Bob . Caller hello, jim, i hope youre warm and safe in the blizzard. Jim, i was able to get on your show six months ago and this is a fofoowup question. A close friend is a leading oncologist in philadelphia and he told me to buy tg therapeutics. I did and heard Michael Weiss on your show and was blown away and i bought more. Tg presented in december and their blood cancer data was outstanding. They also discuss their opportunity in auto immune disease for the first time and thats amazing. I plan to buy more and want to get your opinion. The fundamentals are divorced from whats happening in the stocks and weiss is good, we had him on the show. Heres the problem, its a speculative stock. If you look pat gilead and cell genehey are so people people say why do i need to go down to tg therapepeics but if you hold on to the speculative the stock and hit it out of the park, youll make money. Harvey in florida. Caller how are you doing . Im doing all right, how about you, harve . Caller okay. I have a question for you. Okay. Caller im a retired senior Investor Trading in my 401 k and a long time investors in nycb, new York Community bank announced a merger with astoria federal. I will lose thousands of dollars with the dividend going from 25 cents to 17. I expect to make that up with capital gain the president incycynd the Community Banks expect this is merger to be 6 beginning this year and 20 towards the end of 2016. They will report their earnings january 27 before the market opens. I like nycb, i can like the acququition of astoria. I dont know if its safe at 7 yield but thats a good combination. Goodor everybody. Now, i expect next week will week reducing big time earnings to playthings. You know what we have tonight . After another wild week on the erages, i wouldnt g too cozy with the recent bounce. Ll tell you what neeee to go right in order to keep this market in check. Then record sales from the Auto Industry seemed to save auto stocks. What gives . Im investigating. Dingdong, avon is calling but with shares down nearly 70 over the past year, is it worth answering the door or should you why dont you stick with cramer 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 o te, were about to take off. These dissolve fast. Theyre new liquid gels. And youre coming with me. Wait, what . you realize i have gold status . Do i still get the miles . New mumunex sinusmax liquid gels. Dissolves fast to unleash max strength medicine. Start the relief. Tch the misery. Lets end this. Check this out, bro. Whats that, broheim . I switched to geico and got more. More savings on Car Insurance . Yeah brofessor, and more. Like renters insurance. More ways to save. Nice, brotato chip. Thats not all, brotein shake. Geico has motorcycle and rv insurance, too. Oh, thats a lot more. Oh yeah,h,m all about morereteddy brosevelt. Ugh h hrtburn one burns on my watch try alkaseltzer heartburn reliefchews. They work fast and dont taste chalky. Mmm. Amazing. I have heartburn. Alkaseltzer heartburn reliefchews. Enjoy the relief. Youre getting 3 here. Alright . Here goes. Yep. [ crunching ] oh cheddar, sour cam onion, aa salt vinegar. Wow wow how did you do that . i can see through the blindfold. [ male announcer ] pringles theres moving. And theres movivi with move free ultra. It has tripleaction support for your joints, cartilage and bones. And unlike the big osteobi flepills, its all in one tiny pill. Move free ultrtr get your move on. Seems like weve hit a road block. That reminds me. Anyone have occasional constipation, diarrhea. Gas, bloating . Yes one e illips colon healththprobiotic cap eachchay helps defend against occasional digestive issues. With three types of good bacteria. Live the regular life. Its the fundamentals versus the market. Im not kidding. I havent seen the fundamentals this at odds with the pricing of individual stocks and the whole stock market in ages. What do i mean by this disparity . Lettreflect on the wildede about what needs to go right for us to have a sustainable rally rather than just a tradable bounce. What it looks like were having now. I woululsay right at this moment, at this minute we need the dollar to stop going higher but it soared today. This is the Quarterly Earnings season where ceos qre no longer getting a pass on currency. If your earnings are weak because of the super freaking strong dollar, so be it, too bad. It counts and it cant be dismissed as oneneff like its been for so many quarter ins the last couple years. Yup, this time the dollar has become a cost like labor or Interest Payments or raw goods, sga for the accounting aficionados out there. In other words, no more asterisks no more if the dollar had stayed constant you could add back 1. 2 billion in lost income as ibm told us after a bonecrushing quarter. Nobodys buying it anymore. Theres no addback. Theres no constant currency. Anything we expect the dollar to go higher because our countrys central bank is is tightening while everyone else is debasing their currency to take away our business so stock buyers are on strike when they hear about how the strong dollar crippled earnings because they know the greenback is going to get stronger still and this is the new normal. You know what its like . To analogize some of us are old enough to remember when Major League Baseball switched from 154game season to the current 162 games more than 50 years ago. Initially every time a player broke a season record for hits or rbis or home runs we asterisked it noting there was no way that achievement should have counted given the elongated season. We were using two sets of figures to make comparisons and we asked what the Baseball Players numbers would have looked like under a constant 154game season. Then one day we stopped doing it. The records were the records. Weve hit that point with the dollar. Theres simply no reason why we shouldnt extrapolate a stronger dollar whenever other country is down. The 154game dollar is now history. Second fundamental at odds with todays rebounding market . We cant start cheering oil is higher and decide theres a new trend at work with this rally back above 32. This monster move in crude reflects we were too far down short term based on the entry of iran into the marketplace and how much it can initially deliver. That said, the issue with oil is pply, not demand. And while the big trigger puller Money Managers may want to lump oil in with steel or the rest of the commodities that are going down because theres much less demand thank you, china its not true. Its pure fiction. Demand for oil and natural gas is up year over year not down like copper or iron or steel. Have statistics that demonstrate this its just that the demand isnt up enough to offset the additional supply coming online everay. Thats why this blip up in crude pricing doesnt register as much fundamentally as technically. Theres so Many Oil Companies they would gladly sell oil. When i listen to the small to medium sized independent oil producers, i know they need to raise capital now to pay the bills from payroll to the interest on their debt to oil Company Services charges. Theres only way two ways for companies to stay afloat unless they have a top notch balance sheet. Either cut or suspend dividends as chesapeake did today or raise monein the market. Any market. Right now the debt market isis pretty much closed off to these guys. Just look at how the banks with oil exposure were clobbered when they reported. Watch the high yield market because its repulsed by any oil issuance and theres a total buyer strike made worse by outflows in distressed and leveraged bond funds. That means they have to issue equity and hit you with massive delusion. In short, almost under no scenario do oil stocksksin, even with oil moving up like it did. Finally, earnings reports of individual companies. To be blunt, on average, suboptimal. A few companies seem to have you think a company like American Express linked with travel might have seen some uptick . Nope. Instead its doing one more guide down and shareholders with annihilated today with the shocking 7. 58, or 12. 1 decline. In one session. American express, the bluest of blue chips at one point. Same with ibm which gave you no choice but to take down numbers. General electric may have reaffirmed its guidae and beaten the numbers but we saw a slowdown in organic sales. With 3 growth, theyre robust, just not as robust as before. Union pacific and csx disappointed. Alcoa was caught in the commodity conundruru with the prospect of fewer Interest Rate hikes we thought just a few weeks ago and an up tick in d loans for the oil patch, these earnings were regarded as disappointing. Meanwhile, intel gave us a nasty outlook. Add insult to injury, boeing is cutting production of its signature plane. Peeking going on to me. Despite todays rally, if we assess where we really are, we can include the macro situation has gotten worse for us, especially the seemingly coordinated impact of weeker foreign currencies along with a Federal Reserve that wants to tighten not to mention an oil blip that isnt going to rescue Oil Companies s earnings that cant justify higher prices for many stocks right now. What are we seeing here . I think were witnessing an oversold rally that could sow the seeds of its demise. Asast bulls its way higher to levels that dont make that much sense based on the earnings were seeing. Unless the fed blinks on wednesday when it issues its Interest Rate statement and we hear about data dependency and how the newfound weakness will forestall the grand weakness in 2016, it will be hard to sustain the advance beyond the oversold bounce. Heres the strong line, the strong dollar with the momentarily Stronger Oil Prices and suboptimal earnings arent reason to dump stocks wholesale but taken together theres a yourself for a weakness if the fed persists in a negative narrative for the stock market as well as the economy in general. However, the fed chief janet yellen pulls her boot from the jugular and says we see the pain, were going back to data dependence this spike could turn into a ray as that they would reverse the strong dollar. Much more mad money ahead. Carmax and auto nation have been stalalng lately so what does their decline mean for the overall Auto Industry . Ill reveal it. Avon has been in business for 125 years but history hasnt done much for the stock. Im sitting down the ceo to see if this iconic american brand can rise again. And while most of its competitors are struggling with u. S. Store growth, starbucks seems to be putting g up in spades. So why did the company take a hit after earnings . Sheri mccoy. I hate to be a because kill after the markets second decent day in a row but keeping you in touch with reality is a key part of my job and right now even though averages are moving higher, were seeing disturbing signs that a hugely important industry the automobile business could be peaking here in the United States. Remember ive been warning about the Federal Reserve started tighten last monththecause higher Interest Rates make it more difficult and expensive to get financing when youre trying to buy a new car. Whats really worrisome is whats happening to two of the nations largest auto dealers, thats autonation and carmax which have seen their stocks plummet 23. 5 and 15 respectively just since the new year began. Those are precipitous declines and they suggest the market has reached a verdict on whether the auto business has peaked, finding it guilty of all charges. Why am i so concerned about the weakness in these stocks . Lets consider these companies. Autototion is americas largest automobile retailer 340 franchises, 15 sates selling both new and used vehicles. Carmax is the top used car salesman in the country with 158 locations in 76 different markets, although they have a smaller new car operation. Declines in these two stocks so disconcerting is t tt for ages autonation and carmax were total market darlings. They had massive year runs, autonation rocketing 1,600 from its 2008 lows to its peak last spring and carmax soared about 1,200 over roughly the same period. For years these stocks spent so much timimon the new high list they could havavapplied for citizenship. [ rim shot ] the source of their strength . Simple. Total new car sales in the United States kept increasing steady each year since 2009 from 10. 4 million at the depths of the Great Recession up to 17. 4 million in 2015, a lot of chatter about 18 million. Plus with ultra low interest consumers were able to get affordable financing in order to buy these cars. But then the stocks of these dealers hit a brick retaining wall. As of today autonation is down 32 from its high last july, highest last april. How do we explain these hammerings . Lets star with carmax where the stock peaked on april 2 where the stock surged following a blowout quarter. Back then, sentiment for the Automobile Industry was at its rosiest, the oracle of omaha, warren buffett, recently acquired van tuul group, the nations fifth largest auto retailer and General Motors hit glorious 14month high. But within a few months, the bad news started trickling in when carmax reported midjune, it delivered inline earnings, not so hot when you consider people come to expect a flat out earnings beat from these guys, along with weakerthanexpected revenues. What a different picture from what we were used to. The average selling price for used vehicles declined by 1. 6 . After that quarter, carmax continued itdescent and even though the companyseat wall street earnings estimates in september, the sales came in weaker than expected for the Second Quarter in a row, average declining 1. 1 . The straw that broke the camels back came a month ago when carmax reported its Third Straight top line miss along with a significant bottomline miss, too. While used car pricing crept up a bit, that was good news, the total unit slowed dramatically, 3. 2 versus 14 the year before. I was astonished. Worst of all, carmaxs same store sales declined by. 8 and ever since the stock has been put through the meat grinder. How about autonation . This fall from grace happened much more recentnt. Autonation performed to outperform the s p 500 for the first 11 months of 2015. But the Company Issued its november new vehicle sales report which showed a 6 year over year decline in unit sales. Thats hideous when you eonsider they posted a 14 increase the month before. Then all hell broke loose two weeks ago when autonations new vehicle sales report for december came out. 9 increase in the number of cars sold, t t real news here was that autonation was making less money per car. As management announced their Fourth Quarter results would show a 250 to 300 decline in Gross Profit Per vehicle for new and used cars. That was a huge deal as it represents a 12 decline in gross profit from new car, 16 decline fromomsed cars. Mike jackson said, and ill quote here the Fourth Quarter Industry Sales environment was more push versus pull. In laymans s rms he told us it got harder to sell new cars in the Fourth Quarter which is why the company slashed its prices. No wonder the Stock Plunged 10. 5 that day and it slid anototr 10 in the two weeks since then. My point is not that you need to sell autonation to carmax, thats not what were talking about because the stocks have been crushed to the point where theyve become cheap. No, iitrying to show you the weakness these two auto retailers are seeing likely auto sales market. We know from c cmax that the used car business is slowing pretty substantially and used car sales tend to be a good leading indicator for new car sales and the aggressiverice cutting that autonation needed to do in order to keep selling new cars in the Fourth Quarter suggests the United States is about to become a much more difficult market for the auto makers. If inventories pile up as the dealers find themselves in a more push than pull environment, Companies Like autonation will likely find themselves ordering few new vehicles from the manufacturers and at a certain point theyll likely use t lower retail selling prices as a reason to demand lower prices from the auto makeke themselves. Heres the bottom line based on the weakness in autonation and carmax, its hard not to conclude the auto business has peaked in the u. S. With every additional rate hike from the e fed,d,hings will get worse. No wonder the stocks of ford and General Motors cant catch a break in this environment, even though i think the stock of gm is too cheap to sell and, in fact, youre getting an opportrtity to buy it and put it away because of that 5. 2 dividend yield the company is rest of the world gets better to compensate for the nations slowdown here in the u. S. Mike in california. Mike . Caller hey, jim. Blue marlin booyah from southern california, thanks to el nino and thank you for sharing all your knowledge. Really appreciate it. Thanks for saying that, man, tough week so we want to come to play on friday. Whats going on . Caller thank you. Jim, im in deep, down 45 on htz, do i hold until hertz Equipment Rental splits off or do i put on the life jacket and bail out . N n down here, no. Im nonogoing to count on them selling the stock at 9. Its too low. And thank you for those kind comments, mike but at nine bucks i cant tell you to bail out. No way. Lets go to stan in florida. Stan . Caller hey, jim. This is stan. Thank you for all your advice over the years, been following you for r ars. Oh, thank you. Caller im also a mechanic, i do all the work myself and i parts stores, autozone, advance auto and oreilly. Which do you think has the best . Auto zone because they buy back the stock. Build a buyer of autozone and i would by half then after that i would buy anothehehalf after they report because sometimes you get that little downturn before they can come in and start buying stocks, thats what you want to do. I like the stock of azo. All right, i hate to be a buzz kill on a dale like today, but i think its fair to say to the auto business in the u. S. Has peaked and it can get worse if the fed continues to raise rates. Avon has been anything but beautiful lately. Down 30 year to date. Is the company in need of a drastic makeover or are the shares undervalued . I have the ceo. Then from one coffee shop in 1971 to 22,000 locations around the globe, starbucks has become a cultural phenomenon. But is its global footprint rattling investors . Im m gging deeper into thth your calls rapid fire in tonights edition of the lightning round. Here in the city, parking is hard to find. Seems like everyone drives. And those who do should switch to geico because you could save hundreds on Car Insurance. Ah, perfect. Valet parking. Hello heres the keys. And, uh, go easy on my ride, mate. Hm, wouldnt mind some of that beef wellington. To see how much you could save on Car Insurance, go to geico. Com. Ah car alarm sounds its ok 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. 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 relieies wet and dry coughs for 12 hours. Lets end this. Ive been on my feel all day. Im bushed yea me too. Excuse me. Coming through ride the gel wave of comfort with d d scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. All day long. What will it take for avon, direct seller of cosmetics and personal Care Products to turn itself around . This stock has been stuck in a longterm down trend, off 80 in the last two years and down 70 in the last 12 months. Challenges. Your stock doesnt get to 2 a change if everything is a cakewalk and the companys sales decline by 22 . However, sheri mccoy is doing her best to turn things around. Last month we learned a private equity firm is investing 435 million if the company for 16. 6 stake and avon is selling more than 80 oits ailing north American Division for 170 million which will allow the company to focus on its lucrative International Business. Plus, yesterday avon announced plans to cut 350 million in annual operating costs and used those savings to help grow the business. But is it enough. Lets check in with sheri mccoy, the ceo of Avon Products to get a better sense of where her company is headed. Ms. Mccoy, welcome to mad money. Please have a seat. Thank you. Its been a rough road but you were j j and now youve been trying to turn it around. Why should we go in at two bucks and change and buy the stock transformation plan. We have cerberer partnership which allows to separate north america which has been a challenge that weve had and put the focus and funding that the Business Needs to support our representatives and turn it around. At the same time we have funding and resources and focus for the International Business. And if you look at the underlying performance of the International Business and constant dollar revenue, what you see is 3 growth in 2015. So our local markets, our top ten markets, we have terrific products and i think we have been beleaguered by some fx so were continuing to manage that focusing on taking cost out and prices as we can do that. Viewers some viewers know you have a big debt position. You owe a loloof money and youve been burning cash. Will you be able to change . Because a stock is at 2 because its got credit issues. One of the things that we get with the cerberus relationship and partnership is they will parent company. That allows us to reinvest and pay down debt. There arere couple things youre doing that i think are very exciting. Youve changed the advertising. Youre empowering people in a way that leadership hadnt done before but the countries youre doing it in, geez, a major spotlight on brazil and turkey and latin america. These are tough places to do business. In the short term t tre are some challenges. But if you look at the brazilian beauty market, women love beauty. I mean, everywhere in the world women love beauty and were in it for the long term. Were growing our representative base. Women are still coming in, they love the products, they want the earnings opportunity so if you look at the health of the brand, its still very strong. Is it easy to do business there . No. But at the end of f e day we believe this will turn around and in the long term the currencies will shift. Brazil i follow the real a lot because i believe brazil is going to have political upheaval. Or the real gets weaker, wont that be a tough story for avon . Women are still looking for jobs and money. Thats a gogo point. So in some ways its helpful. People need the opportunity to earn. The United States and north america, why were they so much tougher . I think one of the challenges weve had over the years in north america is we were slow to innovate meaning from a technology perspective. Making it easier for people to do business. So were investing in social media, new it systems. If you saw the investor day yesterday we talked about turkey, everything is btob. And theres a tremendous deck. Its very big, dont be intimidated because the print is large. Lets talk about you personally. You were the executive at j j, top. And avon has been such a tough story, j and j, its one of the whole world. Avon t tgh balance sheet. J and j consistent cash. Here its been stock going down, down, down. How do you everyday say this is going turn . I one of the things i love is the representative base. We have six million representatives six . Six million. But theres big churn. Theres big churn but what i showed yesterdayayas 60 of women are with us for more than 18 months so we have people that have built their whole livelihood on avon so i feel very resesnsible for that and d the same time responsible to shareholders. And i believe in the model. I believe in the products and i believe in the opportunity and so that gives me the energy each and everyday to make sure im doing the e ght things. Speaking of right things, avon 39, you should talk about it. This is something thats really important. Avon 39 is our Breast Cancer walk in the u. S. And we are in 54ountries with the avon Breast Cancer initiative. We over the past several years billion dollars and it was money raised by representatives. They go out, s sl products and a portion of what they get they reinvest and get their friends to invest. But it was a cause that was started by representatives. The other cause is domestic violence. How do we make s se that we get this community of women globally to invest and support these causes . Last question, theres another company, herbalife, its been targeted. People say tough things about it. Why does this model work . Because people want they want to be entreprenenrs. They want financial independence. They want to do what they want to do and build their own business. Thats an opportunity whether its avon or herbalife, they have the opportunity. Excellent. You know what . Its a tough one but youre a straight shooter. Sheri. 2 stock, 0lease go through thish deck. It will explain a lot about break. Ah, lilly. She pretty much lives in her favorite princess dress. And shes not exactly tidy. En if she gets a stain shell wear it for a week straight. So i use tide to get out those week old stains and downy to get it fresh and soft. And since im the one who has to do the laundry, i do what any expert dad would do. I let her play sheriff. I got 20 minutes to life. You are free to go. Tide and downy. Great on their own even better together. 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 reremen. Be sure to talk to your doctor before you begin an aspirin regimen. Go talk to your doctor. Youre not indestructible anymore. Choose to move freely. Move free ultra has tripleaction support for your joints, cartilage and bones in one tiny pill. Move freultra. T your move on. And now try momo free night. The first and only 2in1 its time for the lightning round are you ready . Time for the lightning round. Harry in illinois. Harry . Caller hi, cramer, thank you very much for taking my call. Of course. Callele my question is about a stococ Dk Corporation no, if were going to be in that area go with nordic america. Paul in texas, paul . Caller booyah, jim. Ooyah caller i want to know if its a buy now before it reports group. Why dont we buy epr get extra dividend. You get that same kind of thing. Robert in wisconsin. Robert . Caller hi, jim. Jim, my question is whatat the deal with cisco . You know, look, i think the ceo is doing a good job, hell score prices but the problem is that i think the yield is good and the stock is rock bottom. Nancy in california. Nancy. Caller hi, there. Yo. Caller i bought regenron. And youre going to keep it its bankable. The stock is down but its a wild card market for biotech. Domini in new york. Dominick . Caller yes, jim. Booyah. Booyah. Caller altria that yield is safe at 4 , 3. 8 . I dont like to recommend tobaccccstocks but i think i is good for the long term but im barbara in california, barbara. Caller hi there, jim. I purchased 3d systems in no, come on sell. Joe in california. Joe . Joe . Joe, joe . Caller im in in on der. If were going to do it, well go with ventas. Pretty simple. Lets go to new jersey. Caller thank you for taking my call. Radiant health. Buy, sell, or hold. This is speculalave stock but its trading in like 20 increments today. Thats the conclusion of the lightning round look at this, this coat this is what they can do. This coat is 69 bucks. Ive peered into the brain of this market and it says sell stocks. This thing is hot why dont you stick with cramer . What do you do when you buy starbucks . Do you use your phone . I go to the truck outside. I go to starbucks on n ys so i feel like i can throw them business and sometimes i go to mahsood. Those are the days you dont want to know me. You dont wasnt to touch my engine. Ive got too much torque. A lot of torque those days. You d d when the economy is good, people drink. When its bad, people drink. Except for when theyre on this stupid cleanse. Greetings from the quinoa cleanse capital of the world. Im on one of the worst cleanses imaginable. It makes me want to chug down a cold one right now, if not an entire keg if the wife werent looking. I have fitbit, man. Were fitbiting. Were fitbiting right here right now. Lets get our fitbits out. Do you have any peptobismol . Im getting dizzy. Olay regenerist renews from within, plumping surface cells for a dramatic transformation without the need for fillers your concert tee might show your age. Your skin never will. Olay regenerist. Olay. Ageless. Seems like weve hit a road block. That reminds me. Anyone have occasional constipation, diarrhea. Gas, bloating . Yes helps defend against occasional digestive issues. With three types of good bacteria. Live the regular life. Phillips. Your clever moves wont stop the cold and flu. But disinfecting with lysol can. Lysol wipes and spray are approved to kill more types of germs than clorox. To help keep your family healthy, lysol that. Ive been on my feel all day. Im bushed yea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. A. A day long. Last night, the company an astounding 9 same store sales growth in the u. S. , 8 globally, 4 global traffic, stunning performance of consumer packaged goods. Most important, starbucks gave you 15 earnings per share growth with none of that handwringing and whining about a strong dollar and uncertain Global Economic environment. The guidance was spopoon. The sum total of numbers splendid versus any other retailer i follow. Yet shareholders last night and early this morning dumped the stock furiously because of two unexpected negatives, softer sales from europe after the paris tragedy and a slowdown in chinese growth from the 6 rate analysts were looking to 5 . Is that one percentage point from 6 to 5 miss from their own expectations, not the companys, caused a wholesale rethink of starbuckss chinese efforts given the recent weakness in the overall china economy. When i interviewed howard schultz, the chairman and ceo of starbucks this morning, i tried to put the negatives in context of them. I thought he answered the queries in a way that exposed todays selloff as an opportunity. Starbucks traffic has bounced back since the european tragedy, but we didnt see the comeback in the quarter they. Howard is taking a long view of china. Noting the consumer is being empowered and Company Sales are strong as it continues to open more than one store a day in what will be the companys largest market. Just watch this clip. The future of Starbucks Coffee company in china and globally has never been stronger. The brand never been more relevant and this is a longterm story that probably if you look at our peer group not only was in the restaurant and Retail Sector but any bricks and more retailer around the world. Os putting up 4 global traffic, 8 globally, 9 in the its unheard of. Beyond that, schultz said the Company Never gave guidance in china in the first place and anyone who believes their business in china isnt on fire is dead wrong. Thats where the disconnecec lies. It seems like every year analysts doubt the strength of this company. I can recall a period when critics told them that the u. S. Was saturated with too many ststes but anyone who thought that has to have his head examined. Especially when i cant find another retailer doing more than half of what starbucks delivered in the u. S. We have too few starbucks stores, clearly, and if anything the technology howard has introduced allowed the company to handle more of the traffic than anyone thought possible. Second, i can remember when stucks european numbers softened with the financial crisis a few years ago. Howard came on squawk on the street and told us european weakness would be a blip and the company would come back and thats what happened. It was a sensational buying opportunity. Then when we got a bead on the slowdown story, schultz told you would be fine in china. Few belilied and the stock fell from 40s to the 30s over a few weeks time. Looking back, it was another terrific buying opportunity. Finally two years ago the price of coffee spiked to more than two bucks. Everyone seemed to fret ththjava increase would hurt the bottom line. Schultz told you it was a minor cost and starbucks was well hedged. Didnt matter, in incompetent thing yoyoknow, coffee prices got pummelled and you never saw a hiccup in the companys earnings. Guess what . Buying opportunity. Schultz developed new consumers products, expanded with consistency y ound the globe and employ add fly wheel like methodology where the companys strength worldwide fed on itself and accelerated when so many believed it would stall out. Its true thth the stock rallied 40 last year which left starbucks ripe for profit taking in the wake of this quarter support so stocks initial it has to be put into context. Its time to start trust howard schultes. You know what . Maybe its simply a gift that keeps giving. A one time bargain every year where you can buy the stock of starbucks more cheaply than you deserve. Ststk with cramer. Degree gave women a motionactivated wristband to understand how much they move,. And created degree with motionsense. The worlds first antiperspirant activated by movement, it has unique microcapsules that break with friction to release bursts of freshness all day. Keeping you fresher th every move. Motionsense. Protection to keep you moving. Degree. It wont let you down. 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 im back. All right, two up days are very good but the one thing that did happen is were losing the oversold condition that i think triggered this whole move both in oil and stocks. As they go higher, sellers will appear. I think well tell the tale on wednesday when the fed speaks and i dont want you to be greedy. Sell a little ahead of that meeting. Theres always a bull market somewhere, i promise to find it just for you on mad money. Im jim cramer
comparemela.com © 2020. All Rights Reserved.