Snap judgments going arieh. Its beginning to drive me crazy. Or at least crazier. On days like today where the dow inched up. 34 points s p 500 advanced. 23, nasdaq gained. I feel like buying and selling stocks has become a lost art. Lost because it requires tedious homework not headline reading and false assumptions from those that take their queue from the action. In the last 24 hours ive seen so many stupid, off the cuff decision i need to call them out if only to help you understand how to do things the right way. Not long ago i introduced to those that trade off the s p 500 futures. Those that fled in and out of all stocks, based on silly news reports all hours of the day, europe, asia doesnt matter. Did you go to college to get stupid . You are really stupid. Wrong about the marines of course. If michael had been talking about trading off s p 500, sunni would have been right. Now this applyies to anyone that trades the stock before listening to the companys Conference Call and finding out the real skinny not just the headlines which are misleading or just plain wrong. It stems from a key scene in shaw shank redemption where he talks to norton about the obvious need for a new trial if the real killer of his wife reveals himself. The ward disagrees. He says how can you be so obtuse . He says is it deliberate . Thats how i feel about the moronic snap judgments. Cvs, dollar tree and shake shack. Thats a Diverse Group which shows how the obtuse tend to be obtuse about everything. Lets take them in alphabet kal order. Reactions are so stupid i dont want to discriminate. Advanced auto parts belongs to one of my favorites the car part business. They need to be fixed with regularity after the pothole season weve just gone through. Advanced o riley and most importantly auto zone have been the most reliable out there. Ive relentlessly pushed them because of this aging car tail wind. The reported number was immediately panned as a big miss. Boo. By the headline writers out there. I dont blame the headline writers. Theyve got a job to do. Thats to publish first no matter what. What do guys do . Look at a chart they have. Its a clipboard. They say i see what a company is supposed to report top and bottom line. Look at press release, match them and draw instant conclusions without waiting to hear the companys explanations of numbers theyre staring at. That can cause serious misdirection. Again, i dont blame the headline writers. Thats their job. Shame on any investor who takes action based on these uninformed snip ets. Theyre violating the core alert. Theyre plain darn obtuse. Its almost as if theyre deliberately trueing to lose money. Boo. Why . Because the Conference Calls on advanced auto parts what happened . Management probably no more than two minutes in explained there were still integration issues from the acquisition of car quest last year. If you look at this difficult merger of so many systems, you would have noticed aap was a screaming buy not a nasty sell is. Stock down 6 this morning to be up 7. 60 at the close. Thats a nearly 13 swing you could have had. You had to do the homework. That pesky duty that keeps you from losing money. Huge missed opportunity. How about symrex . In order to take advantage of the chaos many oil patch, what did they do yesterday . Offered 6 million shares in spot secondary in 109 down a couple parts. Obtuse immediately panicked when they saw this stock offered. They figured something had to be wrong. Cimarex thought they could get more stocks. You need to do the work rather than freaking out as so many did. It was a good thing not a bad thing. Hence why the stock has almost ripped 11 points from the pricing just yesterday morning. I want those 11 points. How about you . I dont know if you saw the panic this morning. One of my favorites, cvs decided to shell out 7. 6 billion buying a company calmed omnicare. Well talk more about this later. All i heard was the obtuse frantically tried to shed cvs knocking it down a point and a half. Colossal overpay to hurt earnings from now till kingdom come. Oh well. Had you waited for Conference Call and listened to cvs ceo larry monroe you would have heard the deal was strategic and that its bountiful. The buyback remains in place. It was a total home run. The stock immediately rebounds. I always say cvs is led by a fine merlot. Obtuse acts as if they were drinking thunderbird or night train. Next up donald tree. Four cents below expectations. Stock quoted down as much as 3 bucks. A few minutes after the Conference Call started, we learned this nagging west coast port strike crushed dollar tree spree. They couldnt get the right goods on time no kidding. You cant buy a lot of merchandise made in the usa, sell for 1 dollars a piece and make money. Its holiday doo dads that may be stuck on the boat in the San Francisco for all they though. You would have heard the explanation and also the beautiful back of a merger with family dollars ahead of schedule making this a must. Finally for the last 50 straight points, what have i told you . I have been telling you shake shack is a cold stock you cannot bet against. Its the tesla of hamburger stock. These are tending to be heavily sorted. Last night, this hamburger joint may open a chicken sandwich division. Wow. That tender morsel caused another panic. Because, well lets look at numbers. After this rally today, eight shake shack locations worth 30 times the value of a store most publicly trade adddtraded. I dont know if its that good. They think how do you lose . Theyre being obtuse. I could use a good chicken sandwich from shake shack. Trade off the headlines and make snap judgments. All these in the last 24 hours should convince you that you might as well be burning money. Keep in mind you might end up shooting yourself when you could be sipping a corona in your boat under the sun in that beautiful beach. Allen in california. Allen caller jim, booya to you. Want to congratulate you on your recent marriage. Thank you. Thank you for introduces me to four. Thanks to your time i have shared purchases a couple years ago and riding on the house with 100 profit on both. It went up again today. That is ever ending battery. Doesnt quit at all. Whats going on . Caller on the chinese Discount Retail stock that had negative story about the numbers reported by this company and potential 90 down side for stock which the company defended itself on recently. Today it announced its filed a Class Action Lawsuit regarding this matter which sent the stock tumbling 10 on high volume before rebounding. I own shares of this stock. Purchased additional shares between 28 and 25 a before pull back of recent 30 allen, im not recommending chinese stock now. That market is too high. They opened up 14 million individual accounts in china. Its steaming over there. I dont want to touch anything. Fib shop fraud allegation. Doesnt matter. Im out of there. How about scott in utah . Scott scott. Caller yes my stocks win. I just got questions about it. Earnings tumbling over the last year. What do you see a the future i hate betting against steve wynn. Hes one of the Great American business people. This situation in china is getting real ugly. Almost if the Chinese Communist have woken up and set you know what . Were Chinese Communist. Were not going to allow people to be consumers and gamble. I say gm but not crazy about that anymore. Make snap judgments, you lose. Might as well be burning money. Mad money tonight, my exclusive soccer stock in the game. Up nearly 40 this year. I got the ceo. Cvs got the headlines today. There are many more moves to be made in this group. You want my list plus ebay and pay pal about to split. Should you put this in the friend zone . Stick with cramer. Send jim an email to madmoney madmoney cnbc. Bulldog mattress discounters Memorial Day Sale ends monday . Oh boy a queen size serta mattress and box spring set for just 397. Mattress discounters has the Largest Selection of memory Foam Mattresses under one roof well ill be. Up to 300 off tempurpedic breeze. And wow get up to four years interestfree financing on the entire tempurpedic cloud collection better hurry the Memorial Day Sale ends monday. Mattress discounters just yesterday we learned care first, Blue Cross Blue Shield Health Care Plan has been hacked. Thats the third major Health Insurer this year to announce its been hacked. Three in the single industry. Thats ones we know about. No wonder Cyber Security has been one of the hottest things around. That brings me to fire eye. This is real time threat protection to enterprises and governments against cyber attacks. Theyre the guy you call in after youve been hacked to figure out what happened. In fact they were the ones that detected the threat. First day of trading. After six months t lockup on inside cell inspired. Stock got crushed by tsunami of old supplies. Fire eye has been rising nicely. Stocks up 35 year to date. Thats totally given because the company has red hot 65 growth. The company is growing like crazy and one of the hottest group tloutss out there. Former ceo of mcafee made a killing in 2007. Welcome to mad money. Thanks for having me. Absolutely. Please have a seat. Well obviously got to be fire eye. It was. Tell me your role. What did you do . Weve been helping a lot of companies with Cyber Breaches over the last few years. We acquired a year ago and been dealing with hundreds of incident responses. Care first like you mentioned. Theyre having challenges of late because hackers are interested in health care information. This involved over a million consumers. We helped them. Today and yesterday they announced the breach. Were there to help them as a trusted advisor. Retailers . Same way. Target and home depot . Health care is one, retail is another. Media industry has been another. Financial services. Across the board, sony. These are all fireeye involvement. Im thinking were to the point if i want insurance, i have to have a fireeye in. People are presuming youve got to be involved before theyll protect you from the insurance perspective. Thats what weve been doing lately. Weve been partnering with the industry. Its about time. We needed this. The industry is looking at target and all the ones you mentioned. This is a problem. Weve got to figure how to identify them, underwrite them. For the first time Cyber Security company has partnered and soon to be more to underwrite the risk for cyber attacking. You were the first to be anointed by Homeland Security. What does that mean for you . We won the prestigious certification. This post 9 11 we had the safety act. That was there are from Homeland Security to help protect Critical Infrastructure and consumers. Were the First Company to get the highest level of certification. It allows companies who use our product to basically be against legal costs to being breached. If you use fireeye, youre prevented from being sued in the Justice System in america. None of the other guys have that. None of the others have it. Took us 18 months to get it. A lot of checking. Were pleased and honored to have it. Obviously you guys are pulling in business left and right. Every time theres a breach you get it. Talking profitability, youre talking a couple years out before youre profitable. Operating cash flow was negative this quarter. Are these things that are planning so to speak because youre growing revenue so fast you cant think about it or you want to be faster but dont have the opportunity yet . We see a huge opportunity. You can see how hot the Cyber Community is. Everything is connected, more and more online more mobile devices, more end points. This company went from less than 50 million of business ten x less than three years. Seven quarters in a row of growth and acceleration. Were getting to profitability and working on that. To your point last quarter we were 3 million negative cash flow. The one before that 200,000. Were driving toward profitability, pretty certain. The other day on cisco call a, john was asked were you in talks with fire eye. Why are you always in talks with someone . Why is fire eye not viewed as entity to itself . Im not sure why those rumors are there. Were an Important Company jim. As the next Generation Leader in security and how fast were growing and how fast were disrupting the market. Theres a lot of interest in fire eye. Thats a good thing. I see a great path for this company to grow organically. Got to do whats best for the shareholders. We are. Were growing like crazy. Is there some new form of cyber threat on your radar threat we dont know yet . New warfare . We have seen a lot. Over the last year activism crime, heavy espyionageespionage. Companies are trying to hurt and embarrass people. As the geo climate changes and chess is going on were finding america is getting attacked. Companies got to step up and take this more seriously. Thats chairman and ceo of fire eye. Boy, they have a ton of business. Unfortunately they have a ton of business. Theres nothing we see stopping. Maybe a they can offer prevention. Well be right back. They can offer prevention. Well be right back. They can offer prevention. Well be right back. Were seeing something amazing. Massive consolidation. Pretty much a huge deal every single week. This mornings acquisition cvs bought omni care. Its one more transaction of whats going on. Were in the early innings of these mergers. It provides care to Senior Citizens particularly in assisted living facilities. This is going to be more massed as baby boomers keep getting older. Less of a drugstore chain and more of a health care provider. This is like more brick and morter. Cvs rallied 2. 42. Rallied. Thats amazing. Shows the market loves deals like this at any price. How many bankers got calls from this industry saying give me a shopping list. I want my stock higher like cvs. Earlier, that too was greeted positively. That will catalyst 2016 growth. I think its the term of blue alliance. Former partner of walgreens. I see no problem they merge. Walgreens merger is not that long ago. That was different management. I think this wants to make a deal as soon as possible. It wouldnt surprise me to see more consolidation in the world of health. Do we really need sigma and United Health . I see a world five becomes three. Now a rampart talk of mergers in the drug companies. Yesterday suggesting pfizer may be merging. There was a time no major would put Something Like that. Now its a give got to do it. Think of combinations. Weve come to expect value is always about pouncing on some company in the industry. Stock is going up a lot. Even after the biggest deal in 2014, we hear ceo sand areas is queuing up another deal. Why is this happening . Too many bashing in each others heads in the health care sector. Second, many consumers like hospitals and doctors dont want many providers calling. They want two or three. Third, government has gotten stingy. Many companies cant make the long term profit forecast. I reiterate i like rite aid. Im asked about it more than any other on twitter and cramer. Any deal it makes will be viewed positive just like omni care that cvs did. I think you must own a bio tech or pharmacy manager. Its all i hear. Thats only involving the players ive just reeled off. Heres the bottom line. Every time theres a deal many this sector the whole health care moves higher. Own one of these. Health care is the single best group in town. I think its going to get better as the year rolls along. Why dont we go to francis in florida . Caller i just wanted to say i believe in you and your staff. Youre all so talented. Thank you for all your help. Ive got the best staff in the world. Absolutely. No question about it. I would like your opinion on the United Health care. Okay. When i look at the landscape of hmo, anthem sigma, United Health united is probably the most expensive dow stock. If i put in position now and it came down that would be brilliant idea. I want to go to mac in south carolina. Caller booya from the low country. Hows it going . Watch your program all the time. Think you do a great public service. Ive been watching it for a long time. The question is visa. I bought visa back in march before it split. Right. I love reading about what theyre doing. Always on the go with something. Im not crazy about the dividend. Im wondering what do you consider short and long . What is 18 months . This is the story first of all. Thank you for kind comments. Visa charlie runs this company. There are people i wrote a book called get rich carefully. People came on the show i like. If it had been people i met and talked to in Certain Industries charlie would have been on that list. That guy is bankable. Hes made visa into a growth company. Its inexpensive and should be owned. After that split, i was grateful. People werent willing to pay high dollar. Visa is for me. Joint profits, seeing big moves in health care. Owning a drug or bio tech is must for you. Much more ahead including my take on pay pal spin off. You dont want to miss this. Time to check your portfolios. Havent done this late. Its time to play am i diversified. We have the always electric lightning round. Stick with cramer. Tomorrow kick off the trading day with squawk in the street. It all starts at 9 00 a. M. Eastern. Last september ebay did the right thing and announced it would be breaking up spinning off the pay pal division as a separate company. We continue have the specific date for the spinoff. I want to get ready and want you to be ready for it. When ebay expected a month ago, they expected it sometime in the third quarter. Were talking the near future. Why do we care about this ebay breakup . Im not at all enthused with the smaller Online Market business i adore paypal online paying business. Ebay says this breakup quote maximizes Strategic Focus for r ebay and paypal capabilities. Its basically wall street for right now paypal doesnt get enough credit because its buried in slowly growing ebay. Once set free, we expect it to get higher evaluations. I agree. Everyone knows i love breakups two businesses that do not belong under the same roof. Ebay found itself in that situation. Ebay never wanted to spinoff paypal. Carl icon wanted ebay to spin off paypal. Management was able to spin it off giving him a board seat. At that moment seemed ebay was not break off value. Ebays core business started to stagnate and decelerate rapidly. By last september, ebays management was willing to change its mine and admit carl was right announcing the breakup. Since then the paypal has gotten stronger. You can see a while both are growing, paypal has seen sustained growth in the high teens. Online marketplace business has been slowing. 18. 5 Revenue Growth. Thats good actually fantastic. Ebay marketplace 12. 6 both in 2013 followed by 6. 5 growth in 2014. Once you get to latest quart their ebay reported the end of april, disparity is so big, paypal has surpassed ebay to become a larger part of the company. In part because the Revenue Growth turned negative. 2. 1 billion dollars in revenues as a opposed to marketplace business ebay has. Paypal carried the growth in most recent quarter. Paypal is growing faster and also bringing in more money. At this point, theres no one that could argue seriously, pay pal, the king of online payments is not able to stand on its own. Im looking at transactions on paypal and those on ebay. This is startling. Paypal is a business buried in a stagnated company. Once paypal is trading on its own, you Better Believe that division will get a dramatically higher evaluation as a stand alone entity. Im not much of an ebay fan. I definitely want you to get a piece of paypal itself as long as the evaluation isnt too crazy when they take it public. What will paypal look like on its own two feet . They have more than 165 active accounts which grew 11 in the latest quarter and fully localized in 26 currencies in markets worldwide. Last year paypal took billions of in payments 46 billion in mobile transactions. Do you know every 6 spent on the internet in a given day, one of those goes to paypal . Dan whos been president of the Enterprise Growth will take over as paypal spinoff ceo. He was in charge of Payment System as well as pay paid credit card business. This morning we laid out the mission statement. We are moving from being more than just a button on a website and really trying to aspire to be the Worlds Largest open Digital Payments platform. Thats exactly the kind of ceo paypal needs. Apple pay are getting serious about this. When the cfo spoke minutes ago, he said paypal would be sent off with 5 billion in cash to insure a smooth transition. Wall street will go gaga over this. If it has a big pile of cash a, investors will go nuts for it. Paypal will get credit for being a terrific story rather than a part of a dwindling giant. Even though its spunoff, it will have the arms length operating agreement with the new ebay. Remember how big a deal it was when master kard poached costco business . Ebay is way bigger than costco. You have to believe the ceo sl will have a relationship with former partner. He worked at at t. I bet the relationships prove him helpful. Basically paypal will be a new ipo with a huge book of business. It will be able to partner with anybody. A huge opportunity in the form of paypal credit. Paypal Interest Rate is 19. 99 . Just as vicious as any credit card company. Heres the bottom line. I cannot wait for ebay to spinoff paypal. I believe it will be terrific and stock will become a core holding for tons of money managers. If you can get a piece for a reasonable evaluation when we get closer to the spinoff im telling you to grab some. Mad money is back after the break. It is time for lightning round. Then the lightning round is over. Are you ready ski daddy . Time for the lightning round. Time for les in pennsylvania. Hows it going . Whats going on . Great. I bought pdli couple months ago for 9 dividend and low pe. Im wondering what you think of the stock. Ive seen that as a one way ticket down. I dont like the yields at 9 . Thats a red flag. Let me do more work. Otherwise, maybe thats something we should be. Jason in virginia. Jim, booya. Lci. Im think ofg stocks in health care. Thinking about that one. Like your call. Michael in florida. Booya. Thank you for your help man. Booya. What do you think of kyth . Another ive been looking at. Now that botox has been acquired by activists, im looking for a replacement. Not for myself but stocks. That has the next botox feel. Getting very interested in it. Wally in colorado. Booya. Hi jim. Dad need he needs to ask you a question. Wow. Normally i would not recommend this stock because im smart and blessed. Im thinking about waivering. I like Martin Marrieta merl materials. Thank you for the compliment. I wish my staff would listen. Marleen in nevada. Hi there. Thank you. Im calling about alcoa. Im 80 years old, owned it quite some time. It doesnt do anything except go sideways. Im down 11 . Should i sell it . Keep it . Buy more . Can you wait. Alcoa can wait. Heres the problem. We need to see this deal close. Ive been saying that on twitter. The deal needs to close so its more diversified. I said six months from now its going to look different. Thats what youre waiting for, not the near term. James in connecticut. Jim, my question is about tdx as a buy or hold. Its a buy. Jeff what can i say, Great American to deliver the numbers. Joe many in new jersey. Yes, hi cramer. You sound like a neighbor of mine. Yes, i am. Look, i really enjoy watching your show. Thank you. Thanks for signing get rich carefully at costco a year ago. Terrific. Was that youre in my route 10 costco . I love it there. Best samples theyve got. Dont eat within a day. Fast before you go to my costco. You wrote rite aid goes to 8. Its doing well. My stock is hershey. I think its played out. We are buyers of white way particularly because the tax situation gets better next month. And ladies and gentlemen, that was the lightning round. Rently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Friday night, buddy. You are gonna need a wingman. And with my cash back, you are money. Forget him. My Airline Miles will take your game worldwide. What im really looking for is i got two words for you rewards. Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First ro if you want to succeed in business, mistakes are a luxury you cant afford. Thats why i recommend fast reliable comcast Business Internet. They know what businesses need. And theres a nomistake guarantee. If you dont like it, you have thirty days to call and get your money back. With comcast Business Internet you literally cant mook a mistick. I meant to say that. Switch today and get the no mistake guarantee. Comcast business. Built for business. Look. Like i told you earlier, sometimes wall street can be a bit obtuse. You dont want stock moving a sector on the market. Thats why we play am i diversified . Maybe you mix it up a little. Lets begin with a tweet, shall we . Am i diversified. Am i diversified. Oh io cramer america. We like that. Yahoo we think is the way to play alleyibabaalibaba. Dow trades with oil even though it shouldnt necessarily. Were going to keep dow chemical. Were going to substract this put in bristol mars. And the pipeline. Im saying going to trade too much with dow. A lot of people talking about the spinoff of united technology. Lets put that in get industrial. That would make me feel good. We ought to go to jim in florida. Jim . Caller good evening mr. Cramer. How are you jim . Caller its a Beautiful Day here. Ill tell you that. Beautiful day to be alive. Caller i think philadelphia should have signed you for a contact to try you out for baseball. You know what i could just this thing i could throw 440 feet and nail the guy at home plate. Thats what im practicing after the early 50 foot expansion. Whats going on . Caller all right. I want to see if im diversified in your opinion. First time caller watch your show all the time. Thank you. Caller i have Procter Gamble apple, smuckers, berkshire, ibm. I cant. Berkshire we know thats warren buffett, terrific. Schmuck smuckers food business. App and will ibm are too much alike. What do we need . Ive been doing work on lock keed martin. It will give you dividend and growth. Make that change. I like ibm. We know that but theres too much commonality. Barbara in illinois . Caller hi jim. Thank you for the call. Of course. Caller now my stocks are sky works, visa eleanor, messo electronics and vf carp. Really Interesting Group of stocks. We had the moment of stock at five. Its a rocket ship. Visa is charlie, i keep praising him. Yoid you think he would have come on the show. A technology company. I think we should swap out the electronics. I hear the music. We need bristol mars. Stick with it. Hewlett packard reports. I didnt think the quarter was that good. People like it. Its all about the split up into two companies. Hp businesslike my pc here. Old cash cow and much faster growing business. Well talk tomorrow on squawk on the street to find out the real deal. Its not like the deal with ebay and paypal. Another split up i like. Im trying to tell you there will be a Health Care Deal in the nooexext couple weeks. Right here on mad money. Im jim cramer. Ill see you tomorrow. All cheers. Tonight on the profit, amazing grapes is a wine bar and retail shop, the brainchild of a Real Estate Developer who seems more interested in sipping than selling. This is ridiculous. Even with more than 3. 5 million in sales this past year, amazing grapes is operating at a loss and still cant pay down their mounting debt. This is a business without leadership or direction. I wish that you had passion for the business. You wouldnt be losing money. If i cant find somebody from within to take over amazing grapes and manage its assets this business will be crushed. Are you the grim reaper, or sometimes. My name is marcus lemonis, and i fix failing businesses. Were out of business. We were out of business before, we just didnt know it
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