Transcripts For CNBC Mad Money 20131127 : comparemela.com

Transcripts For CNBC Mad Money 20131127

Or why there is so much fretting that the nasdaq is back to the fated 4,000 level. Not far from the ridiculous heights of 2000. Its simple. On the seemingly endless record setting days like today, the smart money is angry. Yes. The smart money is furious. Oh, they are mean, theyre mad, theyre angry. [ booing ] why . They are jealous of the dumb money thats buying stocks and those stocks are going higher. All sorts of stocks. Its just infuriating to the people who do this stuff for a living, the pros. They hate whats happening now in this market. Its not supposed to happen. Let me give you five reallife examples of things that shouldnt be happening according to the socalled smart money. Starting with amazon. It hit another alltime high and nothing aggravates these guys more than amazon going higher. Amazon is despised by brilliant people who know better. They know much better than bezos. The intelligentsia refuse to acknowledge the incredible run the company isnt making money. We deal with merchants stuck if they embraced the business model. It excuses behavior. Amazon is threatening to do sameday food delivery forever, but they havent. Maybe they cant do it effectively on a large scale without losing money. And other companies would be slammed. Amazon gets away with tinkering, maybe for years, until they get it right. If thats not galling enough, lets the talk about whats really propelling amazon right here. The weather we are featuring the weather every hour today. Big storms all over the place. So big it might impact black friday, the shopping day in america. What have we learned when we are shut in because of bad weather . We shop on amazon. These days, the Retail Investor is coming back after a dozenyear absence. What do they do . They buy what they like. What fools these Retail Investors be. Actually no. This is a Winning Strategy now. The intelligentsia argue that this amount of buying is wrong, stupid, shouldnt count, but it does count and its working. Amazon is going higher. How can that be wrong . Thats what we are looking for. Sometimes they get me so angry. I think we are looking for stocks to go higher. What are we supposed to do . Should i be recommending stocks to go lower . Hot out how about stocks that go slowly . How about stocks that do nothing . Those must be loved. I applaud people who look for stocks that go higher. The goal is to make money, not feel smart. Do you know who the wise people remind me of . Charlie the tuna. The debonair, urbane tuna fish with fabulous taste. The Starkist Company didnt want tuna with good taste. It wanted goodtasting tuna. These super brilliant investors are just like charlie. They have fabulous taste. Do you know what i say . Sorry, charlie. This isnt about good taste. Its about what tastes good. Thats amazon. The incredible gains it gives you. I find them mouthwatering. Second example, netflix. Weather is bad. Dont go see catching fire. Its too wet, too cold, too whatever. So stay home and watch netflix. Go ask your kids if they love netflix. No one wants to ask his kids anything. What do they know about security analysis . I say we are in a buy what you like environment. Im helpless to stop that trend. Can we acknowledge thats whats happening and maybe try to profit from it . Whats wrong with that . Oh cramer is gaming the process. The smart money types are just gaming a process that says historically the stocks are overvalued. Its a game. But that game isnt as good as the one with im watching. The pros are watching the redskins lose to the 49ers game. Me, im watching the patriots beat the broncos. Better game. Tune in. Third, nothing freaks out the geniuses who called the trillion dollar shots more than when Retail Investors buy stocks of companies that make warm weather clothing when its cold, even though they are up a lot. They are apoplectic about deckers. They cant believe you can make money on companies that make north face and uggs. Trading the weather is too pedestrian for them. Prosaic. These pros are all about degrees of difficulty. They are doing belly flops and making money. Its ridiculous. They havent done the work. They will meet the same fate as those poor fools who bought lions gate at the opening of the hunger games. This is not about a triple louganis. Its entirely possible that the stocks might be are you ready, skidaddy attractively priced. To all of the skiers out there, im sorry. This mere entertainer that is jim cramer thinks he does good stocks. My bad. For example, the work day. Someone is not a retail name. Work day is worse. Its a total anathema to the wise men. Its a cloud play with accelerated revenue taking share from the cheap solid lovable oracle, the brilliant witty, well schooled charlies school, charlies, fish. Work day is worse than the stock salesforce. Com that cramer likes. Of course the stock is up 800 since i liked it. Why do they hate workday . Because it doesnt play by the rules. Its going off the cloudbased Human Resources system thats cheaper and better than oracle, but oracle only sells at 12 times earning with a ton of cash, dividend. Workday has none of that. Just revenues when the cloud market is revealed as a giant fraud. I dont blame the wise and wonderful ones. I had to study workday before i sat down with neil last week. Give me a break. What does this company got over paychex . Growth that can stretch for years with the pedigree of two ceos who invented the software. It got hit with with a hostile takeover bid from oracle. Its reasonable that the work day can capture them back. What can i say . After doing the homework and visiting with management, i understand why the longs could be right versus the shorts, who are choking. This stock rallied more than 10 today because intelligentsia shorted. The big growth mutual funds lapped it up. Sorry, charlie. Finally hain celestial. Its growing too fast for bears who were convinced irwin simon has to be hiding something with the acquisitions in the Natural Organic space. Hes not moving fast enough in my mind. He needs to dominate every aisle of the supermarket. They are craving natural and organic, real natural and organic, and hes got it. Hes got to dominate. In the meantime a price war is the best news for hain. Smart money hated it at 30, 50, 70 and now 82. They detest it. Why not . Arent they more right . In their incredibly intelligent, twisted way, i guess so. For a dozen years we had a market where it was taboo to make money the way Retail Investors are now. They want to tell you that when you play with fire like this, someone gets burned and it will be you. That when you have this good a time, someone always gets hurt. To which i say, listen, we have been eating good tuna all year. We arent stopping now. Sorry, charlie. How about corey in new jersey. Caller hey, jim. Hows it going . Are you from around the block . Caller yeah i am. Really . Caller yeah. Zulilly, ipo earlier this month, gained 72 in the ipo. I wonder if you think it is a buy and could be a growth stock like amazon. Com or if you think its just overvalued. It is not my fave. If im going to buy overvalued im going for the container store. Let me be very clear. Overvalued on near term numbers, not necessarily on the out years. I value things on the out years. I think by that take the new crop of stocks arent as good as five below which is one of my favorites, or lets get down to it. Costco. Can i go to paul in california . Paul. Caller hi, jim. Paul from california. How you doing . Couldnt be better. Happy thanksgiving to you. Caller you, too. I talked to you once before about illinois tube works. There is news about them today about private equity firms and the Industrial Packaging unit and a bidding war. What do you think of that short and longterm . That wont do anything. What will do something is the earnings stream they have. The packaging is really important. This is the kind of company that is doing well now. Its an International Company based in the United States with worldwide operations that are just killing it. I say stay long itw. There are lots of snobs on wall street. Many of them are the guys who think you, the Retail Investor, the little guy, arent smart enough to figure out what makes money in the market. How is that working for them . Why dont we stick together . See you later, charlie. Mad money will be back. Announcer coming up, Heated Exchange . When the wall street big shots square off on a stock, it can open opportunities for home gamers to profit, and sparks are flying right now over alcoa. So is it your chance to buy into a solid story, or could it melt away . Later, go, go gadget. The all out assault on apple kept its stock flat for most of the year. But is the onetime titan of the touchscreen finally about to break out as the extreme shopping season gets into high gear . Or should it be left on the shelf . Plus, golden goose . Investors have all but given up on the shiny stuff, down over 25 this year. Could it be about to glisten . Cramer is searching for signals when he goes off the charts. 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. Ya know, with new fedex one rate you can fill that box and pay one flat rate. I didnt know the coal thing was real. Its very real. David rivera. Rivera, david. [ male announcer ] fedex one rate. Simple, flat rate shipping with the reliability of fedex. Thats mine. Thats mine. Thats mine. Come on, kyle. [ horn honks ] thats mine. Kyle. [ male announcer ] revenge is best served with 272 horses. Now get the best offers of the season. Current lessees with an expiring lease get this 2014 ats for around 299 a month. [ male announcer ] at progresso, we believe the Second Chapter of your life should be just as bold as the first. Try the new bold flavors of heart healthy soup from progresso. Who do you believe . Who do you trust in this business . Its so hard to know that i cant blame anyone for worrying about stocks they own. The case can always be made for either side. Im not kidding. I could make it face to face for this one or that one. Take last night. We had irwin simon on, the man behind hain celestial. Its given you 2,400 including its given you 2,400 since it came public, including a 52 gain this year. A Public Company that went from 3,000 to 2 million in a 20year span. Its gone from being a small player in a small aisle to the dead aisle to being the largest provider to whole foods and costco and now walmart as everyone embraces organic and natural foods. This is a success story. Or is it . A dow jones publication slammed them for making acquisitions that suggest the company is ripe for a fall. What are they doing that we should worry about . The article says they are stocking the shelves of new Distribution Channels including walmart in the hopes that Middle America will cotton to health food after the channel fill is over. So its now being cited as a negative. No matter that the ceo of costco said organic and natural is here to stay. Hain figures into every Cash Register in just about every store that sells food. Nope, according to this story, simon channel stuffing walmart to get shortterm results. How about the fact that the stock is up 33 since the publication trashed hain with a cover story about how they are hiding their own deterioration. Amazing. Simon making a series of smaller acquisitions. Hes getting knocked silly by the press. Last year campbells soup bought bolthouse farms, and then reports a hideous quarter with no real growth from the acquisition. Thats worthy of criticism unlike the integration by hain. Oh, by the way, at what point does simon get the benefit of the doubt for what he built . Maybe never. How about this. Herbal life. You have a Big Hedge Fund manager. He intends to take it to the end of the earth. Why . He thinks herbalife is a ponzi scheme, a business about not selling anything, just recruiting people to recruit others with the Nutritional Supplements as a side show. And then there is the former chairman who bought 6. 3 of herbalife, and wants to help the Company Bring up value. Bill sears is to food but now that Warren Buffett owns heinz that label may not hold up. Herbalife is waiting for a clean opinion on the financials because of acquisitions of fraud that audits the books. It has nothing to do with herbalife. Once the audit comes back clean and there are no allegations by anyone that says it wont they will try to unlock the value in this very inexpensive company. Whos right . Is herbalife a fraudulent scheme or cheap stock being kept under a cloud by a hedge fund that wants to make the quarterly numbers . This is simple. If ackman can convince them it is a fraud maybe he can get the business shut down, and he wins. But the company gets 80 of sales from overseas. If they miss the numbers he could win. Not going to zero with that. If it gets a clean bill of health the bulls make a killing. Same thing in Green Mountain coffee. Its been brought to my attention by herb greenberg. The bulls insist that Green Mountains business is growing and the bears say it is a step from the grave. The fundamentals seem to have turned dramatically in favor for the better. Green mountain announced a billion dollar buy back and a decent dividend. Like hain the bears say the earnings were low quality while the dividend and buyback masked weakness. For the life of me i dont know how that could be the case. But the case is being made that the beauty is only skin deep. I took heat when i said on squawk on the street that what should matter is that Green Mountains main product, the keurig model is coming on well. And it is a sign of health. Little did i know, according to bears, these are signs of ill health. They say, jim, do your homework. Finally alcoa. They were at 8. 11. Deutsche bank put it to a sell. The downgrade assumed the efforts to make itself into less of a commodity play werent working, and the company could be worth more if it breaks up. But the split isnt viable based on the analysts projections. He was wrong about the sensitivity to the price of aluminum and the dollar and forget that the stock is up 18 since the downgrade. You have an indictment of the job that the ceo is doing to turn the company around. He thinks the company is worth more dead than dead. Then consider the upgrade using the 11 target from goldman sachs. It was a more accurate depiction of what happened. Many initiatives are paying off. I admit to being biased in favor of all four of these battlegrounds. I think the growth in hain is unimpeded. Im not going to think buybacks and dividends are dodges and i would not sell alcoa. I would buy it. But reading both sides and getting comfortable with the risks and rewards before you buy, you are making yourself a better investor. My bottom line is simple. You cant be sure who to trust except for you yourself. The bears reports cause you to worry about your position, to the point where you will dump your position next time you hear the same attack. Dont buy. If you are certain in your conviction, the repetition of the negativity gives you a better price to buy more. Know thyself. Thats how the best investors triumph regardless of direction for or against a stock. Justin in connecticut. Caller a big connecticut husky booyah, jim. Im liking that. We have huskies fans on the staff here. Theyre rabid. Whats up . Caller whats the longterm outcome on slw . Silver wheaton. Poor mans gold . I have enough problem owning rich mans gold. I dont like silver wheaton. Many people said why dont you like it, and the answer is it keeps going down and i dont think its worth money. Can i go to don in california. Caller mr. Cramer, happy holidays from myself, my wife patrice and our cat crumbles. We watch your show every day. [ barking ] caller my question is regarding sqm. It used to be the lithium play. The stock tanked since january of this year. Last Quarter Results were not so good with the loss of revenue and shrinking margins. Forbes says the stock is oversold. I wanted to get your opinion. I think youre right. Its a Decent Company but i dont like that sector right now. If i had to buy that sector, i would actually buy deere which is undervalued now. I have been saying deere has been overvalued but the last quarter seemed good to me but they made projections so conservative no one wants to own the stock. Know thyself. Hard to know who to trust except for yourself. Listen. If you have conviction, put on the blinders and do some buy, buy, buy. Stay with cramer. Announcer coming up, go go gadget . The all out assault on apple kept the stock flat for most of the year. Is the onetime titan of the touchscreen finally about ti break out as the extreme shopping season gets into high gear, or should it be left on the shelf . Im jim cramer. Welcome to my world. Announcer one man, one mission. I just want to make you money. Announcer eight years. You need to get in the game reporter tens of thousands of miles traveled. This new black gold rush is just getting started. Its the sound of american industry roaring back to life. Announcer hundreds of ceos. My life story can be your life story. Announcer thousands of callers. Caller booyah, jimbo announcer millions of your emails and tweets. Mad money thanks cramerica for being with us for over 2,000 episodes. You knew the move in apple would happen just when no one was paying attention, didnt you . Isnt that total lack of attention why the stock would go up nine points in one session . No fanfare, no scrutiny, under the radar. Remember when apple was on everybodys lips . All you heard was how the company lost its way and wasnt using cash creatively. We hung one as carl icahn played with tim cook. It went from a failed Product Store to a failed Financial Engineering store in record time. Cook let down the apple enthusiasts and the financial engineers. It got so bad out there, so bad for apple that when it reported better than expected quarters the analysts were negative. Who los

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