Transcripts For KTIV Mad Money 20151119

Of credit sweets forecast trim and it worked but stocks slipped again. But then this morning we get a different kind of note. A Research Note from Goldman Sachs entitled the shift to apple as a service. This piece was a totally refreshing and, yes, intellectually pleasing way to look at apple as a company transforming from a hardware play, a simple maturing cell phone company, into more of a Service Provider with the fabulous install base that will have recurring revenues including the upcoming tv service and other Attachment Services like the apple watch. This piece makes so much sense. Why should apple forever be pegged as just a cell phone story when it has so much else going for it . By the way, we have reports of another apple supplier from china saying the phone business is quite strong, totally disputing the asian team channel checks from credit suisse. This whole thing reminds me of the summer when tim cook told me china sales were strong even as every channel check by the asian oh, and just so you know, every channel check that i do, which is pretty extensive, doesnt indicate weakness. For the record, i like hearing from tim cooks asia team more than the asia team of ubs or credit sweet or whatever other firm will try to convince you to dump apple and get back in. They want you to trade it, not only it. Apple trades like its a metal bending prosaic autoparts company. A substantial discount to the stock and the s p 500. Goldman sachs analysts saying when people realize theres more to this story than a cell phone business, investors will pay 163 from this 116 stock. Just to be sure, if apple get there is it will still be trading at a discount to the average stock despite the companys amazing Balance Sheet, brains and behemoth status. At that 163 level it will trade more like an Aerospace Parts company than a bumper or dashboard company. This trend of beating down high quality stocks making a comeback extends to retail. A magnificent company that reported samestore sales before the others and the numbers looked light, causing stocks to sell off. After a week packed with retail sales reports, many of which were tepid, it looks like costcos number which is seemed weak in isolation are strong. Or how about salesforce. Com . The Cloud Software company that tonight reported numbers well above what the street was looking for give guidance for an 8 billion revenue next fiscal year. Extraordinary achievement. Fast as ever. Heres a company with a stock thats been trapped in the 70s like a coal mine for most of this year. Many investors have shied away from paying up from this range. Well talk to Ceo Marc Benioff later this evening about this quarter but i think this best of Breed Company may break out of this range to the upside and do so tomorrow. Lets not forget the biotechs, biogen, cellgene. This, one of the worst bear markets out, the restaurant stocks, of course other than mcdonalds. Last night cramer fave jackinthebox, i know jack, its owned by my Charitable Trust, it reported good numbers then gave a rosy outlook. Restaurant sides include mexican chain qdoba which is my daughters favorite. Maybe theres hope for the beaten down group after all. I know theres frustration. I know it gets tiresome to be led around the nose by fang the four musketeers of facebook, amazon, netflix and google. After today, maybe the bottom line is that the markets loveydovey stock list, the ones anointed by big Money Managers is expanding back to companies results but have taken a thursday row, not that second seat, the third row, the little one in the back you have to climb over to fang. It seems like this market is going back to basic best of breed and not just if it has the internet somehow attached to it. Alex in massachusetts, alex . Caller booyah ski daddy, how are you . Ski daddy doing well in a slump in fantasy league. Caller i got back out of my Energy Stocks before the oil crumbled in the summer and i want to get back in. I like the recent sale of the assets in the gulf by marathon oil and i wanted to know what you thought. No, no, no, no. We need growth of dividend. The growth comes from occidental, oxy and the other is eog. Eog is growth, its positively tech like. Eugene. Caller booyah, jim, this is eugene, orlando, florida. All right. Caller gnc. Is it the next valiant . Valiant we know has issues in terms of its distribution. Gnc has issues in terms of whats in the supplements go. By perigo. Remember when the other mr. Papa came on and said they dont use chinese materials in their vitamins. Prgo. They rejected and it will be just like to me what happened with air gas. I like prgo. Best of breed is back in style. You just cant hold these good stocks back down far long. Mad money, the force is with us. One of the techs hottest names,s collusive ceo salesforce then fitbit and gopro. You might find both of these in your stockings this Holiday Season but only one belongs in your portfolio and im revealing which one. Your portfolio skyrocket. Why dont you stick with cramer 1800743cnbc or tweet me jimcramer. We are in the age of ageless. Age neutral. Age defiant. Age agnostic. Olay is a purveyor of ageless. Only the best 1 of ingredients make it into our products. For transformed skin without expensive brands or procedures. Its the ultimate beauty victory. 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[coughing] [coughing] [coughing] [coughing] [coughing] coughing disrupts everyones life. Thats why so many people are turning to delsym for longer lasting cough relief. Delsym has an advanced time release formula that helps silence coughs for a full 12 hours. Thats three times longer than the leading cough liquid. All night. At a moment that it seems incredibly likely that the fed will raise rates in december, we need to remember ma what groups work in a rising Interest Rate environment. You know what cohort outperforms, the turbo charged Growth Stocks that wont even notice the sting from higher rates. Case in point, salesforce. Its one of the Fastest Growing out there if not the fastest of all time. Salesforce reported the company delivered two cent earnings speed, higher than expected revenue. 24 year over year. Tremendous margin expansion. Lets look with marc benioff, the visionary, founder and chairman and ceo of salesforce. Mr. Benioff, welcome back to mad money. Great to see you, jim. Youve got it well on the way path to reach 10 billion, faster than any other enterprise Software Company. Youre confidence on 10 billion is based on what . It wasnt that long ago that i was sitting here with you and we were talking about our first billion dollar year. Next year well do more than 8 billion dollars and were still the Fastest Growing enterprise Software Company ever. Its important when you say 8 billion its not like you pull a number out of your hat. You have deferred revenue on the Balance Sheet of 2. 85 billion and off Balance Sheet 6. 7 billion, up 24 year over year. People should know that kind of money doesnt deflow towards that 8 billion. Jim, as you know, when we conduct is business in the quarter very little appears in its deferred revenue. Like a Subscription Service like a magazine or newspaper. Our customers subscribe to our services so we recognize the revenue as we deliver those services over time so thats why were able to give you such aggressive revenue guidance for next year of over 8 billion. At the same time, i have to believe there were eightfigure contracts you won this quarter that can get you to that level. Federal government, that was one of the rumors i heard. Big contracts, utilities. What is the makeup of the larger contracts that got you here . We had great Revenue Growth across the board and i think you can see from our Revenue Growth here in the United States and europe and even asia was strong and we had quite a few marquee deals. We had amazing transaction with intel, we had an amazing agreement put together with ae comm and we did amazing work with general motors. Be the customer im most excited about is ae com, the Worlds Largest Engineering Company and their ceo Michael Burke is running his business right from his phone and able to collaborate and communicate with his employees all over the world and manage his construction project, connect with his customers. This is our dream of how companies can operate. Well, you can ask him, he knows we love this company for a long, long time and theyre fantastic operators. Service cloud in particular, looked great. A couple of accounts that you have on your marquee your name i think are marquee. Heres one. Sprouts. Thats the business of natural food where many people feel there are companies that are no longer gaining steam but you put sprouts right on the home page. What are you doing for them . What company doesnt have to connect with their custer in a new way . Thats a great example where theyre using our Customer Service cloud to be able to provide a level of communication, a level of possible. We see our customers doing is creating onetoone journeys with their customers mapping out what does it mean to on board a customer . What does it mean to grow a customer . What does it mean to retain a customer . By focusing on those customer relationships, our customers are growing. Theyre growing much more than the economy. Its empirical. The companies that focus on their customers are companies that grow. John stump we saw him when we saw you last. Wells fargo has pride itself on being able to cross sell. We always felt thats a onetoone relationship business but they have brought salesforce in to increase cross sale. What can you do that they couldnt do by themselves. Well, the Financial Services industry is a very exciting industry because its an industry under a huge transformation. You look at a Great Company like wells fargo just a few blocks from here in san francisco, great ceo, i just saw him last week myself. Hes reconceptualizing what it means to be a bank. What does it mean to be in mortgage . What does it mean to be in retail banks . What does it mean to be in every aspect of banks . But in all of these different businesses that he has and he has a very diversified banking business he has a single customer and a single view of that customer. Hes got a 360 degree view of that customer and as his managers and executives work with his customers all over the world theyre able to know exactly what the opportunity is and thats the power of salesforce with wells fargo and were so excited to expand our relationship with wells fargo. Lets talk about that because youve introduced know a number of people who are described as being at these Unicorn Companies. I know you have good views on unicorn that are somewhat critical but a lot of Unicorn Companies have been created to take wells fargos clients away because they say we have an algorithm better than wells. If salesforce is grafted to wells, does that allow wells to compete with the algorithmic all of wells customers . Theres a huge amount of innovation going on in Financial Services. You know, that jim. Its amazing whats going on and youre right, its happening in startups and in our Community Banks and regional banks, another huge sale force customer and even in the very largest banks in the world, that could be wells fargo in san francisco, bank of america where you are in new york, it could be barclays in the uk, it could be deutsche bank. But it doesnt matter if theyre small banks, medium banks or large banks, theyre all using salesforce because they have to manage their customer information. Who does not have to manage their customer information in sales, in service, in marketing, building communities, having analytics, building apps and also the internet of things which is rapidly connecting all these companies to their customers in a speed that weve never seen before. And what were try dog is be that trusted industry advisor with those customers so when we walk in we can show what is the best practices to get to precision banking. How is he going to build the onetoone relationship with that customer . When i walk into that branch, you want to know exactly what the opportunity is with me. Thats what salesforce is going to do. Marc, i need to know, theres just many, many talks, i think theyre is often confused with conversations about merging where you have an unbelievable relationship that is different from the previous man who ran microsoft. What do microsoft and salesforce force have in common that theyre not trying to steal each others customer . Well, salesforce and microsoft is a marriage made in heaven, jim. We have the most complimentary product line and we have been Building Products together with them. We have shared incredible best practices and, yes, its also a healthy competition, honestly. Theres executives that go back and forth between the two companies. Its amazing. At the end of the day the number one organization benefitting is our customers look a company Like Unilever has who has relied on microsoft and salesforce to expand their relationships in a completely different industry, Consumer Product goods. They have a great ceo. Were doing phenomenal work with them to conduct with their customer, helping them run their business from their phone, building these one on one journeys. Converting their product experiences. Thats very exciting. One last question on this unicorn situation. You have your gross margin expanding which means youre able to get it without overpaying. I think there are companies that we now realize were valued too high. What happens, put on your Venture Capital hat because i know youve invested in a lot of companies. Will you pick off the same people you could have who you last because they were paying way too much because they should have gone to salesforce to begin with . Well, number one, those Unicorn Companies, jim, they are staying private well too long and i have friends of mine who are ceos of those Unicorn Companies and ill tell you the same thing i tell them get out into the Public Markets. This is the opportunity to really rationalize your valuation. Let the market decide what your valuation is instead of kind of manipulating the private markets to maximize your valuation, let the market decide. Look at salesforce, weve been a Public Company since 2004 and of course every market is not perfect. Look at 2008. Theres ups and downs. Every quarter is not perfect. Theres ups and downs but it makes you a Better Company to be rationalized by the Public Markets and these unicorns are staying private too long and its hurting them. I can give you example after example where theyre getting trapped in their high valuation and their inability to raise more money because new invest investors wont come in. Investments they have in Unicorn Companies because of this phenomenon and its a disservice to the entrepreneur that theyre doing it to themselves. Get into the Public Market, let the Public Market rationalize it. To your point in recruitment, when those valuations get too high, we dont lose employees to those companies because those employees realize theyre going to Companies Whose stock is too high so they cant provide reasonable compensation. In some ways its good for us. But in many ways its bad for the industry because its creating this unusual phenomenon, unprecedented and theres really nowhere to go for a lot of these companies except for down. Fair enough. Congratulations on the amazing quarter setting the stock up because it beat every single metric as you often have, marc, in the year since you were a one billion dollar company. And thank you for coming to dream force, jim. It was great to have you in san francisco. Well be back. Well be back. Thats marc benioff, chairman and ceo of salesforce. Stocks going higher and its not done. It can go up substantially from where its trading. Mad money is back after the break. Coming up, fitbit versus gopro. These wireless wearables are two of the most Innovative Devices of their generation, but lately both stocks have taken a tumble. Are they still all the rage or is the fad beginning to fade . Cramer referees the tech titan throwdown next. Theres something out there. Its a highly contagious disease. It can be especially serious even fatal to infants. Unfortunately, many people who spread it may not know they have it. Its called whooping cough. And the cdc recommends everyone, including those around babies, make sure their whooping cough vaccination is up to date. Understand the danger your new grandchild faces. Talk to your doctor or pharmacist about you and your the beast was as long as the boat. For seven hours, we did battle. Until i said. You will not beat. Meeeeee greg. What should i do with your fish . Gary. Just put it in the cooler. If youre a fisherman, you tell tales. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Put the fish in the cooler [cough, cough] mike . Janet . Cough if you can hear me. Dont even think about it. I took mucinex dm for my phlegmy cough. Yeah. But what about mike . He has that dry scratchy thing going on. Guess what . It works on his cough too. Cough guess what . It works on his cough too. What . Stop dont pull me spoiler alert she doesnt make it only mucinex dm relieves bothwet and dry coughs for 12 hours with two medicines in one pill. Start the relief. Ditch the misery. Ever since fitbit, the wearable fitness device maker came public this past june its being compared to gopro. Gopro, the wearable camera maker. I understand the comparison. Both Companies Make sleek Hardware Technology products in rapidly growing markets. Both look to differentiate themselves via their software ecosystems. Both have young dynamic ceos and both stocks rallied rapidly after their ipos only to become controversial not long after. On top of that they have one more thing in common both companies requested and received this is the inside workers but i have to give it to you approval to release their ipo lockup restrictions and sell some restricted shares before the usual 180day lockup expiration leading to steep swift declines in their share prices regardless of what the earnings news was. Ever since gopros lockup selloff began, stock has tumbled down 68 . Gopro is trading 17 below its ipo price. So now that fitbits initial secondary offering is complete and its lockup expiration is looming in less than a month, lots of investors want to know will fitbit, which is down 45 from its highs be the next go slow in with a stocks thats just easy come easy go . It keeps going in a freefall of new supply of both too many fitbits and too much stock or is there something that makes fitbit better than gopro and not just this thing doesnt happen at that. Before we get into the specifics of the companies, we need to talk about the specifics of their early lock up expirations did the same thing here, they did it for very different reasons. Typically when a Company Becomes public they promise not to sell their shares for a set period. Its usually six months following the ipo. Sometimes with fitbit and gopro the banks will agree to an early lock up expiration, very rare, very unusual and while these can fit like they arent cricket because they crush newly public stocks meaning a low percentage of the share price is creating, they can be done for all kinds of reasons. In the case of gopro you might even say they had noble reasons. On october 2 of last year, gopros Ceo Nick Woodman and his wife jill announced they were establishing a 500 million Charitable Trust foundation which they fund their shares in gopro. So the ipos lead underwriter j. P. Morgan agreed to release the woodmans new Charitable Foundation from its restriction of 5. 8 million shares. Given giving a half billion dollars to charity is a wonderful thing to do. No question. But this show is about helping you to try to make money. And having insiders dump that much stock on the open market was very bad news for gopro shareholders so gopro peaked at 98 and change a few days after the announcement and since then the stock has been crushed to the point where its below not 20 bucks. Over a year ago we were watching videos of goats and pigs wearing gopros while surfing. Shouldnt we worry about fitbit doing something similar . The answer is no because when you drill down, the details of fitbits lockup release are different. Two and a half weeks ago when stanley granted fitbit an early lockup release so the company could sell 21 million shares via secondary offering though they reduced that to 17 million shares, 14 million coming from existing holders, three million representing new stock fitbit was selling in order to raise capital and do more r d. While this announcement caused the stock to get pole axed, remember it was that announcement that caused it to go down. Its worth pointing out a couple things. Negotiation the insider dumping, fitbit itself sold the stock to raise money so it could invest in growing business. Ceo james park went into detail about why he had to do that in our interview on squawk on the street the following day. Take a listen. We have 88 dollar share in our category. Thats a dominant position. Weve got therein by investing in growth. Well continue to do that. We raised guidance for q4. So thats a testament to the growth story in fitbit. See . Second park explains a major rationale was to create an orderly process for the companys Venture Capital shareholders to sell their stock. And he noted the insiders and sellers had to agree to a 90day lockup on selling the rest of the shares. Since then fitbit has fallen 30 including a hideous 12 decline last friday when the secondary priced in the hole, 29, much below where they opened on the first day of trading at 30. 40. Can you with believe it . I recognize this reaction is only will cal. As the shares increased worse that that it was a negative signal giving investors the impression that despite their fabulous results lots of insiders and Venture Capital investors wanted to get the heck out. Wouldnt they have to knowing . Or with would they hold on and go for the gold . Why not go for the gold instead of settling for the brass if things were that good . Thats what you thought. Now that fitbit has been obliterated i think the short similarities fitbit has more going for it than gopro did at this time last year. For starters fitbit has better growth and gopros last quarter before its lockup expiration they grew their sales by 46 . In fitbits quarter they grew by a whopping 168 . Thats a Different League entirely. While both Company Sauce their valuations become elevated in the postipo rally, gopros valuation got more absurd. At its peak when we saw those goat and pig videos the stock was trading at 97 times earnings after even after declining the stock was selling 23 times earnings. Fitbit has a much higher growth rate than gopro ever did but the stocks valuation peaked at 70 times earnings in late july when it was trading above 50. Thats expensive. But considering the tremendous growth rate, not insane. Now that fitbit is going down to 28, the stock is selling for 26 times earnings. Third and most important fitbit is a much better fundamental set than a year ago. Fitbit has a social networking component whereas gopros ecosystem is a Youtube Channel where you share videos. Fitbit has more mass market appeal and as just about anyone could be a user of their wearable fitness trackers unlike gopro whose primary customers are in the Action Sports market. Fitbit sales products with different price points including the low end of the market while gopro is a high end purveyor. Gopro is reporting dismal numbers, fitbit is the opposite delivering amazing numbers in part because they used theist that postipo cash to ramp up spending which allows fitbit to keep gaining market share. Fitbit has a Corporate Wellness component that gives this story extra legs. They work with companies that help keep their employees healthy and productive. Given how Expensive Health care costs are running, well, if you run a business this could be huge for fitbit. Gopro has nothing like it. And the irony . Target placed a huge order of fitbits for its employees and given that stocks stunning breakdown today, a gets employees may need them to check their heart rates. Heres the bottom line, yes, fitbit has similarities with gopro and fitbit stock has been obliterated after the recent secondary but it would be a mistake to dismiss it as the next gopro. Their prospect is much better and with stock trading 26 times earnings fitbit is darn cheap. The selling ends a month from today and i think you have to be ready to buy fitbit as we head into that moment. Particularly because unlike gopro which has its products being pushed at huge discounts on qvc, i think you could be a very full price fitbit christmas. Im going to rick in iowa. Rick . Caller hello, mr. Cramer. Hi, rick. Caller thanks for having me. Can i get a booyah for my undefeated hawkeyes . We love the hawkeyes. Remember, we went did you see our show when we went to the university of iowa . One of best we ever did. Awesome. Despite the uncertainty in retail, theres one company ive had my eye on holding steady. My wife and her friends love the product so is now a good time to buy into ulta . Do you think ulta can be defeated by amazon . How is that going to happen . Are you ever going to get your hair done via amazon . I like ulta. How about david in california . David . Caller hi, jim. I watched you from your very first show, thats a long time. From the howdy doody show when i was in the audience. [ laughter ] caller i got two questions for you on Sears Holding which is trying to break down today ahead of another bad quarter. One is why do you think grandberg continues to burn another 1. 8 billion to keep sears and kmart afloat and two is how long do you think before sears goes bankrupt and the stock goes to zero. We dont know that. This is a rabbit out of the hat situation. You never know what will happen. I would love to ask them why are i think the answer is what sells he going to do. I mean, its like a raison detre kind of thing. No exit. Dont mistake fitbit as the next gopro. Ive never seen a pig on a surf board wear a fitbit but they should or else theyll end up at hormel. Much more mad money ahead including the result of increasing tensions overseas. Then takeover talk on a railroad. But heres history you need to be aware of. Im heating up your wednesday what w a hump day edition of the stay with cramer . Hey buddy, lets get these dayquil liquid gels and go. But these liquid gels are new. Mucinex fast max. Its the same difference. These are multisymptom. Well so are these. This one is max strength and fights mucus. That one doesnt. Uh. Think fast you dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Start the relief. Ditch the misery. Lets end this. Snowmen with buttons, snowflakes with icing candy corn feathers, sure look enticing Rice Krispies treats, the fun doesnt stop how many ways can you snap, crackle, pop . Make the holidays a treat with kelloggs Rice Krispies. Americans. We try to live healthy. But many of us dont know there are nutrients that can help support our metabolism. Take new one a day with chromium to help use carbs from food and bvitamins to helpconvert food to fuel. One a day. Life so when my asthma symptoms kept coming back on my longterm control medicine, i talked to my doctor and found a missing piece in my asthma treatment. Oncedaily breo prevents asthma symptoms. Breo is for adults with asthma not well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Breo wont replace a rescue inhaler for sudden breathing problems. Breo opens up airways to help improve breathing for a full 24 hours. Breo contains a type of medicine that increases the risk of death from asthma problems and may increase the risk of hospitalization in children and adolescents. Breo is not for people whose asthma is well controlled on a longterm asthma control medicine, like an inhaled corticosteroid. Once your asthma is well controlled, your doctor will decide if you can stop breo and prescribe a different asthma control medicine, like an inhaled corticosteroid. Do not take breo more than prescribed. See your doctor if your asthma does not improve or gets worse. Could be a missing piece for you. See if youre eligible for 12 months free at mybreo. Com. Today president obama assert it had chinese should pull back. Pull back from their military activities in some disputed hes using moral assuasion urging china but how the heck does the president back up the statements at a time when we may need to have all hands on check in the middle east while we hang around in afghanistan, continue to remain vigilant against russia after its incursion into ukraine. Im not trying to be a warmonger or fearmonger or profiteer, but do we have enough Aircraft Carriers to do the things we need to . Do we have enough planes . Do we have enough missiles . Do we have enough soldiers . Do we have enough soldiers in the right places . Were so overstretched and regardless of your political leanings we can agree the situation in iraq and syria hasnt played out the way any of us would have wanted it to. Im not a political guy, im a stock guy. And when i read about the president s saber rattling in china, how do you back up that admonition . Aircraft carriers to be built pronto at newport news, our nations Aircraft Carrier factory owned by Huntington Ingalls. If you build the new ships, maybe you wont have to use them. But how do you do that when congress has made it clear it doesnt have an appetite for military appropriations . Do we think the chinese will listen to our entreaties when its clear they can get away with doing whatever they want to . This is a perilous time, you dont need know tell you that, weve abdicate it had role of the worlds policemen. Its been deliberate. So when we try to act like the police nen the southeast asia, i think to many of you it rings hollow since the western powers seem like theyre gearing up for actual war in the middle east, a place where Aircraft Carriers may be our best bet for a campaign against terrorists who perpetrated the hellacious attacks against patience. This reminds me of the postvietnam era when Ronald Reagan in 1980 ran on a promise to build a 600 ship navy to show the russians that our military was no longer in retreat. Reagan made it clear he was not going to tolerate the evil empire that was the soviet union. But he had to show it. Reagan may not have spoken softly but he certainly carried a big stick. Now given that were months away from the president ial primaries, may guess is candidates from both parties will try to outreagan reagan. Both parties. I expect vast majority of them to Start Talking about rearming the military to project power wherever and to use it if, heaven forbid, isis conduct mrs. Terrorist attacks. Now that the french have shed their inhibitions about fighting i wouldnt be surprised if we get involved in an actual ground war against terrorism perhaps in consultation of the people with the russians. Im not advocating a political position here, im giving you my best guess predictions about something that could be important in your portfolio. But you need to know what happened in 1980 since it could play out all over again. Back then as the election grew closer and closer the stocks of the military Industrial Complex moved higher in anticipation of a reagan victory and buildup. Stocks like northrup grumman, Lockheed Martin and Huntington Ingalls will rally in most of the president ial debates in the same way drug stocks end to go down. United states, our allies are going to beef up their defense spending and theyll order from the same contractors. Theyre the only games in town. Now obviously this isnt like saying we should go buy caterpillar because of a big infrastructure push, im sensitive to. That im talking about buying the stocks of literal arms dealers, the merchants of war but its their time and i would be remiss having profited greatly from my own funds buying the defense . Stocks in 1908 not to mention that i think this will become ary play of that exact same situation. Stick with cramer. 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. Protect your belongings. Let geico help you with renters insurance. Silent night holy night sleep in heavenly peace time for the lightning round. Are you ready . Time for the lightning round. Lets stewart mark in wisconsin. Mark . Caller jim, my stock is semg. I was wondering what your thoughts were . I want to sell it. I do play aaron rogers in fantasy but i wont play semgroup because id rather do enterprise, epd. That would be better. Lets go to justin in missouri. Justin . Caller hi, jim, from the momo state. What do you think about that little stock, manitowoc . No. I have to tell you the chinese related cyclical climb will pull out of that tail spin. Scott in florida. Scott . Caller booyah, jim lyondell basell. Good company. Mike in arizona. Mike, mike. Caller yes, boeing aircraft . Is that a buy, sell, or hold . Which one . Boeing . Boeing is a buy. I know boeing has been tough slogging of late but the aerospace thesis has not slowed down and the defense thesis has kicked in. Dick in california. Dick . Caller hey, jim, many months ago you thought highly of via systems. Now theyve just established a new bottom. Whats your view . Its cloud based. I had to pull in on cloud based. But salesforce. Com encourages me. Lets go to joseph in virginia. Joe they have . Caller jim its a pleasure speaking with you. Same. Caller id like to quote a line from the great movie jerry maguire. Jim, youre my ambassador of kwan. Really . Geez, not bad, huh . Im going to tell the wife that. She doesnt think im kwanlike at all. Go ahead. My question is, im interesting in buying tesla motors. Thats a cold stock. If you like the car and you believe in eli musk you buy it. Otherwise i cant find a metric that makes me want to that stock on a business basis but people love the car and musk. How about ken in louisiana . Ken . Caller how are you doing, sir . How are you . Caller im fine, sir. Id like that ask you about cocacola. My daughter is in louisiana and i want to say nice thing about anyone who calls in from louisiana and i will say this. I think cocacola is good stock and i want to buy it. And that, ladies and gentlemen, conclusion of the lightning round. Should norfolk south tern im here at my house, on thanksgiving day and i have a massive heart attack right in my driveway. The doctor put me on a bayer aspirin regimen. Be sure to talk to your doctor before you begin an aspirin regimen. Go talk to your doctor. Weve got trouble in tummy town. Peptocopter when cold cuts give your belly thunder, pink relief is the first responder, so you can be a business boy wonder fix stomach trouble fast with pepto. So how ya doing . Enough pressure in here for ya . Ugh. My sinuses are killing me. Yeah. Just wait til we hit ten thousand feet. Im gonna take Mucinex Sinusmax. Too late, were about to take off. These dissolve fast. Theyre new liquid gels. And youre coming with me. You realize i have gold status . Do i still get the miles . New Mucinex Sinusmax liquid gels. Dissolves fast to unleash max strength medicine. Start the relief. Ditch the misery. Should norfolk south tern terrific Railroad Company just say no to Canadian Pacifics 95 per share takeover offer announced yesterday given the stock was trading as high as 117 at this point last year or should they take the money and run . The 70s only a month ago. Should they try to hold out for a higher price . Right now it sounds like Norfolk Southern wants nothing to do with this offer or at the least the Company Wants something much higher if it will sell out to Canadian Pacific at all and i cant blame them. The railroads are caught in the grips in a huge decline in coal, the bedrock cargo for this business and it seems like it will get worse not better short term considering the much lower cost of natural gas as a feed stock for utility bus not every utility can switch and coal will bottom out and the company has a business getting stronger. And while Norfolk Southern does ship some oil, a business thats now in severe decline given the price of crude, its Canadian Pacific thats been the bell cal of using trains to transport oil which is why they need Norfolk Southern to make up for the lost traffic. It seems to me as though Canadian Pacific is taking advantage of the decline in one particular cargo that might soon be at rock bottom, coal. In order to eventually steal Norfolk Southern to whats less than its worth. Reminiscent from another deal from another time. The hostile bid by air products for its cross region rival air gas five years ago. An offer air gas management argued was absurdly low at the time. How prescient given the fact air gas delivered a 143 takeover bid for a french competitor. Fully 49 points higher than the 94 level air gas has fallen to last week. The air gas story is relevant from Norfolk Southern because like Canadian Pacific has which has made several other which you ares, air product raised air gas for ages. Prices air gas was confident it could do better with even though stock was 20 lower from their first 60 bid. The ceo of air gas expressed confidence he could do better. Air products was getting the company on the cheap because of the great recession. He was confident of a quick bounceback. Isnt it possible Canadian Pacific is doing the same because of its coal exposure . Should shareholders of Norfolk Southern be glad to get a people are glum this difficult market . I advise managements to do the right thing. Take the money for shareholders. The only time ive ever violated that was in the hostile takeover. I sided with management because unlike so many ceos, the ceo has built the company himself. He had traced out a multiyear vision that had the stock going well above 100 but hadnt had a chance to get it there. He was no hired hand. He knew what his business was worth. I came out hard for him over multiple weeks endlessly. Im thrilled to say he thank med for helping him turn the tide so he could live to play again. This weeks 143 bid for air gas is a far pry for the 70. Mame causelin will get money for his patience and perseverance and youve made a pretty penny. So should Norfolk Southern reject the bid out of hand. Unlike air product, the current management in Norfolk Southern didnt create the company. Nevertheless they can make a compelling case like air gas did that this is a cyclical trough and worth hanging on for higher prices. Hmm, maybe this is the incredibly rare takeover bid worth rejecting out of hand and if i were Norfolk Southern, id take a page from air gas and just say no. Mad money is back after the break. Going to clean better than a manual . He said sure. But dont get just 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 delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean. Oralb know youre getting a superior clean. Im never going back to a manual brush. Im here at my house, on thanksgiving day and i have a massive heart attack right in my driveway. The doctor put me on a bayer aspirin regimen. Be sure to talk to your doctor before you begin an aspirin regimen. Go talk to your doctor. Youre not indestructible anymore. If a denture were to be put under a microscope, we can see all the bacteria that still exists. Polidents unique micro clean formula works in just 3 minutes, killing 99. 99 of odor causing bacteria. For a cleaner, fresher, a lot of stocks broke out in their ranges and you have to watch salesforce. Com. Marc benioff put up numbers that are staggering. More than 200 basis points but his thoughts about the unicorn is what i thought. Companies need to come public and well be following square tomorrow for you and thats going to be in many ways the beginning of the break price of these private companies that are worth way too much versus the public companies. Id like to say theres always a bull market somewhere. I promise to find it just for you on mad money. You tomorrow. Abdelhamid abaaoud its thursday, november 19th, coming up on early today on the heels of paris, a new isis propaganda video calls for loan wolf suicide bombers that includes images of new yorks times square. This as secretary of defense, Ashton Carter confirmed that america is at war with isis. You agree with the french president thatre were at war . Yes. I think he has said it very well. Im glad the french are galvanized in joining the fight. Is this the bomb used to take down the Russian Airliner . One atf agent says the photo looks very real. Nt and a house battle over the syrian refugees. And more more on a busy thursday. Early today starts right now. No and good morning everybody. We start with the latest isis threat. The terror group has released a newa propaganda video showing scenes from around new york city and implying the city is a target. Reporter theta latest isis video calls for suicide bombers and at theom end, a chilling montage of times square. The footage is from april and isis has threatened new york city before but this new video has been top would fresh images since the paris bombing. Now youve seen what we do, now understand we say this is the most effective technique. You dont have to be with us and if you live in these countries, heres a suggestive target