Transcripts For KWWL Mad Money 20151022

Thmarket hated themm so mumu that the they became incredibly oversold. Meaning they kept going down and down and down to the point where it seemed to be sunk. Then out of nowhere, a couple of things h hpened and the big Portfolio Managers, something changed their view from bear stocks to bullish in the blink of an eye. For starters, General Electric had a onetwo punch. Got the endndsement ofelson pells and the only one of his kind who, if you consistently followed him, you beat the market even if you bought the position after it was announced and aftete it spiked and he got involved buying a ton of stock. True to form gd stock has been roaring ever since. Last friday, ge stellar quarter, no fly. Thatas theignal that thehes w an appetite for these down and out industrials, which youll be getting more for months. Since then, weve seen honey reports, along with a usually disappointinin preannouncement. Yet after an initial dip, they all went higher. Only ppg proved to be better than expected and that just kept them from flyiyi. Today, though, we got excellent numbers from boeing and General Motors and that reinforced the group that this group is too important to ignore. My job is toxplain whats happening in the stock market. Because of worries about World Economic weakness, worries to keep Interest Rates lows, Portfolio Managers underweighted this group dramatically or sold far more than what they should have against what had been the benchmark in the s p. They owned 8 . This underweight situation coupled with the fact that many Money Managers are just nowow warm ug up to the notion that theyre improving, the Chinese Consumer is start to go buy goods again. All these sign ves made the Portfolio Managers f fntic, frantic in their efforts not to miss this bullish reranking to use their term of the industrials. They want in and they now use any weakness not to sell, but to buy these kinds of stocks. At the samtime, there is now a palpable sense of hatred surrounding the once beloved drugs and Health Care Stocks. This companies that were always so consistent. I think the money that is coming into the industrials is out of health carar ever since that tone Deaf Health Care manager came on tv and bragged about jacking up prices for some old drugs, this cohort has become too dangerous to own. Were going into an Election Year for heavens sake and inn eleltion year, nobody wants to champion pharmaceuticals. So the Companies People identify with dramatic increases in drug prices want you to think valiant and verizon pharma a a beiei trashed almost daily. Same goes for big pharma and hospital chains and terrible performance right into tonight. The valiant selloff today, it took my breath away. Compared it to enron and the stock at one point shed about 60 from its 150 opening price before rebound to go close still down an astoundinin28 bucks. It was one of the scariest declines ive seen in 35 years of invest inging. As long as the republicans seem to be in disarray, tpese stocks will become disarray. Hillary clinton has become a vocal l ponent of higher drug prices. Without price increases, this group is done, finished, left for dead. So its going to be difficult to get any sustained upside here even in the biotechs. Until valiant bottoms and bottoms for good and we get a big acquisition in the sector, both have to happen, this group may not be able to stabilize. Meanwhile, money is flooding out of retail in the oil and gas stocks. I mentioned them in the same breath. It sure doesnt seem is to be playing out that way at the right now, the oil glock continues,igger inventory build up today is barely being dented the. At the same time, the newly elected Prime Minister of canada has pretty much killed the Keystone Pipeline on his end. And as chip johnson told us last night on mad money, many of the oil companys big and small are running out of money and unlikely to get a lot of new money to drill. The saving grace here is m a, like halliburtons takeover off baker hughes. This has made schlumberger the stock to own. There can be a lid on the group unless crude goes over 50 from its current level, i e eect all the mlps to trade down tomorrow even though kmi is whats known as a c corp. The restaurant cohort is a disaster because of one Conference Call from chipotle, which said the costs were going higher, especially labor and real estate and food costs and theyre cutting right into the bottom line. The whole group got crushed. The only one that has any momentum is monalds and thats because its lagged so badly. The problems in chipotle will be fleeting, but you wont get a bottom overnight. It didnt help that only a week ago walmart slashed its earnings estimate in part. Its not spilling over into the rest of retail. Believe me, if walmart were planning to give awayower and hard goods and foods, theres no way it will be up that much. The tech stocks have been rallied by the bear market. Something shareholderss have serviced now well discover and shareholders discover of twitter discovered when Morgan Stanley took twitter to an outright sale thimorning. This is a rolling beararket and it strikes with the drop of high growth naems like tesla have run into a wall abd netflix has been dropping. That was a leader. But theres someeoy in tech, thanks to recent takeovers that will take over capacity. Today is no different. Greatly consolidating the Semi Conductor equipment business. Theres amamaamation going on in disk drives and sflash. A struggling hard drivemaker is combining with a struggling flashmaker and not a moment too soon given that intfl is going to be aggressive in the flash. Not all of these merchants are working in tech. Dells pure of emc looks stunning because emcs business only 150e78d to have hit a wall. Theres trepidation, the abagos, the exp semis. However, after the close, Old Fashioned semi closed expectations were blown away, so who knows. We know the market likes uncontroversial growth. Theres traditional growth, think about starbucks and, yes, facebook, they continue to be lobbed. Then theres slow growth, think clorox, kellogg, worehormel, not to mention kimberly clark. Finally, theres the financials. People want to o the insurance companies, they think traverls is gorgeous. Too. What about the big banks . Simple, without a rate hike, theres no traction. American express, axp, after one more hideous quarter, many of these moves are breath taking. The sleep at night Health Care Stocks are giving you a sleepless ninit and evevebody else, its just a rolling bear where you might get mauled and you might not, dependsing upon the take. Terry in washington, terry. Is. Caller hi, buck kie bu ya too you, jim. Got a couple of questions about white wave versus hanes. White wave just got downgraded from goldman sachs. What is your favorite . I likik them both. White wave is owned by my charitable trust. White wave got downgraded yesterday. My thesis on white wave is twtwold. It c cld be acquired or its growing very well. Hane is also down. Both of them are buys. I do not think the Natural Organic industry is a craze. I think its here for a lon time, but i respect the fact that jeweldy hon said it should be sold. Steve in maryland. Caller how are you . Im great, steve. Calalr thanks for taking my call and thanks for the advise you provide. I try. Caller i. A. Smith, water heater manufacturer, seem to be doing good work all the time. Had a good report today. A wild ride today, but longer your opinion, exposure to china and things like that. Ive not done enough work on it. This is one, as you said, e. L. Smith, havent looked at it lately. Dont even k kw the breakdown of where they sell. I know they make the kind of stuff ta goes in homes that i like but they also a commercial water heating business. Lately thats been slowing down let me do some more work and ill hav to c ce back to you. Some of these moves are justst astonishing. For however long they last before the market moves on to the next maulg. On mad money tonight, turning classic into cash, can they continue to keep your profits fresh . I have the exclusive. Then, is your your chance to buy a ferrari . No, not the car, the stock. Im taking the company for test drive after a full day of trading. Plus, chipotle lost its spice, but is it temporary rare . Dont miss my take, believe me. Dont miss a seconddf mad money. Follow jimcramer on twitter. P send jim an email to madmoney call at 181800743cnbc. Tupperware roared today after spending the last couple of years in the dog house. E. I think this company may have gotten its groove back. How did they lose their mojo in the first place . They have tons of emerging marketxposure which means its gotten taken to the caners by, yes, the super freaky strong dollar. But it seems the company in the analysts finally adjusted to the Foreign Exchange issue. How do i know that . Because when tupperware delivered this morning within it delivered an 8 centt earnings beat with higher than expected revenues that increase by 7 on a local currency basis. Even as they were down 11 in dollars. The companys European Business is coming back. Thr Asian Pacific business is doing terrifically, including china. Up 18 . Business incressed by 20 and the n nth american businessss is on fire. Its incredibly shareholder friendly and a juicy dividend. Dont take it from me, though. Earlier, i got to check in with can chairman ceo of tupperware to hear more about the quarter and its companys prospects. Take a look. Give us the anatomy of a owout. Thth really was new prododt, china, just kind of the moment in time. How did it happen . Well, iv got to say first, we have anattitude, every business works until it doesnt. Our guys just keep leaning into it and things came together this quarter. It was nice to see. Tpis china order, if i listen to tupperwawa, what im saying is maybe theyre not selling the right stuff. Well, that has part of it to do. If youre selling high priced if youre selling cars in china, might be some pressure. But lower net know, and you know what a lotot of people dont get . Ten years ago, china was a 2 trillion market. Its a 10 trillion market. Its five times the stiez. One of the things weve arned is people like flexible hohos. Judging by the number youre signing up in north america, thats more true than ever. Absolutely. Interesting, we have this phenomenon happening with millenals. They are going to be 50 of the workforce by 2020, 75 by 2025, 58 of them want to be entrepreneurs and the bulk of them dont want to work 9 00 tl 5 00. Eyll bust theirir butt at 3 00 a. M. I ithe morning, but the traditional workplace is not their cup of tea. So youre telling me the average age of your reps has come down. Significantly. Tell mebout that. I didnt realize that. Well, somebody told me a long time ago, if you want to catch moves, youve got to use moose we started doing research, what are millennials looking for . They want purpose in their life. When tailor swift came out and took on apple, she didnt have to do that. She did it for everybody else out there. Were attracting a lot of those people. And our whole concept of the enlightenment and empowerment of women, a lot of people, thats sticky to them. One of the things we d dt talk nearly enough about is the fact that youre a technology buff. Many of these sales are innovations you come up with every single year. Interesting. If you look back when i joined the company, we were 85 food storage. Now we dont call it food storage. We have a category kaeld called food preservation and its about 25 . Our new product is what wee fococ most of ourur time on. We are the number one seller of cookbooks in france, were a we do innovation for food prep for busy, working women. So technology is really what its all about. A bit of strange numbers, a lot of this many them obviously because of currency. I expected a lot of europe to be stronger because bf such a strong presence in san francisco. Anything to worry about . Europe has something to worry about because im part of this thing for european lead is. Europe is getting older, theyre notroducing enough jobs. When steve jobs launched the phone here, he had a market of 300 million he could sell to. Over there, look at what happened to nokia, they had to get registration in 40 different countries. Women want to be entrepreneurs. They have millennials, too. Youve been terrific at tting new productss in your pipeline. At a certain point, dont he just want that product line to no. That is not a maybe. That was a no. Thats a no. Hey, we have wonderful beauty businesses in certain markets. And you dont need that. All right. You always give straight answers. Stay with kraker. Coming up, whats cooking . Shares of spi polt lay mexic grill have loss a pinch of advivil after its disappointing Third Quarter results. Has the flame on this company been turned way down . Down . Well, things in the bedroom have always been pretty good. Yeah, no complaints. Weve always had a lot of fun, but i wantededo try something w. And im into that. So were using ky love. Its a pleasure gel that magnifies both of our sensations. Rit, i mean, for both lf us, just. Yeah, it justakes all those esome feelings you u ually rawr. Dare to feel more with new ky love. I know blowdwding fries my hair, t im never gonna stop. Because now ive got pantene shampoo and conditioner the prov formula locks moisture inside my hair and the damage from 100 blowdries is gone. Pantene. Strong is beautiful. Theres a more enjoyable way to get your fiber. Try phillips fiber good gummies plus energy support. Its a new fiber supplement that helps support regularity and includes b vitamins to help convfrt food to energy. Mmmmm, these arereood nice work, phillips the tasty side of fiber, from phillips. Skh. Skrch. What are you doing . The shes are clean. I just gotta scrape e e rest of the foooooff them. Ew. Dish issues . Cascade platinum powers through this brownie mess better than the competition, the first time. Today we saw one of the years most heavily anticipated ipos, the public d dut of fefeari. The highest of the highend luxury sports carmakers which now trades under the fabulous symbol race. Its not a surprise that fer rey regardrys stock closed up 5 today. However, before you buy this stock simply becau youre in love with the can you know mpanys beautiful caca, i think its worth taking a look under the hood in order to figure out what youre really getting when you buy shares of ferrari other than the hoopla thate saw today at the exchange. We know that ferra has decent sized race car business. In addition to selling cars that are street legal. We know the Company Sells engines along with ferrari bradz branded swag. But perhaps the most importantnt part of f is deal, in my view, is not so much what you might be buying with this ferrari ipo. No. Its whos doing the selling. Sell, sell, ll. In this case, ferrari belongs to Fiat Chrysler. And they now have an 80 stake with that missing 10 having been sold publicly. Theo has been in charge here since 1969 and this is the first result in a separation of ferrari from Fiat Chrysler. Theyre spinning off ferrari for two reasons. In part, because its performance has been lagging. The company s sls a less excititi brand, like jeep, but mainly because they believe ferrari can get a higher valuation as an independent company and it makes sense to me. When ferrari builds a car, its stilil about performance. Whatatbout the performance of the Actual Company . When you look at the numbers, you might be surprised. Ferrari generated 18 Revenue Growth in 20144 but their sales were flat year over yeefr First Quarter 2015. But lets sink deeper than that. Lets look at sales and earning he dont tell the story. In 2014, fer regard railroad saw its tothipments increase by 16 . Its declining by 5. 5 the year before and the First Quarter 2015 they shipped only 1,635 cars. Down 5. 6 from the year before. Of course, these volume numumrs might not mean like other the Company Says Demand outstrip outstrips supply for ferrari and they plan to keeeeit that w w by limiting the supply of new cars they make. Let me read you the part of the per expectus that i think will help you. Weelieve that waiting lists have promoted our productive e sense of exclusivity. We ensure we do not jeopardize client satisfaction, end quote. Thats right. Ferrari tries to not meet the demand for their vehicles. And you know what . The strataty makes a aot of sense. Its why this company can get away from selling the cars anywhere from 188,000 to 40,000. A ferrari is the ultimat luxury items and the luxurytems arere always defined by their scarety. That is fabulous for pricing. But on the other hand, its difficult to grow as a business if youre not willing to sell before 2013, ferraris business was determined by their manufacturing capacity. But in 2012, management decided deliberately to limit the number of cars sold tooughly 7 nous a year. In order to maintain tha sense of exclusivity they talked aboutut in the process. Going forward, ferrari plans to continue to keep volume relatively low. It was mentioned to me this morning when i was interviewing sergio marcionni. I said, hey, can you double the number of cars . Thats not what its about. Nevertheless, they do intend to do their shipments from 7,255 last year to 9,000 by 2019. Want them to double production. Forget about it. So essentially, ferrari has dictated a 4. 5 comp annual growth. Thats right, you heard me. 4. 5 . We typically dont regard thatt as growth, do we . Ybe the Companies Push Prices Higher and perhaps sxabd their the rate of 5 to 10 range. Given how this sto is valulu, more on that later. I like to see how much faster growth you could have here to justify the prices people are paying for the stock. Of course, we dont even know if ferrari will be able successfully exete when it comes to increasing the productiononf new cars. Even if they do, we have to be concerned this will hurt the companys pricing power. Now, believe it or not, sales of cars and spare parts are only temporarily 70 of ferraris total revenue. The rest comes from engines and various commercial sponsorships. Of these business, only the engine segments growing rapidly, making a real growth driver f the company. Engines onlyccount forbout 11. 3 of the total sales. Put it altogether, and you have a company with a sexy product that is gorgeous, but not particularly,sexy numbers. Which brings me to the main reason why imm not willing to give ferrari stock my endorsement. In its current stock, it has capitalization a littlover 10 billion. Given the companys anemimi growth race, i think thats a expensive price to earnings multiple to pay here. Using 2014 numbers, General Motors sells for 11 times earning webs ford sells for 13 times earnings, chchsler, best of breed, 18 times earnings. Ferraris valuation leaves them all in the dust. While ferrari has better products, it doesnt necessarily have bette premiumes. Truth be told, id rather own shares in Fiat Chrysler. But how does it stack up against luxury goodness segment . Coach, 13 time earn eggs. Testify ffany, 19 times earnings. None of them comes near the valuation ferrari is getting. Th its current 10. 5 billion market cap, ferrari is being per car. 1. 4 million per car . You have to look at it over multiple years. Ferrari remains cheaper than tesla, but to be fair, tesla has a rapidly growing business, which makes it easier to argue the stock deserves a premium multiple. People love the products and dont really care all that much about the fundamentals. They want a share of race. No matter how you look at it, ferrari is incncdibly expepeive. The ipo is only 10 of the share cap in the hands of the public. They plan to spin off remaining shares to you in early 2016. In other words, in a few montnt, a huge slice of additional stock will be dumped on the market and i bet ferraris share price gets slammed. I suggest you wait until Fiat Chrysler unloads the r rt of eir stake. Here is the bottom line. No matter how much i like ferraris products, and i do, i simply cannot get behind the stock at this elevated valuation. Its trading at exorbitant levels. Im not saying the stock cant go higher in the near future, but what i am saying is that ferrari, the car, but certainly the stock, way too risky for this guy. John in new york, john. Caller hi, jim. Thanks for taking the call. Not a problem. I wanted to ask you about your thoughts on the longterm outlook for first data corporation. You know what . Longterm, i think theyre going to do okay. It came out pretty expensive. It was priced a little bit too high. They got away with it and i think the stock can trip. Ultimately, im going to warm up it at a certain point. Youve got people in that category like visa, mastercard, those are much, much better companies. Ferrari was off to the races today. Thats not necessarily a good thing. This stock is just too expepeive. I cant get behind it. S. A. P. s phenomenal earnings idea, the takeover thats helping to take it to new highs. Then im chewing over chipotle to see if the stock represents a buying opportunity or a busted growth stock. And your calls rapid fire in tonights edition of the lightning round. Ststk with cramer. Ramer. 130 yards now. Bills got a very totoh lie here. Looks like we have some sort of sea monster in the water hazard here. I believe thats a kraken, bruce. It looks like hes going to go with a nine iron. Thatatay not be enough clulu. Well hes definitely going to lose a stroke on this hole. If youre a golf commentator, you whisper. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. This golf course is electricic. Laundry can wreak havoc on our clothes, ruining them forever. Sweaters stretch into muumuus. And pilled cardigans become pets. But its not you, its the laundry. Protect your clothes from stretching, fading, and fuzz. With downy fabric conditioner. It not only softens and freshens, it helps protect clothes from the damage of the wash. So your favorite cloloes stay your favavite clothes. Downy fabric conditioner. Wash in the wow. Well, things in the bedroom have always been pretty good. Yeah, no complaints. Weve always h h a lot of fun, but i wanted to try something new. And im into that. So were using ky love. Its a pleasure gel that magnifies both of our sensations. Right, i mean, for b bh of us, just. Feel and it just makes them. Rawr. Dareo feel more with newewy love. In a world thats trying to turn you into someone new. One hair color wants to help you keep on being you. Nicen easy. We only make the most real natural looking color. So even in revealili sunlight, it doesnt look like hair color at all. It looks like, its a hundred percent you. Whenen sap, the gigantic german enterprise for a company preannounced last week, it took a lot of people by surprise. Yesterday, she suggested it would outrunn the guidance. This is all about saps transformation doing a major and fast grower in the cloud. Clouds revenues rocketed 176 higher. Whats driving that . I think a lot has to dodoith currrrt technologies. The leading purveyor of software, they awiefd s p last year. This made sap the second largest play in the cloud revenue. When sap bought concur, they did something smart, they decided to keep around the Management Team. This helps businesses to save a fortune on their travel costs, makes easier for exexetives to see what employees are charging with their expense account. Sap is now one of the fewer older Tech Companies that has figured it out. In order to get t better senen of whats happening in the world of Cloud Computing and corporate travel, lets take a closer look with steve singh. Welcome back to mad money. Nice to see you agaiai jim. Congratulations. I never got to congratulate you in person. What a fantastic thing you did for shareholders and for yourself because youre sticking around. You know, first of all, thank yo and its been an amazingng year. The trust that dillon put in concur and in me, this has been fabulous. Its been an incredible year, not only from the growth of our business, but also the fun that our people are having, building on a much bigger platform than we were able to do on our own. So speak to what it means. The company that sap is working with, a company they slotted in concur or suddenly you introduced sap . This is one of the biggest Global Technology companies in the world. They have more than 250,000 customers. And the beauty of the last four quarter, wooerve a part of sap for four quarters. The beauty of the last four quarters is weve seen that global scale really helps. And we were growing at fast rates even before becoming part of sap. T whats been really amazing is every single quarter since then, weve grown at faster, accelerateing growth rate every quarter. Which im always afraid wont happen when the followup. Then it just disapapared disappears. Acquisitions are hard to do. Fundamentally, the success of acquisitions is driven by the focus of the Management Team doing the acquisition. What bill and hassle have been driving from the acquisition strategy. Theyve been laser focused and given a chance to flourish. They had an amazing last four quarters. By the way, has the ceo, a former ceo, becoming ceo of concur, its wonderful to see the success of concur. But as a shareholder, i look at this and say, look, its great to see the growth were seeing in all of it, whether its field glass or success factors or hybrids. Last quarter, the quarter we just finished, more than 100 growth in revenue for all of our business. Even when you back out, the positive impact of concur, w wre still growing at best in class Revenue Growth rates and best in class bookings growth rates. Lets talk about what it brings. All the new innovations you constantly havand its a a inn your handheld. Describe what the product does. One of the things that im really excited about is we can continue to execute on this vision that we had of creating the perfect trip, right . Phone a say, look, book me a flight from seattle to philadelphia and not only will i book that flight automatically for you as the provider of that software, but ill say, okay, i know what h hels you like, ill book it all automatically for you. As you take that trip, well fill out your expense report for you automatically. Thats the beauty of global stays of ten exercise in what we had before. Thats the mission. And while youre at it, you dont actually need the expense of the travel department. No. And i imagine the amount of fraudulent t e i i coming down. Massively. You know your Parent Company is a customer of ours and weve seen great savings. The moment we can push this so where it can be done automatically forou, the less you need in services. It gets done for you automatically. Can you run it through the way it was versus the way it is now, right from the booking all the way to where you stay and eat. Go back 10, 15ears ago, right . You would pick up the phone and call your travel desk and somebody would, you know, basically book your air fare, your hotel and everything else. Today thats done in two or three clicks. But the real pain part o o travel was when you came back, you had to fill out typically on a piece of paper or a spreadsheet all these cells that says this is how much i spent by day, by category. Today, thats being done. 80 of thexpense reports pulled out for you automatically. I know. I love that. This is the beauty of concur and the promise of what we can do under sap. Theres an element that concur leads on the sharing economy and the on demand economy. Yeah. For example, you know what . We just signed a great deal with lift. We signed a great deal with hotel tonight. In fact, another deal just recently signed was bookie. Comom all thesesamazing companies thth help you book travel integrated into the computer platform. The last question i saw merck had a disappointing number tonight. Any reason why you think they didnt buy it . You know cant comme i do love. Sap is in this amazing position where it has an amazing Growth Business which i think investors understand and expect. But t part thats beautqful about sais were seeing our re business grow, right . Hannah delivers a positive view of your growth rates where our bigger specificitiers as you saw declineded i think this is the part of the story you are absolutely right. I was skinned by how good the number is. Steve singh, what a fantastic job. Mad money is back after the break. Break. S and go. But these liquid gels are new. Mucinex fast max. Its the same difference. These are multisymptom. Well so are these. This one is max strength and fights mucus. That one doesnt. You dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold d flu liquid gel thats maxssength and fights mucus. Start the relief. Ditch the misery. Lets end this. Looking for 24 7 digestive support . Try align for a nonstop, sweettreatgoodness holdontoyourtiara, kindofday. Live 24 7 with 24 4 digestive support. Try align, the undisputed 1 ge recommended probiotic. Get fastacting, longlasting relief from heartburn with it neutralizes stomach acid and is the only product that forms a protective barrier that helps keep stomach acid in the stomach where it belongs. For fastacting, longlasting it is time. And its time for the lightning round. Buy, buy, buy. [ indiscerninie ]. And then the lightning round is over. Are you ready, skedaddy . Robert in new york. Robert. Caller a big booyah to you, jim. My name is robert fishman. I have a question regarding stan stars and lions gates films. Lions gate films has had too big a run for me. I think you have to wait. I feel the same way, by the way. Disney pulled so much up, i would want to wait until disney comes back to 1 1 or 109. Rob in california, rob. Caller big booyah, jim, from west hollywood, california. My question today is about crc, the company spun off from oxidental. No, no. They did a smart thing at oxy by getting rid of this one. Lets go to david in georgia. David. Caller hey, jim, thanks for everything you d d for usome gamers. Youre quite welcome. Is there any way i could be considering chesapeake no. Charles in texas, charles. Go ahahd, charles. Caller hey, jim, i was wondering, should i buy sprint or should i you know, i dont care for sprint here because i lik well capitalized companies l le verizozoor at t or tmobile. No reason to put my name in sprint. How about rock in alabama . Caller booyah from rock coming from l. A. , lower alabama, that is. And i was wondering about the slide on Western Digital and sandisk if it was just a coincidental if micron slid with no. Micron went down because intel announced theyre going to move into flash. This is a stock that has tried the bottom and is not going to be able to succeed, dont ththk. Paul in california, paul. Caller jim, bu ya to you. Booyah. Ive been hanging with you since the first housing bubble, the leverage and the arbitrage and the govererent Printing Press created a dozen more bubbles including biotech. I love but because of the great earning eggs report ingings report, i went into alab pharmaceuticals. They do a lot for women. They do a lot of but as long as you know its speculative. Its not the kind of stockck you nt to own. Julian in texas, julian. Caller hi, jim, how are you . Im all right. How about you . Caller good. I wanted to get your thoughts on tyson foods . My charitatae trust owned it. I decided to sell it and the stock lost a lot of money. It is doing quite well. Mike in virginia, mike. Caller jim, booyah to you. Booyah. Caller mike in virginia. My stock is kansas city everyone keeps trying to call bottom on this one, mike. I dont do that. The only railroad that i do like is Union Pacific and i think its too earlyly to know on that one. And that, ladies and gentlemen, is the conclusion of the lightning rounds the lightning round is sponsored by td ameritrade. Mr. Cramer, absolutely love the show. We really appreciate you out there, man. Booyah, my kids are in Elementary School and learning so much from you. Booyah, mr. Cramer. I know you hear this all the time, jim. But thank you, t tnk you, thank you so much. This has been myest year by far and away in the market. I just want to thank you for looking out for the regular guys out there. I am trying toeach people doing my darned best. Thths the goal here. Great to hear your voice and know that youre there for us. Its time to dance freely thanks to new pampers cruisers the first and only diaper that helps distribute wetness evenly into thrhr extra absorb chchnels. So it stays drier and doesnt sag like other diapers so wiggle it jiggle it and do, whatever that is, in new pampers cruisers love, sleeeeand play. Pampers its the final countdown the final countdown if youre the band europe, you love a final countdown. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Well, things in the bedroom m ve always been prprty good. Yeah, no complaints. Weve always had a lot of fun, but i wanted to try something new. And im into that. So were using ky love. Its a pleasure gel that magnifies both of ouousensations. Right, i mean, for both of us, just. Yeah, it just takes all those awesome feelings you usually feel and it just makes them. Rawr. Jim cramer, youre one o o my hehes. I look forward to your show every week night. Thank you so much for helping beginning investors like me. When you talk about the markets, i just believe that youre spot on. Oh, i love it. Thank you u much, eveve night we watch you. I have learned and earned. The last thing you want to hear on a day like today was a stock that chipotle fell almost 40 bucks is that you should buy some shares in the restauran chain. Youd rather by the burrito. Especially when many analysts believe in the return of the popular items in the menu. After this partial withdraw theyre a aelerating samestore sales growth. Not the two plus number we got today. Oh, two plus, thats something. Nor did anyone want to hear the negatives chipotle talked about which is things got weaker as the quarter progressed. Second, october has started off choppy. Third, wage costs and real estate costs are going to be a mess. Its beennyears, they said on the call and the company has to be proactive in raising wages and offering more perks in order to retain the best employees. Its only going to get worse before it gets better, right . Its not capturing enough of the out of store eating markets. As twothirds of the food is measly 7 is ordered outside the store. As steve ells said, the company hasnt quite optimized their mobile order experience why he yet, but its an understatement. Fifth, the new are still very much inertia. Six, chipotle said its European Business is just getting started. I dont think its going to be roldz out all that quickly, frankly. Seven, in the current quarter, at least i is eighth, chipotle admits that the coceo said, and i quote, i think we took our eye off the ball a little bit. End quote. And that, quote, it happens sometimes, end quote. That includes losing one key diner per lunch per day during a thats a pretty dramatic through decline and throughput after many quarters of gains. Try to get them through, get them through. This time they didnt. There to restart things. Finally, chipotle has plenty o o cash. Just 46,000 shares bought an average of 670. Despite a 155 million purchase price. Hence why the stocks are huge. But now let me go against the grain for a moment here and explain w w this one might stillll be worth it. First, this is chipotle, for heaven sakes. Its one of the greatest restaurants of all time. Stock was at 55 nine years ago. So its tough to give up on ththe guys now. In the l lt three years, there have been three gigantic stocks. A 40 drop in 2012. 20 drop in 2014. 44 drop this year. In eac case, you had to buyuy chipotle, not sell it. Maybe not buy it immediately. It seems the company has done the same thing w wh the stock. Money gets into the level. Thats bause these are indeed transients. All three major initiatives, theyre going to be in much faster growth mode in the next year. Chipotles management is not going to take their eye off the ball a secretary time. Thats fought like them. While labor costs are goingng up, i expect foodod costs to start coming down. Ultimately good for the price of beef and the new round of price increases that theyre going to put through, mostt important of all, chipotle is moving quickly with new personnel and a xhimtd commitment for spending to fix it. Other words, i thihi when you look backck youll find youre getting a chance to buy the stock from the best company in the industry at a new trough. Simply wait few weeks for the dust to settle. The pattern is not going to be able to buy y tomorrow. Management teams, they never leap of faith in this team, but one that h h been i think it will be justified again. Chipotle remains a favorite destination of the younger people in this country. They although last inherit if not the earth, the higher same store sales of the nation. Ion. Hey buddy, lets get these dayquil l quid gels and go. But these liliid gels are new. Mucinex fast max. Its the same difference. These are multisymptom. Well so are these. This one is max strength and fights mucus. That one doesnt. Uh. Think fast you dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold and flu quid gel thats maxstrength and fights mucus. Start the reliefef ditch the misery. Lets end this. Americans. We try to live healthy. But many of us dont know there are nutrients that can help support our metabolism. Take new one a day healthy metabolism support multivitamin with chromium to help use carbs fromomood and bvitamins to helpconvert food to fuel. One a day. Happy anniversary dinner, darlin can thisuch love be cleaned by a little bit of dawn ula . Oh yeah. One bottle has the grease cleaning power of two bottles of this bargain brand. Keep talking about these rovingngair markets within the context of the entire market. Right now, the one thats in health care is so vicious that it is truly frightening many Money Managers who are never used to seeing a stock like a valiant. Almost get cut in half in a single session because of a report that came out that said that it could be lighten ron. That is driving Portfolio Managers away from the health care g gup which had been aauge leader. Without a leader like a health care group, the industrial stocks cannot do it alone. Those are really the only groups right now that are unscathed a little bit. We need some calm before we can advantage. I like to say theres always a bull market somewhere. For you right here on mad im jim cramer, and ill see you tomorrow. s thursday october 22nd