is so hard to come by. Weve shown 8 volume growth. Strong yearago 3 sales growth, and weve been able to convert that sales growth into 3 Earnings Growth on top of a very strong 20 Earnings Growth last year. I feel good about the business. Were one quarter into this fiscal year. We have a lot of momentum on business, and were staying the course. There was indeed some companies that seemed to almost make a suicide pact with each other, and you admit that it happened. In other words, theres price competition. But it didnt grow volumes. Why do Companies Just maybe give me an economics 101 or Business Management class. Why do Companies Cut prices if they cant whats the point . We have seen Competitive Price promotions in certainly categories. For instance our glad trash bag business is one of those. Commodities have been somewhat favorable, and then what companies tend to do is recover lost market shares by reinvesting into trade promotions. We are not afraid to defend our business if that makes sense, and we have done some of that on glad trash bags. But we really take a longterm view, and we try to focus on being balanced and growing our business the right way. In our brand equities and to invest in our innovations. And were in the very fortunate position to have a lot of innovation in an environment thats really innovationstarved and thats working well for us. Over time, we think this price promotion will subside because commodities are expected to firm up over time, and we think that the business from a competitive point of view is going to return to be more rational in the mid term. Hes asked point black about renewed life. I have to be a big user of ultimate flora. I just think everybody is going to, and by the way, the ceo of dupont agrees with me and he makes probiotics for everybody. But on your Conference Calls, he says basically he does not think renew life is going to move the needle for your company. If you put a lot of money behind renew life and we all start taking it every day and start hearing about it, why would i it will be a needle mover. What steve robb, who indeed is a numbers guy, and its good to see that he is. What he said is that it has delivered 2 volume of sales growth for us this quarter, but, you know, it is certainly on the smaller side. Still its about 100 million in revenue, and for a 6 billion company, that is not yet as material today as it will be tomorrow. Renew life in may. Its in a category thats very profitable, thats growing double digits, and where our capabilities, in particular in the marketing, innovation, and distribution building side, really play quite well. Its doing exactly what we hoped it would do for us. Its growing nicely. The integration is well on track, and were starting to expand distribution. So watch the space on renew life. This is a business that will do very well for us over time. Okay. How about your spend . You talk a lot facebook reported tonight. It looks like theyre still getting a lot of advertising spending. Can you kind of break down where you are doing some spend. It looks like youre still getting some results online for some of your products. Were getting very good results online, which is why we have, over time, moved our this area accounts for 40 of our working media spend, which i believe is at the leading level in our industry. And we continue to shift investments into the space because were seeing the rois follow. We get very strong returns because digital and social allows us to give the right message to the right consumer at the right time and really engage consumers in twoway conversations. So we feel good about communicating in digital and social, and i expect for us to continuesh into this arena over time. All right. I was surprised that lifestyle only gained 1 on a volume basis. To me, its one of the most deciding parts of your company. Is there anything short term that could make that that depressed it so i could think a year or two from now, you could get better volume growth there . This is really a matter of yearago comps. As you noted, jim, a lot of our growth businesses are in the lifestyle segment, and this is a segment thats done very well and we expect that to continue in the future. All right. And then international, im still waiting for you guys to really turn on the jets. Put it in incremental dollars overseas . Well, in international, we continue to face the macroeconomic challenges that everybody in our industry faces, and that has a lot to do with Exchange Rates and with cost inflation. Im actually quite pleased wit the 4 volume growth that weve seen, 10 currency neutral sales growth, and we are focused on stemming these head winds that are talked about through pricing, cost savings, going lean, and were doing that very well. But were also starting to invest in growth opportunities. Renew life did extremely well in canada last quarter. Burts bees in asia grew more than 60 last quarter. I feel very bullish about the International Business long term based on the strength of our thank you so much to benno dorer, ceo of clorox. Great to see you, sir. Thank you. Good to see you, jim. Thank you. This was a good quarter, but these stocks are out of favor right now. One day they will be back in favor, and you will want to own clorox. Benno dorer, clorox ceo. Stay with mad money. Ann i asked my dentist if an electric toothbrush was going to clean better than a manual. Sponsored by td ameritrade. 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 thats where i take your calls rapid fire. You tell me the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning round on cramers mad money. Lets start with marty in california, marty. Caller yeah. How you doing, jim . Booyah. Booyah. Caller im calling from oakdale, california. I was wondering about i got 75 shares stock in jcpenneys. I was wondering should i hold or should i sell . Look, jcpenney is much better run than it used to be, but its very tough retail on kate spade said that today. I would say dont buy anymore, but its okay. Thats all i can say. Its oak. Andy in utah, andy. Caller booyah, jim booyah. Caller gw pharma. Its run up a great deal on some very good news about a terrible illness and what it can do for child epilepsy. I still believe in the future. Theres a lot of good things that can happen, but it has run up. Stocks that are run up and stalled in this market tend to stay here. So im not aggressive on it. Lets go to christopher in caller hi, jim. Im new to the stock market. I have shares of nsu, and i was wondering because gold prices were supposed to go up by december 31st, if nsu is a good investment. I dont know that. I dont follow the canadian golds candidly. Ive got to do work on it because i tend to have lost a lot of money when i followed them when i was a hedge fund manager. I will do work on it to let you know. Lets go to brad in california, brad. Booyah, jim. We love you out here in california. Thank you. Caller now, jim, these pharmaceuticals, they got less than desirable results from a Clinical Trial and then it goes down 60 , 70 , 80 in a day. It happened last week and again today with sempra. I know. Caller it seems like an overreaction and youre expecting a bounce of some kind. They tend not to be. These are the problems with this. When you only have one shot on one i mean theres not a lot in the pipe for this company. I invite them on to find out what else they have, but when you see these declines, they tend not to bounce back fast. Be careful. Lets go to dave in illinois, dave. Caller dr. Cramer. Yes. Caller synchronizing data across all devices, amazon echo, and i like otex, open text. Its expensive, man. Thats an expensive company. A lot of these you know what, its a good company. Im just kind of struggling because if facebook is down this much, then anything can go down. But that is a good company. I cant just say sell it because facebook is down. And that, ladies and gentlemen, is the conclusion of the lightning round [ buzzer ] announcer the lightning round is sponsored by td ameritrade. Ahh. Still sick, huh . Ill take it from here. Ol. 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. Feel the menthol burst. And clear your worst cold symptoms. Start the relief. Ditch the misery. Lets end this. Take one of those pillows and take a big smell. They smell really fresh. Really no way downy . Downy fabric conditioner. Give us a week, and well change your bed forever. Want more freshness . Add new downy fresh protect. . . Gaviscon is a proven heartburn remedy and only gaviscon helps keep acid down for hours. For fastacting, longlasting relief, try doctorrecommended gaviscon. Incredible bladder protection in a pad this thin, i didnt. Think it would work, but it does. Its called always discreet for bladder leaks, the super. Absorbent core turns liquid to gel. I know im wearing it but no one else will. Always discreet for bladder leaks. In this difficult environment where the consumer seems to be paring back on everything, what are people still doing . Theyre still going to the dentist. Games, which is what the run in Electronic Arts today is tell is us. And theyre still going to the supermarket to buy food so they can cook at home, as you can see from todays run on the stock of kroger. And tonight in the stock of whole foods after some surprisingly good numbers. Weve hit on these big themes before over and over again. Theyre the bullish themes that are still working, and its terrific to see them remaining intact. Thats something that doesnt ever go away whether its with solid and growing toothpaste sale as round the world from colgate and Procter Gamble or the dental Equipment Sales from henry schein. Its not all done with smoke and mirrors either. The companys sales growth increased by 5. 1 . Remember, the latter is the kind of growth we like because it its not purchased. The second powerful theme, we shower our pets with love. You know why i call this the humanization of pets theme. Few companies have taken advantage of this trend like zoetis. Introduced a drug this quarter called apoquel which stops dogs from itching almost immediately. For those of us with dogs and we have two rescue dogs, bud and everest the drug is a godsend. We put that fabled elizabethan collar on their necks when theyre all itchy and scratchy, and now were going to give them apoquel. Judging by the early sales, were not alone. By the way, henry schein sells equipment to vets. Electronic arts delivered a terrific number last night much to the chagrin of those who sold the stock down 5 . What do i say . Wait for the Conference Call. They didnt seem to wait to see the companys certain games are doing pretty well and theyre predicting great things. Theyre all going to have a good holiday season. Then taketwo reported great numbers. Kind of eyepopping figures. All part of the stay at home thesis we keep articulating. Most of these games are all digital downloads, theyre not being bought at game stop. In fact, very few people are buying from game stop. Hence why that stock fell 2. 63 or 11 . So dont relate the two. Video games are incredibly strong. Finally kroger, kr, confirmed its annual Earnings Guidance today. A shaded up, not down next years numbers. Ive been waiting for this moment because it confirms something weve been talking about when it comes to, say, mccormick, the spice maker. Whether its because of costs or fear or desire to nest, people arent going out to dinner as much as they used to. Other side, kroger, and this stock is dirt cheap after being hammered relentlessly. I like it now. Food deflation seems like its gotten past them. One thing thats certain, though, this company is absolutely capitalizing on the stay at home thesis. We need to find out more it looks like things as we depart this evening are even looking up for whole foods, which reported a surprisingly better earnings per shar samestore sales still not what i want to see. Going to the dentist, pets, stay at home dinner thesis, all these trends are proving to be bankable during what is definitely becoming one of the most turbulent earnings seasons, if not turbulent seasons entirely in this country. Stick with cramer. Onto the shag carpeting. And his pants ignited into flames, causing him to stop, drop and roll. Luckily jack recently had geico help him with renters insurance. Because all his belongings went up in flames. Jack got full replacement and now has new pants he ordered from banana republic. Visit geico. Com and see how affordable renters insurance can be. Were going to prove just how wet and sticky your current gel antiperspirant is. How degree dry spray is different. Degree dry spray. Degree. It wont let you down. My sweethearts gone sayonara. This scarf all thats left to remem. What she washed this like a month ago i like to say theres always a bull market somewhere, and i promise to try and find it just this is going to be tough. Cubs win the race. The chicago cubs win their first world series title in more than a century. The candidates mad dash, five Hillary Clinton looking to put arizona in the blue column, while donald trump works to shore up florida. So for the first time, we have a real chance to turn this state blue again. Were going to be nice and cool, nice and cool. Stay on point, donald, stay on point. Plus the latest on that