Transcripts For WCNC Mad Money 20160220 : comparemela.com

WCNC Mad Money February 20, 2016

Significant change. Do you know what its done . This less brutal backdrop allowed us to analyze individual stocks of individual companies. And make individual judgments before the year. Becoming less miserable. Om dows best performance for 2016 this week. What happened that makes things less chaotic. The Federal Reserve is putting itself on hold. C p lets not talk about rate hikes. It might be just whats developing. Plus oil and china are behaving themselves which leaves earn ings. Veve thats the strong suit around here on mad money. Bottoms up analysis. Look what managers have been able to achieve despite slowing growth, a weaker overseas market and a bizarre down shift in Consumer Spending for many items, particularly fashion and apparel. Avit even as the consumer has more spare change in the pocket thanks to better employment and cheaper gas. The game plan for next week. Monday starts with a company thats been in the crosshairs of washington. Om not for fundamentals. Thats allergan. Almost all candidates want prices down and mergers that s lower taxes like the deal that the foreign domicile is doing with pfizer which will result in an entity that can give itself a tax break versus if it were in america. Allegan is a jersey company. My Charitable Trust at action owners plus. Com has a significant position and the stock isnt doing that well. Road map for a higher priced stock. A a maybe one that allows the company to achieve eventually at least a 60 increase in the stock price. Something that was hoped for tiein was announced. Its been a rough ride to own the exception of johnson investors. Opouou after the close we hear from one of the most Controversial Companies we follow. Fitbit. I am adamant this is not just some sort of fossil, apparel, accessory. This is Health Wellness confirmed by dr. David agus, author of the lucky years who this week on the show said devices like fitbit can play a vital role in lengthening lives. Will it matter . Hon well find out. Now i have to acknowledge i have been on the wrong side of the trade here in my affection for both the company and the stock. Ti agus mentioned he thinks apple and wellness. Can i take a moment to say apple is taking a lot of political heat for a stand that made a lot of us covet its products before. The companys commitment to privacy. Seems odd that the government is asking tim cook to violate the policy and the trust. Ol t cook is a lot more pro Law Enforcement than hes portray. I understand the rock and the hard place. Apple gave you its word you p would have privacy. They cant go back on it easily. This is not an apple marketing oy. It is a pledge thats not easily broken. Arar particularly those in fashion and apparel doing poorly as we saw with nordstrom and disappointing numbers from vf corp. These are good companies. Lytr for their stocks to get slammed as they are well off the highs could be a sign of what happens when macys reports tuesday morning. I cant be that positive ahead of the quarter. Sells too much product from vf corp. And it is a play on a weaker dollar. He but we have a strong dollar that will hurt earnings. On the other hand, home depot will have a better story to tell when it reports at the same time. I believe they can raise ai estimates and talk about retirement and more household formation is causing more remodeling. Lk stra ton is a huge supplier to home depot. I dont know if home depot competitor lowes will have as good a time as things. To make shareholders a little bit more pleased. Me h investors taking an interest in a company too linked to the price of oil. After the close wednesday, we hear from cramer fave salesforce. The ceo seemed confident about his longterm prospects when we spoke in San Francisco a little bit more than two weeks ago. The stock is well off the high of 82 more than two months ago. There was talk that microsoft would buy the software concern. A little bit more negative than usual. Th the stock price may reflect that negativity. Thursday we have earn ings from two different disappointing ga retailers. Sears and kohls. Kohls yield has been the bottom of the groups that have fallen on hard times. Fa quarter maybe you buy kohls ahead of the results. Maybe it can bounce anyway. Sears, its just bad. You know who i bet will have a terrific story to tell dominos pizza. This Company Sells good pizza. They are a technology company. We hold the cheese in our house when we order via facebook. Dominos has a bizarre history of selling off in good earn ings and rallying. Fa h ill be all over it to help you through the dominos situation. Thursday we get results from palo alto, one that put on a good day after a relentless course down latelyt. We like this group. Valued highly. If you are inclined to buy palo alto, limit your do you know side as it does cut off your upside. Only 7. U upon speculators love it. Its one that you dont have to own. On the other hand, foot locker also reports on fridaylo. We know footwear is one of the strongest sectors out there. If foot locker gets hit ahead of the quarter on some of the other retail weakness stories its worth buying especially as nike and under armour report sales. Next week we are all about earnings, mostly retail. You have to pick your spot. Ones prevail while the others get hammered. Ratherer than the endless trading. Isnt it exactly the way it should be . Robert in north carolina, please. Robert. D atmmmm caller jim, thanks for all you do for the home trader. My pleasure. Caller after the great earn ings from alphabet was there pl anything other than profittaking that caused the 90 drop in price and where do you think the price is headed. Im going to use the price that sounds ridiculous. If it were valued like the typical growth stock it could easily trade to 1,000. My Charitable Trust owns it. Ertr it was pure profit taking. Over the course of the next 18 months it would not surprise me if that went to 1,000. Thats how strong the business is. Ben in iowa, please. Ben. Caller this is ben from iowa. Thanks for all you do for us. I own shares in sam adams and is it time to make a move . 1si fo i actually like constellation its got corona and mo dello and a good wine business and craft beer. Nd i like stz. Oscar in ohio. Booyah, jim. This is oscar calling out of to le do, ohio. My question is about Marathon Oil Corporation with oil being volatile at these levels. I was wondering if this is a good time to buy marathon oil. Ile hi it seems cheap but cheap isnt cutting it in the oil world. We dobts like the stories. Stu in florida, please. Stu. Pl caller jim, its a pleasure to speak with you. Thank you. Caller you remind me of my father without the facial ir, same stature. Thank you. Was young. Meha i didnt know whether to buy more or how its going. Yield is 3. 91 . We have the ceo on recently. He tells a great story. Heres what you do. If that stock were to break back to 45 i want you to pull the trigger. [ shotgun ] the market is heavy for the stocks and when oil goes down this stock goes down with it. They laid out the story about why that shouldnt occur. 45 bucks, next level to buy. Next week its all about earn ings. Finally. The good ones prevail while the others well, pain. Which is the way it should be. Tonight, rev up the lawn mowers. Spring is in the air. E. I check in with the gas powered equipment maker briggs and stratton. Love the products. Of lionsgate films. What happened to the studio behind mad men and the hunger games. I have been studying and they stump me. Announcer dont miss a second of mad money. T 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. Head to madmoney. Cnbc. Com. Ive been on my feel all day. Im bushed yea 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. Man sternly where do you think youre going . Mr. Mucus to work, with you. Its taco tuesday. Man youre not coming. Im good all day. [announcer ] mucinex keeps working. Not 4, not 6, but 12 hours. Lets end this they say when mr. Clean saw all the Different Things his new smart phone does. It reminded him of his magic eraser. Its not just for marks on walls. Its tough on kitchen grease. And bathroom grime too. Hes your. All aroundtoughcleaner, mr. Clean. 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 convert food to energy. Mmmmm, these are good nice work, phillips the tasty side of fiber, at a time when so many stocks have been annihilated since 2016 its worth remembering there are winners out there. Take bbg shlgs the maker of gasoline engines for Outdoor Power equipment as well as finished products like generators and pressure washers. The stock is up 25 year to date which is incredible when you broader a. J. S. The reason for the performance, there was a Strong Quarter on january 20. The Company Sales came in light but they delivered 16 cents earn ings bead off an 18 cent basis growing at a 30. 8 clip as sales declined year over year. Management also raised the fullyear Earnings Guidance and you know what . Though they have run here the valuation is reasonable. Stock trading at 13 times next years earn ings estimates and supports a nice 2. 5 yield. Lets take a look with the chairman and ceo of brigs and stratton to get a better sense of where the company is headed. Great to be back, jim. Thanks. I have to tell you, one of you are the best performing stock i follow. First of all you make snow blowers. We havent had much of a snow season. Second, holy cow. This isnt lawn mowing season. Stratton . What you are seeing is the result of a lot of hard work by our team. When you go back a few years we rationalized product offerings, took capacity out. What you are seeing is a lot of cost coming through. The cost savings. At the same time, we were working on a lot of innovative products. Over the last two years we have come out with more innovation than we have in a long time. Thats showed up in the margins, too. It is the execution of the strategy and hard work on the part of our team. We think because we are fans of home depot and not apparel. You do Big International business, but they want to spend to make the home more valuable. Briggs and stratton fits in there. The Housing Market being down had an impact on us. That are first time home buyers they want to take care of their investment. With the Housing Market being where its been, its been a few tough years. Now we are seeing the rebound in the Housing Market which was obviously showing up then because of the link we have to housing. Thats helpful, too. When you look at the exposure we have been trying to diversify business. We are 7030 now, u. S. And nonu. S. For a few years it didnt feel good being mostly a u. S. Based company with where the Housing Market was. Now it feels good to be in that spot. We think weve got additional runway out there as housing continues to go. I think well continue to see an uptick in the market for us. I have to tell you. November 10, 2015, industrial through march is the beginning of high season. How is high season going . Well, its too early to tell. We are still in this funny period. Stores are stocked for the spring selling season. Its one of those things where its tough to tell where things will go. We are optimistic. The placement is better off year over year. We are cautious at the same time. There are a lot of things going on in the market between discussion of negative Interest Rates and other things that we are cautiously optimistic, if you will. We think this could be a good season for us. All right. Im a big user of your products. We have an in and my best friend, you know, hes a demo guy. We power washed my place, used briggs and stratton and i see you have something that matters. Im thinking about getting it. You have an engine thats quiet power technology. Everybody else, isnt it . It is. Its one of the things we are doing with innovation. Starting, noise and storage are three things customers look for and users look for in equipment. So the technology you refer to is 66 quieter than other things on the market. Its remarkable, jim when you go through it. Starting the other thing. We are using lithium ion batteries for push button starting on a walk behind lawn mower. Thats different. We have a mower you can stand on end. I dont know about you, but i dont have the garage space. I could have a tencar garage and not have enough room. Mow and stow allows you to gain back garage space. Those are innovations in the past couple of years. I have the privilege of being able to see whats in the pipeline and i am excited about what we are coming out with. Great quarter and agco. Why havent you been hurt by that . Its not so much ag. Its lawn and garden. We are tied more to housing than agriculture. When you look at housing and people mowing lawns, that sort of thing. Thats where we live, if you will. The agriculture in the u. S. Is small. When you look nationally, its a small part of business. Really its the Housing Market and cutting grass here and in europe. Its been a remarkable year already. Its a great company. We love your products. Thank you for coming on mad money. Thank you, jim. Chairman, president and ceo of briggs stratton. Love their products. Amazing to see the stock do well. They have the better mouse trap. Mad money is back afternoon. Are hiding everywhere. The markets pitfalls that cant be seen by the naked eye. Well, cramer is getting out his magnifying glass to help you spot the hidden trends for your portfolio. Just ahead. cell phone rings where are you . Well the squirrels are back in the attic. Mom . Your dad wont call an exterminator. Can i call you back, mom . He says its personal this time. If youre a mom, you call at the worst time. Its what you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Where are you . Its very loud there. Are you taking a zumba class . A heart attack doesnt care if you run everyday, or if youre young or old. No matter who you are a heart attack can happen without warning. If youve had a heart attack, a bayer aspirin regimen can help prevent another one. Be sure to talk to your doctor before you begin an aspirin regimen. Bayer aspirin. With move free ultra. It has tripleaction support for your joints, cartilage and bones. And unlike the big osteobi flex pills, its all in one tiny pill. Move free ultra. Get your move on. My son and i used to watch the red carpet shows on tv now, im walking them. Life is unpredictable one thing i need to be predictable is to be flake free. Because i have used head and shoulders for 20 years. Used regularly, it removes up to 100 of flakes keeping you protected every week, every month, every year you ready ma . Always life is unpredictable, so embrace it ever since 2016 began we have seen a monster sell off. Many of the stocks are still troubled even after the recent rally earlier this week. I talked to you about how alliance is worth buying because the stock is so cheap. Not every growth stock thats been obliterated is necessarily worth purchasing here. Consider the rise and fall of lionsgate entertainment. The movie and Television Production Company Behind the hunger games, mad men, orange is the new black. The stock kept roaring endlessly higher thanks to wave of hits, the stock climbed 28 in 2011. 93 in 2013. But then it plateaued, inching up a percent in 2014 to 32. In 2015 lions gate shot up to huge chunk of gains plunging down to 32 and change at the end of december to close up the story fell apart in 2016. Ever since the rooer new year began the stock has been plummeting less than twos mo. Making it one of the great Growth Stocks of the moment. The company lost its mojo going from a beloved name to a play thing of the short seller in record time. Lets start with the rise of lions gate. Content is king and for years lions gate had the hottest tv shows and franchises. They made a killing on diver gent and hunger games and are behind some of the best shows on netflix. What if you plow a bunch of money into a property and its a flop. Lions gate is good at diversifying product offerings. They produced 12 to 15 films, two franchise films that rake it in at the box office. On the Television Side they are producing sit com, drama, reality, miniseries and excelling in the con tents across multiple platforms. They arent beholden to anyone. Lions gate doesnt care if you watch on cable, netflix, hulu and the shows are on 24 networks. The company is disciplined when it comes to the movie making side. 70 of lions g ge films are profitable which is a high success rate. More important they have never lost more than 20 million bucks on a movie. They have been a disciplined player. They dont make many mistakes. When they get a Major Property like the hunger games they make a fortune. I recommended the stock four years ago, a month before the first the hunger games came out. The stock traded at 11. 34 thanks to my younger daughter i head read the books and knew it would be huge. You have a 75 gain since then. Four months ago when the stock why have the wheels come off . How is it lions gate has round tripped . In a way they have taken on the characteristics of a Pharmaceutical Company whose drugs are about to go off patent. Starting in 2014 investors worried about what became known as the earnings cliff of 2017. At the time we werent even halfway through the hunger games saga but people are concerned what happens when this franchise came to an end. The movies generated over 200 million a picture. Sure enough the stock peaked before the release o othe final the hunger games film mockingjay 2. Then the stock began to slide when the Opening Day Box Office was weaker than expected. Two weeks ago they reported a disappointing quarter including a 4 miss. Revenues at 670 million. Street was looking

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