Transcripts For CNBC Mad Money 20140808

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this rebound got me thinking what the heck is going on? how can we turn this into a game plan. you have to go back to 1990 after iraq innovated kuwait to find back then in 1990 we heard secretary of state james baker always back channeling about reaching a peaceful solution to that crisis. every friday we get a rally of short sellers minting money fearing a deal could be arrived at over the weekend. there was no deal, the market would fall hard on monday. we have a whole story derivative going on here. this time the war in ukraine doesn't directly involve us although sometimes it seems president obama hasn't gotten the memo. today's rumor the russian military seems less poised to go to ukraine and more in standing down mode ignited the market reminding this has the market by the jugular. it is not iraq sore the fed. it is not the fed. get some horse sense. if we go back to 1990 the invasion of kuwait triggered a global slow down. the buyers have been getting hair head slammed going by a play book that worked so well for ages but won't work if the estimates are too high. you have to buy after them. nevertheless as the week progressed we heard that this buy the rumor sell the reality scenario does not extend to domestic companies. in an important development we begin to see separation between the domestic companies and international ones with domestic companies holding off well. unlike 1990 when gasoline spiked this time gas prices are coming down. in part because the dollar has been strong but many of the p e pipeline companies have been able to ship oil to refineries in canada and this country. it's boosting the supply of gasoline knocking the price down. interest rates are going lower, not higher. one would expect that from inflation. our market has become a safe haven for the world. lower rates leads to refinancing. not enough people are paying attention to the marvelous job claims back to where they were in 2006. all of this is good for retail which would be instrumental in figuring out the game plan. now that you know my thesis let's take a look at the week ahead. we hear from price line on monday morning. i'm going to let you know a trick of the trader. almost every time priceline reports the shoot first ask questions later crowd blows out of the stock in part because the company often gives guidance below wall street's expectation. the headline reads price line cuts forecast. however, when the smoke clears that is when you have to buy because it is always conservative. that is what they do. don't forget to search for yield going on underneath the market which brings you to ventas. i think this stock which yields 4.6% dividend could go higher so much better than treasuries. higher yielding real estate investment make all the sense in the world and do they have nothing ever to do with ukraine or iraq. tuesday is kate spade, the hand bag company. it has the hot hand. i think it could put coach to shame and michael kors. the handbag business out of nowhere has become cut throat. i like a coatings and paint company called valspar. it would be hard for me to believe that valspar wouldn't be the same. i smell a good trade. goldman sachs pushed macy's hard today. i wish they hadn't because they have now raised the bar for one of my favorite retailers to a level where there could be disappointment. however this one will put my strong retail thesis to test. deere reports before the bell. de worries me. we had the straight shooting competitors and told the tale of because of the decline in prices for crops deere needs it to spike up early morning and then evisc rates its stock. we hear from cisco. i think cisco yields are grinding positively with competitive offerings married to a competitive yield maybe by half before the quarter. keeping with the retail theme i'm wondering if kohl's and wal-mart might be buys ahead of the quarter. i have not cared for the stocks given lower gasoline and stronger employment. that is the triple play you need to see. those are both cheap. remember skechers told us kohl's was performing well? maybe you should go buy skechers. no nordstrom comes after the close. i like the deliberate way of expanding. i think it is a keeper. we have j.c. penney. remember it is shark week, sharknado and dan fitzpatrick suggested penney could be breaking out here. on friday a real interesting company that fits the thesis outlining on the high end and that is estee lauder. as much as i am concerned about an international slow down lowering gasoline prices and better refinance rates and a stronger job market might mean you can pick your favorite retailer and buy it. you have to admit the trends are going retail's way especially after today's huge rally. i want to surf the wave perhaps for the rest of the summer. how about we go to jenny in california. >> caller: hi, jim, good afternoon. i'm an uber fan of yours. my question is on e trade held it on and off. should i keep buying it? >> let's generalize because sometimes you have to do that. the financials are in a world of hurt because interest rates are not going up. e trade is along with many of the banks needing rates. i will not urge you to pull the trigger. dona in texas. >> caller: booyah. looking to firm up foundation of my portfolio. i was wondering what are your thoughts on johnson&johnson? >> i was checking into their stocks today and someone said i am thinking about buying stocks. j&j and disney are the stocks right now that when people stop me on the street and verizon, too. cramer, put a gun to your head, what stock do you like? i say take the gun away from my head. buy johnson&johnson. how about charlie in florida? >> caller: i have a question to ask you. a while back on the air on lightning round someone mentioned a stock called franks international. i thought it was good since the ceo bought 20,000 shares. today the stock got hammered losing about 10%, 12%. >> i am losing patience with these guys. they missed again. how can they miss in the business. everybody else is bringing home the bacon. oil and gas degrindustry. i thought they had it. they should come on and explain why i'm wrong when i say maybe they don't. the stock didn't look that flawless today. is it time to capture the moment? my take on the war between fast and fresh and how you can take food on your table. getting back in the water rounding out our week long series shark week with a surprising pattern showing up in general mills, buffalo wild wings. just ahead. stay with cramer. >> don't miss a second of "mad money" follow @jimcramer on twitter. send an e-mail to madmoney@cnbc.com or give us a call. miss something? head to madmoney.cnbc.com. ♪ >> sometimes a company will report a truly terrific quarter and yet stock will go down anyway. sxtk. the opening sequence that you probably love so much in "house of cards is one of them. licensing the images they need. pretty much every business needs to use images for something and they have to pay for them or else they face nasty copyright lawsuit. two months ago they launched a music licensing service, a rapidly growing company also taking share. shutter stock reported to the naked eye these look like pretty good numbers. i thought the stock would shoot up on it. higher than expected revenues of 41%, paid downloads of 30%, healthy revenue guidance and yet the stock tumbled, finished down 2.9%. i think a lot of this is because shutterstock run in from 67 to 68. this stock has a history of rally hard and selling off. currently this is really important. after the dips shutterstock tends to dip right back. it is giving 12%. hit a rebound once again? let's take a close look with founder and ceo of shutterstock. have a seat. since we saw each other last facebook, music, these are meal drivers for next year? >> yeah. the facebook partnership is pretty important to us. it's an interface that companies can link into to show images. sales force is important to our enterprise sales business, business with big enterprises and larger companies. >> and music, whose music and how? >> music is important because footage is growing fast for us. video buyers need music to go along with their footage clips to integrate into their productions. today it is very difficult and complicated. you can either go to libraries online that are very small and not very sophisticated or go to a larger label, license good music but it takes a long time and it is very complicated. >> i have a youtube video that i want to do like a little commercial. i need music in the background. just go to shutter stock? >> we have 60,000 tracks. we got them from a source that is helping us put together our initial part of the collection. eventually we will be crowd sourcing this from anyone who wants to contribute. >> when i go to most websites for companies that are on they have video on and pictures on whereas they would have been flat 18 months ago. i'm presuming they are going to shutterstock. >> they are going to us more and more. we sell four images every second. we have 2 million video clips. we are increasingly becoming a place that creatives go for all of their creative assets. >> we come at this a little differently. we started with a subscription model. we keep everything incredibly simple. it is one license. once we negotiate the price point from an enterprise point of view everything is available under the same exact price point. it is simple. the license is clear and you can use our stuff. >> which brings me back to a pricing situation that i don't understand. did hou"house of cards" get luc in the sense that they went to you and i might have thought that cost hundreds of thousands of dollars. >> our contributors understand this is a volume game and we have been doing this for a long time. >> for every once in a while "house of cards" will use a clip there are thousands of youtube videos using the clip. they know it is a blended rate. our contributors look at their returns as a return per clip or per image over the life span of a year. over time we have gotten them to understand that there is a lot of times this will sell sometimes for big cases and small. >> why shouldn't disney pay five times more? >> because the buyers don't want to deal with the complexity with the rights managed situation. that is why they are increasingly coming to shutterstock. >> when you say total customer count exceeds 1 million, 1 million registered. >> 1 million people are buying. we have many more accounts. over the recent history of the company there are a million buyers. >> do you do anything with sports? >> yeah, so anyone who wants to go shoot sports can sell it through shutterstock. we have a growing editorial collection. >> who has the rights to that? >> it gets a little complicated. generally it depends on what sporting event you are at. >> nfl i know they can't do it. they will find a way to stop you. >> this is what we believe will change over the next ten years. as more and more people are bringing high powered cameras into stadiums and the thousands and thousands of pictures that are getting taken in the places eventually what will happen is some of the stuff will get tested. it has never been tested before. >> tested by who? >> tested by the legal system. >> i think so, too. what i was thinking is i have great pictures of people in uniform. and i want to send them to shutterstock and make money off of them. i don't want to get in trouble with the league. how long can the league pretend there aren't people like me out there because we all have fabulous cameras now? >> this is all going to change over time, we believe. if everyone in the stadium has a camera powerful enough to shoot this stuff we will figure out how to work with the stadiums and get the stuff out there. today we don't sell a lot of it because it is complicated. >> it is an amazing company. when i saw you had the music i am so afraid of rights and getting in trouble. if i go to shutterstock i know i can't get in trouble. great stuff and great quarter. that is john oringer. these stocks are back in vogue. we had a period of march through june where they were struggling. not struggling anymore. don't forget the pickle. thinking of stashing cash in the house of the big mac before you get in line for the golden arches cramer has something you need to hear. it's not just junk food, it's a junk bond! that's what i thought today when the stock for mcdonald's rallied despite reporting hideous numbers with some really big disappointments in asia. i'm telling you this stock would have been crushed today. the fact is the stock yields 3.5% in a time with treasury competition. that means this junk food company is better than many junk bond especially if you factor in the tax break you get. hence why the stock after initial dip closed up 24 cents. that is a monumental shrug off. none of this if mcdonald's had a bad balance sheet. it has a pristine one. there is always hope of financial engineering or a turn in the business. in the meantime the action isn't in junk fast food. it is in the natural and organic aisle. best selling chain is chipotle. as mcdonald's once owned chipotle it was declared cold war against its aging parent. its campaign against the food chain could be seen as an indoctrination against everything mcdonald's sells and it is working. now it is overseas that is hurting, not the least of which is because of the tainted beef story from china. the umbrella of fresh has been extended to three latin american style restaurant chains the loco. jack in the box in the range. much better than the far from organic and natural taco bell which is failing like mcdonald's. the best performing stock yesterday white wave which makes plant based dairy substitutes. this is a stock that people stop me on the street and say thank you for white wave. earth bound farm labels. the company has a level of growth that most could only dream of. you need to think of this world this way divided among two investors, those on a mad search for safe yield like those patriots of the golden arches and those who want domestic growth found in the fresh food category with super growth being reserved. the bottom line is both are going to work. they just work for two different kinds of buyers. those who grew up eating at mcdonald and those who wouldn't be caught dead there and don't want anything enforced by the industrial food information bureau. rick in south carolina. >> caller: first time caller, long-time viewer. love the show. >> fantastic. >> i appreciate your frankness and explanations that are always easy to understand. >> thank you. >> caller: the question i have is about hain celestetual. do you recommend this and if you do since the stock closing at less than 85 are you a buyer? >> there are people still taking shots. it is one of the best performers we recommended. there was another short story out there. when will people realize that hain is the solution for the kroger stores and whole foods to have lots of fresh and organic. i like hain. don't be freaked out if it goes down. how about bill in california? >> caller: jim, hershey's has been a long-time favorite of ours. with hershey being volatile lately should we keep it as a favorite and should we back up and load up on it? >> you can't back up the truck on hershey because the economy has gotten weaker for these kind of discretionary food purchases. hershey's is hit twice. with world wide growth slowing people want to buy staples but this doesn't have a good yield. because it doesn't have a good yield it isn't holding up. hold on to it because it is a great american company. don't buy more. >> caller: boo-yah. i'm calling about the tap. i own it at 72. with a new ceo coming in january 1 i'm wondering if i should sell it at a small loss or hold on to it. >> that was a great quarter. i went through the quarters. they have a lot of flexibility to do stuff with miller. the beer group is consolidating. i like rob sands that runs modello and corona. don't do anything but buy more if the stock comes in. it is a tale of two cities. safe yield versus domestic growth. growth guys don't want mcdonald's. it is shark week. grand finale with deep dive into exxon, general mills and more. they have nothing in common. portfolio need a boost? i am looking at a medical device player. i love your tweets. sometimes it is nice to hear your voice. your calls, lightning round coming up. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com in a volatile roller coaster market that is increasingly difficult to navigate you need all the tools you can to get your hands on what to figure out where stocks are going to be headed, not just the fundamentals. that is why i have been bringing on my absolute favorite charters. in this environment i find charts can be a helpful touch stone. tonight finale to our chartnado week we are talking to royalty. about a really important concept in technical analysis symmetry. you see it in a couple of other stocks. fib queen, welcome to "mad money". >> today i would like to focus on symmetry. this is one of my favorite tools. it is a simple tool but yet very powerful. in the first chart we are looking at a weekly chart of celgene. i predicted that from the high made in january and projected down wards and that gave us support and that is where we made the low and it was followed by a $23 rally. >> what is our next move? >> we have higher targets up to 90. >> it can get up there? >> it can, absolutely. >> i like that stock very much. next. >> the next chart is amgen. this is where i'm looking at prior declines that were 19.92, 19.55, 20.76. you can see the last swings were very similar. not only similar in price but very similar in time. actually, they were equal in time. six weeks down and six weeks down. $20.80. you can't make that stuff up. >> remarkable. >> if we do continue to hold above there we are looking at a target of 136.61. >> that would be bullish. here is a loser. maybe not. >> not yet. this is an example. then i'm going to go into real time. in exxon we had symmetry of a prior decline that was $10.81. the next decline was $10.70. very similar but then we also had the retracement that came into that zone and an extension of low to high swing. we have the zone between 84 had the 14 to 84.68. we held it and you had a $16 rally off of it. that is in the past. >> that is in the past. now i think oil is headed down. i worry about this one. where could it be a down side target if things go bad? >> typically on a chart like this i would take the measured moves and project them from the recent high and see if it holds. >> so we are going on to the general. >> so as far as current setups, what i have is symmetry with these prior declines on the left-hand side of the chart. you can notice similarity with $5.76, $5.26 and $5.50. if we can hold the support of the $49.27 to the $50.17 area i would look to be a buyer. the target would be $57.14. >> it's a 3% yield with very consistent growth. that is an interesting call. i would like to do that for our viewers. >> next chart. this one also has symmetry. now, if you look at the daily chart it doesn't look awesome at the moment. right now we are holding above the symmetry support. you can see where this swing of $12.92 is very similar to $12.46. so i'm stalking it. we are not in it yet. if we break below it out. >> that's why i have been worried about schlumberger. it could have too big a move. that is what we are worried about. this is one that we love fundamentally. we visited with sally smith, the ceo trying to figure it out. >> this last chart we had similar swings again. 29.50, 29.48, 26.52. the most recent swing again -- >> that is incredible. the same, the same, the same. so what would be a clue that this is going to take out its high? >> what i want to see are buy triggers. i'm not seeing that yet. one of the simple ones you can look at is 5.13 ema i would look at the buy side again. >> we like this stock very much. >> don't get the blazing. you get a free t shirt if you eat them. thank you. this stuff is so amazing that it works. i cannot believe that it works. 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"lightning round" is brought to you by td ameritrade. >> it is time! and then the lightning round is over. are you ready? i'm going to start with tom in illinois. >> caller: this is tom for maryland. cramer for president. >> i have enough problems but that is all right. thank you. what stock you got? >> mobileye. >> it has come and gone. >> caller: my question is about rite aid. >> everybody is panicking rite aid. walgreens blew up and that sent all the drugstores down. i still believe in rite aid. every third question on twitter is about rite aid. if i didn't like it i would say sell, sell, sell. i am going to lewis in california. >> caller: pharmaceutical, tkmr. >> people are looking for people with ebola to take. i did say i thought it was a buy. let's go to michael in california. >> caller: boo-yah, jim. i wanted to know your thoughts on vmware. >> i like it. logan in georgia. >> caller: boo-yah. >> game day. >> caller: my stock is eog. >> i say i like eog. andy in new york. >> caller: boo-yah to you. my question is taiwan semi conductor. >> i like intel. i am taking lowell in virginia. >> caller: this is james. >> you got it. what's up? >> caller: thanks for your financial wisdom and guidance through the year that allowed me to triple my portfolio. the question i have for you tonight is simple qiwi. what is your long term perspective on this stock? >> you know what, i got to be candid. that is a foreign company based in cyprus. >> caller: how are you? >> we got to play the bears tonight i'm worried. >> caller: i'm nervous. i bought some gogostock. >> that is like the atlanta falcons stock. gogo reports i'm not a buyer. i don't want to touch go go. and that is the conclusion of the lightning round! >> "the lightning round" is sponsored by td ameritrade. we are fired up. >> can you give us draft order? >> we want the draft order before you go away. >> he said you are drafting fourth this year? i said we haven't picked it yet. >> listen to fiesta group. the only real winner might be pollo. only mr. frank can do better numbers. it is like when i said devil mcgregor. it is a fictional company from "breaking bad." >> great picture. >> you call the shots? >> tomorrow morning before the opening we get results from act. it is from -- let me start this again. excuse me. for wanting to be the best at what i do. have you ever -- >> i have to find five but i can't reveal until right before and it has to be in my insider column. >> the stock had been drifting upwards. >> this is uggs. >> tom brady's favorite foot wear. >> this is really good. >> that's good. when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. you are one of my heroes. >> thank you so much for helping beginning investors like me. >> when you talk about the market i believe that you are spot on. >> i love it. thank you so much. every night we watch you. i have learned and earned. with so many people worrying about world wide economic slow down is it time to start swapping to stocks of rapidly growing companies that don't need strong economy to do well? take dexcom. it makes equipment to keep track of blood sugar levels. the only way to do that was by pricking your finger. dexcom makes a censor that transmits to a wireless receiver. yesterday dexcom reported a strong quarter and up a magnificent 62.4%. imagine it raised the guidance and poised to turn a profit in 2015. they have good growth in pediatric glucose monitoring and taking market share from medtronnic. in response the stocks shot up more than $5. they have one of my favorite business models, a razor razor blade model. you buy the system and every week you get a new patch. in the past the continuous monitoring systems haven't been as reliable of old finger pricking method but they are getting close. their system is almost approaching fingerprint exactly. while medicare won't reimburse for products i am talking about aetna. dexcom has new products on the way and integrated with monitoring platform and a mobile app and sends it to your doctor. this has rallied 39% since just this past may. i understand if you want to take something off the table. if secular growth names are coming back in vogue i think they are. let's check in with the ceo of dexcom and find out more about the quarter and where the stock is headed. welcome back to "mad money". last time we talked ed you had device on an iphone but seemed about as small as you can get. >> that was just the the start. now i have the watch. >> this is the wearable that makes sense. >> this is the wearable that makes sense. at any time during the day instead of having to take something out of your pocket you see the time and your glucose on the trending arrow if it is going up or down or staying flat. >> it is within 5% of a finger prick which is not easily done when driving. >> exactly. but it does tell you speed and direction of glucose which is what all people with diabetes want to know. >> i thought it was interesting because there was a wall street interview this week where you were talking about a gentleman who had an event while driving. >> every time somebody gets behind the wheel of the car they need to know what their glucose levels are and if they are trending up or down. low blood glucose has complications. this gentleman rendered himself unconscious behind the wheel of a car and ran into a gas station and blew everything up. >> one thing i found that was outrageous medicare doesn't cover this? >> not yet. we have two problems here. >> there are 500,000 people in their 60s. >> there is plenty of data to support. we are working with food and drug administration to get a claim which is one of the barriers with medicare and we had two u.s. senators last week introduce a bill specifically for medicare coverage of cgm. both are moving forward. can't tell you when it is going to happen. it is going to happen. >> i have been looking for affordable care act coverage for people. will people be able to afford this device? >> if you look at the rules what they say is if a product is covered under user and customary then aca will cover it. 98% of our patients have some form of commercial coverage so it should be covered under the same rules. >> the literature says the company you sold another company to is a competitor but are nowhere near. give me an objective benchmark. >> i just don't think their technology from the root basis is ever going to achieve what we are able to achieve. so going into the american diabetes association meeting our technology g 4 versus their latest technology we were 50% more accurate. you add our latest algorithm and we have increased that more dramatically. i think that in terms of performance, accuracy, patient acceptance we are what patients want, need and trust. >> you built an amazing company. go to the website. if you feel like people with medicare should get this you can go through there and say you believe they should. this is terry greg, ceo of dexcom. it has been a huge winner. starting to get in people's heads what i have been saying the game changer was mh-17 and situation in russia is in control. today it looked good. i don't think this is over and you will have to start getting used to a pattern where it looks like optimism is in trouble by pessimism. get used to looking at the domestic stocks and the higher yielders. they will help us see our way through this. there is always a bull market somewhere and i promise to try somewhere and i promise to try to [ engine revving ] >> this is a big business, taking away from you and me. >> they're more sophisticated. they're not the old, traditional peel-and-steal thefts. >> today's auto thieves are experts, and gone in 60 seconds or less. >> they will get a request for a car today, and they'll steal it tomorrow. >> the auto-theft industry today is responsible for more than $4 billion in losses just in the united states, and this global crime shows no signs of stopping. >> if it was a legal business, it would be one of the fortune 500 companies. >> i mean, everybody wants a nice car.

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