Even when it looks like a company has already made a turn around, you need to stay close to them in order to know whether managementceed or fail. I mention this because when were dealing with a gigantic company, a turn around or a lack thereof can affect the entire stock market. Thats buy the dow jones fell 143 points. The nasdaq actually advanc advanced. 23 . What caused the dow to get clocked . This was all about ibms busted turn around story. The failu yes, 20 straight quarters of declining sales. Because of the way the dow is weighted, the downward tug of ibm stock, shaved more than 57 points off the dow, and i have been procuring some successful turn arounds, wall martimartwal mcdonalds and cocacola. Ibm is in the midst of an incredibly difficult turp around. While at the same time expanding into faster growing new tech areas that attract a different and morrow bust group of investors. Ibm wants to become known as the company that uses watsons platform. Watson wants to be viewed as a place to mine data and put it to use, and the more data the better. The problem is that ibm needs to keep signing up new customers for all the rest of its businesses at a pace thats enough to not drag down the whole companys earnings with it. Thats where ibm failed in their turn around. Now wall street has suddenly turned incredibly negative on ibm and its ceo for the big revenue. Some people are saying that the company only manages to make its earnings numbers by manufacturing lots of onetime only gains, like licensing intellectual property. I think ibm is totally justified in what its doing. And if they had signed up more business, if they had actually made those sales, then everyone would have been happy. They didnt, i know thats a big deal, im not excusing them. But im not sure that cfo martin that said, lets look at the situation, ibms a Great American company, but its clearly taken too long to make this transition, granted turning around such a large company, they have 86,000 employees at ibm. You might argue its harder to turn around an Aircraft Carrier, but i think ibm is harder because an Aircraft Carrier has steering. A partnership with sales force stock that continues to produce results in the second half of this year and the cfos promise, promise that the unsigned business will be signed pretty soon. Put it all together, and i do not want to sell ibm stock around 160, i would rather buy it. When successful turn arounds do occur, they can yield spectacular gains for investors. Consider the three other dow stocks that i think are making big come backs, cocacola, mcdonalds and walmart. These companies have been gaining adherence on wall street because their managements have positioned them to deliver earnings that could be far better than expected, both in the second half of this year and in 2018. I have been supporting the turn around at cocacola, ever since the ceo said that they would be hand this business off to his successor. Todays credit sweeps are an important but overlooked piece of research, upgreaded the stoc from hold to buy to the new cocacola, which analysts say is smarter, leaner and more aligned, and now it can focus on what it does best. Credit suite tells us that growth is the new frontier. And because the company refranchised its bottlers, a really slow growing part of the Beverage Food sales, credit suite says this is the core of what you need to be thinking about. The core coke will deliver growth not seen for at least the last five years. I trust the credit suite report, i trust cocacola. The successor will be coming in hot. Granted i still love pepsico owned by my travel trust, because. I believe the transformation will send its stock higher. Given the strength of ibms strength of both the ibm Balance Sheet and the cocacola Balance Sheet, i think its a lot better owning a 2. 2 yield in the treasury is better. How about mcdonalds. Close watchers to the show know that i have been a huge fan of steve esther brooke, it closed at over 102. How did mcdonalds get there . Eithast easterbrook, the food chains got to catch up to it. Its interesting a lot of cost saving customer friendly technology, and of course rolling out all day breakfast. I find this man inspirational. These franchisees are more amenable to making the stores cleaner, brighter, more competitive in an increasingly dog eat dog competitive world. Mcdonalds Balance Sheet is a thing of wonder and the company can take on all comers. Finally lets talk walmart, walmart stock has been going up pretty steadily of late, up. 07 for the year, why . Because the company is beginning to reap the seeds that the ceo has sewn. When mcmillan lowered expectations all at once and talked about spending more in the stores, more on e commerce and on wages in order to make the business more competitive, but walmart stock is pretty much to where it was when mcmillan took the helm three years ago. Theyre paying higher wages, which saves the company a ton. E commerce efforts now include free twoday shipping a discounted price for 10,000 different items if you pick them up at the store. And then here again, 2. 75 yield, being paved away, all three of these Companies Share that key attribute of having enough money to pull off their turn arounds. Ibm, im disappointed yet again. But a year ago when i began to have faith in the turn, ibm stock is at 144, now its at 161, i think turn arounds take time, so hold on to your ibm, they might get it done. The fact that ibms turn hasnt happened since 2012, makes me feel that if they dont get it right this year, it might be the year Warren Buffett will finally bring in the caller with the earnings coming out on the 27th, if its a buy, sell or a hold. I think mgm is going to be delivering. The National Harbor casino, why i do mention it . Because it hurt the earning last quarter, it wont do so this quarter, at 28 i want to buy mgm. Jack in georgia, jack. Caller hey, jim, this is jack, i had a couple of questions for you about tmobile stock. Sure. Caller i know tmobile bought 8 million from what are the top three telecommunications stock. Tmobile has been my favorite in the group, and its been that way for a long time. I think john ledger is doing the real thing, even though i have to tell you, sometimes he has that guerrilla marketing, i would say tmobile first, then i would go with verizon, because i likeyearold, then i would go with sprint because i still believe in that turn, and then att which got a couple of number cuts that do concern me. But tmobile, alltime high today. Correct, going higher. Turn arounds are vital for any company to survive and thrive. We have seen the success in cocacola, walmart and mcdona mcdonalds, but ibm, they have to get it right and get it right this year. Im tackling the technicals in some of the hottest stocks. Do you have a fear of rejection, so do the drug stocks, just look at ely lily, the drug stock, after the fda failed to approve their arthritis drug. And its the Fastest Growing medical robotics company, im talking with the ceo, dont miss my exclusive with mazer robotics, stick with cramer. With e trade you see things your way. You have access to the right information at the right moment. And when you filter out the noise, its easy to turn your vision into action. Its your trade. E trade. Start trading today at etrade. Com but weve got the get tdigital tools to help. Now with xfinitys my account, you can figure things out easily, so you wont even have to call us. Change your wifi password to something you can actually remember, instantly. Add that premium channel, and watch the show everyones talking about, tonight. And the bill you need to pay . Do it in seconds. Because we should fit into your life, not the other way around. Go to xfinity. Com myaccount last night, uber cramer fake glamour search, that Semiconductor Equipment maker reported a fabulous quarter. It shot up into the stratosphere today. When Companies Like glam are doing well, its good news for the whole semiconductor complex. Why . They need to boost their output when they need to meet rising demand. From quarter, the Semiconductor Bull market, even though the market looked bad is still going strong. And thats why tonight we have to go off the charts and take a closer look at semis. Lets take a look at sue smith, shes a terrific technician, she also happens to be the cofounder of explosives opti options. Net. Even after experiencing a mild pull back this month, sue says for the first quarter, the Vaneck Vectors semi, tradeses under smh, it was up over 5 in the same period including dividends. When the smh pulled back earlier this month, it found a powerful core of support in his longterm trend line, and for the last few days, it has been bouncing back pretty hard. That being said, we much prefer to do some home work rather than picking winners. When it comes to the semis, there are three particular names that smith is really keying on. Microchip technology, which makes microchips for all kinds of devices, and then advanced microdevices, now very controversial amd, it was the best performing semi of 2016. This is one of smiths favorites in the space, even though its more of a low tech semi play than a high one. With the latest leg of this epic move starting at the end of december, really, really powerful. What youre looking at by the way when you see this, its just a straight up situation and no one talks about this chart, no one talk about the stock. And one of the reasons i always say its worth looking at the charts, is that these picto graphs can show you what the stock is doing. And in the case of microchip, smith says were dealing with a stock thats given this trajectory, even if we havent talked about it that much on the show. Beyond that, smith points out that this stock recently had a successful test of its 50day moving averages at about 72 and change. Meanwhile the oscillator, this is a momentum indicator, its flashing a buy signal right here, and that usually means the stock is going to move higher. Plus the moving average convergence which we call the macd indicator just made a bullish crossover, and thats very important, thats where the black line crosses above the red, this is one of the reliably positive indicators out there. If Reliable Technology can clear only a few cents above where the stocks are currently trading, then smith believes that it can make its way to 86 in the not too distant future, if the quarter is good, and that wouldnt shock me, because business is strong, and that could be the catalyst that gets it up there. And how about a real controversial one, micron, heres a stock that spent last year roaring higher, and if smith is right, its got even more room to run. They make commodity products, e drams, flash model ships, eventually microns shock will go bust. But it had a while before this move runs out of juice. Smith predicts a pattern of higher highs, and lower lows. And that gives the that gives the stock an astonishing more than 50 gain just since the election. Now micron already reported at the end of march, and while the stock surged higher on very strong results, it subsequently pulled back from just over 29 to 27. In the last few sessions, micron has begun to bounce and smith sees a number of signs that suggest this is rally is here. First the oscillator is turning up from some deeply sold levels. Thats a classic symbol that its time to buy. You can see that turnup, and thats what happens when the black line crosses, plus the williams r oscillator, created by that legendary commodities fray trader, seems poised to move higher off a very major sold level, just like micron in december, january and deb february, three oversolds, makes three big moves. Smith thinks t s ths the patter micron stock is like last december when the moving average was trending up. Then we got a major move. Perhaps best of all, smith reports a micron floor of 75. 84, about a buck and a half below where this stock is currently smooth sailing. A lot of people are in micron, but not as many as in the next stock were going to be talking about, the chart of advanced microdevices, a md. I know this has got a lot of people talking. After nearly quadrupling last year, this stock has been trading sideways since february, its very frustrating to people, i know that. The reason in 2016, amd, its fellow graphics chipmakers they were some of the only semiconductors whose growth could be relied on. Because apple and samsung both have new hot smart phones, the cell phone oriented chipmakers have gotten their mojo back so the amd stock has got more money from institutional investors. However smith likes what she see heres. Its selling currently on lower volume. Thats key, see the volume in the cell, the volumes been dying down, that is good, that means that traders may be les involved. Meanwhile its in deeply oversold territory and turning up. Smith says is a terrific buy signal. She says that its the high of its 50day moving average. But heres the bottom line, thanks to lam research, questwe that Semiconductor Companies are on fire. Microchip technology, micron and amd are all worth buying. Watch more mad money, and youll see my insight into the tumble for ely lily after the fda dealt a blow to their arthritis medication. And i get it, you want to prep for whatever could happen if this contentious French Election that we keep hearing about in weekend, ill tell you why all that worry may be exactly the wrong move. So stick with cramer. Why pause a spontaneous moment . Cialis for daily use treats ed and the urinary symptoms of bph. Tell your doctor about your medicines, and ask if your heart is healthy enough for sex. 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Last week i recommended incyte. A few days later, while we were enjoying our long weekend here, the fda rejected one of ely li y lilys arthritis drugs. Thats when the stock got slammed. Ely lily got hit too, going from 85 down to 82. Went as low as 80 today. So what do we do now . The response from the fda that the drug receive more trials before being approved. The drug had already been approved in europe, and it was supposed to be a blockbuster drug, but now it will take longer for it to hit the market here in the u. S. , in fact it might never happen. It all begs the question, what should we do with the insight in ely lily after this major stumbling block. Its a good question actually. The main reason i did like the stock and still do was its terrific anticancer pipeline, obviously its a much smaller piece of the pie, and lily still boasts some fabulous franchises and excellent pipelines. So what exactly do we make of this not so hot regulatory decision . Have these stocks hit a speed bump . Or did they just crash into a retaining wall at 90 miles an hour. Lets start with incyte. For those of you who dont know, let me give you some background so you can understand what the fdas decision means to the story. Until recently incytes stock had been hot. The reason . Incyte is mainly a play in one of the sexiest sectors in biotech, jackify has fda approval to treat bone cancer. Because of its mechanism of action, jackify is also in Clinical Trials as a treatment for a variety of antiimmune systems, where you get an organ trance plan. And the donors white blood cells start attacking your body. This growth has been a big part of the incyte story. Then theres a pipeline. Incytes working on a bunch of exciting drugs, including the Rheumatoid Arthritis drug. But the companys lead pipeline asset is cancer immunotherapy drug that works in concert with some of the leading anticancer drugs on the market. Bristol myers is omdivo. But Bristol Myers has a couple early cancer drugs yet to be approved. Yesterdays fda announcement was a very big deal for incyte, im not playing it down. Specifically the fda said they couldnt approve the drug in its current form and they need Additional Data to determine which doses are appropriate. And while incytes management said they remain confident that the Rheumatoid Arthritis drug will ultimately be approved, they also covered the stock are also less sanguine, again it really caught people by surprise, because incyte had already gotten that approval in europe and normally thats a really good indicator that the drug will be approved here. You can watch testimony from doctors about why this thing is so socipecial. But here is the issue, incytes stock has already dropped 10 on this news. Holding this drug back for two years will definitely affect the companys earnings. But barrett is much more of a supporting player inside of incytes broader pich line. I think theres some potentially broader catalysts that can take the stock higher. This is a powerful reminder, though, that playing fda roulette is always risky, but if you liked incites story before the anticancer drugs, you should still like it. How about ely lily . While lily stocks fell 4 on monday. Right after the announcement, littly put out some earnings guidance. If barrett was going to hit 107 billion in peak sales, losing this drug should indeed have knocked 4 bucks off of lilys share price, according to analysts that did a lot of work on it. Sure enough the stock is already down 5 bucks, i think to assume they make no money on this is going a bit too far. I do think the fda will ultimately relent, which means even shaving off the 4 bucks, this is all a side show compared to ely lily has going for it. We know that limbally has a gigantic diabetes business, the companys new psoriasis drug. Theres a Big America