Transcripts For KPNX Mad Money 20161021

Roared 9 higher today, helping to prop up the Dow Jones Industrial average although not enough to keep it in the black. The dow ultimately dipping 40 points, s p declining 0. 14 , nasdaq slipping 0. 09 partially because of the rancor of last nights debate. Ill have more to say about the debates impact on the market later in the show. For now, i want to talk about how stock picking is the opposite of politics. If you change your mind in politics, you get eviscerated. But if you dont periodically change your mind in the stock market, your portfolio gets eviscerated. Im hardly the first person to point out this need for flexibility. Im taking my cue from the late, great economist john maynard keynes, who when asked why he flipflopped on a issue allegedly responded, when the facts change, i change my mind. What do you do, sir . I say allegedly because the story is apocryphal, but the sentiment certainly rings true. For example, until last nights been a serial guide downer, almost every quarter produced a disappointment. Analysts had to cut this. Go from this way to this, this, this. So many buys to sells, actually in the down probably the most. Now, your stock doesnt drop from 95 to 60 in a twoyear period because the analysts are sticking by you. Theyre downgrading your stock. But this particular quarter, the Company Announced last night was set up to be a truly horrendous number because not only did we expect the usual excusemaking for the lack of operational growth, management also let their lucrative costco contract go to visa and citigroup. I know i was asked what to expect from American Express several times this week. And all i could say was, hey, listen, another disappointment coming up. Instead last night we got a solid quarter with excellent growth and a reacceleration of spending to get more customers, not the usual cost cutting that would shrink the base and make night, i realized okay, all right, i had overstayed my negative welcome. The story had changed, and it was time for me to switch directions. I know that in this youtube world, its incredibly easy to dial up a contradictory clip and of course slap it on the meanest place on earth. Oh, im sorry. Slap it on twitter. Ive slagged American Express repeatedly. I couldnt see the Value Proposition anymore. But i had gotten an American Express card out of school more than 35 years ago, and i was keeping it almost for it just seemed atavistic. Then a few weeks ago i was flying up to see my daughter in oregon, and i wanted to use the united lounge while i killed some time to get some work done. Even though i was flying united, i didnt have a United Credit card, so they wouldnt let me in. I was visibly upset, but the nice woman at the counter asked if i had a platinum American Express card, and i said yes. She said why not go to the centurion lounge . I said, what the hecks the centurion lounge . She told me it was a fabulous place that American Express started providing for its replete with some darn good food, excellent libations, and best of all, my own power outlet. It was heavenly. I should have changed my mind on American Express right then and there, but its not that simple. A serial underperformer doesnt get out of the dog house that easily, especially when i thought about that costco business that i thought was just plain dumb. Now, though, after this quarter where the company said that it bought back 7 of its shares year to date, i know the story has changed. American express is back on a growth track because its giving members a tremendous bargain ai todays run. Narratives do change, and you need to keep up with the changes. Take netflix. Three days ago the stock was at 99 bucks. Today its 123. Why . Because the story got turned on its head. Netflix trades on signups. Those signups had been weaker of late although the company repeatedly told you to not judge its growth on a quartertoquarter basis. They kept saying over and over again think longer term. How long term . Bought an astounding 900,000 shares in the open market this summer at 89 bucks. Now, insiders cant flip stock. He cant say, hey, sold at 123 after buying at 89. No. They have to own it for the long haul. But thats what you should have been thinking about. Hey, look, ive been wavering on netflix, even taking the letter out of faaang, changing the acronym to faaa since google had changed its name to alphabet. I liked it because faaa, as we know from the sound of music means theres a long, long way to run. And i didnt know if netflix would hold back faaang. But the street, and his Venture Capital company, tcv, the largest shareholder on the street, had put a lot of money into netflix at much lower levels. A really smart guy like hoag doesnt plunk down that kind of change idly. So i caveated my negativity on netflix because of hoags savvy style and my familys love for the programming. Some of the smartest money on wall street had bet against netflix, thinking they were spending too much money on content, assuming the company just had to screw up when it next reported. Incredibly great signups. Obviously the shorts hadnt seen the fabulous narcos 2, and now you see what happens when the short sellers are the ones to screw up. You get three Straight Days of tremendous gains. Tata, my favorite character in narcos 2, is a fitting coda to the shorts. Tata for now. How about longterm cramer fave snapon tools . In recent months, the shorts have been circling around snap on stock, saying it made too much money on its finance arm and not enouon stellar operations number and, yes, indeed, another strong finance number, and the shorts have now been schooled on snapons incredible collection rate because the Company Knows its customers really well. It doesnt lend it all that easily. Thats how the stock can jump ten points on an otherwise soggy day. Look at united airlines. This stock, once the worst performer in the airlines, has now leapfrogged over its compadres because the numbers Going Forward arent as bad as they used to be, and its anniversarying easy comparisons. The market has valued united others. Hence why it trades at seven times earnings. What people didnt realize is that oscar munoz, the new ceo, is a much wiser, better operator than his predecessor. If you dont believe me, i need you to do this. I need you to go ask any united employee, anyone. Im not kidding. I poll all of them because as i said earlier, i fly united a ton. I fly way too much, and i keep hearing the same thing. Were treated much better and our ontime ratio and complaint ratio are much better than they used to be. I know these are intangibles, but they lead to an improved narrative, so the markets willing to pay more for its earnings. I think that like snapon, americas best and netflix, you arent going to flick a switch back and go reverse the proces and send these stocks down so easily. Every day we see stories that change. Every day we have to challenge our assumptions. Dont be so negative on mattel. Barbie is growing again. Better get a little more negative on the rails. Plunging Union Pacific signals there was too much excitement. Tonights microsofts numbers line. Alkermese looks like it had some longawaited success with its antidepression drug, which could totally reinvent the company and give you a rerated valuation beyond any specific examples, always remember that you need to stay flexible. If i can do it when all my opinions are caught on tape and i get raked over the coals every single time i change my mind, whether it be on here or for action alerts, my Charitable Trust, you can do it at home without anyone knowing it. When it comes to investing, a foolish consistency is the hobgoblin of little minds and bad stock pickers. So heres the bottom line. For investors, unlike politicians, flipflopping is a virtue, not a vice. When the facts about a stock change, youve got to change your mind too. Otherwise, youre likely to lose a lot of money and miss out on a ton of opportunities. Lets go to james in new york. James. Caller booyah, jim. How are you . Real good. How about you, james . Caller im doing fine, thank you. Greetings from rochester, new york, the home of the protonix it is. Fantastic. Whats up . Caller i looked at Coupa Software and liked the product prior to the ipo. I bought in at the end of the first day that it was offered and watched it stop, drop, regain ground, and then drop again. I believe in the company, but the price is telling me to sell. No, no, no. What happened is the guys who got a little stock on the deal then came in and bought it up to get a better basis. Probably goes to 21, 22. I dont think you sell it at 25. It would be a mistake. I think you should buy it a little bit lower. Use some discipline. Three points down and buy a little more. Lets go to david in california, david. Caller hello. Thanks for taking my call. Of course. Caller i bought marathon several years ago when the price of oil was higher. It is lower now, and the dividends are lower. I wonder should i keep it, and fuel game is going to be in a sweep in the house and senate and with Hillary Clinton, if you get a sweep, youre not going to want to own it because theyre very antifossil fuels. However, i think mro, 14 goes to 16, but not much more because i dont think its as high quality as a lot of the others in the patch. Im doing a lot more work, by the way, on apache, which looks very interesting. Things change, and in the stock market unlike in politics, youve got to be ready to change on making money. On mad tonight, after a rough start for 2016, the Semiconductor Space is slowly coming back. With Skyworks Solutions up 40 since its bottom in february, is it time to buy . Ive got the ceo. Then donald trump crafted a reality show cliffhanger during last nights debate when he said hed keep you in suspense when it comes to accepting the election outcome. Ill tell you why that could be bad news for stocks. And the last time i spoke to lam research, it was in the process of buying kla tencor. That deal may have fallen through. Upside ahead, or is todays drop after earnings a red flag . Im asking the ceo whats next. So stick with cramer. 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 call at 1800743cnbc. Question, are my teeth yellow . Have you tried the tissue test . Ugh yellow. What do you use . Crest whitestrps. Crest 3d whitestrips whiten 25 times better than a leading whitening toothpaste i passed the tissue test. Oh yeah. Crest whitestrips are the way to whiten. Whatcha doin . Just checking my free credit score at credit karma. Lowers it. Actually, checking your own credit score with credit karma doesnt affect it at all. I guess i could just check my credit score then. Check out credit karma today. The roses are blooming in herbal essences hair is delightfully fragranced with notes of moroccan rose unforgettable, wherever you go the scents you cant forget. Can the Semiconductor Stocks continue their recent run . Lately this group has caught fire, and that includes Skyworks Solutions, the maker of analog chips for everything from broadband, wireless networking, not to mention various industrial, medical, and military applications. Skyworks is mainly known as a maker of power amplifiers for cell phones, and they have a ton of content in the iphone, but they also have a lot of content in the samsung galaxy. Still even with the drag of samsung exposure, the stock has been roaring lately after getting hammered at the beginning of the year. Its now up more than 40 since it bottomed in february, and its up slightly for 2016. Part of that is when it last reported in late july, they many people are expecting a good quarter when they report again in a couple of weeks, but obviously were in a quiet period. Cant really talk about that. Can the Big Semiconductor turnaround continue its momentum . Lets take a closer look with liam griffin, the ceo of Skyworks Solutions, to get a better sense of whats happening with the company and the broader industry. Mr. Grififn, welcome to mad money. Thank you so much. Thank you, jim. Weve got some cursory rules. I mean obviously youre going to report soon, so we cant talk about the current quarter. Right. I know theres a big customer that doesnt really care to be talked about. Bu the cell phone industry because what i want to talk about is that skyworks has been a dominant player in cell phones, but youve got more than just cell phones. First just fill us in on how that industry is doing. Yes, certainly. I think what is really important about our Business Today is this mobile internet ecosystem we support. Its tremendous. You talked about it all week on the show whether its netflix, facebook, 5 billion of mobile ads in 90 days, facebook. Dominos pizza, you mentioned. This whole stay at home theme. Ecosystem that we support is so vibrant, so profitable, that it is now driving change in the hardware. So in some way, all these bits and bytes need to be managed and delivered with high levels of efficiency, and thats what we do. So when we look long, we see this theme continuing, with more and more wireless engines being created every day and the ability for us to deliver our Solutions Getting better. Okay. When david aldrich, whos a terrific ceo, came on first when the stock was at 5 was saying, look, we can be a dominant that was the narrative for the company. Do you think thats now too pigeonholed with internet of things, with autos, with medical, and that were looking too centric . The cell phone is still the heartbeat and often the quarterback of our industry, throwing the ball around to an iot device or an appliance or something. However, you are right. This internet economy, its so pervasive. Its in everything that we do today. So skyworks, for example, has a great position and Access Points and routers, maybe a netgear or cordcutting phenomenon we see. We have products in nest thermostats with google. We have iot in appliances. Appliance Companies Like whirlpool are even now adopting wireless technology. But whats unique about it, its not always cellular. Its not always lte. It can be bluetooth. It could be Wifi Technology or even a unique protocall called zigbee which is used in smart energy and automation. All of those protocols together come together to give us the best opportunity to serve our markets. Without being able to mention a specific client, i mean away from that, have you had some backandforth with samsung because of the galaxy note 7 . Are things okay there . What can we talk about . Yeah, a difficult situation. Samsung is one of the leaders in the industry and certainly a customer of ours. We dont expect any direct impact financially from samsung. But at the same time, it does speak to the challenge in mobility. All this complexity that we battery and performance and higher frequencies and higher data rates makes the whole food chain quite complex. Now, making it even more complex for this story was that last year you tried to buy a Company Called pmc sierra. Someone else bought that. I was concerned at the time that you were then going to turn to more m a, but it looks like youve been buying back stock. M a no longer a big focus . M a is always an opportunity for us. I think one of the things i look at within skyworks that were proud of is were generating a ton of cash. You were a follower of our stock when we were 8 in 2005. Were close to 80 today. Were were 700,000,000 at that time. Were at 3. 3 billion now. Weve been extremely disciplined with acquisitions. We have made a few. We recently closed on this panasonic joint venture in japan, which brings highperformance, temperaturecompensated filtering, allows you to stay in your frequency as you transmit and receive data. We did a deal with saiji microsystems to bring wifi into in 2012, all relatively small deals but important for us strategically. Youre seeing the rumors. Qualcomm is going to buy nxpi. We had the broadcom avago. Cypress made a deal and qorvo. I mean its going to continue, right . Its just good for the industry, this kind of consolidation . It is good because one of the things our customers want, they want best in class solutions, and they also want integration so one of the secret sauces at skyworks is to take these components that have been and bring an integrated, configured tuned and tested module to our customers. For us, thats worked great. However, m a, given our Balance Sheet and the fact that we havent done a deal in a while puts us in a better position to do one. Its certainly on the radar screen, but well be disciplined. If the right opportunity comes along, well make it happen. Last question. Geographically, china, india, which is stronger . Other markets i should be thinking about because we know thats where the inflection in cell phones is still coming from. So you have two themes. China has been growing up as a market. It really has. Weve seen a shift from 2g, where we may have 1. 50 or 2 content, to 3g, where our opportunity goes to 2 or to 3. 4g is still early innings. Theres been some great improvement over the last several months. Last several quarters, were seeing china mobile upgrade on 4g. Names like wawaver are strategic for us. New Companies Like lico that was on tv here earlier this week. So we have a pit its a more mature market. India, latin america, middle east, phenomenal potential, and theres still 2 billion people on the planet have no connectivity. We want to nail that too. Im so glad you mentioned that because so many people think its peaked. If you have 2 billion people ahead, it certainly hasnt peaked. Absolutely. That is liam griffin. Hes the ceo of Skyworks Solutions, swks, longest stock that we have liked on mad money. Were back after the break. . . . . . . Geico motorcycle, great rates for great rides. Because im a woman. Do you think im gonna crack under pressure or conquer the field . Infinity. Made with flexfoam. Absorbs 10x its weight. Rewrite the rules. Always. I love that my shop is part of the morning ritual around here. People rely on that first cup and i wouldnt want to mess with that. But when my back pain got bad, i couldnt sleep. I had trouble getting there on time. Then i found aleve pm. Aleve pm is the only one to combine a sleep aid . Look up at a new day. . Hey guys now im back. Aleve pm for a better am. 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. Just one softgel the longer we spend thinking about this election, the more i feel like were kind of caught between scylla and charybdis, at least as far as the stock market is concerned. On the one hand, if the democrats win in a landslide taking the presidency and both houses of congress, you have to expect a new wave of legislation that could hammer stocks across a host of different industries. The ideal outcome is almost always gridlock, a divided party in control of the white house and the other Party Running congress. That way its much more difficult for washington to mess business up. But on the other hand, just when you thought it was safe to hope for a close election, donald trump comes out at last nights debate and tells us he might not accept the results if he loses. I got to tell ul the idea of this election dragging on past election day, thats a nightmare for investors. Theres so much money on the sidelines waiting to come in that with a trump contested wont be able to mount the kind of early november rally that youd expect when this big, bad event is finally behind us. Today trump said hed accept the results of a decisive vote. What we need to watch out for is a close race that he might decide to contest because that kind of uncertainty could really hold back the averages. Look, i really dont care about politics on this show, and im absolutely not trying to be partisan. I care about stocks, which is why i need you to recognize the results this election could require you to adjust your portfolio. You can figure out a way to make money either way, but your approach to investing is going to be radically different depending on who wins, which is why we need to get this darn election over with. I think people underestimate constantly just how much of an impact washington can have on the course of business in this country. Remember stocks trade based on predictions about their future earning streams. So anything that makes it more difficult to predict the future makes us want to pay less for entire process creating a level of uncertainty that could depress the whole market until were sure who the winner will be. Consider the news from the past 24 hour cycle and how much of the direction of it depends on this active versus passive governmental stance. First walgreens was up big today and its not because this Charitable Trust name blew out the quarter. In fact the substance of quarter was nothing to write home about. I didnt like the revenues or samestore sales. Walgreens rallied because the company made it found like the under Hillary Clinton, a merger like this might not get regulatory approval. Under trump, you may not have to worry about antitrust review. If hes true to his word of much less regulation, this deal sails. Suppose we get a contested election. Then you have no idea what to do. Kinder morgan reported a stronger than expected number this morning. I believe it would be much harder to get any new pipelines why does Kinder Morgan do well in that scenario . It has a fantastic existing Pipeline Network and the lack of potential competition would mean higher rates. Deutsche bank is percolating on the possibility of deeppocketed partners coming in to help rescue the company from the Justice Departments severe settlement demands. I think a Clinton Justice department would keep playing the same kind of hardball that weve seen under obama, but a trump Justice Department, i think it would be a wild card, deutsche bank. Heres the bottom line. Those are three stocks whose direction depends on the results of the election, and theyre just the tip of the iceberg because the president s decisions and appointments impact a whole host of businesses. Thats why its so imperative that we know who wins on election day. The longer we need to wait on the results in case of a potentially contested outcome, the longer this market will spend languishing as we wait for precious clarity. Rick in texas. Greetings from the dinosaur capital of texas. I hadnt thought of that. Whats up . Caller my concern and question is this. By the end of this year, our National Debt will reach 21 trillion. How is this going to affect the bond and stock markets in the short and long term . Short term, not because theres a shortage of treasuries. Its actually, believe it or not, a short term concerns that not an issue. Longer term, i know you and are both very worried about what its going to do more for our kids portfolios and their lives than it seems like the government is. We have to get the entitlements down. Its the entitlements doing that. Long term is going to put a damper on our stocks. How about diana in michigan . Diana. Caller hi, jim. Im a long time listener of you and cnbc. Oh, thank you. Caller and also a very, very long time owner of merck, plus other stocks. Okay. Political situation and the effects that they may have . Diana, i am so glad you asked this question because i was talking to a pharmaceutical executive the other day and i was saying that merck would be at 65, 66, on the good news of keytruda, its anticancer formulation, but because of worries about washington, merck has a lid on it. Come the day after the election, if its not contested, i think merck goes higher. Curtis in north carolina. Curtis. Caller booyah, jim. Thanks and to you and the mad money team. Appreciate your expertise as always. Thank you. Caller given what we know Going Forward, would you stay long with smith wesson in a long position . Yes. I think that its very interesting to hear Hillary Clinton defend the Second Amendment last night against you know, she was trying to be pinned down, and i can understand how anyone would say, well, look, shes much more is a good company and we dont have in this country laws that are going to make it so that smith wesson will do poorly. I think that represents a decent value in this market. Okay. Is it november 9th yet . No matter who you support for president , remember that stock prices will stay down until weve got some clarity, some certainty about this race, and a contested election would only make things worse. Much more mad money ahead. The lions get all the hype, but could a lam get wall street talking . Dont miss my interview with fresh off of earnings. Then take a seat, cramerica. Herman miller just gave the most famous task chair a 21st century update. Ive got the ceo. And all your calls rapid fire in tonights edition of the i love you so much. Thats why i bought six of you. For when you stretch out. I want you to stay this bright blue forever. Thats why you will stay in this drawer. Forever. I cant live without you. Ect your clothes from the damage of the wash with downy fabric conditioner. It not only softens and freshens. It helps protect clothes. From stretching, fading and fuzz. So your favorite clothes stay your favorite clothes. Downy fabric conditioner 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. Ahh this is awkward. New Mucinex Fastmax clear cool. Feel the menthol burst. Lets end this. Ve been on im bushed my feel alyea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you feel more energized. All day long. I want what he has. Okay. Got slammed after reporting a seemingly Strong Quarter last night. Lam research was in the process of buying semiconductor fellow travel kayla ten cor. Earlier this month, the Justice Department blocked the deal. Thought it was too anticompetitive. The market didnt seem all that upset. Lam stock jumped 4 . Why did the stock get taken to the wood shed, falling 2. 8 . Last night lam reported a solid three cent earnings beat with in line revenue and much better than expected earnings gui for the next quarter. Initially the stock jumped on the news, but this morning it gave up those gains, slid into the red. I can only spot two issues. First the forecast for equipment relates to d rams was soft. Second, management still hasnt presented a Long Term Plan for what to do now the deal is off. In the end, i think this pull stock into weakness. Lets dig deeper with martin anstice. Welcome back to mad money. I went through everything. This is one of those things where you start making your calls because i didnt see anything negative. People were saying, jim, jim, listen to me. Its the peak. I said i think martin addressed that point. Here we are. I need to ask you, when you get that kind of comment, what do you tell people . I tell people that were focused on the longterm opportunity to innovate for the success of our customers in the Semiconductor Industry and create long term revenue for our shareholders. Theres a compelling track record. We are about to record our fifth Straight Year of growth. We have Revenue Growth of 18 over that period. To that point, we met or strong for the company and certainly our outlook for calendar 17 is that our customers spend more money on equipment, and we think there are some tail winds specific to our company. Longer term, theres too much going on in the Semiconductor Industry in terms of opportunity for innovation. Were very excited for the industry as a whole. We did see you on november 6th of 2015, right when the deal was announced, and you know i applauded the deal. I thought as you said you had an opportunity to the last ten days to meet with most of our key customers around the world, and so far im very pleased with the response from them. Did that not get communicated to the antitrust authorities . You know, its not the most transparent process, im sorry to tell you. But i did spend a lot of time we spent time as a company, you know, ahead of this deal getting our customers invested in success and throughout the last 12 months, im pleased to say were absolutely invested. Neutral at a minimum, positive in many cases. And certainly lam research and ten cor, the objectives for the company remain in many respects. Theres a Value Proposition for process and process control. We just have different strategies to execute now. Samsung is widely known to have some problems with the galaxy, and it looks like its billions of dollars. I see korea having a big chunk of your business. Should we be worried about samsung, which is the largest buyer that they may have to cut back because of problems with the note galaxy . Obviously its unfortunate for samsung to be working through the issues, and i think like every supplier of samsung in the industry, were invested in supporting them and wish them every success in their recovery plans. You know, reality of the Semiconductor Industry today is we have engagements across the full portfolio, and the outlook we gave you yesterday and the rest of the Investment Community yesterday for stronger spending in canada 17 obviously incorporates the best knowledge we have, including in the subject that you just referenced. Excellent. How about this gigantic cash position . Where does it go . Well, to your point, we perform 5. 8 billion of cash. The basic headline for the company is a constancy. Profitable growth of our company as a matter of priority. And when we have cash which is excess to that need, returning cash to shareholders. Weve been focused on accumulating cash for the purposes of using that in the kla tencor transaction to your point in introduction. November 18th, we intend to communicate our plans not just on Capital Distribution but revise our long term Financial Model and talk about the strategic Growth Opportunities for the Company Independent of one of the things i find confusing is there is a kind of a disconnect. The analysts want to know about the next 90 days, but it is very clear that over the next four or five years, youre going to have theres a radical transformation in the industry and you cant make the kinds of chip were imagining without lam. Should we stop thinking about this kind of thing as peak trough . I think you should. I think the world of cyclicality is long since gone. Silicon, the integrated circuit is at the very foundation of the tech economy on a global basis. The reality of semiconductors today is the industry touches every Single Person on the planet, and our customers aspire to change the world. No longer is the definition of success about improving the performance of a chip and lowering cost. Its about delivering climate control, predictive medicine, time, its about making our lives more exciting with Virtual Reality and pokemon go as well. Theres a tremendous appetite for enabling the tech economy, silicon, and the advancement of a semiconductor road map is at the origin of that. We have the right products at the right time. More, we dont have products that are not central to the enable vision. So were very excited about the future of the company. Well, i am too, and im tired of hearing peak, and i understand the analysts want to play that game. But i think the people that have been with us recommending this stock and your Predecessor Company for years and years have done much better than those constantly calling or crying wolf of a peak. Thank you so much, martin anstice, president and ceo of lam research. Good to see you, sir. Thank you, jim. People love to call peaks and troughs even when theres secular growth, and lamb is about secular growth. Mad money is back after the 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. Just one softgel delivers the omega3 power of two regular fish oil pills. So give your body mega support with megared advanced 4in1. Today we re going to make their secret recipe. Turn it off im trying to this is why i trust tide. It has the power to get out the kind of things we get into. In just one wash. Removes over 100 stains in one wash. It is time its time for the lightning round thats where i take your calls d 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 round on cramers mad money. Well start with carmen in illinois. Carmen. Caller what are your thoughts on exc . I think exelon has got it together. I was very confused. I was worried about the other mergers but a 4 yield with some growth, exelon is for me. I need elaine in ohio, elaine. Caller booyah from tough season right now, but absolutely. I agree with you. Whats going on . Caller im looking for some more income, and i came across this carlisle group. Yeah, that yield could be may be a bit of illusory. I dont know if they can maintain that. You got to be careful. It does seem undervalued to me, but if you want to own it for yield, you got to be careful because i dont know whether they can back that up. Its a very opaque situation. Martin in georgia. Caller hey, jim. How are you doing . I am doing well. I hope you are too. Caller im calling about isrg, intuitive surgical. The stock has come down enough. The quarter was fine. The guys are pressing it down. Its a good quarter. Its come down enough, i would pull the trigger. I like intuitive surgical. I didnt see any inflection to the negative in that conference call. Jovan in new york. Jovan caller hey, jim. What do you think about scorpio not recommending any of the crude tankers after the disaster that was nor dick american. Gary in florida, gary. Caller booyah, jim cramer. Im from south beach, florida, where the women are as hot as jim cramer. My question to you today is whats going on with jetblue . How come its not moving up like the rest of the airline . Well, its got a lot of competition. It doesnt have the roots that you necessarily want. Thats why ive been liking United Continental and southwest you were not there with the hot as a pistol there but whatever. Bill in new jersey. Bill. Caller booyah from breeam, new jersey. I love breeam. The houses are more expensive than my place. Go ahead. Caller id like your advice on cypress semi. Caller booyah, jim. Booyah. Double booyah. Triple booyah. Caller buy, sell or hold on acena retail . I cant give up on it but that last quarter was just awful. But, you know, if it goes up a little bit, maybe. What can i say. It was just not good. Lets go to cory in massachusetts. Cory. Caller hey, jim. Thanks for having me on again. Really love the show. You know, what do you think of opht come december . They could knock out regeneron. I dont know, it is a i dont think theyre going to. Let me do more work on it. The stock doesnt get down 53 for nothing. Lets take a hard look at that, and i will come back. Lets go to scott, also in massachusetts. Scott. Caller ariad pharmaceuticals, buy, sell or hold . All right. To do im not as caught up as i should be on that situation. I will have to come back. And that, ladies and gentlemen, is the conclusion of the light round announcer the lightning round is sponsored by td ameritrade. What . Finally, i thought hed never leave. Tv character why are you texting my man at 2 a. M. . No. If you want someone to leave you alone, you pretend like youre sleeping. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Tv character taking selfies in the kitchen today you can do everything in just one click, even keep your toilet clean and fresh. Introducing lysol click gel. Click it in to enjoy clean freshness with every flush. Lysol. Start healthing. . Yeah, click . Unlike ordinary diapers, pampers stay up to three times drier, so babies can sleep soundly all night. When you ache and havent slept. Youre not you. Tylenol . Pm relieves pain and helps you fall fast asleep and stay asleep. We give you a better night. Youre a better you all day. Between the eagles loss to the redskins on sunday, the huge number of earnings reports weve received and the final president ial debate last night, its been a long week. This is only thursday. Its times like this you need to take a load off. Tonight were talking to a company thats mastered the art of helping people sit, herman the maker of all sorts of modern furniture. You know them as the Company Behind the air on chair, the Gold Standard for Ergonomic Office seating solutions. These things sell for hundreds of dollars and theyre worth every penny, especially if youre like me and you need extra lumbar support. Now, when Herman Miller reported its most recent quarter a month ago, numbers came in a little light on the top and bottom line. The stock has fallen from 32 down to just below 28 right now. First major redesign of the aeron chair since it was introduced in 1994. Two years of design and enginering research. I think this could be a potential needle mover. So lets take a closer look with brian walker. Hes the ceo of Herman Miller, learn more about this new design and what it means for the future of the company. Welcome to mad money. Good to have you, sir. Fantastic to be here. This is a Technology Company thats also iconic. We were talking about from muhammad ali, president obama, re people love your chair. If you do a redesign of the chair, does it actually possibly accelerate earnings. The big thing here, its a great franchise. Fundamentally its the greatest chair ever produced and its still fundamentally the best chair. What we wanted to do, though, is weve had 20 years of new knowledge and new science by don chadwick, brach walker, one of our great partners. We said lets take the icon and move it forward so that not only could enjoy the chair. What are the three things that are different about the one that i love, i have, and the one that im sitting on . You know, essentially while the chair looks very similar, really everything from the castors up is new other than the frame, the silhouette of the chair. The most important thing we tried to do is make the pellicle, the mesh, if you will, fit the body better so it now has a zonal control, which you instantly feel when you sit in a chair, its better than the old chair. No offices often sit in multiple locations, so theyre not going to sit in just one chair. So we wanted to make adjustments super easy so that when you went from chair to chair, you could dial it in faster for you. And weve changed the ride of the chair so that you get a more smooth curve of ride throughout the whole recline to upright motion. I think its important to talk about how these kinds of things youre talking about dovetail with what you basically have as a health and Wellness Company that makes chairs, including are about sustainability. Its about new generation and what they want. This is in your culture. Absolutely. If you look at the founding of the aeron, a lot of it was about aeration. The early idea came from how do you help people that are aging, age in place, be more comfortable. Everything we think about is how do we make your people more productive, more happy, if do you that, youre going to have better employees. Careful always to say how do we make sure the cradle to cradle of this chair is going to be sustainable from an environmental standpoint and maybe the best mark of sustainability is something that lasts forever. In the last quarter, could that be a transition . Were talking about something that could last for years and years, a new chair. Maybe people are waiting for it. It could have impact. I dont think so because we so today is the first day. We start taking orders today online. We took some orders as soon as we announced it this morning. We had let some of our larger customers know it was coming, but generally their buying cycle is pretty long, so i dont think it affected the quarter to be honest. There was a lot of talk by many Industrial Companies that the summer was kind of soft. Yes. And we saw that same period. We didnt know at the time until we saw some of our competitors and other Industrial Companies talkut but certainly as we got into august, we saw much better performing. Design of the century, time magazine, for three straight design of the decade awards for a chair. For a chair, yeah. Weve actually you know, Herman Miller, one of the great things and one of the pleasures of leading the company is were constantly coming out with great designs that set the new standard. In fact, just recently, we have this concept called the Living Office was named one of the 20 top designs of the last 20 years. Okay. Design within reach, i did not i mean i bought stuff at design within reach. We acquired them two years ago. They had been a long partner of ours on the retail side. We had an idea to build a consumer business. They were a big partner of ours, our largest distributor, and we knew the two guys who ran it for many years, old friends in the industry. They were owned by a p. E. Firm and were coming out of a p. E. Firm. We say, hey, you know what, lets get together because one of the things we saw happening is that more and more offices have a living element to them. R and we also believe that for Herman Miller, we had to get more connected to the end user. So weve always talked to the company. We want to talk to the fans of the product. So when the companys choosing, theyre choosing based on what its going to do for the people. Then finally you are a made in america company. Correct. Everything. Now, i know that you also have to buy a lot of steel. Do things like the tariffs in the debate like you, that the steel raw cost of yours, you have to pay it because youre does it affect the pricing of your chair that we put tariffs on steel . It would if it went to the particular steel that we buy. So far thats not a big issue for us. Certainly we saw steel prices rise a bit this year. Last year was a great year for us on steel. Its come back up. You know, our job is were big believers in lee manufacturing, work with toyota for many years. Our job is, you know, what we have to everything we can to always be more efficient. Were always looking for things we can bring in house. In fact, this chair will produce more of it in house, which will enable us to offset some of the steel cost. How come you can make them better in america and still make a lot of money and we keep hearing people have to offshore things . The truth is we make our products regionally around the world. We make this chair in the uk. We make it in china, and we make it here. And we ship it because for us, speed is important. This might surprise you, but we actually produce this chair in 22 seconds. I want to go to your assembly the guys that do that work are amazing people. We literally bring the inventory in every 45 minutes, and everything we make today ships today. I love it. Youre an amazing you work for an amazing company, and youve done terrific things. This is an iconic moment right here, right now. Introducing a new chair that i want. Thats brian walker, ceo of Herman Miller, a Great American and worldwide manufacturer which perhaps the most well known piece of furniture ever made. Mad money is back after the break. Wanna check yours . Scores dont change that much. I havent changed. Oh really . Its girlsnight. Ah huh. They said business casual. I love summer weddings oh no. Yeah, maybe it is time. Maybe i should check my credit score. Try credit karma. Its free. Oh woah. Thats different. I had frequent heartburn, but. My doctor recommended prilosec otc 7 years ago, 5 years ago, last week. Just 1 pill each morning. 24 hours and zero heartburn, its been the number 1 doctor recommended brand for 10 Straight Years, and its still recommended today. Microsoft is looking real good tonight, should go to an alltime high. Proofpoint, remember we spoke to them just two weeks ago in San Francisco . Monster, good cybersecurity number. That group had been weak of late. Amd, got to do more work. Not quite sure. Paypal, looks like its the threeyear outlook. They gave you one, and it looks very, very positive. Finally the stocks breaking out i like to say theres always a bull market somewhere. I promise to try and find it just for you right here on mad money. Im jim cramer, and i will see you tomorrow modest person, ver. Its true. We have proven that we can actually be civil to each other. Donald if at any time you dont like what im saying, feel free to stand up and shout wrong while im talking. Candidates trade biting jokes and even a handshake. What a difference 24 hours makes. Breaking news, iraqi forces launch their biggest push towards mosul, but one american is killed in the fight against isis. Then a beautiful, playboy model mysterially died from what