Transcripts For CNBC Mad Money 20121215 : comparemela.com

Transcripts For CNBC Mad Money 20121215

Newtown, connecticut. Our words can do little to ease your pain. But you know this. We are with you in this incredibly difficult time. And recognize that you are who we are thinking about, even as we try to focus on our work today. So as for the markets, it was another weak day. Dow dipped 36 points. S p gave up. 41 . Nasdaq declined. 70. A lot of that again because of apple. You know the drill as we head into the weekend. Im not expecting to hear any progress on the fiscal cliff. But you know, i always watch the sunday morning talk shows now very closely and im looking for some politicians saying something encouraging. What does encouraging mean . It means a republican uttering the two words tax increase without the word no before it. And the democrats uttering two words, spending cuts, without the word no before them. Neither seems to be able to pull off that syntax, though. At this point i think weve got to assume that the washington people, they cant get it together. Weve got to gird ourselves for a cliff, make sure that we understand what the dive will look like, and focus on things that are easier to gauge, namely earnings and remembering that if you get aggressive ahead of falling off the cliff youre just going to do poorly. So with that in mind heres your game plan for next week. Kicking things off is general electric. Okay . I think this is really important. Why . Because this is the most important talk about the whole give you the whole panoply here. And my Charitable Trust owns ge, and part of that is because we believe its a terrific play on several Huge International themes. Energy, conversation, natural gas use, aerospace, health care for worldwide aging population. I expect ge to be very upbeat. I think jeff immelts going to tell a good story. Some of thats because the company just boosted its dividend by 12 today p. You dont do that if youre doing poorly. The meeting will be the most talked about event of the day, maybe even the week other than the fiscal cliff. Next up, oracle reports on tuesday after the close. I normally like oracle going to earnings. I heard so many rumblings of a better than expected quarter that it makes me nervous given the stock rallied some 25 on the year. The quarters got to be lights out or we can see a beatdown. Wednesday morning we get a result from the exact opposite of oracles general mills. Nothing like this one just kind of goes up a little bit each quarter, delivers superior returns over a long period of time. And allows you to sleep at night. General mills hasnt done anything of late. But do you pocket that fine dividend, hold on, leisurely ride. Stephanie link and i were talking about the stock last night. Shes the codirector of actionalertsplus. Com, my Charitable Trust. Its just worth owning it because it just doesnt ever get hammered. After the close we hear from accenture, which may be along with ibm the best Consulting Company on earth. If i had to buy one stock for a trade next week you know i dont give you many trade ideas. I have to admit that i would buy accenture on tuesday ahead of the report. Because this company has consistently guided up when it reports a terrific quarter. I dont think this weeks going to be any different. Complicated one. Bed bath beyond. Bbby. They report wednesday. I am worried about bed bath. And this happens to be a stock i just mentioned stephanie link. This is a stock that we own for the Charitable Trust. Small position. Why not bigger . The stock acts so horribly. Even on good days. Thats often a tell for the future. Its true. This ones already down a ton. You might ask, how much worse could it get . My answer to that would be take a look at dollar general. I thought that one had bottomed after a hideous selloff, and i was wrong. Because the company had gross margin pressure. Making less on every dollar that was sold. The same thing that may be happening with bed bath. Maybe thats why it doesnt lift. But the companys so darn cheap, you cant jut cut and run. Its got a great balance sheet, and it really should if possible be taken private. That would be a gigantic deal. Not only that, though, but the stock is gripped with one of the worst charts imaginable. Im not a chartist but i point it out. Everything has a price. And this one doesnt seem to be there yet. But i think it could be there shortly. Then theres paychecks. We know this one, right . We endlessly hear about people in washington wanting to do the right thing by the Small Businessperson. Of course what they really should do if they want to dot right thing is get the heck out of the way, right . Our businesspeople know how to do business without the government getting involved. I think these guys in washington are killing confidence. Im going to ask paychecks directly how much of this fiscal cliff thing is crimping whats been a terrible time for Small Business anyway. Lets listen to what paychecks has to say. The actual stock is paying away for a return even as the government is prolonging the pain. Thursday morning we hear from car max. We know cars are in scarce supply in the northeast, and carmax is the leading supplier of used cars. Plus the used car market is poised to really pick up steam. The use the car business does well when there are a lot of new cars on the road. So the recovery in the domestic auto biz in the last couple years is now filtering down to carmax, which makes more money from selling relatively new used cars. I think were going to hear very good things, particularly in light of hurricane sandy. Darden gives us results. Its on thursday. The bars been set very low here. But not lower than the company itself. And as far as im concerned, maybe its time to think about a new Transitional Management Team at darden if they fail to get it together soon. Almost every other restaurant chain in this period has been having a good run, while the parent of olive garden and red lobster has been endlessly disappointing. And the recent preannouncement tells me not to expect any imminent changes. Amazingly bad samestore sales. Periodic blip up, sucks people in, and then more bad samestore sales. A couple more disappointments and people will start worrying about that bountiful dividend which currently gives you a 3. 4 yield. That will be the ultimate red flag. We also get results from discover financial. The credit card companys been the cheapest of the big three. Mastercard. My Charitable Trust owns nap and visa. Discovers been consistently beating expectations of late, which is why it is up 65 for the year. All that said, believe it or not, the stock might have a lot more room to run because even after that move it just isnt expensive. It sells at eight times earnings. Visa and mastercard, faster growers, 20 and 21 times earnings. Discover isnt that different from the others. It cant be that much worse, so to speak. I would buy it on any fiscal cliff weakness and ive intended several times to buy it for my Charitable Trust. Heres a tough one. After the close thursday its swoosh. Nike reports. Few stocks have become more controversial than this one. Heres a company that was doing fabulously in china and making up for all sorts of north american weakness. That had been the theme for a couple of years. Now its just the opposite. People are concerned about the inventory building in china putting a lid on the stock. Now, i am looking for a lid to be blown off by a turn in china eventually. Maybe not this quarter. While the u. S. , i think, is strong because of foot locker, but some analyst came out today and said u. S. Is even weak. Remember, nike trades on futures orders, not on earnings. So if youre dumb enough to want to trade in after hours, be aware, you might be trading on the wrong number. Friday. These are big brand names. What a big week next week. Friday we get results from walgreens. I feel badly for wag. We just heard from cvs yesterday which boosted its numbers. Thats a tough comparison to go against. I dont know how walgreens can keep up. I will say this, though, the drug stores have been in secular share take mode from other stores, which is one reason why cvs was able to deliver such a strong number p. And i think walgreens will show better numbers now that its put its express scripts tiff behind it. Moving over to cvs. That was really he helpful for cvs. There is only one issue to get my arms around here, the gigantic purchase of alliance boots. And whether walgreens is swallowing more than it can chew. Be ready for the heimlich. The newly design the walgreens and dwayne reeds in new york are things of beauty and among my Favorite Places to shop and those who watch squawk on the street know i like to shop. I go to my dwayne reeds twice a week and the store manager tom does a great job. My inclination is this is a buy on any weakness and if it werent for the gigantic acquisition i would say dont wait for the weakness. Its got a Bright Future ahead of it. Beyond earnings monday the Empire State Manufacturing report from new york. In fullblown weak data mode want to see if business is rolling over. So the Empire Manufacturing number will set the tone for the rest of the day for things that ge doesnt cover. The fed told us businesses are ratcheting down spending. This is what we could hear. Heres the bottom line. Its time to get used to the idea that were going over the fiscal cliff. Ready yourself to take a big hit in a couple weeks. But dont forget that individual Companies Still matter. If you really like one of these companies, im going to suggest buy half and then wait to see if we go over the cliff and buy the rest. Lets go to terry in maryland. Terry. Caller hey, jim, id like to wish a great big chess 35ek bay booyah from baltimore. Booyah from the shores of chesapeake bay. Whats up . Caller im a longterm investor and really like the stock Sherwin Williams and i was just wondering what your thoughts are about how this latest acquisition by ppg is going to affect the stock. That was a great acquisition by ppg. The acquisition of paints. But Sherwin Williams makes good acquisitions of its own and i think Sherwin Williams is an absolutely terrific stock and i would not want to sell it particularly because i think the housing story is so strong that even if it gets knocked down by the fiscal cliff it will come back again. Lisa in missouri. Lisa. Caller hi, mr. Cramer. First i want to thank you for helping me to get in the game. Oh, thank you, lisa. Whats up . Caller i was wondering what you think about pfizers 4 billion ipo launch of its Animal Health care unit. I will tell you im excited about it. I have warmed up to pfizer. Close viewers of this show know im not really into the big, big pharma names because they dont have the growth that develop gene has or the growth that gilead has. But pfizers fine and if you own it i endorse it. I think it goes higher. I want to go to mark in new york, please. Mark. Caller booyah. How are you . Real good. Caller my question is two related companies. First solar since september is going up 50 . Second question concerning recent ipo solar do you wait. On solar city and first solar. Okay. Very different companies. First solars a panel company. Price of panels come down. First solar we said we were too negative in the teens, we got a little more upbeat in the 20s. I dont really care for it in the 30s. Solar city, we get a pullback in some cities for solar youre going to wish you sell sell sell. So i cant recommend it. I think we should get used to the idea of the fiscal cliff and be prepared. Weve got a series of Good Companies reporting next week. If you really like them, understand you can buy some of them because there are Great Stories out there. But the fiscal cliff looms on even the best. Mad money will be right back. Coming up, another dimension . Its one of the most talked about new trends. And tonight cramers taking a hard look at 3d printing. Its a faceoff of the industrys two top stocks. And jims finding out which one could turn into your personal printing press. And later rotten apple . The crown jewel of tech has fallen like a rock. Over 150 points in the past three months. But has the glow around the beloved Electronics Maker faded forever, or is now the time to take a bite . Get cramers take. Plus, beating the buzz. The fiscal cliff, of course, is a complete madeup the drone of d. C. Is deafening as politicians posture ahead of the fiscal cliff. But dont let washington worries keep you out of the game. Cramers got a spec play that could connect you to solid returns. Get the 411 just ahead. All coming up on mad money. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer. Madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Lately ive been getting a ton of calls about the printing business. No, im not talking about oldfashioned printers like the kind you buy from a dinosaur like hewlettpackard. I mean threedimensional printers. These are machines that can rapidly design and produce functional threedimensional parts and products. Designers use them to whip up prototypes right in their offices instead of having to send out blueprints to an actual manufacturer. Increasingly were seeing them in strange places. Dentists office to make molds and bridges. And now im getting a lot of questions. Is 3d printing for real . And if so, whats the best way to play it . Because mad money is the most interactive show on Television Im going to answer that question right here, right now. First of all, yes, 3d printing, it is not some sort of flash in the pan. Its not a fad. Its a real thing, and its in bull market mode. Its here to stay. I bet in a decade as these devices become cheaper well start seeing them all over the place. And the 3d printing space has been on fire this year. Its basically a foot race between two key players 3d systems, symbol ddd. And stratasys. Symbol ssys. We get a ton of calls on both. Tonight im going to weigh them against each other and get a final verdict. 3d systems, which is probably the one you call about the most, has rallied a whopping 218 since the beginning of the year. Pretty amazing. Stratasys is up also, not chicken feed. At this point i think both companies can do well. But as far as the stocks go id go for stratasys. Although given the share price has more than doubled year to date it would behoove you to wait for a pullback. I expect a big marketwide selloff when it can becomes clear were definitely going over the fiscal cliff in a couple weeks. Thats your chance. Why is stratasys the best way to play the 33d printing business . Stratasys has a terrific catalyst. It closed on its merger with objet. Which is another 3d printing play. More specifically objet has the leading technology the best margins and fastest growth in the industry with a pristine balance sheet. With this stratasys gets access to a Broader Customer base and objets technology. Which is complimentary rather than cannibalizing their existing businesses. These Companies Operate tw n. Two different areas. Stratasys sells big printers that can make objects out of very stud sturdy materials as well as desktop printers. Objet is all about printing products with incredibly final details. I found this stuff fascinating. Another reason why people call about these stocks, these companies are fascinating. Objet uses Inkjet Technology to spray photosensitive polymers and then hits them with uv lights to harden the materials. They do it layer upon layer upon layer. So you have the full 3d product. And objet can produce layers which are as thin as 16 microns, which is just 0. 0006 inches. And thats how they get the ultra fine detail. Thats why the 3d printers are great for making pristine prototypes for all sorts of different companies. I wish i had one of these when i was growing up. And thanks to the merger it belongs to stratasys. If you cant beat them youve got to join them. Actually youve got to buy them. Theyre even coopting objets management. The old stratasys was one 3d Printing Company among many. The new stratasys postobjet merger is a powerhouse. Printers can cost anywhere from 19,000 to 600,000. Competitions much greater at the lower end of the spectrum. The terrific thing about the merger is it gives strata sys more exposure to the high end. Theres a ton of interest in the objet 1,000. Thats a 3d printer thats priced at 600,000. It costs 40 grand just to load the machine with materials. Now that it owns this baby it should give a big boost to the growth rate as well as margins. That said these are not cheap stocks. Stratasys sells for 37 times next years earnings. 20 longterm growth rate. On the other hand i think the estimates will be conservative and post objet more realistic evaluation of 33 times earnings. Still price by but definitely in the area of what growth opted managers will pay for a growth stock with momentum that is obviously lets just say as it comes down in price will be sold in many more places. 3d systems the other threedimensional printing play is no slouch, but the company doesnt have any merger catalyst like stratasys, low margins, stocks expensive. 3d trades at 29. 5 times earnings. Longterm growth rate of 14 . Remember our rules. The price to earnings multiple in this particular case is more than twice the size of the growth rate and when a stock is that richly valued my rule of thumb is no matter how good it is we have to stay away until it gets a heck of a lot cheaper and half the time it gets a heck of a lot cheaper because the fundamentals have fallen apart. Dont get me wrong. 3d systems seems like a terrific company. A lot of short sellers in the name whove questioned the growth. Revenues rose 57 . Doubledigit revenues are a big deal in this market. 57 year over year, organic growth of 26 . I believe in the business. I just think the stocks too expensive right now. I think youve got a better opportunity with stratasys which is not only cheaper but has positives from the objet merger. Heres the bottom line. The 3d printing stocks have been on a major tear. I think this business is he very much for real. It is not an fitp, which is flash in the pan. And stratasys is th

© 2025 Vimarsana