Transcripts For WHO Mad Money 20151022

But only for a few days before the market loses interest and moves on to some in you theme. Consider stocks like United Technologies, honey well and boeing and ppg been they were loathed. The market hated them so much 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 happened 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 endorsement of nelson 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 after 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, that was the signal that theres now an appetite for these down and out industrials, which youll be getting more for months. Since then, weve seen honey well, United Technologies reports, along with a usually disappointing preannouncement. Yet after an initial dip, they all went higher. Only ppg proved to be better than expected and that just kept them from flying. 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 to explain 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 Money Managers are just now 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 frantic, 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 same time, 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 care. 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 in an Election Year, nobody wants to champion pharmaceuticals. So the Companies People identify prices want you to think valiant and verizon pharma are being 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 astounding 28 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, these stocks will become disarray. Hillary clinton has become a vocal opponent 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 moment. Right now, the oil glock continues, bigger 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 of 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 expect all the mlps to trade down tomorrow 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 mcdonalds 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 away power 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 shareholders have serviced now well discover and shareholders discover of twitter discovered when Morgan Stanley took twitter to an outright sale this morning. This is a rolling bear market and it strikes with the drop of a hat. High growth naems like tesla have run into a wall and netflix has been dropping. That was a leader. But theres some joy in tech, thanks to recent takeovers that will take over capacity. Today is no different. Greatly consolidating the Semi Conductor equipment business. Theres an amalgamation 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 intel 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 own the insurance companies, they think traverls is gorgeous. Boutique insurance is great, 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 night and everybody 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 to 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 like them both. White wave is owned by my Charitable Trust. White wave got downgraded yesterday. My thesis on white wave is twofold. It could 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 long time, but i respect the fact that jeweldy hon said it should be sold. Steve in maryland. Caller how are you . Im great, steve. Caller 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 term, its kind of like to get 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 know 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 so let me do some more work and ill have to come back to you. Some of these moves are just astonishing. For however long they last before the market moves on to the next mauling. 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 a test drive after a full day of trading. Plus, chipotle lost its spice, but is it temporary rare . Dont miss my take, believe me. Stick with cramer. Dont miss a second of mad money. Follow jimcramer on twitter. Send jim an email to madmoney call at 181800743cnbc. Tupperware roared today after spending the last couple of years in the dog house. 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 market exposure which means its gotten taken to the cleaners 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 cent earnings beat with higher than expected revenues that increase by 7 on a local currency basis. The companys European Business is coming back. Their Asian Pacific business is doing terrifically, including china. Up 18 . Overall, tupperwares emerging business increased by 20 and the north American Business 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 blowout. This really was new product, china, just kind of the moment in time. How did it happen . Well, ive got to say first, we have an attitude, every business works until it doesnt. Our guys just keep leaning into it and things came together this quarter. It was nice to see. This china order, if i listen to tupperware, 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 lot 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 learned is people like flexible hours. Judging by the number youre signing up in north america, thats more true than ever. Absolutely. Interesting, we have this phenomenon happening with millennials. 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 to 5 00. Theyll bust their butt at 3 00 a. M. In the 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 me about that. I didnt realize that. Well, somebody told me a long time ago, if you want to catch moves, youve got to use moose bait. 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 dont 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. Food preservation and its about 25 . Our new product is what we focus most of our time on. We are the number one seller of cookbooks in france, were a cutlery company. 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 buff 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 not producing 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 putting new products in your pipeline. At a certain point, dont he just want that product line to put it right through yourself . 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. Every bit deserving. Stay with kraker. Coming up, whats cooking . Shares of spi polt lay Mexican Grill have loss a pinch of advisel 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 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 both of us, just. Yeah, it just takes all those awesome feelings you usually feel and it just makes them. Rawr. Dare to feel more with new ky love. I know blowdrying fries my hair, but 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 convert food to energy. Mmmmm, these are good nice work, phillips the tasty side of fiber, skrch. Skrch. What are you doing . The dishes are clean. I just gotta scrape the rest of the food off 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 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 because youre in love with the can you know companys beautiful cars, 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 that we saw today at the exchange. We know that ferrari has a 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 important part of this 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, sell. 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 step in the spinoff that will 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 Sells a less exciting 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 still about performance. What about the performance of the Actual Company . When you look at the numbers, you might be surprised. Ferrari generated 18 Revenue Growth in 2014, 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. Its total shipments 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 numbers might not mean what you think they mean because ferrari is not like other automakers. The Company Says Demand outstrip outstrips supply for ferrari and they plan to keep it that way 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. We believe that waiting lists have promoted our productive 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 strategy makes a lot of sense. Its why this company can get away from selling the cars anywhere from 188,000 to 40,000. Items and the luxury items are 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 more cars. Before 2013, ferraris business was determined by their manufacturing capacity. But in 2012, management decided deliberately to limit the number of cars sold to roughly 7 nous a year. In order to maintain that sense of exclusivity they talked about 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. I want them to double production. Forget about it. So essentially, ferrari has thats right, you heard me. 4. 5 . We typically dont regard that as growth, do we . Maybe the Companies Push Prices Higher and perhaps sxabd their auxiliary businesses, maybe in the rate of 5 to 10 range. Given how this stock is valued, 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 to successfully execute when it comes to increasing the production of 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 for the company. Engines only account for about 11. 3 of the total sales. Put it altogether, and you have that is gorgeous, but not particularly sexy numbers. Which brings me to the main reason why im not willing to give ferrari stock my endorsement. Its the valuation. In its current stock, it has capitalization a little over 10 billion. Given the companys anemic 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, chrysler, best of breed, 18 times earnings. Ferraris valuation leaves them all in the dust. While ferrari has better products, it doesnt necessarily have better 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 tiffany, 19 times earnings. None of them comes near the valuation ferrari is getting. With its current 10. 5 billion market cap, ferrari is being valued at roughly 1. 4 million 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 incredibly expensive. 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 months, a huge slice of additional stock i bet ferraris share price gets slammed. I suggest you wait until Fiat Chrysler unloads the rest of their 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 to it at a certain point. Youve got people in that companies. Ferrari was off to the races today. Thats not necessarily a good thing. This stock is just too expensive. I cant get behind it. Much more mad money after 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. Stick with cramer. Ramer. 130 yards now. Bills got a very tough lie here. Sea monster in the water hazard here. I believe thats a kraken, bruce. It looks like hes going to go with a nine iron. That may not be enough club. 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 electric. 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 clothes stay your favorite clothes. Downy fabric conditioner. Wash in the wow. Well, things in the bedroom have always been pretty 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 our sensations. 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. Dare to feel more with new ky 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 revealing sunlight, it doesnt look like hair color at all. It looks like, its a hundred percent you. When sap, the gigantic german enterprise for a company preannounced last week, it took a lot of people by surprise. Yesterday, she suggested it would outrun 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 do with current technologies. The leading purveyor of software, they awiefd s p last year. This made sap the second largest player 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 it easier for executives 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 a better sense 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 again, 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. And its been an amazing 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. But 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 disappeared disappears. Acquisitions are hard to do. Fundamentally, the success of acquisitions is driven by the focus of the Management Team doing the acquisition. In this case, you think about 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, were still growing at best in class Revenue Growth rates and best in class bookings growth rates. Lets talk about what it brings. Constantly have and its all in 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 . The idea that i can speak to my phone and 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 hotels 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 concur. And now we get to do it at a 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 is 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 for you, 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, 15 years 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 of 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 the expense report is 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. Recently signed was bookie. Com. All these Amazing Companies that 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, i cant comment on that. But, jim, here is the thing that i do love. Sap is in this amazing position where it has an amazing Growth Business which i think investors understand and expect. But the part thats beautiful about sap is were seeing our core business grow, right . Hannah delivers a positive view of your growth rates where our bigger specificitiers as you saw declined. 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. Uh. Think fast you dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold and flu liquid gel thats maxstrength 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 7 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. [ indiscernible ]. 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 108 or 109. Caller big booyah, jim, from west hollywood, california. My question today is about crc, the company spun off from oxidental. No, no. Sell, sell, sell. 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 do for us home gamers. Youre quite welcome. Is there any way i could be considering chesapeake no. Charles in texas, charles. Go ahead, charles. Caller hey, jim, i was wondering, should i buy sprint or should i you know, i dont care for sprint here because i like well capitalized Companies Like verizon or 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, i dont think. 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 Government 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 stock you want 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 . I blew it with tyson foods. My Charitable 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 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, thank you, thank you so much. This has been my best 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 to teach people to be better investors and i am doing my darned best. Thats 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 three extra absorb channels. 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, sleep and 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. Its what you do. Well, things in the bedroom have always been pretty 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 our sensations. 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 of my heros. 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 so much, every night we watch you. 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 restaurant 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 accelerating 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 been years, 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 eaten outside the store, only a 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 its 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 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. Theres no major ad campaign out there to restart things. Finally, chipotle has plenty of 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 why this one might still 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 these guys now. In the last three years, there have been three gigantic stocks. A 40 drop in 2012. 20 drop in 2014. 44 drop this year. In each case, you had to buy maybe not buy it immediately. It seems the company has done the same thing with the stock. It wouldnt surprise me if that money gets into the level. Thats because 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 going up, i expect food 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, most important of all, chipotle is moving quickly with new personnel and a xhimtd commitment for spending to fix it. In other words, i think when you look back, youll find youre getting a chance to buy the stock from the best company in the industry at a new trough. Simply wait a few weeks for the dust to settle. The pattern is not going to be able to buy it tomorrow. Remember the best of breed in Management Teams, they never rest. In the end, im talking about a leap of faith in this team, but one that has been repeatedly justified. I think it will be justified again. Chipotle remains a favorite destination of the younger people in this country. They although last inherit if store sales of the nation. Ion. Hey buddy, lets get these dayquil liquid gels 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. Uh. Think fast you dropped something. Oh. Ill put it back on the shelf. New from mucinex fast max. The only cold and flu liquid gel thats maxstrength and fights mucus. Start the relief. 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 from food and bvitamins to helpconvert food to fuel. One a day. Happy anniversary dinner, darlin can this much love be cleaned by a little bit of dawn ultra . Oh yeah. Of two bottles of this bargain brand. Keep talking about these roving fair 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 Group which had been a huge 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. I promise try to find it just