Transcripts For KTIV Mad Money 20151208

That notion and the diselusion of the cartel are rattling in a way that nobody could predict. Dow going and s p shrinking and on a day when the price of oil fell to a low and then a 17 year low. We have to talk about this. You you know that i have been saying how the market is in crazy town. A place where good news is bad news, and we did have a nice change of this on friday and we rallied. Today however, perhaps the best news that could happen to the consumer aside from the tax cut which your never going to get. A further giant decline in the price of something that we all spend a lot of money on. Energy is having the usual stock market. Some of it goes with exxon and chevron. She have seen people get crushed because they bought them in yields. Many of them cannot be maintained. Many will have to be cut. Some will be eliminated. Worst of all, we have seen the stunning decline in s ps. Thats a group for the outside distribution and in part that the guys and the groups finished with opec no longer trying to curve the production and causing an glut thats lead to the a lack of demand and pipelines and also falling apart in park because Kendra Morgan the huge Pipeline Company has a stock notice that i did not say morgan and thats not ml p is falling apart, but the stock is getting killed. For many that own shares in the gigantic corporation, thats all that matters. You probably dont care that the bonds rallied today. You just feel the pain. How did we get into this positive predicament . The consumer paid gasoline and heating and oil natural gas. There are only a few states that have the oil and gas related jobs that are growing and just a hand f, so the pain is concentrated in those areas. Not only that but because of the price of energy is so low and the pipeline is being built to ship the gas and the places that its in plastic, were adding that in the states and the basis. The answer is that opec has dissolved, and thats turned everything down. Saudi arabia is a rich county they dont want them to rebuild the oil facilities. China and russia wants to take the share away, and its natural to cut the prices and keep the relationship. Now the United States is a huge winner in this. The saudis want to give us the cheap oil. I could see a tax on gasoline at a couple of cents a gallon and double the size that congress heaven knows that we all need it. Probably would not notice a couple of pennies. Ux see the mashlg and thats part of why i do the off the start segments on tuesday. These institutions are and the heat is being turned on and the issue. Its not going away thats right to not own the stocks and its an institution and call foundations and dumping them at any opportunity. This is what i hear all of the time. At the same time the ener skri names are individual the rates down and so individuals turn to the Master Limited partnerships as maybe they taught that it was a safe way to pick up the extra income. Well, they got if income but the principal is cut. The pipelines have been very distressed in the business. The total of it is not so much. Many of them are doing just fine. Theyre raising it because the producers need it more than ever and then the new users are taking advantage and then the power plants are switching from coal. Here is the problem. These companies will rely on the need of increasing pipeline to capacity and areas in order to raise the distribution. We have stopped it because the saudis are flooding the world with oil. Would have raised in the out years does not work i want to assure you not that it matter because we have had this one a lot and boosting it and talked about the coming pipeline and begin how long it takes to the site to site and build. Bring us to the heart of the matter. Theyre so inquisitive and finding a pipeline that could move to the areas and in the basement prices and they might have gotten it cheap. Nobody cares. They think that we need more pipe and want to own more. Nobody cares. Theres a fear that morgan will have to cut it and the credit agencies are now angry with them. Some speculate that it can be half from the current 51 cents or outside 13 percent yield for the year. That would hurt the Company Stock badly we were talking about raising it and now people may cut it. If you own the stock then you have no reason to keep on holding it at this point. Thats who is selling it. People are scared. The birs of the best might cut them and he has been viewed in that light and what does it say about the other guys . All of these stocks trade together and investors are a whole group. Its not a you have cycle and more and more is offered, and its a nasty situation. Now energy does not respect ten percent of the stock market, but punches above the weight. If you run a hedge zpund decide to pick approximate up a low rate and pick up the partnership as many have, youre the trouble. Thats like the troubles have the funds and forcing them to sell the stocks. You have seen them on mad money, and you think that can spurs we have declines and even in the companies that benefit from cheaper oil and natural gas and the consumers place and that consumes a lot of plastic and gasoline. Here is the bottom line. Its not helping the margret the way that it should. Instead theyre hurting because so many individuals are panicking out of the bad stocks and good ones. I say to let the selling continue until it stops and then you can average down or pull the trigger. I dont think that you can do it before. Hello mr. Cramer and go seminoles. Go noles. Here we are and we bought underarmor several months ago, and its down over five percent for us since we bought it. Should we expect any upside potential or maybe switch over i dont want you to switch. Its impossible that under armor may not be having a good quarter. Its not conducive for being the terrific fall and winter clothes. Maybe thats the opportunity to stay the course and buy more if they have a disappointing quarter, kevin is not thinking about this quarter. He is thinking about this quarter of a century. I like that guy. This is spreading across the tape and let the selling continue. When it stops, then you make the move. All mad dont and the Dollar Stores are doing battle. Who comes out the victory . I am going reveal it. Can chiptole recover from the outbreak . I will see if they continue to feel the pain. And i have an idea. You may in the see it, so tonight i am sending it on a stock thats shining and could shine even brighter. Madmoneycnbc. Com. At a time when so much of retail is in dire strength two took wall street by surprise when they erie ported blow out numbers and while getting pounded the stocks are roaring higher lately. This is one part that has a lot of upside. Why because even though that we have seen the job growth in the country, look at that on last fridays numbers. Many of them are feeling the cash strapped and part that the wages are for ages and in part of the climbing Health Care Act and housing remains out of reach and student loan depth or low paying job with little wage growth. Feels that they can shop in places like dollar tree and general. The price of gas helps but people are spending that at lower value stores rather than you will grading or theyre of course making their homes look a little better. Plus the Federal Reserve is about to raise the Interest Rates and you have to believe that more people will soon be shopping at the dollar store again. Not less as car payments and mortgages and Credit Card Debt are are higher. Put it together and this is a strong one for the dollar tree and general. However, even though that the companies are in the same line of business, the story lines are different over the last year. Remember after an intense bidding war, they were red i do rest the Family Dollar for this deal transformed the industry from a three way competition into a two way as dollar tree was the number one with 19 billion in revenue. More than 13,000 Stores Across the u. S. And canada. Now, i have been a big fan of the Family Dollar deal because fdo is a undermanagement operation. They can get a lot of milage after whipping them into shape to bring the numbers in line with the business. Theres no denying that theyre now on different plans. Dollar tree is merger and its all about how much they can rack up and turn the Family Dollar store chains around. Dollar general on the other hand is a narrative thats more about internal improvements and now as i said before, i like both companies. I am on a mission to help you become a better investor. Thats what made money is about. Thats teaching you how to go to see which is best. If you try to force me to pick, go with i would say its tease time. Let me walk you through this. Both Dollar General and dollar tree lets just say they have got very interesting stories, and i am going to with hold my verdict until the end. Start with dollar tree and thats with the excision and over the next couple of months it was 84 and everyone was crazy about it. Its the the closing of the deal and pushed off. Its arranged to sell the locations and in order to appease them. They finally got the clearance in july and they close on july 6. Even though that wall street was in the aquisition, once they close the deal and they went into a brutal multimonth sell on and going from 80 down to 60 in midoctober where it finally bottomed. I have to tell you that very few it was a free fall. Dollar tree had troubles of its own. Investors worried that it was bake in the stock, but the merger was not. These are hard things to do Distribution Centers and staffing. When dollar tree reported, they delivered a mixed quarter. Man, i am not used to being that low. We have expect that guidance and they have it higher. Well, lets say it. Investors and analysts say that they may not be living up to the vacations and the stocks bounced along it. Last month the dollar tree began to get the grove back. Less than a month ago it was in the dumps and then it was back up to 69 and then a better than expected quarter and sure enough when they reported on november 24th, they beat the numbers and held the investors hands and let us know that the dollar was on track. The stocks shot up to 74 and it you will notice that dollar tree stock is how well they execute on the integration. If it stays on track and they deliver on time, that is going to keep ongoing higher. Look, longer term i bet that its going happen. However, if theres a tiny hiccup, then weekend investors will dump it like they did before. Doing this was a big deal. I would not be surprised if dollar tree did not do it. This stock maybe more volatile that you would like in the portfolio. Den general is a straightforward story. They pounded from late august to november. Not only did the company beat the earnings, but they announced the new ceo that came up under a former ceo and rick and seems to be doing a terrific job and all of that is the cost control measures and the earnings going forward. I wish that he would come on the show. I love the conference call. Dollar general is a strong execution and theres a double dig it and wow. Dollar general is growing and theres 11,000 stores and on track to have 730 locations in this year and very few have the growth and several opens and a lot of opening. Not only is it more the consistent operator, but the stock. One thats selling and then the earnings investments. So here is my bottom line. Potential upside thank toss that of Family Dollar. I like that. At these levels, it has more risks. Any kind of merger will request the stock and any information its rare to go totally according to plan. Dollar general on the other hand is a nice consistent company. Solid gross store and classically undervalued and then the announcement of the buy back and all Things Considered if you like the sparks i think that Dollar General dg is the safest and smartest way to pay it right now. Again, i like this both but my two sense i love shopping at dollar trees. Thats right. I got three that i like and not a single dollar jena i go to. Thats not that relevant because all i go is to go there and get my candy. I love my candy. A real sweet tooth. Did you have chipotle this weekend and have fear of e kollily . I will tell you how it will impact the Company Going forward. And then a bold make up and double in the past year of the can the stock keep on shining . I am focussing on a tack player that you may not have heard of or missed. I will reveal it ahead. Stick with cramer. Phil oh no. under his breath hey man hey peter. unenthusiastic oh. Ha ha ha joanne . Is that you . Its me. You dont look a day over 70. Am i right . Jingle jingle. If youre peter pan, you stay young forever. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. You make me feel so young. Its what you do. You make me feel so spring has sprung. Man sternly where do you think youre going . Mr. Mucus to work, with you. Its taco tuesday. Man youre not coming. I took mucinex to help get rid of my mucusy congestion. Im good all day. [announcer ] mucinex keeps working. Not 4, not 6, but 12 hours. 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 healthy metabolism support multivitamin with chromium to help use carbs from food and bvitamins to helpconvert food to fuel. One a day. Ugh heartburn no one burns on my watch try alkaseltzer heartburn reliefchews. They work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. The stocks plunged 60 percent and its in the eight to 11 range this quarter. History says that it will last history says that it will last longer. The last outbreak occurred in 2006 at taco bell. The cdc pulled them from the menu, and while things were sorting out, they saw an 11 percent decline and then a seven percent decline and then six percent. These numbers are much worse. Thats a little surprising given the brand loyally that they have verses taco bell. It makes sense to get control of announcing that three other states joined them with the new cases and boosting the case count from 45 to 52. This weekend i asked my 917,000 twitter follower whether theyre going go to chiptole after the news. 62 percent say they have no problem and 65 says they will stay away. People that love it and say that it could happen anywhere and thats the case with other outbreaks and one at cosco and then some saying no way. Not all things created equally. One was danny myers that pedestal and failed to get the food safety right. Another one got personal and you say that we should. It should make it safer and the fact that taco bell and the most processed food had an e. Coli outbreak puts the comments. If you had kids would you take them to chiptole . I would think not. There are reports of eight Boston College basketball players are sick with e. Coli and ate at one. The reports cannot be proven. Maybe the last word should come from our own Abgal Stevens that works with mad money as the social guru and does the par scopes. I quote her and her saying that i had it on friday, and it was delicious. Its a good one. Where do i come out. I think that they will solve the problem, but then they do you will have to wait a quarter to see the turn. We have short memories and it will be a great stock. Not yet there. Too expensive and early. Andy in california. Andy. Caller yes, i am a small time investor and i do not have a lot of money to start at one time. I want to start a position in starbucks, but i wonder if you should do it in small increments . Yeah, its worth the wild. If you want to follow along and find out what we say about it and we wish that it would come down more. Why . So we can have a bigger position. We think that howard has Great Company of the time. I think that chiptole will be a great stock to own. Still more mad money ahead. Dont get blinded by the light. Listen to my take before you make the move. Listen for a tech that can play. I am telling you that if either company is owning and i am taking the week off with the calls and then the fire and tonights edition of the lighten round. How in heck do we explain the incredible run in the brands . The big lighting ones. Its like what is he talking about . Its a 9 billion company thats not anything but a provider of outdoor lights. Its been unstoppable for not one or two but three years. Its rallied for 60 percent, so we have to ask what the heck is going on here . If were going to tell the story, we have to go back to the it created the less demand for Lighting Systems and that translated to fewer orders. Back in 2008 it was old fashion lighting provider and did not sell led based products, so for the first few years, this puttered around and then next to nothing. Then in 2013, it start today roar and has not stopped flier and thats why i think that we have to talk about it. How did it get its mojo back . Some of it has to do with the rebound, and a lot of it comes to the Major Companies transformation and then the resent years. The kind of things that i am trying to get you to see. Before 2011, the most exciting it made the control systems to let you dim your lights. Thats when acuity started with the technology and the incredible efficient low power thats right the brand is a plan to climate change. Accord to go the department of education those refiled by 2020 and 75 percent will come from leds in 2030. They got ahead of the trend to where it countries for total half of the revenues. If that number continues to grow and then the led products are up nearly 50 percent in the latest quarter. You can catch a wave like this, you ride it. Just look at the performance and that makes the ships and the Lighting Systems. This stock has been a total dog over the same period where its roaring. In part thats where its expanding and then the lighting internet of things. In order to do that the company has had to do everything that they can to acquire other businesses with the technology. Its doing what i thought emerson could have done if they wanted to do the growth exposure. This could helped honeywell. This bought the Juno Lighting group. Thats a down lighting fixture. Claiming that it could boost the Companies Annual earnings by 40 percent and considering the fact in april they had a bite light and provider of the location for the led lighting. Basically the technology lets the retailers connect to the shopping experience. Now this has the potential to be exciting. Bet you thought that no one should say that about lightening. I tell you that i try to bring them to your attention because theyre exciting to me. You do the work, and you will be excited. How about the distech controls. A provider of the automation and the solutions that allow for the immigration and heading immigration and Access Control and closed Circuit Television and emerson, come on. The idea is that it gives them the about to offer the op that sags for the Smart Buildings and beyond the lightening. Its the imbracing of things. Now, we talked about smart toasters and when we talk about the smart lightening, your lights are everywhere and if you have lights, then you have the power. Thats used to run the devices for example when you combine it with the Lighting Technology and then the parking system can connect the drivers to the the empty parking spaces. Throw in the fact that its rising in the country and we know that from the banks and then its a conversion and then the existing buildings that have the old Lighting Systems and they need to be replaced. You can understand why its on fire. Its an echo play and industry. Its no wonder that when the report is in the quarter the company beat wall street and the top and bottom lines. Not only that but the company saw the volume and thats 70 percent and it is Home Improvement and international and utility and markets. Even better with the markets and what theyre embracing the total adjustment or were the tam could expand by 50 percent over the next few years and that would be huge. This is what people thought that they had. They brought the wrong stock. Of course its the ayi and then the home gamers is not cheap stocks now selling for 27 times next years earnings. Now know what . Thats how it works. I think that they deserve that after the technology and the Companies Leadership position and then the lack of industrial stocks with the growth. Theres a carsty of one, and thats why i think that you have to buy it. Look at this market. Here is the bottom line. Even the most Boring Companies out there can transform themselves into something thats exciting. Acuity has gone to a cutter edge innovate er. Its a play, and i think that its no wonder that the stocks are on fire. The tract record is developing the technologies. What can i tell you . I think that it has room to run. Break. Its the final countdown the final countdown if youre the band europe, you love a final countdown. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. I take pictures of sunrises, but with my back pain i couldnt sleep and get up in time. Then i found aleve pm. Aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. Im back. Aleve pm for a better am. coughing coughing disrupts everyones life. Thats why theres delsym. Delsyms advanced time release formula helps silence coughs for a full 12 hours. All night. It is time. Its time for the lighting round. And then the lighting round is over. Lets start with the captain of catherine. Caller thank you jim. I want to know trn. What do i do . No, were not going to touch anything with trains. Lewis in florida. Lewis . Hey, i am calling about jet. Should i sell hole or buy more . No, all of them are going hard. Phillip . Caller jim, how is it going . Doing well. With all of the lighting going up, what do you think of the Dominion Resources . Theyre all going well. It yields four percent. When it gets through, then i think. Carl in mississippi . Carl . Caller yes, sir. Youre you up, sir. Caller xrx . I dont know why you want to own the stock. Sunny. Caller jim, my question is for the american eagle. Turn the company around. Thats best in the show. If i like them all i go the favorite. Its lb and january in florida. Jan . Caller how are you doing everything is in florida. There you go. I love that. All right. I have been doing a lot, and i have to tell you that the group is not going any lower. That goes lower and lets go to tim in california. Tim . Caller cramer, tim calling from california. I am interested in the land over group. Thats good. I think that ace limited is the best in show. That gentlemen is in conclusion of the jets giants, lighting round. The lighting round is sponsored by t t ameritrade. Fe. So when my asthma symptoms kept coming back on my longterm control medicine, i talked to my doctor and found a missing piece 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. Ask your doctor if 24hour breo could be a missing piece for you. See if youre eligible for 12 months free at mybreo. Com. 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 healthy metabolism support multivitamin and bvitamins to helpconvert food to fuel. One a day. Lets get these dayquil liquid gels and go. But these liquid gels are new. Mucinex fast max. Its the same difference. This one is max strength and fights mucus. Mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Csc and thats going to break up into two public companies. One to serve commercial clients and another would serve the u. S. Government. Last month that plan was finally approved by the board of directors and the play was named csra and then on monday the splitd up happened and then i want dodd this piece because i saw them ring the bell, and i hated them having knowledge. You know what, i better know what i am doing. Are are either of them worth owning . I have to tackle the issue because i can tell you that wall street isnt. Theres nothing written about these at all. This is the added value that youre going to get right now on cramer america. Lets start with the legacy business. Its been a publicly Trading Company and took off in the major i t outsource and play and then the bubble went sideways and then spiking on the make offer. Then it was a company in turmoil and facing two billion and the computer patients and then the Britain National and health service. The sec was on the verge of charging it and then the company seemed to be a screw up frankly. Csc performed to modern niez and then at one point they said 300 million in tax refund. At the same time the air force was writing off the 1 million that it paid for the new worked out. To make the matters worse the cost structure was uncompetitive and then it cut the cost and the cloud. Overall the pretty good program and then we saw the accomplishment and overall and then stepped up and then he is really going and then its the ceo and matters of all tool and then the ceo and then took over and identified 40 contracts. In the last the number and then losses and then then its selling and then the negotiations and then it paid 190 million and then and then detouring the money and then the bonuses and then its becoming and then so its no wonder were that the stock is tripled since its lows in the 2012, and i know that most people thought that it was going up and its going after the management. Lately a number of high profiled investments and notice the turn gets involved and then the firm jana partners. We like it when theyre in there. Pushing for the spin off of the government business as csra. In a sense its the break up of the turn around efforts. Its a driver and Value Creation and then the clients have the specials and deep understanding of the business that can help them understand the funts. You have seen that from a ton of companies but on the Public Sector side its about having the best technology and working with the government. By breaking it to two companies each is among the scale and you know that they love the pure and then its to the government and the csra and the public and sra and to create the largest wow, this was smart. Very smart deal and expanding the portfolio and making the company more competitive. I like it. A week ago they spun off and thats what i saw when i was in post nine and then merged with sra and now the Computer Science what are you getting with each one. What is it worth . The new commercial Industry Business is 25 clients and operations in 26 countries. The new one is a slow grow er and mostly plans to go and not a bad idea and fuelled by higher long term the companies is only expecting the growth of one to two percent. Thats exciting for me. I demand more than that. The new stock is trading at 11. 5 percent of the earnings, and that putting it somewhere in the trouble i bm and then the however, theyre the former yielding and then the ladder and lets see. I am going check this before i say this. The dividend i should have checked this before is two percent. Thats versing. How about the government focus of the csra . The newly created is a Top Notch Team and they normally ran the business and its more than 30 years of experience and more than the intelligence community. Csra expands is massive and fda and homeland security. Did you watch it last night medicare and epa and the military. Not only does csra have a deep the government, but its a long standing relationship with a number of agencies, and thanks to the large scale, its the best of anyone in the Government Technology basis. See where i am going here . Plus with spending the government and then information of the technology is expected to increase across the major industries. Thats how they plan to grow annually and thats the ten percent growth then the merger. I like this. This company is selling it 15 time nx year and that means that its going to the applications and neither of which i like as much as this one. My pot tom line at the end of the day its a tremendous job and then its until tonight i think that ship may have sailed. If you want to play the turn, you have missed it. At this point, they have all the high fruit, and its much harder to grow going forward. So much, i say to go with and then its some real upside and then you should buy csra if you think that the federal government is going ramp up the nondefense spending going forward. Theres a chance, but as we go to the election year, you know what . Its not a slam dunk. Stick cramer. Take pictures of sunrises, but with my back pain i couldnt sleep and get up in time. Then i found aleve pm. Aleve pm is the only one to combine a safe sleep aid plus the 12 hour pain relieving strength of aleve. Im back. Aleve pm for a better am. Enough pressure in here for ya . 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 . Mucinex sinusmax liquid gels. Dissolves fast to unleash max strength medicine. Lets end this. Ugh heartburn no one burns on my watch they work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. Enjoy the relief. 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 . It works on his cough too. Cough it works on his cough too. Mucinex dm relieves wet and dry coughs for 12 hours. Thats a match made in heaven and theres so many different aisles in major store and while theyre up theyre higher for the jordan. Now how about the coffee. That last quarter was good and someone comes along and buys the rest. That leads me to monster. Mnst. Has a stake in