Seems less palpable than others may grasp. These words may always be on the tip of your tung if youre investing on days like today. Nasdaq declined. 37 . They help you avoid the real pitfalls all investors face. The late great mark haynes said. Eight years ago this week. I love that call. I hoped you did too. It was based on haynes recognizing the risk reregard had gotten out of wlak. We had seen a kre sen doe that was way too loud and way too yun formed. Remember, this was 2009 when the dow was around 6,600. It is one of the best if not the best in history. To give you some context at that time i had been negative on stocks all the way down at one point telling people if you needed money in the next five years you should pull it out of the market. Here is haynes down from when i said that. As fearful as you might have been the big decline had become too unsustainable. It wasnt time to sell anymore. It was time to buy. Buy buy buy. I will step out on a limb here. I dont think we are at a bot testimony. Bottom. I talked to him about that bottom call. I thought maybe i got to get with the program. I did. He made so few of these big calls you have to listen. Haynes had rules about when emotion had over ridden logic and panic was peaking. At last he had seen enough. I asked him how sure he was and he said pretty much everything he had been waiting for had happened. He had no choice. Imagine this because im now hearing this about the other side of the trade. People are saying pretty much everything a bull could want which means we are in a moment of recklessness unless we start dumping stocks. The president accuses his predecessor in a modern day version of nixon and watergate. Just a week ago trump seemed downright president ial when he spoke to both houses of congress. He was so pragmatic you could almost imagine democrats wondering if they could break ranks and support parts of his agenda. Then this tweet about obamas alleged wiretapping seemingly based on something you heard on talk radio killed any hope of bipartisan ship it is so many believe are necessary for the next leg. Then s p 500 up 11 since the election even as reasons keep getting pushed back because of the disarray of republicans in congress. Yet people keep buying stock acting as though all is well. Arent they being complacent . Isnt this the opposite of when haynes made his wbottom call . Havent we ignored the risk that comes from a huge run . Let me tell you where i come out on this. Today on Halftime Report we have a number of people saying we could have a huge pull back because of these concerns. We heard about them. They werent all on the set. I smiled. It was filled with articles about how the market couldnt last any longer. They always said a half dozen managers who have gotten defensive because they regard the market, thats hardly the stuff of euphoria. I struggled to find anyone who is euphoric. Not me. I just think it pushes it out. Its okay. 2018 is fine. I like how disappointed so many Money Managers seem to be. I believe many are traditional republicans by nature. Think think he is too dangerous, like a taller version of kim jong un, you know what i mean . We have to realize the Global Economy has gotten better. Almost every market i follow is up or maybe even ours in some cases. None of these countries have trump at the helm. You keep Interest Rates low enough and it was bound to happen. Thats whats going on. With some restaurant exceptions ours have reported speck tack already nur spectacular numbers. In short not nearly as much euphoria as you would expect given the strength of the earnings we are seeing worldwide. No doubt it has had magnificent runs. I looked over the chartds and found ten groups that are all flies high. It is hard to we rat kaall of t action. In fact only the restaurant and retailers seem to be rolling over. Everything else seems to be doing just fine. It is hard to imagine what could sink all of these leaders at the same time. By the way, snap rolled over. Right at 40 billion, bingo. I know stock markets seem expensive but what if earnings keep coming in hot . What if we get relief from washington its just pushed out to 2018 . We have plenty of negative by the concerns of the stability of the administration, ability to get things done versus the Global Economy improving. The president has had a remarkable impact because nay feerd feared executive so if you put it all together what do you get . I think you have a situation thats not the polar opposite of the haynes bottom. No. It was almost impossible to find bull, someone who believed the market could go higher. He was the only one left. Haynes style top is where everyone was bullish. It is hard to believe people will go much higher. The skepticism towards stocks, about three Hedge Fund Managers or five were pulling all of their money out. Thats what i keep reading. Those are what color are thinking. But i believe these big Money Managers are haters, not skeptical buyers. They find themselves wanting to sell anything in a moments notice on any story, which brings me to the bottom line. This is absolutely not a haynes top moment. I knew him well enough to bet if he had to make a call right now he would say too much skepticism. It would keep it in, not out until everyone was cheering. To me cheering, thats not a sound i hear much these days, not at all. Susan in south carolina, susan. Yes, sir. How can i help . Caller okay. I really like your straightforward opinions, but i was brought up old school buys blue chips and taught you were in the market for the long term. Okay. Thats right. I like that. Caller okay. I owned ge since 1984. Im trying to decide if ive held it long enough. I have become very comfortable with it. Hasnt changd its name, is it time to get out and concentrate mainly on some solar or wind turbine . It is the leader in wind. I was writing a speech and i came up to ge. I said we are paying for something good to happen. Paying to wait with that dif de dend. I think it stalled and other stocks arent stalled. If your willing to invest time in the wilderness, thats what youre going to get, wilderness and dividend. Caller beautiful sunny southwest day. Fantastic. Caller i have a question about alaskan airlines. What do you think would be a good time to sell . This is one that i just its right up there with southwest air. I dont want to sell it. I saw the stock down a couple today. I said i should be trying to figure out how to work in alaska air. I dont want you selling alaskan air. You really want to be able to say i want a pretty big position and pull the trigger. Today we reflect on the late great mark haynes. I think he would say there is pl plenty of skepticism. Dont go chasing yields, please stick to the rivers and mak lakes that youre used to. Dominos delivers pizza to your home in 30 minutes. Will it make your dough rise . And what can you tell us about the health of the Restaurant Industry and the health of its own numbers . Im talking to the ceo of well bill. Stick with cramer. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the Global Economy. And you thought we just made the gas. Energy lives here. Itthat can make a worldces, of difference. Expedia, everything in one place, so you can travel the world better. Duexperience our mostand pthrilling models ever. , including the exhilarating is, gs and rc coupe. Experience amazing. It is so important when you see a stock with high yield you need to stay the heck away from them. I know you called on these a lot on the lightning round. I dont care how cheap the stock seemed or tempting it looks. A super high yield is almost always a sign something is very very wrong, and you need to run. Sell sell sell, not walkway way as fast as you can. One of these small Communications Providers with a 15. 2 dividend yield and 2. 76 stock. Might seem tempting but its always most always a mistake. You want to start with the first and most obvious reason. How did it become a 2 and change stock . Well, its share price got obliterated, thats how. Frontier was at 8 and change in 2013 and over the past couple of years lost more than twothirds of its value. A 47 decline in the past six months. Thats almost always the case with super high yielders. Dividends dont get this big because this Company Keeps raising pay out. They get this big because something happens to cripple the price of their stock. What exactly is wrong with Frontier Communications . For starters as tan owl school phone company. Fewer and fewer people using their land line. Competitors can afford to crush these guys on price if they feel like it. This stock has been trending lower. Frontier managed to rebound a bit through early 2015. The reason, for a while it seemed like the demand was so great that a rising tide might be able to lift all boats. The company spent millions upgrading their net yowork. Right around the time that the stock peaked the Company Announced it would buy verizons california, texas and Florida Business for 10. 5 billion in cash. Holy cow. Keep it a few years after they did something buying Wireless Operations for 5. 3 billion. I guess it seems like these were worth owning given the boom in demand over the web. Verizon wouldnt have been selling it if they thought they were worth owning. In the end frontier spent more than 15 billion buying a bunch of what i regard as declining assets that cant really be turned around. When frontier peaked this stock had a reasonable 5 yield. No red flag there. Since then the yield has gone off the charts. How did things go back in when you look back the last time they managed was the Fourth Quarter of 2014, right before this big decline got started. After that the story turns into an endless parade of woe. When it reported in may of 2015 it posted a top and bottom line miss with net broad band subscribers. The revenue miss her was stunning because they applied att wireless business in 2015. It is a an accumulator. I dont want to pin all of this on frontier. You dont need to be a genius to know the industry has been if decline for years thanks to the rise of mobile and frontier competitors. Frontier shrinkage was worse. All the way down in 2015 frontier had defender. They would say they are overlooking all sorts of positives. The acquisition and every now and then they even do something right. A little over a year ago they were able to report the half way decent in a while. Even here though there were warning signs. Sure, frontier took it from larger cam kom pet tos but they did it but cutting prices. Price wars can be ruined for your earnings. Sure enough then things started to go very wrong. Frontier reported not so great in august and management said they suspended Marketing Activities during the quarter resulting in a slowdown. Many analysts remained bullish about the ability to keep paying divide dividend. The truth is that all along frontier was fighting a rear guard action. This all came to ahead early last november when the Company Posted an ugly top and bottom line miss. This is when the analysts started. The next day it dropped nearly 14 . The core problems, even with the addition the company hasnt been able to generate any kind of sales quote. It decline bid almost 10 . The broad band business showed continued weakness. They actually lost broad band subscriber. Far long time it was the only part with any strength. It brings me to last weeks report. Man, again, it was a it was really ugly. A 12 cent Earnings Loss when they were looking for a 5 cent loss. Massive cut to the companys free cash flow. They took a 45 million revenue charge. It got one and picked up verizon and california assets, imagine another 25 million charge would be coming in the next quarter. The verizon deal is looking a lot less attractive. While they planned to talk about how they plan today get more aggressive the truth is you cant cross cut your way to revenue dwrogrowth. Thats why the stocks started trading down. What about that dif dent . Isnt it compelling . Arent they totally paying do you wait until they turn around the business in sure but only if they actually turn things around. Frontier sales and earnings keep declines then sooner or later it will have to be cut. Right now the company should have more than enough cash flow to cover the pay out spds if they can hit their targets. Let me put it another way. A year ago frontier had a 7. 5 yield. If you were tempted then sure, you got to annual dividend. Share prices come down as of today. Your loss isnt worth anything you would have got from that darn dif dent. I dont see why it should be any different. It is simply a sign showing you have got ksh how things have gotten even more dicey. Here is the bottom line. I dont mean to single out Frontier Communications. These guys arent morons. They are stuck in a bad place. The phone business that is a longterm secular decline. If you take only one thing away its that it is a dangerous game. A sky high yield is almost always a sign that something is very wrong in the core business. And if you just looked at the red flag of frontiers yield you could have sidestepped most of the stocks recent decline, very little of which was made up by the dividends that you received. Provine in georgia. How are you . Caller im good, jim. Jim, i wanted to know about how it will do through the end of the year. My average price is around 18. Do you want me to take a perfect . Profit . No. I have a Conference Call over which ones i really like. I think its really reinventing the company. He will have a lot of wifi and a lot of things ciscoe didnt have. If stock comes down, buy buy buy. Thanks for taking the call. Of course. Caller lets talk micro chip. It shows hockey stick in sales growth, management discipline can this keep going . You know, this is a great company. I actually believe in micro chip and i think that youre fine. It is up gigantically. I think youre fine. I love the space that its in. I think at these prices is actually better than micro chip. All right. Do go chasing high yielding stocks. This is a really important take away. Why not stick to the dividends youre used to . I know you want income but if you went to frontier i think you made a wrong move tlch. There is more at dominos. How does he continue to deliver when the rest is struggling . I have the exclusive. Im talking with a company that powers from mcdonalds to disney world. And one set of stocks to everyone is calling unsustainable, i guess you could say im not exactly buying into their logic. Ill fill you in. Stay with cramer. Hey steve check out this guys leg. Yeah looks like a real nasty moving back in with his parents. What . No. I just broke my leg. No, this is a full blown move in to the basement, youre gonna be out of work without that money from. Aflac you might miss your rent. Aww i just moved out. Bummer man. Hey i used to have my own place. Yeah . No, no i live with my mom, but its cool. Health can change but the life you love doesnt have to, keep your lifestyle healthy with. Aflac how does Dominos Pizza do it . Dominos still managed to report a dazzling better than expected quarter last tuesday including a 12 plus increase. I keep telling you dominos is one of the best out there on stay at home economy. It makes it incredibly easy to order a pizza directly to your house without ever having to speak to another human. Their app or web site is the way to go. I have been recommending this since Patrick Doyle came on the show seven years ago. It is now 190 plus special dividen dividends. Lets talk with the president of domi Dominos Pizza. Welcome back to mad money. Thanks, tim, appreciate it. All right. This is one we have had many times where the dri stri has done well. This is where the industry didnt do well and you did much better. What do you think was behind this double digit game that took everybodys breath away . It really continues to be the same story, investments we have been making in our food, in our technology, in our stores. Youre seeing the results from that now coming through in the same store sales growth domestically and internationally. We continue to find places that we can improve the experience for the customer and as long as we are making investments that do that, that kind of permanently improve the experience for our customers and we think we will continue to grow. You list as your partners apple, am zon amazon, google. A yeah. And you can order an their platforms. So we look at the ability to reach our customers, and those are the platforms where they are spending time. They are on google home. They are using their iphones to order. All of those things are ordering through facebook messenger. All of those things are an opportunity for us to engage with the customers. Those are kind of the big players in technology and we have got to be there with them with our customers if we are going to grow our sales. Lets stick with this. If i go to headquarters how many of the employees there would be considered technologists . Basically half. We have about 800 people working in our headquarters here in ann arbor. 400 of them including our contractors here are working in technology or working in analytics around all of the data getting created on this platform. Thats certainly a big part of the story. At the same time our franchisees are making great pizzas. Thats ultimately what keeps people coming back. In the many times we have talked to each other you talked about the advantage you have over the smaller regional and the mom and pops. This one seemed to b a different one. You took some share from the big guys. I was on the papa john call and they were talking about 8 decline. I see your ads all of the time in the nfl. Were you hurt by the nfls declining rates . No. We clearly were not. Ratings may have been off a little bit. Clearly we had a terrific Fourth Quarter. I will tell you, i mean we did take share from, you know, from the category overall and maybe a little bit more of it came from the larger players, but if you look back over the course of the last five years or so, probably 80