Transcripts For KWWL Mad Money 20161008

The interim got in the way of the story. It got ugly fast today. Im talking about how two Great American industrials that we follow here on mad money, pbg and honeywell, cut estimates ahead of their quarterly reports. Those reports are going to be coming out soon. Amazingly, while the whole market initially shuddered in an acrosstheboard selloff, the averages spent most of the day in recovery mode. A wicked session turned relatively benign with the dow ultimately dipping 28 points, s p declining 0. 33 , and the nasdaq losing 0. 27 . These two earnings warnings couldnt havco time, worse time for the industrials at least which had been rallying ahead of the soon to be released quarterly reports. But as is often the case, money flowed into other sectors as soon as the disappointments happened, notably the banks and retailers once the cyclical smoke cleared. Despite a tepid nonfarm payroll report, at least according to the prognosticators, these two groups helped the markets midafternoon rebound. Now, it also didnt hurt that big pharma and many tech stocks refused to give up the ghost Global Economy and much more to do with plain old american ingenuity. Thats what happens when you come out to San Francisco. However, starting next week, we begin earnings season, and after todays jarring news from those cyclicals, we can bet not many Portfolio Managers seem to be set up for what awaits them. Monday is columbus day, which will be a respite from any sort of news both macro and micro. This holiday always makes we wonder why the heck the stock markets open when the much, much larger bond market is closed for trading. On tuesday, we hear from alcoa, official opener of earnings season. It will be a confusing quarter to say the least because the company is splitting into a proprietary engineering business and a commodity maker of aluminum. We own the stock in my Charitable Trust, and as we told subscribers earlier in the week, the breakup could bring a whole new class of investors into each segment. That should be positive. However, the concerns honeywell just raised about Aerospace Demand could definitely taint alcoas biggest end market. I think the long term remains ultimately translate into aircraft orders. So any weakness derived from that line item might be a buying opportunity we also have the big yum brands Analyst Meeting on tuesday. Now, yum is splitting into a fastgrowing Chinese Business and slowergrowing rest of World Enterprise that i think will offer value and a potentially bountiful dividend. Earlier this week, yum told you a story of subpar chinese growth, but you know, that makes the story a little less attractive. But i did think the company was short on color about that disappointment. This Analyst Meeting could ga in a breakup that i believe will unlock substantial value just like alcoa. The railroads have been red hot, but after todays industrial disappointments, i wonder if the stocks havent become divorced from the near term fundamentals. For example, csx, which reports after the close wednesday, has seen its stock climb from 24 to 31 since the middle of the june. You got to wonder is that too much of a move . I bet csx is headed back down unless coal has picked up. Key cargo. Has been, so the comparisons could be very easy for csx. Why bother to mention coal at all . Because at last months delivering alpha conference, david faber and i hosted a panel where one of the participants made a strong case for owning a Company Called tech resources. Thats a producer of whats known as coking coal, the kind thats used to make steel. Prices have gone up a great deal for this type of coal of late. That only happens if were seeing a pickup in demand, especially in chinese demand. You know what, that if you own this one, you better be praying for coal volumes to stabilize or else the stock is overvalued although its had remarkable expense control for years now, which has helped buoy the stock all the way higher. Unlike the rails, the Airlines Stocks have been deadly this year, one of the worst being delta, down 23 for 2016. Trading at just seven times earnings. I think thats too cheap. If delta merely says that it sees business stabilizing when it reports on thursday, youre going to make some money here. I look at this stock and see a thats what i call decent risk reward. How about a company thats performed marvelously but not marvelously enough . Im talking about ulta salon. Well be paying close attention to their thursday Analyst Meeting. Uber cramer fave ceo mary dillon needs to justify why her stock still can deserve to trade at nearly 31 times earnings, much more expensive than the average stock on the s p 500 although the company has much better growth than just about any other a ton of them. Thats important because even though ulta is down 40 bucks from its 278 high, it needs to Say Something that makes wall street fall back in love with it all over again after investors fled this morning in the wake of its most recent good but not shockingly good quarter. Friday is the big earnings day of the week with three of the four largest banks reporting. Each has a very different story to tell. First up is citigroup, which has gone from being a regulatory nightmare to a Bank Examiners darling. Move from the high 30s all the way up to 49 and change where it closed today . My Charitable Trust owns this one because we believe its too cheap versus its book value, meaning what it would be worth if they just liquidated the whole darn thing. I got to tell you, i think any weakness is going to bring in buyers, not sellers. But like all banks, citi needs higher Interest Rates to really blow away the numbers. Next, jpmorgan reported terrific results last quarter, the best of the large bank universe, and its stock has held up extraordinarily well. Still, its up just 3 for the year. So if the company can deliver another number that beats expectations, i think its got more room to run. Even if the fed doesnt raise rates at its next meeting, jpmorgan is doing quite well in this environment already. You got to hand it to them. Next year could be even bigger. Lets listen for clues what the Company Might do with its substantial London Office because of brexit. There could be an actual earnings per share hit if management decides to pull up some of its stakes and bring them to the continent. Finally, there is the most controversial stock and company now, heres a bank that even two quarters ago was thought to be the finest and cleanest in the land. But the last quarter disappointed, and then on top of that, well, weve now heard about the scandal involving overly aggressive crossselling, which was either abetted or ignored by toplevel management. Will heads roll . Will the current ceo john stumpfs tenure be curtailed . Will chief Financial Officer tim sloan perhaps be given a more prominent role . Will there be specific actions taken to separate the chairman and ceo roles . Fargo ever get back its old premium valuation . Maybe that was caused by all that crossselling. It used to be the best reason to own the stock and now its diminished as a growth driver obviously. Weve been stuck in this stock for my Charitable Trust forever. And have no conviction that things can bounce back without multiple rate hikes. Theres nothing in the cards that suggests the fed will be that aggressive. Either way, the bottom line is that we have a busy week ahead of us that just might define how the rest of the year goes. Might be subpar, but we dont have to wait too long to find out. Lets take some calls. Lets start with jonathan in new york. Jonathan. Caller jim, how you doing . Its jonathan from new york, and i want to give you a big st. Johns university mba booyah. I want to ask you about a company that your Charitable Trust has recently taken a position in, bristolmyers. I understand that its, you know, a screaming value play. But i want to get your opinion on how the industry will perform asho of a Clinton Administration with increased speculations and so on and so forth. Okay. Well, were taking a very longterm view for my Charitable Trust. As we told club members, we dont expect results this weekend. Dont know if theyre going to be that good. We like the thing for a value play. They have a lot of levers to be able to pull and the idea to just have one drug, which was important, i admit, just fail, and it really didnt fail, tells me i think there could be down and then up, and thats how were playing it for action go, st. Johns. Dorothy in florida, dorothy. Caller hi. I am a 93yearold millennium who loves to play the stock market. In doing this, i bought over 5,200 thats 5,000 no, 52,000 shares of sirius at 4. 21 per share. Wow. Since then, it refuses to go up. 19. It goes back and forth. I can sell it and take a heavy loss and buy stock that moves, or i can hold it until it goes up, if it ever does go up. What is your recommendation . All right, dorothy. First of all, i think youre fabulous. I love the fact youve been at it for a long time. Youve accumulated stock. I am a believer in sirius xm. Is it necessarily for a retired investor . Theres some risk to it. Stick with it. Next week is going to be a busy one with earnings season kicking off, and after todays disappointments from High Profile Companies like honeywell and ppg, maybe you ought to buckle up. It could be a rocky ride. On mad tonight, its the old economy versus the new economy, and its not looking all that good for the old school industrials. Ill tell you how they could recover. Plus all this week weve been profiling companies on the cutting edge of technology. Tonight im talking with bank of americas ceo about its investment in mobile. And is digital powerhouse adobe getting enough credit for its ive got the ceo. Stick with cramer for more from our San Francisco special, invest in america, defining the future. Announcer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a miss something . Head to madmoney. Cnbc. Com. Jay knows how to keep his wheels spinning. Nice shorts dad. They dont make em in adult sizes . This is what the pros wear. Look at the lines. Uhhh. Look at the other line. Mm. Mhh. Thats why he starts his day with those two scoops. In deliciously heart healthy kelloggs raisin bran. Ready to eat my dust . Too bad i already filled up on raisins. Jay knows hell be ready for the turns ahead. Hey dont forget to put up your kickstand. Ring bell sighs. Kelloggs raisin bran. And try kelloggs raisin bran crunch now with more crunchy clusters. You get used to sweaty odors in your car, you think it smells fine but your passengers smell this. Eliminate odors youve gone noseblind to for up to 30 days with the febreze car vent clip break out the febreze, and [inhale exhale mnemonic] breathe happy. Yes. You know, that reminds me of geicos 97 Customer Satisfaction rating. 97 . Helped by geicos fast and friendly claims service. Huh. Oh yeah, baby. Geicos as fast and friendly as it gets. Woo geico. Expect great savings and a whole lot more. Why are you checking your credit score . You dont want to live with mom and dad forever, do you . Im making smoothies how do i check my credit score . Credit karma. Dont worry, its free. Credit karma. Give yourself some credit. Ahh. Still sick, huh . Ill take it from here. Im good. I just took new mucinex clear and cool. Ah whats this sudden cooooling thing happening . Its got a menthol burst. You can feel it right away. Wow, that sort of blindsided me. And it clears my terrible cold symptoms. New Mucinex Fastmax clear cool. Feel the menthol burst. And clear your worst cold symptoms. Start the relief. Ditch the misery. Lets end this. The old economy versus the new economy dynamic was very much in play again today. Quality industrial Companies Like ppg and honeywell getting slammed while the social, mobile cloud, Artificial Intelligence and internet of things plays continue to plow forward, you know the new economy stocks are winning. I got to tell you im still in a daze about this news from honeywell, which involves a steep cut in the trajectory of the companys earnings versus what we expected only a few months ago. Sluggish emerging markets, the beleaguered oil industry, slowing helicopter and aircraft orders all contributed to the surprise shortfall. Theres been a turn for the worth noting that even the best of the best, honeywell, simply cant keep the tentacles of the faltering economy at bay. Same with ppg. The transformation from a commodity Chemical Company hostage to the slings and arrows of the Global Economy to a proprietary company with exceptional products had, until today, insulated ppg from the shortfalls that had plagued its competitors. But the companys preannouncement this morning bringing expectations down yearoveryear growth to basically flat projections for the next quarter, well, it took my breath away, as did this statement from ceo mike mcgarry, and im quoting. We are disappointed with this quarters eps growth rate as we continue to operate in a sluggish economic environment with no clear nearterm catalyst for improving global gdp growth. Not a lot of hope there. The hideous declines in these two stocks left me astonished. Honeywell plummeting 7. 5 , ppg down 8. 3 . Thats what happens when companies with a long track record of beatinnu side. The Collateral Damage bled through the entire industrial world right on the eve of earnings season next week. Remember, many stocks of these big Cyclical Companies have been levitating for weeks on end simply because oil has been climbing and weve been getting noises out of china that suggest the peoples republic is doing better. Those noises are now falling on deaf ears after today. These kinds of negative stories can have a huge impact on the whole s p 500 as they indicate a slowdown in economic growth, something acknowledged by this nonfarm payroll report from the labor department. Yeah, they can pull any stocks down, at least in the morning. However, as you might have seen when the futures selling subsides, the money comes flowing back to the kinds of companies we spent this whole week examining, the companies that harness new tools to make it so the honeywells and ppgs of the world can improve their businesses even without strong sales growth. The tools we saw on display at salesforce. Com help large industrials garner whatever meager business might be out there in this environment. The prompts and cues that at exactly the time when they make decisions can be the secrets to better returns, and they can keep also the colossus of tech, amazon, from crushing your business. I like the way retail acted today. Technology has gone from being an expense and a liability for nontech companies to being a necessity for taking share in a slow growth world. So heres the bottom line. Two economies. Ones hostage to global growth. The other is only limited by the ingenuity of their executives and their employees. The industrials today, i suggest putting your money in the new economy stocks. They may have more longterm lasting value. Lets go to paul in rhode island, paul. Caller mr. Cramer, youre indeed a wealth of information. Your books and shows have made me much wiser. Thank you. After 16 years of occasionally driving by an electric boat facility here in rhode island, this spring i noticed expansion of buildings and many more vehicles in the parking lot. I did my homework on the parent company, and based on that and what i saw with my own eyes, i bought shares before their Conference Call three months ago. Their ceo was somewhat optimistic about the Third Quarter but confidently a lot optimistic about the Fourth Quarter. My question on General Dynamics is with the probability that the president ial election will have no effect on this defense the stock price, whats the best move for the Fourth Quarter coming up . By the way, your staff is just super. All right. Thank you for the kind words. Ive got to tell you General Dynamics after the honeywell announcement today did make me, lets say, feel some caution for the stock. Its been a fabulous performer. I do not think you need to get in the way of october earnings. I would hold off. Lets see the number. Get the election, and then take a hard look. Pennsylvania, kevin. Caller hi, jim. Boo, boo, boo, booyah first time caller, kevin here from pittsburgh, pennsylvania. Steeler country. Tractor supply has been getting hammered lately, and im wondering if you think this company is totally undervalued. All right. Kevin, ive got to tell you, you can say the company is totally undervalued, but were in the Fourth Quarter and theres a lot of people who now have losses in the stock. I think you have to wait until we see the next quarter. And there will be tax loss selling between here and year end. Its a tale of two economies, old versus new. And after a brutal day for the old economys industrials, it looks like the only way they can recover is by harnessing new technology, if they can recover at all. Much more mad money ahead. Speaking of new technology, adobe has transformed itself from a sleepy software play into a cloud based colossus with amazing growth, but is there more upside to the stock . Plus, bono started red ten years ago to Push Companies to help im finding out how some of the biggest names in the Business World are stepping up to the plate to help the cause. But first an interview you wont want to miss. Bank of americas ceo joins me to talk technology, the fed, wells fargo, and a whole lot more. Thats all straight ahead, so stick with cramer. Ok. Careful no peaking bam whoa, wow cmon sport, lets take a splash. Oh, no thanks. Besides, i didnt bring my suit. Oh, thats ok, you can borrow the spare. The spare . I dont want to put anybody out. Nonsense we lend it to everybody. Some people we. Hardly know. Besides, youre family now. No, i wouldnt want to impose. Were family now. Its not an imposition. To swim. Nobodys forcing ya, ya know . He doesnt have. To, hes an adult. No dad, hes gonna swim. No, its fine, we can play cards. Cmon, lets. coughs that cough doesnt sound so good. Well i think you sound great. Move over. Easy booger man. Take mucinex dm. When your cough returns. One pill lasts 12 hours, so. Looks like im good all night ah david, please, listen. Still not coughing. Not fair you guys waffles are my favorite ah some cough medicines only last 4 hours. But just one mucinex lasts 12 hours. Start the relief. Ditch the misery. Lets end this. Hikes most people were expecting in january, and now the whole industry is caught in washingtons crosshairs thanks to this wells fargo crossselling debacle. Thats part of the reason why the bank stocks have been having a nice run in recent months, and bank of america is in particular very strong, up 33 from its lows in late june right up to the big brexit. Comes from the use of new technologies to take market share from other banks and grow its already gigantic Customer Base. Since were out here to examine this kind of technology, i got to ask brian moynihan, the ceo of bank of america, how his company is harnessing tech to improve its earnings in the face of a low interest rate, low growth environment. Take a look. Brian, were out here in San Francisco, and what i realize is that technology is really you who should be your client, who should work for the bank, what is going on here. Just talk about what bank of america is doing to stay ahead. Sure. We actually moved one of my Senior Executives out here, who runs the retails and consumer system, to get closer and make sure we maintain closeness. But we have to be state of the art in mobile technology because thats what the young people in particular and all people need. Thats how they interface through the public. Thats how they find their news, they find their sports, they nd then weve got to be ubiquitous when they go in to pay. Thats apple pay, google pay, samsung pay. Theyve got to have us with them wherever they go to pay and wherever they go to transact. The mobile phone gives them that ability. Think about that difference between when you and i grew up, where we went to the local corner branch, and then we moved to college and we either moved the account because you had to because you couldnt get any money unless you did. This now allows you to be completely, you know, no matter where you go in life from the kid being born today until they whatever their job is, wherever they live. Its unbelievable. One of the things that has plagued a lot of banks that have merged is that separate system. If i go to california, its different from new york. California doesnt know me. Thats changed for bank of america. That was an issue we had. Coming through all the merges and everything, we took a look when i became ceo and said were going to make this one big change. We did one of the largest bank conversions ever done by converting our california systems because the basic principle is you couldnt say you were one bank, one nationwide franchise and have people walk in and actually get a difference experience. It allows us to move our mobile and Online Technology faster because we used to have to develop things literally four times. So for 70 of the Customer Base who develop it and then california piece and military banks. Putting them all together allows us to do it. So its efficiency and development. When Technology Development speed is a key, how fast can you thumbprint, app, setting up appointments, you cant do that across four things as fast as you can do it across one. A lot of it has to do with the fact that younger people dont necessarily know what a brick and mortar outfit is. As they get wealthier, they do. How important is this toward people saying im going to go with bank of america versus xyz bank . I hope its critically important because weve put a lot into it. Relationship with our customers every year. So that is a key element to it. And its not a key element only having that. You also have to have the branches because we have 130 million Customer Interactions a week. 7 million of them go in the branches, so you have to have the integration. Each week, 30,000 people set an appointment in the branches. What do you not want to do . You dont want to walk in a branch and say i want to get a mortgage and nobody is there to serve you. Think how easy it is to run the Business Model comparatively by dont having people walk in to an integrative model, the computer, the phone, the mobile, the branches. If you didnt have any component, you wouldnt be competitive. Thats why we think we continue to gain share, especially among people who value that. Also this next generation, the generation thats going to have all the great wealth, cares about sustainability, cares about charity, cares about whether they anyone they interact with is doing good. We had the ceo of red on, and the First Enterprise that she mentioned was bank of america. This is something youre committed to, or is it bank wide . How did it happen . Its a commitment we have. Banks go back we go back 230 years, so banks have always came out of the committees and had commitments to the communities. The issues have gotten bigger and more global. The definition of community has changed. What we did with red is it came about this idea that america has bush and putt far and red and all the work they did to drive and help eradicate aids. Its not quite done obviously and still a lot of work to do in africa. When the idea came up, bank of america, our teammates like to make change and make things happen. So they do stuff all over the country with 2 million volunteer hours. What was appealing about red, it was a chance to impact the global thing in a very americaled way. So that was kind of the interesting appeal. The popup concerts in times square that we helped sponsor, the food instructions that go all around that if you spend a dollar, we give 40 cents. What we did at the super bowl a few years ago, all this was based, activations. The teammates raised the awareness and thats what weve been trying to do is raise the awareness that the fight is still ahead of us. For 30odd cents a day, you can stop a mother passing the aids thats a simple execution. It was just can we get enough medicine . Does it help attracting the best people . Whether it what we do with red, what we do with volunteer, what we do with housing, young everybody wants to work for a company they respect. Everybody wants to be with a company they respect. As we go out and hire 2,000 young kids out of school with what theyve been taught and the social nature of their being and all the things talk about, it is important to your employer to be employer choice, that they know impact on society. Ive been torn this weekend at dreamforce because theres such great work being done with machine learning, with Artificial Intelligence, but are the machines also too powerful. Weve had a number of people talk about cybersecurity this week. Sometimes i feel like theyve overrun the ability of humans to be able to really protect their account and protect their numbers. Right. So cybersecurity is critically important. Times thats one place theres no were fighting an expense battle to keep it underneath the revenue. Theres one place that we just never not spend what they ask, which is in cybersecurity. But the key is to have that device secure because if people doubted they could transact securely, theres about 700 or 800 branch equivalent activities. So wed have to build 700 branches again to take the activity back in the branches, and you just dont want to do that. Cybersecurity is incredibly the belief that their data is there. And you know, the flip side is using that data appropriately, you know. Yes, do we let customers know that we have other capabilities they could use . Yes, but you got to use it in a way they take you you present it, and they take it as opposed to get too intrusive in their lives. That does bring up wells fargo. If you want to make more accounts, does bank of america accounts that they open from one individual, and how do you monitor if you do the behavior so someone doesnt put 25 in on a friday to open a new account and take it out monday . We have a great monitoring system. They monitor that all the time. We reward balances. So you would have been able to spot 2 million different potential we drive that response growth. We have what they call stair stepping and thats what we drive at. Model requires that we have the primary checking account. But you still have looked at what wells did to be sure, im sure, down the organization and say, listen, can we be sure were not doing this . Everybody is looking at that obviously, and the regulators are asking us about it as chairman yellen testified to. You did a recent study about Consumer Spending and these young people arent spending the way you and i did. Can you talk about what you discovered . So let me tell you what we saw in the Third Quarter in spending. Its strong. Spending is up 5 yeartodate. Total spending of all cash and everything is up 2 . So i think were getting some share in debit and credit cards that might be up higher but the consumer is very constructive. A lot more, you know, movies and entertainment, a lot more experiences and a lot less things. So it is real. Its empirical now. You actually have the data which says experiential economy is whats going on. That could change, but in the broader co things you saw in jobs data today and stuff is housing still has room to go here. We dont want to overbuild housing. We found out that wasnt the best idea. But investment housing and things like that, so youre seeing some shifting in that pattern. Home equity loans are being drawn to put the new airconditioning system in, deferred maintenance and things like that. When you watch consumers, theyre spending on the things they need to spend on. So right now experience is the thing they need to spend on in the broad base, and thats what they do. Homes need to invest in, they do that too. When i hear housing i think the about the traditional things, how much do rates matter, how much does who is going to win in november matter. Are these things to the point where it really doesnt matter what happens or rates still are a key part of bank of americas earnings power . A rise in rates makes us seem a lot smarter in the world because we make more money. Its 4 billion plus on a core basis a year. Period but if you think about last quarter, what you saw is the expenses keep coming down and the revenue stabilized and is growing. Were growing nii, net interest income, by putting more volume through, more deposits. Up 60 billion yearoveryear. We can keep doing that. It would be easier if rates were a little bit higher, but that didnt happen and were not waiting for it. Thank you. Moms got this cold. Hashtag stuffy nose. 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But will innovation and partnerships make this stock the image of excellence, or will it get lost in the crowd . Now that were firmly in the Fourth Quarter, you need to keep track of whats been working because these are the stocks that Money Managers tend to then they pile into them as we approach the end of the year. Take adobe systems, the maker of Digital Media and Marketing Software thats been transforming itself into an amazing Cloud Computing play. Adobe wasnt getting nearly enough credit for the growth. Since then the stock has given you a gain of more than 20 . Its deserved. Some of that strength is part of the mostecter which they reported a couple weeks ago. The company knocked it out of the part. Nice top and bottom line beat. Some terrific guidance, hence why the stock jumped 7 in a can it keep climbing . Lets check in with Shantanu Narayen and find out more about his company. Mr. Narayen, welcome back to mad money. Thanks for having me. Welcome to San Francisco. Thank you. We have spent the week learning about Artificial Intelligence, learning about machine learning. Weve learned about how Predictive Analytics matter. Adobe is using all of them right now. Well, we process more content and more data than anybody else in terms of comp the magic you have in photoshop and what people can do, we are actually looking into peoples minds and figuring out how to translate that idea into reality. On the Digital Marketing side, as you have mentioned on your shows, we process over 20 trillion transactions a quarter, and its not about collecting that data. Its about making that actionable and predictive. We havent named it, but that doesnt mean we havent been the pioneer in it. Youre not a company thats a startup. I typically dont see that level of acceleration except for a company that may be one or two years old. What happened to make it so that its hitting on all cylinders . I think we did a good job, jim, of reimagining the creative process. If you think about whats happening maybe with the olympics where people are watching all of that on devices, that video, were powering that. When you think about whats happening with a. I. Or augmented video everywhere, you know, were the company thats powering all that content and creation, and i think we attracted a bunch of new customers to the platform. We completely changed the paradigm of how we can innovate rather than 12 or 18month cycles, attractive upfront pricing. But fundamentally more innovation. And when you drive innovation on a consistent basis, i think the rest takes care of itself. Lets go back to rio because what happened with rio is you television, and that was all adobe without necessarily knowing that we were watching adobe. Well, cnbc and nbc and comcast have been great partners in that, and youre right. I think the expectation that consumers have is that they can watch anything thats happening in the olympics wherever they are. And enabling the entire world to watch video in a personalized way, were happy to be the engine that powers that technology. You talk a lot about personal channels. You were well ahead on this too. Well, you know, i think there are a couple of macro themes that weve used to reinvent the company. The first one was design. You know, the world of design is changing. Aesthetics is becoming even more important. So are we enabling people who have a story to tell to tell that story . And the second is digital experiences. When you go, if youre booking a flight, whether youre staying in a new kind of place, whether entertainment area, its all about that experience. You expect that experience to be personalized for you based on your history, your knowledge. If we can enable every business to do that on behalf of their customers, thats a really powerful tail wind for our business. At the same time, you know weve talked about my daughter is the one who explained to me photoshop. I thought she is a genius of course because shes my daughter. But i see this push on students in education. Youre getting people early to understand adobe, and that seems like even if you just go to your website, thats a new emphasis for you. I think its crazy in this day and age that students, whether youre k through 12 or whether youre in higher education, put in project reports that are text and boring. Why doesnt it have video in it . Why isnt it interactive . I think if you can enable people to express their story in a more creative way, thats a really powerful thing. Adobe has always been very particular students because anybody who grows up today without access to digital literacy, i think theyre disadvantaged. So in addition to delivering great products, i think the company has been really well known for what we do in csr with respect to making it accessible to people. You still never lost the touch of the pdf and really theres still people using inefficient paper. There are billions of pdf created every day, and its because people want to automate adobe sign, which is one of the ways in which we can actually finish this last mile, where instead of having physical signature, you can electronically sign it. I love it. Thats you. Exactly. So i think constantly thinking about how were creating markets and not following others is, i think, what fuels the company. Youre always one step ahead of everybody, but you remain as course humble ceo, but youve done a remarkable job, and its a great stock too. Thats Shantanu Narayen, ceo of adobe, a stock we have just loved and i think goes higher. Mad money is back after the break. You know your heart loves megared omega3s. But did you know your eyes, your brain, and your joints really love them too . Introducing megared advanced 4in1. Livers the omega3 power of two regular fish oil pills. So give your body mega support with megared advanced 4in1. Incredible bladder protection in a pad this thin, i didnt. Think it would work, but it does. Its called always discreet for bladder leaks, the super. Absorbent core turns liquid to gel. I know im wearing it but no one else will. It is time it is time for this weeks final San Francisco lightning round on mad money. Thats where i take your calls rapid fire. You tell me the stock. I tell you to buy, buy, buy or sell, sell, sell. Well play this sound [ buzzer ] and then the lightning round is over. Are you ready, skeedaddy . Its time for the lightning steve. Caller jim, Rayonier Advanced materials. Ive owned the stock for two years. It has performed pretty lousy. Do i sell it at a loss and reinvest . No, no, no, dont. Its just a very interesting situation. It just does havent a lot of backing. Theres no sponsorship on wall street. I would not give up on it. Lets go to mike in new york. Mike. Caller hey, jim. Greetings from buffalo. Hope youre doing well. Hey, i dont know how you keep up with all these stocks, but i do listen, and i do apprte and if you could give me your take on maxlinear, which is in the red hot semiconductor space, id appreciate it. Maxlinear is another one of these companies that people just keep thinking how can it stay independent especially after linear tech got bought. I think the company is still cheap. You know im a big believer in the consolidation in this industry. I think it could be one of the companies that gets consolidated. Lets go to frank in michigan. Buy . You know, when it comes to that particular segment of real estate, i just want to be in ventas. No need to take risks. Rocky in arizona. Rocky. Caller hello. Buy or sell or hold on Chesapeake Energy . I have 1,500 shares. Look, natural gas is coming back. Its actually very, very strong. But the problem is chesapeake has got a real bad balance sheet. Not the kind of stock i like. My Charitable Trust owns schlumberger. Thats the best in the industry. Lets go to august in new york. Caller yes. Good afternoon, jim. A big booyah from long island, new york. My question is buy sell or hold on a Company Called corbus pharmaceuticals, crbp. I do not know corbus. I have got to do work on corbus. Were going to count it as homework when we get back to the martin in my own home state of pennsylvania. Martin. Caller greetings from the very proud green state of wentzylvania. Im calling about cbi and the concerns i have of a 26 yeartodate decline in stock price. The ceo lets go of 250,000 of his own shares, and the validity of a Westinghouse Energy lawsuit. Im wondering if its a good time to reinvest or not. Im not a fan. Im not a fan but for all the reasons you said. Hold it. Is it all in the stock . Im not going there. However, i am playing wentz starting this weekend, and i think its going to be good. That, ladies and gentlemen, is the conclusion of the lightning round. Announcer lightning round is sponsored by td ameritrade. . . Ange thmuch, do they . Really . Ill take it. Sir, your credit. Is great right . Yeah, id better check my credit score. Here, try credit karma. Its free. All right. No more surprises. Credit karma. Give yourself some credit. [burke] hot dog. Seen it. Covered it. We know a thing or two because weve seen a thing or two. . We are farmers. Bumpadum, bumbumbumbum . coughs that cough doesnt sound so good. Well i think you sound great. Move over. Easy booger man. Take mucinex dm. Itll take care of your cough. Fine ill text you in 4 hours when your cough returns. One pill lasts 12 hours, so. Still not coughing. Not fair you guys waffles are my favorite ah some cough medicines only last 4 hours. But just one mucinex lasts 12 hours. Start the relief. Ditch the misery. Lets end this. Announcer partnered with business to effect change on a global scale, running a Worldwide Campaign centered on ending disease. Philanthropy is more than a brand, and paired with red, the fight to do good has powered a i spent the whole week out here in San Francisco talking about the way business is being revolutionized by technology. But in many ways the same thing has happened with charity. Just look at red, the organization founded ten years ago by Bobby Shriver and bono with the goal of making it easier for businesses and individuals to join the fight against aids. Reds sponsored products and concerts have helped raise an astounding 360 million to buy hiv drugs for people who need them in subsaharan africa. We caught up with red as part of this years dreamforce presentation, and i got to speak with deb dugan, the ceo of red, about how her company is changing the way we think about aids treatment. Red is probably the most successful, from my point of view running mad money and examining corporations, most successful at what it does. Just tell us how successful youve been. Oh, my gosh. Thank you so much. Well, we came to be to solve a problem. So weve been successful at the global fund, which fights tuberculosis, malaria, and aids in its beginning years had countries giving in a war chest to do the right things and pool things together, and they wanted companies to come along. The first four years, there was 4 million that came from companies and 4 billion that came from countries. So they said something has to change in this dynamic. Otherwise, actually the countries werent going to come. So bono and Bobby Shriver had this idea to keep a brand of philanthropy called red. A brand of philanthropy. So we didnt go to the csr, the Corporate Responsibility people. We dont go to the foundations. We go to the head of marketing with a great idea at these companies, and we say join us in this fight. So here we are ten years later, 360 million to the global fund, 70 companies have helped us that otherwise i dont think would be in the fight against aids. So you would go to the head of marketing, say, for bank of america, and they would even though you dont think of a bank theyre all in. I think when we look at companies, we look at can they help us with money to the fund . Can they help us with awareness . Do they have a skill set to get the job done . Is there a courageous leader . Brian moynihan is a courageous leader. I always feel like were slighting companies or slight is the gates, or slighting apple, mark benioff, cocacola, but youve been successful. The list is too long, but there are people who are at your core. Absolutely. There are Great Companies that beginning. Apple has given over 110 million in the fight against aids. Nobody really knows that, but its staggering. Were telling people. Thank you, thank you. Bank of america, also 20 million. Starbucks, cocacola, belvedere vodka. You know, theres just been amazing, iconic companies. Salesforce has joined in 2015. Eliminate motherchild transmission of hiv, and its a u. N. Vetted stat. Its not like, oh, pie in the sky. All of a sudden something that was impossible in the 80s is now possible 30 years later. I think that sometimes just we be empirical. The numbers who died, say, five years ago versus now versus what can happen four years from now. Ill get even more staggering than that. 35 million have died from this disease. Thats like the population of canada not being here. Right . 37 million still have the disease. We have been successful in getting 17 million of them on lifesaving medication that costs 30 cents a day. So weve seen dramatic swings, but the stakes are so high. Number one cause of death for women in reproductive age on the planet. Number two reason adolescents die on the planet after car crashes. Africa. It cant be. This is preventable and treatable, and the world knows that it has to do the right thing. But ngos cant do it on their own. Companies have to help. And companies have to step up. And so red tries to give them the tools to do that. Ann frank, i have to defer to someone much smarter than all of us. She said, no one has ever become poor by giving. Do the Companies Know that theyre not going to hurt their earnings by giving . Oh, my god, it is the best roi for them. It is the best return on investment. First, their customers love it. Their employees get so much more engaged, and were living in a generation now where 62 will take a cut in pay to have a job with purpose. So they demand that their so if you want the smartest, best people, you think of this. You think of red, not necessarily of trying to get that pay raise. I think of red as not getting that pay raise . Oh, yeah. Know, sort of the winwin. Right. Because its good for a brand, of course. Its good for their employees. But you know what . Its got the ultimate roi, lives saved. How about that one . Does social media help . Social media is where its at, of course. So we just came from a tech conference, dreamforce with salesforce. We used the latest tools in following a customer journey. So we think, okay, how is that purchase to good . What if you follow somebodys journey of values, of being a good person . Do they donate . Do they volunteer . Would they like to buy a product for good . Might they sign a petition and help us with policy . May every company watching who hasnt given yet understand what you do. Thats deb dugan, ceo of red. Start the interview with a firm handshake. Ay,no dont do that try head shoulders instant relief. It cools on contact, and also keeps you 100 flake free. Try head shoulders instant relief. For cooling relief in a snap. . Living well . Rise above joint discomfort with move free ultras triple action joint support for improved mobility and flexibility, and 20 better comfort from one tiny, mighty pill. I like to say theres always just for you right here on mad money. Im jim cramer, and i will see you monday [voiceover] youre watching mydestination. Tv. Find yourself between a rock and a soft place in st. George utah at the red mountain spa and indulge in a sublime haven of leisure, adventure, and pure luxury. Or the elite situated along the pacific coastline of big sur california, at the post ranch inn. And later, experience the firstclass luxury lifestyle in a 6,000 square foot high rollers suite at the Green Valley Ranch in las vegas nevada