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After a rough day where the dow tumbled 314 points, s p plunged 1. 56 , and the nasdaq plummeted 1. 67 , i think the problems simple a list of stocks that are working seems to grow smaller by the day. Isnt that what it feels like . We have fewer stocks that are safe to own and more that are down right toxic as we saw near the end of the day when the bears crushed the bulls toward antichina fueled trading. Today felt like a vicious pro Football Game where the quarterback was under pressure all day and succumbed in the Fourth Quarter in football, a quarterback tries to do a check down, looking to receivers for the best opportunities down field sometimes the Wide Receivers are wide open. Sometimes the qb has to thread the needle to hit a receiver, a slant pattern. Other times, times like today, the bears are swarming, and its like a jailbreak as they head toward the quarterback if he doesnt get rid of the ball in time, hes likely to be sacked, perhaps for a big loss or a fumble or even an interception that could rulesul in a touchdown we used to have the receivers wild open wide open in this market sometimes it feels like theres no one left to throw the ball to, and youre going to have to throw the ball away or perhaps just absorb the hit. Today the bears went helmet to helmet and the investors got concussed into the close, not reassuring could be out for many weeks. Maybe come back soon i dont know theres a protocol what does that look like in stock market terms for todays trading . Okay last night right on the eve of the big trade talks with china, what we got, yeah, some hopeful comments from the president , just like youd expect arent you used to that . This time we got an interview where trump said lots of positive things about what might happen if the negotiations go well for a moment it looked like we were going to get the green light to buy some companys major china exposure i saw receivers that were wide open for a moment it looked like you might be able to hit the best wide receiver, get a td. Then completely out of nowhere, the Commerce Department steps in with a list of 28 Chinese Enterprises that it doesnt want American Companies doing business with. According to wilbur ross, the commerce secretary, these companies are complicit in the brutal suppression of minorities in china hmm, the white house slapped visa bans on the chinese officials who were responsible for orchestrating the same human rights abuses. Its hard to argue with that, but the timing couldnt have been worse, especially when it was right when fed chief powell was doing what he wanted him to do the offensive line broke down, and the qb, you the investor was gang tackled, unless you listened to us when we said the talks would not go well and you shouldnt hold your breath waiting for a deal while these particular Chinese Companies are not that wellknown, the analysts were quick to suggest this news could hurt the likes of intel and nvidia we know the Trump Administration is eager to limit chinas access to facial Recognition Technology that helps the communist party identify enemies of the state. Unfortunately, the company thats identified with that technology is none other than nvidia nvidias stock have been climbing relentlessly thanks to Strong Demand for its graphics and data center chips. There is a widespread belief that the chinese regulators might finally give the thumbs up for it to buy medical lanox. Suddenly that seems less likely. If you threw the ball to nvidia, you got picked off thats just the tip of the iceberg. The other day the general manager of the nba houston rockets, he got hit by like a under the bo bout of conscious. He tweeted his support for the protesters in hong kong. The problem, american basketball is huge in china they love the rockets, but the Chinese Government hates any sort of criticism, let alone support for its enemies. The reaction was swift its not a democracy the reaction was swift, even though many team owners sided with the peoples republic for business reasons craven, the nba commissioner adam silver expressed his support for free speech. Theres no way that made beijing happy. A admissioncommissioner coming saying things like jefferson and washington believed in is there really room for that in a society that theyre more likely to start boycotting our biggest brands, maybe they go after nike or starbucks or apple. These stocks have been very attractive if boycotts are on the table they got a lot less enticing theyre too dangerous to throw to its not just the trade war. Lets say you decided to stay domestic to protect yourself, especially since fed chairman powell says he favors additional types of easing. Normally that would cut towards the retailers, right however, if the trade talks are going to be stalled by this latest move from commerce, that means were almost certainly getting the previously scheduled bump up in tariffs in a week its hard to imagine anyone wanting to buy a retail stock in the face of higher tariffs unless its to offset the damage target, walmart, costco. Costco is barely down. As for everyone else they dont have the scale to strong arm their suppliers into eating the cost of those new import duties. Bad News Health Care . Youd think itd be immune to china. The strongest part of the Health Care Cohort has been the medical device makers. This morning we got a shocking negative announcement from qiagen a diagnostic company that tends to be liable these medical device makers werent supposed to have any Economic Sensitivity maybe thats not true anymore. As for the drug stocks and the hmos they are immune to the gyrations, but it doesnt matter right now. These companies are smack in the cross hairs of none other than democratic leader senator Elizabeth Warren what about Tech Companies with zero china exposure . She wants to break up big tech, so the stocks get hammered whenever she makes a stump speech i think people overreact to this stuff. Something like alphabet with his its search, waymo, youtube, what might be worth even more if were broken up. Market disagrees with me well covered receivers how about potential bargains the railroads have been down relentlessly, wait a second, they may not bounce back at all. I mean, thats a seemingly endless strike at gm autos are a major cargo for rails. That cargo is going to be lousy this quarter what else . Banks on the unless you know something about that boeing 737 max woes that i dont know, theres a lot of totally well covered receivers. Frankly, it doesnt leave too many stocks that are safe to own at the moment. You can take a shot at homebuilders kind of a hail mary play you can buy consumer package goods, its doing okay however, over the last 24 hours the trade tensions have ratcheted up so much that youve got to wonder if theyll even bother to hold the talks tomorrow if youre the quarterback, what do you do . I think you try to protect the football right now dont do anything outrageous, dont try anything fancy wait for a better moment when it no longer feels like chinas in the balance or next weeks upcoming tariff hikes have been baked into the average i dont think were there. I cant fault the Commerce Department for cracking down on Chinese Companies that enable horrific human rights violations, but they did kind of pick a worst possible time to do it, right before the big trade talks. I think you need to be careful as this market readjusts and recalibrates its expectations. You dont want to throw a pick six interception, and you dont want to be sacked for a loss, deep in your own territory lets go to steve in texas, steve. Caller hey, jim. How are you . I am good, steve. How about you . Caller unbooyah leavable. Ive only been washing you since the late fisher payne ordained you reverend, and i want to thank you for going a positive influence or investors, especially young investors. Thats what i want to do, i love that. Were going to have tough times but were going to get through them together. Reporter blaui took up a small position a month ago, and at that time the price targets were averaging in the low 70s, then they suddenly jumped up into the mid80s, and even though theyve eased a bit as of late, are you a believer i am a believer speculative stocks have been taken to the wood shop here. I think this is attractive weve got to leave a little room you know, clearly this market hates speculation and tandem is a speculative stock. Real Estate Investment trust and utilities k. The market is readjusting its expectations so you need to tread carefully and protect the football on mad money tonight, dominos just delivered something its investors arent used to digesting, an earnings miss. The stock took a hit early in the morning, but then it rallied. Is it a buying opportunity ive got the ceo, just wondering what your next move should be . Im going off the charts to find out whats next for this market and could the breakup of another unbelievable industrial icon be come somethiing . Im talking to the ceo of Emerson Electric to find out options for the 129yearold company with a fabulous dividend record stay with cramer dont miss a second of mad money. Follow jimcramer on twitter have a question . Tweet cramer, madtweets send jim an email at cnbc. Com or give us a call 1800743cnbc. Miss something head to madmoney. Cnbc. Com. Devices are like doorways that could allow hackers into your home. And like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Did you see the action in the stock at Dominos Pizza today . Over the past year this company has reported a series of not as good as we would have hoped for quarters and people have disappointed in them and the stocks been pulverized. Thanks to the proliferation of the delivery food platforms, dominos facing more competition than every today Something Different happened, dominos reports a seemingly difficult quarter. The stock ends up roaring higher, glad i told you to buy it when i was at squawk on the street this morning they deliver a 0. 02 earnings miss with slightly weaker than expected revenue up 4. 4 yearoveryear Sales Numbers foreign and domestic were lower than anticipated. Management cut their longterm outlook. Over the next two to three years domi dominos is looking for 78 to 10 trimmed guidance by 1 , International Guidance by 2 the stock caught fire. Why . Because what i said would happen finally has happened theyve reset expectations, and the numbers were better than feared looks like the kind of big washout you get when a stock finally bomtttoms when you get that reset the ceo of Dominos Pizza had a better sense of the quarter. Welcome back to mad money. Good to be with you again i was down right excited when i read your Earnings Call because of one thing it is very clear that you think the days are numbered where the venture capitalists will continue to be able to support the other guys in delivery theyre going to run out of money. Do i read it right well, you know, jim, we do think theres some irrational pricing out there in the marketplace right now funded by venture capital. We dont know how long that will last, but as we look out over the next two to three years, you know, at the revised guidance that weve given, weve got a terrific Business Model. You know, this Dominos Pizza Business Model can deliver terrific revenue and Earnings Growth over that window of time. I was your Free Cash Flow is magnificent, even with the socalled revised down numbers, the Free Cash Flow is hanging in there pretty well, isnt it . Yeah, jim, this is a terrific cash flow model. We generate over a Million Dollars in Free Cash Flow a day, and we also shared on our call earlier today that weve tightened up a bit around g a and also on capex as well which is going to give an opportunity for more Free Cash Flow to fall to the bottom line and ultimately as you know were pretty thoughtful about returning that to our shareholders over time. It seems like despite the fact these other guys do have these delivery systems, if you have 6 growth, that means you are gaining share against the other companies . No doubt. 6 retail sales growth in the u. S. Is significantly faster than the growth of the pizza segment and faster than the growth of the restaurant category Overall International business when you normalize for currency up 9. 1 retail sales growth, also significantly faster than the category jim, were gaining share, you know, in the u. S. And across the globe. A lot of companies i deal with are retrenching got away from china you just added 20 new stores in china. Youve got a lot of room to grow why now . Its a great time for us in china right now, jim weve spent a good bit of the last ten years refining our Business Model there we have a terrific master franchise partner. The four wall economics are terrific, and so were putting our foot on the accelerator to get more stores open. You used the term throughout the transcript of the fortress dominos. Now, were familiar with fortress when it comes to jpmorgan whats fortress domino so fortress for us is getting our stores closer and closer to our customers, and that really helps us for both businesses that we run, both the carryout business and the Delivery Business for carryout, the number one criteria for our customers is being close to the store they dont want to take a lot of their time out of their day to go pick their food up. The more stores we build, the more incrementalty we get there, and then on delivery, you know, the two key elements of making that Business Model work are number one, you know, getting to the customer fast because that drives repeat purchase, but two, the closer we are to the customer, the lower the cost is per delivery because our drivers can deliver more orders per hour so it really it is a cycle that just gets better and better and better the closer we get to those customers. You have 85 million customers, 23 million loyalty people now, and i see your ad campaign for insurance you know why ive been one of your 83 million, ive been consistent it has never come anything other than piping hot. Why do i need this insurance guarantee . Have people been complaining no, jim, you know when we look at the market out there today and we talk to customers and do our research, you know, one of the things that they talk about is that they can really ruin an experience if that product shows up too late or if its not hot, and we have franchisees that dedicate their lives to making sure customers get great experiences. So we featured a couple of those wonderful franchisees in our commercial, and we decided to make it much easier for customers to let us know if we got something wrong because when you deliver millions of pizzas, as good as we are were going to get a few wrong, and when we do, we want to make it right for those customers. Last thing, something that bothered me in your call you talked and teased about menu innovation, but you gave us not even a bigger than a bread box is there something that we are going to love that is in your pipe well, i was just back in the test kitchen again on friday tasting some fantastic product, and you know, jim, we dont launch any ltos. We dont play that game in the business, so were really thoughtful about making sure that the products that we put out there have staying power, but weve got a lot of great things in the pipeline, and im excited that well be able to bring some of those out to you and our other customers in 2020. Ive got to tell you, i am very antithe ipo market. I think youre dead right, there may not be the pot of gold at the end of the rainbow for some of these delivery companies. I think they run out of money before they come public. That is great for you. Youre doing great, rich allison of dominos thanks, jim. This is what it looks like when a stock has bottom. Weve got a lousy market i dont have to tell you that, because you see it yourself. When a stock goes up, on down numbers, what happens when the numbers turn out to be great mad moneys back after the break. Woman what gives me confidence about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. Mmmm, birthday cake pure protein. The best combination for every fitness routine. Wow, after a hideous day we need to take a step back, try and assess things objectively which is very hard to do when you get this kind of emotional selloff. You dont want emotions to dictate what youre going to do. Thats why tonight were going off the charts with the help of rob marino he happens to be my colleague at realmoney. Com where i blog, as well as being the publisher, rightviewtrading. Com get a better read on this market this guys got a perfect track record his chart work allowed him to call the bottom last december, how great was that, and he predicted that stocks had much more room to run right in february when the s p was already up 16 from its lows a lot of people argued maybe itd run out of steam. He nailed it when marino predicted more upside eight months ago, he also gave us warnings i want you to take a look at this monthly chart of the nasdaq this is a log rhythmic chart where each tip represents 1 , rather than 1 point. Tacticians like them because theyrebetter at defining tren lines. In february marino argued we were facing a consolidated period, not unlike what happened in 2011 and 2015 where the averages trade sideways in a fairly wide range. In both cases the nasdaq traded in a 21 range each of those periods lasted for 15 months. Back in february that meant we still had more room to run before the nasdaq hit the ceiling because the consolidation period going on for seven months we had eight more months to go before he expected the pattern to end, which brings us to right now. Well, the nasdaq has made new alltime highs during this period were now hitting that 15month mark were supposed to be worried about. Now he expects not a breakup, but a breakdown. Thats right this is a top call, perfect on a day like today not just for the nasdaq, for the dow and for the entire s p 500 so listen up especially if you saw the action today and youre concerned, what makes marino so pessimistic, check out the s p 500s weekly chart. Were going to go over it. The s p started making a pattern of higher highs and higher lows. We love that, right . Thats typically the kind of thing that is great to see so it was bad news when that pattern got disrupted last month when the s p started making a lower high, okay so this is when we all started to get in trouble. This reflects a complete loss of momentum sure enough, it also coincides with a pull back in the slow oscillator, the tool that tells you when securities have gotten overbroad or over sold thats the ssto. Theres also the bandwidth, bulger bandwidth which measures the s ps volatility you normally see them as two lines that represent the stocks standard deviations over the last 20 periods. The bollinger bandwidth shows you the percentage different basically this is a measure of volatility thats a problem for marino. Volatile till tends to be cyclical and expands and contracts and expands again. Right now the s ps bollinger bands have contracted to where they were a year ago right before the horrific market wide breakdown. The weekly chart isnt too ugly, but its standing on a precipice, and we were talking about right here, okay, this is a precipice. In other words, marino thinks that setup has the potential to result not just in a decline, but a sharp decline. How sharp . Why dont we zoom in on the s p 500s daily chart so you get a real sense of how were kind of in a danger zone here. When you look at the daily, you can see that the s p has formed kind of horizontal channel pattern over the the last three months weve got a firm ceiling of resistance, s ps new high over the summer, a little over 3,000. Marino thinks the highs in july and august may mark. Yes, this is what you really dont want to see, that is called a double top. It means we peaked at the same time, though, weve got a powerful floor of support at around 2825, hope, right . Thats where the s p repeatedly bottomed when it sold off in august no sooner or later the s ps going to break out of this box, either to the upside or the downside. Hes betting that its going to be the downside thats more likely now, marino believes the s p is going to test the floor of support. Only this time the floor is the 2825, okay, but if it fails and he thinks it will, another floor at 2725. Thats for the s p bottom in june got me so far . Hes thinking it could go down to where it was in march and june all right, garden variety selloff, wait a second he doesnt see that trading floor. That floor wont hold either if the s p breaks down from the current consolidation pattern, we could have not a little but a lot more downside. We look at the trading range the index has been stuck in. Then subtract that range from the floor support, that is what tacticians call a measured move, you end up with 2,600, and its been a while since weve been there, huh remember that period wow. Okay sure enough, the 2,600 level happens to be the intersection with the s ps longterm trend line from the monthly chart almost exactly what we would do is we wouldnt go back to where we were in december we would certainly give up a lot of what we gained, right i found this very worrisome and its pretty grim basically predicting a 10 decline from these levels. What makes him so bearish . For startersconvergence. Its a tool that helps detect changes in the securities trajectory before they happen. The mac d recently made what is known as a bearish crossover weve seen so many bullish ones. This is a bearish one. Thats where the black line chops the red one. Its a pretty reliable negative, too. See that right there okay, thats very bad. Plus, its below the center line heres the center line that reflects the s p 500s on going loss of momentum another sign of reversal lets go back tomark jenkins this is the oscillator, a momentum gauge developed by the great mark changen from philadelphia his oscillators are driven above the accumulation distribution line which means it measures money flow, think supply and demand are investors eager to buy the s p 500 or are they desperate to sell or are the two sides roughly even with the buyers and sellers bouncing about given its dropping below the center line, i guess i dont have to tell you what that means. Yeah, negative money flow. Put it all together, marino believes were really cruising for a bruising here. Hes hoping the s p 500 can find a floor at the 2,600 level dont you hate that hope, right . Thats still a long way from a retest of last decembers lows, but its pretty horrible if the floor at 2,600 fails, then i dont even know. He did say when we talked to him, that if this fails, we could revisit this level i mean, im sorry to be such a negativist, its not me. Its marino. On twitter people often say thats jims chart its not mine. Its marinos. I know its not what you wanted to hear today on an ugly day when a technician with tells us to be aware of a 10 decline, you Better Believe we take him seriously. It pays to be aware of what the people who have been right are saying, doesnt it bottom line. Back in february the charts as interpreted by rob marino told us the s p 500 had more room to run, about 200 points more it was closer to 300 then the market did what marino predicted, it peaked and spent months bouncing back and forth those same charts were approaching an important moment, and hes predicting a major selloff from these levels, a 10 decline in the s p do i agree marinos views echo my own for vast swaths of the markets for certain. As someone who likes individual stocks, im looking for the chance to buy best of breed names at Bargain Basement prices look, when a guy calls it here and he calls it here who am i to say that hes not going to call it right there lets go to steve in new hampshire, please. Ste steve. Caller jim, like you im from brooklyn, queens and jersey, so triple booyah to you. Holy cow, man, we are just kindred. I really feel it im really feeling it now, steve. Whats up . Caller thank you, please, as youve taught me to do my homework getting ready for corrections, if i have my premade list of about a half a dozen growth stocks, small, mid, and large cap, and about a half a dozen value stocks small, mid and large, what would i go with when there is a broad major correction the growth, the value or a combination of all and at approximately what percentage in number would i do that in as a correction when the markets down 5 , 6 , what would you recommend . The most important thing is do you like the companies, not the size of the companies. Way too many people got caught up in the mum bow jumbo of the ru russell 2000 or the s p or the dow. I need you to like the companies and buy the stocks of those companies on the way down regardless of the size lets not get caught up in the terminology. Lets get become students of the companies themselves, and i agree that the market is going down, but i do think that as i said at the top, theres some things to buy but theyre few and far between. Tonights chart is pessimistic i hope hes wrong, but hope should never be part of the equation much more mad money ahead. It seems as if breaking up is quite easy to do, at least for wall street, and the industrial sector seems particularly eager to break up. Tonight im sitting down with the ceo of Emerson Electric, a formidable ceo who understands business and has been around for a long time to figure off something to spin or something to keep whole. Ill tell you which companies could be worth buy in on certain markets. Rapid fire in tonights edition of the lightning round stay with cramer f through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow heres a conundrum, what do you do when a fabulous company is out of style on the wall street fashion show picks up a positive catalyst. Look at Emerson Electric, maybe one of the best we have in it this country its a manufacturers manufacturer exactly the kind of stock you do have to expect will get hurt during a global slowdown d. E. Shaw, a Major Hedge Fund has taken a position on emerson. They may be pushing for big changes possibly including a breakup. I think emerson is well run. This tends to light a fire under even the best executives last week management announced a comprehensive review of the companys operational Capital Allocation to enhance shareholder value. Thats a quote as emerson will tell you they expect a challenging geopolitical and economic landscape over the next couple of years ouch how do we weigh de shaws activist intervention against a slowdown earnings swoon no matter what. David farr is the chairman and ceo of Emerson Electric. He had a better read on how the companys doing and whats going on with this activist challenge. Welcome back to mad money. Thank you. Good to see you david. Good to see you again, jim, thank you very much for having me. This has got to be for you and a couple of real industrialists in this country, got to be one of the hardest times. It seems like if it werent for governments you would be hitting it out of the park. Emerson is performing well right now. We just finished our fiscal year, were going to grow sales 5. 5 , our ebit margin is going to be up cash flow is going to be up. We paid back 2 billion to the shareholder. Clearly the Market Dynamics are very difficult, and last june or this june i talked to the board about some major restructuring because what i saw as a slowdown in the cycle, which is a little premature between dhoochina,ss united states, a very weak europe i told the board like i did in 16 we need to take a hard look at the company, what are we going to do to generate high returns in a no growth market. Before this de shaw decision you questioned the makeup of the company, whether the divisions go with each other, but its been historically a great way to do business. Yeah, and when we put the company together like we did right now on those two platforms, we did this back in 16. I believe its the right structure today, however at some point in time as i tell all shareholders i meet with, we take a look at this constantly the company i inherited back in 2000, ive sold off close to 60 of that company. We do actions necessary to create value for our shareholder, position the company for the longterm, but right now we have a very difficult macroeconomic environment as you well know. If an outfit, very smart guys come to you, why cant you just say its not a good time were doing better than almost every other company. Why dont you give us a break. I listen to all shareholders, jim. I listen to all shareholders, shortterm, medium term, longterm. This board knows how to react. Last week we made the decision to announce so i could go out publicly and Start Talking to our shareholders i wanted to hear what they said. They made it very clear. You guys know what to do you know how to generate the cash you know how to pay money back to the shareholder weve paid back since ive been ceo, close to 35 billion in cash to our shareholders dividends, were going to be approaching 63 years of increased dividends per share and we know what to do as a management team. The board knows what to do well take a look at all the pieces cost actions to try to grow earnings and create value and a market place i think were looking at for the next two years, potentially zero low growth environment for a Global Industrial company like emerson. One of the things that you did you were far for versus every other industrial when it came to china. You understood that had to be a huge part of your growth. Correct. Its been a fabulous place for you to do business what do you do when suddenly the president has decided he doesnt want you to do business . Its a lot more difficult its our second largest market the growth. Its been very good weve been growing this year. Tell people how many plants you have, how much exposure. I have over 25 facilities in china, ten engineering facilities in china. Its our second largest market we grew this year this china well continue to grow the products that we sell the industry, they need it the big issue for us is the trade war between the u. S. And china. No leadership in europe right now. No growth going on in europe my decision is, okay, as i told the board back in june, were looking at no growth weve got to look at how do we drive profitability, how do we drive cash flow . Our shareholders expect us to perform both in profit, returns, and cash, and turn that back to the shareholder. Theres a note here from Deutsche Bank on the 27th. It says ceo david farr has publicly admitted that there are no real synergies between Automation Solutions and commercial residence solutions and it probably makes sense to split the two. Timing needs to be considered. Farr has announced he plans to retire in 2021 hes given an upcoming ceo transition the new guy should do it is it worth waiting . Im a ceo in action as you well know. From my perspective the pieces do fit well together theres always timing relative to when you create value in these pieces as we just sold off three years ago, we sold a third of the company off. From my perspective, we see value in these pieces. At some point in time everything sort of matures in valuation you then make that decision and take that, sell that business off, and then invest in Something Else the last cycle i grot to buy th pentair business we have a lot of room to fix that business right now as i do, as i look forward the next couple of years, i see a lot of restructuring opportunity in a no growth environment where we could drive margins back up to peak levels of performance, drive strong cash flow and invest that money for growth and maintain the franchises. If we get a trade deal, i dont want that emerson. I want this emerson. Exactly right and if we do get a trade deal well be ready we can flip back and forth from my perspective right now, were dealing in an environment where its a tough environment you need to get your costs in line you need to take the actions you can comie off that and grow. 2002, 2003, you used to follow us. Yes, i remember mr. Knight, are you kidding me we made that Huge Investment in china. With he huge growth rate out of that we grew 7, 8, 9 for four straight years we leveraged the heck out of the company. I look at this to set that cost platform, to look at all the assets when i turn the company back over to the next generation in two years theyll have a good run. And just like chuck did for me in 2000. Thats from my perspective. Im always looking for the great industrial was ge, and suddenly e see all these problems, including pension problems you have a great Balance Sheet you are the industrial immaterial to tell people to buy, but now im nervous that even you see slow growth, and while the pensions good, the Balance Sheets good, maybe i should hold off . From my standpoint, im a big believer in Industrial Assets and you have to buy them because we are a cyclical business you have to keep that Balance Sheet very strong from the standpoint, you dont want to overleverage your Balance Sheet. We want the unique opportunity to pick up assets. From my perspective i see in 12 months there r going to be assets in the marketplace. Leverage that investments from that standpoint. In the meantime were going to operate in a different market. Shaw, theyre talking about levering up, thats not the right answer. Thats the wrong answer for a company like emerson someone told ge to lever up. I think there was an activist involved in that, bought a bunch of stock baa and did not invest in the franchises. You have to invest in the franchises buying back 7 or 8 billion of stock is the wrong thing to do in a company like emerson right now. We can do different Capital Allocations. We can invest for the longterm. I like where we sit right now. We grew this year. I think were going to have a growth period next year. Im looking at a different environment where you really need to focus on hard cost structures to make sure you can get that growth and leverage when you come out of it. Thats what weve done in the past. If you want an industrial stock, and i know most people dont because theyre out of favorite now, mr. Farr and emerson, great way to go mad money is back after the break. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. Lightning round is sponsored by Td Ameritrade it is time, bye bye bye, and then the lightning round is over are you ready . Were going to start with bill in new york. Caller id appreciate your thoughts on roku, down 40 september. I dont think it should ever have spiked as high as it did. I think its regarded as being a play on what i would call the cord cut and that story is getting a little long in the tooth. Thats how i feel about it lets go to evan in pennsylvania caller cramer, eagles, booyah. Very informative. What can i help you with caller gilead, what do you think . Id rather go to chinos than gill gee knows is better nelson in new jersey caller big tiger booyah from princeton, university for you jim. Im here with my friend brad weve got a question about a marijuana stock, hexo corp. That is speculative the Canopy Growth because its almost like half cash. Im putting the hex on hexo lets go to martin in new york caller hi jim, booyah. Oh, man, really high speed chip interface im going to tell you to buy nvidia on the way down rather than now when i think its just a better stock and its worth it to take a shot its not a shot. I would invest in nvidia john in washington caller yes, sir, tell me wonderful things about kroger. Id rather tell you wonderful things about costco, which is crushing kroger. Ladies and gentlemen, lightning round. Lightning round is sponsored by Td Ameritrade take control of your financial future, cramers exclusive ceo interviews, full episodes, analysis, even your own sound board. Plus, special access to mad money 101 with rules and techniques to break down the market for all investors. The red flag that makes you drop a stock immediately is its everything you need right when you need it the new madmoney. Cnbc. Com. Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow all dividends are not created equal. At a time when the tenyear treasury pays out 1. 5 yield, you might think every dividend stop might be a winner thats not true. In reality this market has gotten very picky about high yielders some dividends are considered a lot more trustworthy than others for example, the nonretail real Estate Investment trusts and the utilities with high yields have generally been terrific perchlerperchl performers if you look at the Data Center Reits or the logistics reits theyve got spectacular gains. Even a controversial reit like ventas has a stock up 25 . They have a 4. 3 yield, income seeking investors love it, and they should. Same goes for most of the utilities. Anything thats name brand has been nothing short of basic, even if theres operating issues like southern company. Southerns actually up 40 for the year people cant get enough of that 4 yield even con ed, we had them on last week, a stock that cant seem to catch a break despite its excellent operating performance has rallied 22 . Its run so much that the stock only yields 3 pnts. 2 . If youre a utility or a nonretail reit, this market can be very forgiving. But outside of those two trusted sectors, it as whole different story for high yielders. Consider the case of macys, an iconic retailer that should be able to earn 3 per share with a stock that sells for five times earnings s at these levels macys has macys has a lot of debt and its business has been struggling that huge yield is viewed as a sign that the dividend may need to be cut. I think that could be wrong. Even though the forecast has been slashed the Company Still should be able to throw up more than a billion dollars in Free Cash Flow this year, and management is essentially retiring that debt doesnt matter, the yield offers you no protection to speak of from the declining stock now this is a huge oil company with a stock we own, unfortunately all it does is seem to go down. Now it does have a bountiful 6. 7 yield, and it is more than enough fire power to even raise that dividend. Man, if you had told me that bp would ever yield north of 6 , an environment with declining Interest Rates my trust would never have bought it that dividend is not enticing anybody. The price of crude stock in the 50s because we have too much supply and younger money managements increasingly want nothing to do with the oil industry i thought it would stop at 40 is bounce then theres dow chemical. I thought the stock would bottom when its yield hit 5 . The company has strong cash flow dows also a Cyclical Company that makes plastics. A lot of millennials feel like plastics are the new coal. You arent sustainable anywhere except they think a landfill now i know the ceos and i know hes trying to change dow chemicals stripes. Hes been at the forefront of trying to clean up plastics. No wonder that dividend now yields north of 6. 4 no protection. Were seeing something similar from carnival, the huge cruise line last night i got a question about carnival which had a widely panned Conference Call because the company is adding new capacity at a time when demand for cruises is being scaled back, especially in europe carniv carnivals always had a generous yield. Question whether theyd be able to keep paying the dividend with all these major capacity dishes. They assured it will be fine it hasnt helped the stock finally the Master Limited Partnership Pipeline companies that transport oil and natural gas. These stocks are just plain Disastrous Energy transfers supports a 9 yield. How about mplx, 9. 9 yield it is really well run. They blasted through six, seven, eight, nine hot knife through butter if you want an mlb go for cedar fair, an Amusement Park chain. Dont go for oil and gas pipeline youd be in the house of pain. This market loves high dividends if youve got a consistent business like utilities in the nonretail real Estate Investments trusts those spectacularly high yields they dont mean a thing. Stick with cramer. Oach to manag. That for over 85 years has focused on keeping confidence up when markets are down. An approach where Portfolio Managers work well independently. And even better together. Who dont just invest, but are personally invested. Can i find a proven approach designed to deliver results . With capital group, i can. Talk to your advisor or consultant for investment risks and information. To take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Not time to do anything reckless play this one safe and dont give up the ball the inclination here is maybe to take a one thats a big shot im saying no. Like i said, theres always a bull market somewhere. I promise ill find it just for you here on mad money. I am jim cramer, and i will see you tomorrow welcome to the shark tank, where entrepreneurs seeking an investment will face these sharks. If they hear a great idea, theyll invest their own money or fight each other for a deal. This is shark tank. Jared joyce, a serial inventor whos hoping to sell the sharks on one of his many ideas. This is going to be fun. My name is jared joyce. Im an inventor entrepreneur, and today, in exchange for 250,000, im offering you 25 equity

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