Transcripts For CNBC Mad Money 20170601 : vimarsana.com

CNBC Mad Money June 1, 2017

Advancing and new indices hit all time highs. That was easy. The bulls need to see a broadening outside of the winners. Todays rally encompassed more than a handful of stocks and internet darlings and tesla. A lot of investors have been worried this market was too narrow, it didnt have what we call the breath, the breath needed for a sustained advance. Todays rally was about as broadbased as weve seen all year. It has to be a tad disconcerting to the bears, who are betting we are on the verge of a sharp downturn. Because of a previous lack of upside participation. Here is what i mean. The other night i bemoaned the miserable performance of the dow transports and bellwether of weakness and sign the markets could be running on fumes. Today, they gave us exactly what we want. First, fedex United Parcel and stalled so badly of late, came out of the running blocks hot. We did see chattering after rallying a buck, 69 today is still up. And it made me feel we shouldnt give up on the commerce in this country, at least not yet. With the railroads, union pacific, Norfolk Southern surging. And even the miserable truckers and Freight Forwarders having good days, thats a terrific way to break the stalemate whether the transports are signaling an advance or retreat. What else improved this markets breath . Weve been we monies the weakness, right . We moaning the weakness. That 52week low, the list you dont want to be on. Stocks surged 6. 5 and took dollar tree, i love to buy my candy at, took the stock up, even as that Company Reported a subpar quarter which is the sign of total forgiveness as my wife had to forgive me for those five pair of raybans i bought for five bucks. Remember when home depot gave you that terrific quarter only to see the stock fall five months after, its starting to advance at a buck, 64, bringing lowes with it, rallying up 1. 66. Id be a dollar of the stock of home depot right here right now. The stock probably shouldnt have been down in the first place meanwhile, the stock of kohls, one of the most undervalued Department Stores today, quite quiz call, lit it up, jumping. 23 , i dont think they deserve to be in the bargain bin, not doing that badly and has a 5. 6 yield, enticing and save, dont they make great socks . Come on thats where you get these . Do you like this stripe . Only at kohls. Its always good to see a real bargain go higher. Ollies bargain outlet, remember ollies . We like to bring everything here. Fallen more than 6 today, hitting an all time high with fantastic members, direction going up more than 6 today. With so many brick and Mortar Stores and lower rents and continuing advance of ollies army. Another report, sending its stock higher on five below and surprisingly positive results here. Good stuff cheap. What else . Sorry. Just a sec. This will have to do. What else . Oh, man. Maybe not. We know that a host of tech stocks have been roaring. But many of those, particularly the highest Growth Stocks are stepping aside and letting others participate. Maybe one, box put up a stunning quarter, and thats stunning for this platform although the rub bricks sells the company short. I like the analogy as theres a huge group of bears that sent this all the way up and didnt understand the ability to generate 30 growth. You may not recall, a Company Called tech data came on the scene recently some thought was a dud, i pushed it hard. They have just acquired the underachieving portion of abnet, its rival. They promised you big growth in this quarter and thats exactly what they delivered this morning. The market lapped it up and the stock jumped over 6 . I say thank you to the ceo, bob dukowski. And then the stock of ciena, especially in asia. Isnt that a nice break from the leadership of the high flying invidia which finally sold stock today, hallelujah. Its great to see others in this stock including paolo alto networks, not today, up 17 with excellent growth. This cybersecurity stock is back in the winners cycle after doing serious time in the penalty box. Then, theres the food space. Many have given up on low growth thats stuck in your pantry. And sometimes its a beautiful thing. Some think birds eye and hawaiian punch by conagra sent both screaming. Speaking of selfhelp, i marvelled since the stock added the fantastic quarter. After leaping from 112 dollars to 120, the stock stalled for seven days causing concern the whole move might not be sustainable. And then spending 5. 4 billion on a construction company, virgin, off to the races again jumping another two bucks. Why not, it takes deer from 21 construction to 30 while boosting its earning power. Thats good for the agricultural sector. Many have been complaining the agricultural stocks are cool here because theres no infrastructure here. Two big bellwethers many people thought would go down and hurt these companies, great exporters, only tool works jumped a couple of bucks. And the capitulation of a bear at Goldman Sachs and upgraded the stocks from sell to buy, better late than never. Also a pleasure to see the stock danaher, but theres more to this than one not so hot business line as weve been telling online. And finally the market agrees. How about casino stocks, wynn, screaming higher, the best numbers in three years, now that the people of republic china eased up on high rolling gamblers, only a matter of time before they return to form. Mgm is for low risk in vegas. Remember when biostocks went higher . Today was one. It got unstuck for celgene. And biogen, 4. Nice to see that. Its only one day. But nice to see the stock of wells fargo go up a dollar. The big National Banks have been suffering from weakness from the trading division. However wells fargo supposed to be doing okay. Perhaps thats how it could pop today. Even the ceo, tim sloane said, loan growth is less robust than a year ago. And it does take 18 month chipotlelike for the American Public to truly for give. Wells fargo is the chipotle of banking. Its nice to see the stock can go up not just down. Bottom line, the rap against this market, it was all fang all the time and some tesla. Today, the market got broader, much broader and makes your more confident stocks can keep going higher even with the first five months of positive returns. Gabriel from california. Caller jim, love your show. Youre like the Family Member of my house hoeld. Everybody knows at 3 00 i have my hot tea and jim cramer. Whats up . I wanted to know if you think exxonmobil is safe or change my position in exxonmobil . We wont add oils until the oil test 45 again. I do prefer chevron to exxon. Arden in illinois. Caller yes, its indiana, hi, jim. Whats up . Caller my question is about alegan air . Were buyer southwest air, love not for sale. Thats right. Love not for sale. Thats the best performer. How about roger in washington. Roger . Caller jim, i want to thank you for your service to america and to us, trying to make our lives better. Thank you doing my best again. Whats going on . Caller heres a question. A long time ago, you gave me advice on novartis. The latest i heard, they paid 50 billion in 2011 for alcon, now, they want to divest part of the eye care business and institutions are nervous they want to take on Bristol Meyer or celgene. The question is, do you hang with the stock or do you end up selling and saying dont sell. The margins are really good, up 12 . Theyre smart guys. If they thought the others were a buy, i would agree with them. Thats how smart they are. Im not concerned, i want you to hold onto novartis. Today, the bulls got it right. I gave you as many winners i could. Tonight, from payroll to staffing, the workplace keeps the world working. Im talking off the ceo fresh off its report. Nothing certain but death and taxes. Tax cuts . Thats another story. What now with now . Thats right. Now inc. , dnow is down 20 . Could they go higher . I have the exclusive. Stick with cramer send jim an email to mad money at cnbc. Com. Miss something . Head to madmoney. Cnbc. Com. Stay with me, mr. Parker. When a critical patit is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. St with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. There goes my sensitive bladder. Sound familiar . Then youll love this. Always discreet. Incredible protection. In a pad this thin. I didnt think it would work. But the super absorbent core turns liquid to gel for incredible protection. So i know im wearing it. But no one else will. Always discreet. Ive discovered incredible. Bladder leak underwear that hugs every curve. Cant tell im wearing it. Can you . Always discreet underwear. For bladder leaks. What if we could bring you by having better values . At blue apron, we work directly with more than a hundred family farms. So instead of spending on costly middlemen and supermarkets, we can invest in the things that matter most making farmland healthier. Cutting down on food waste. And bringing you higher quality, fresher ingredients for less than you pay at the store. Because food is better when you start from scratch. Get 30 off at blueapron. Com cook computing is very much back in style at the wall street fashion show. I think this group could have a lot more room to run, particularly in the growth prospects. Look at the work day, cloudbased provider of software that helps business, think hr and employment and finance management and finance. When you bring in work day, you can use back office functions, not so worried Artificial Intelligence will put us out of work but terrific if youre a stock holder. And it has gone up 50 yeartodate. The Company Shows us why, because it is deserving after posting a terrific quarter, a 13 earnings beat with higher than expected accelerating Revenue Growth up 38 yearoveryear and raising its third year guidance to boot. Lets take a look at neil bush, the cofounder and ceo of work day, hear more about the quarter and where the company is heading. Mr. Bush, welcome back to mad money. After i see this quarter youre the second Software Company to crack that 2 billion barrier. Youre already well on the way with this quarter. It was a Strong Quarter across the board, jim. We saw reacceleration in our subscription revenue business for the Fourth Quarter in a reand feeling really good heading into the rest of the year. You know technology more than anybody i know that doesnt get enough credit for them, that is nasdaq. I didnt know you won them. What are you going be doing for them . Theyre a Human Capital management customer and expanding us for their financial products, a win for us. Their ceo, dina was terrific and very involved in the sales cycle. One thing people have to recognize, there are three big retailers in this country everybody knows. Amazon and walmart and target. You have taken all three of those this year. We feel very lucky about that. We will do a great job for all three. It seems like the Retail Market is really moving to the cloud en masse right now and were trying to get our fair share. Sometimes when companies merge you are able to pick up business, on a deal, Cardinal Health did business with medtronics, would that be one where you get that medtronic integration for cardinal . Typically, yes. Im not sure about that specific opportunity. I do know as Hp Enterprises spun out, they got that piece of business, any time theres a change, combination of them being a happy customer and work day able to get them in production very quickly usually bodes us winning their m and a business. They could have chosen oracle but they went with you. There is some advantage. Do we have independent statistics that shows the market change over the past several years . Goldman sachs did a survey amongst it professionals. You look at what they see today and three years out, basically theyre telling Goldman Sachs work days market share will continue to grow at the expansion of oracle and s. A. T. Thats what weve seen. It comes to having a great product and taking care of customers. Our Customer Satisfaction right is around 97 . Weve proven out these high End Companies where were the solution. Its not just about selling the cloud, about delivering the cloud for these companies. You mentioned three years out. You have pretty interesting Artificial Intelligence where someone will stay or go, a predictive model. Could you explain how sophisticated things have gotten, a lot of times you work at a thousand person company, you say, that guy must be disgruntled. Thats no indication what will happen. You have data points and you have figured out whos likely to go and not. This is that huge move towards Machine Learning i believe wont replace jobs but make people more effective. Were able to look at a massive amount of data and based on their current salary, how long has it been since they were recently promoted and how competitive is that person outside and we can make a prediction whether that person is likely to leave in the next few months and thats important to hr or ceo to keep that top talent at the company. How accurate has the model been . In the data sets, its been 90 accurate in ours, and were taking that machine across other parts of the application. We have customer collections analytic that will predict if customers will pay on time in our financial offerings, a couple things we can do with Machine Learning. 20th century fox were Human Capital and brought you in as manager. 21st century fox, very big, do you do all the global for them . We, like we have done in the past, we have to prove ourselves out at a Business Unit and the goal would be to do as much of 21st century fox financials as were able to. The same with cna Insurance Company and they also chose work day and were beginning to get proof points along with net 96 and aons of the world, a lot of companies are moving Financial Systems to the cloud, a very exciting time for us . You know i like your company and stock. Operating losses 62. 2 million, negative 2. 5. Im looking at operating cash flow for the first quarter, 180 million, cash and watch equivalence, 2. 1 as of april 30th, those are probably more accurate . People say, why does cramer like those guys, theyre losing money. Its because of the way youre doing your financial accounting. I would say our financials look at nongap operating margin and we spiked over 12. 7 positive operating margin significantly ahead of where we even thought we would come out. Im not sure thats repeatable forever or in the foreseeable future, its the scalable Business Model of our future. Oneil burkes shery, ceo and cofounder of work day. Thank you, jim. Good to be with you . The stock has won and i think it should move up even more because this is a much better than expected quarter, even more than i was looking for. Ive liked this company for a long time. Cramer sits down with the ceo of a company closely tied to oil. Not the way you might think. You managed to save this company. There are many people thought this company could not survive in this environment. Mad money will be right back. Your Insurance Company wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong Insurance Company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. Switch and you could save 509 on auto insurance. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. I know all day there was a lot of hoopla about President Trump leaving the paris climate accords. Heres the problem. Theres only so much any president can do unilaterally. While Trump Supporters may cheer he made good to powflt the agreement, something he campaigned on. Something that has gone fallow that we care about here, tax reform. Its fallen by the wayside because it requires the cooperation of congress. At least right now it almost feels like the white house has given up on Congress Even though the president says hes doing well on his agenda. Let me give you an example. Today i met with a terrific ceo that pays a 31 federal tax rate. There was a time i would have been thinking about how much more money these guys could make once President Trump and his republican ally is in congress ran through a Major Corporate tax cut regardless how you personally feel about cutting taxes on corporations, the fact is a company like this one would make a heck of a lot more money if it was only paying a 15 tax rate and its stock would be surging along with earnings estimates. Thats the one ideological position we have at mad money, were pro stock prices. If i thought tax reform was on the table, i would be pounding this stock to you, telling you you have to buy it. Instead, i have to hold back. I barely mentioned the possibility of lower tax rate to management when i saw them. The whole idea seemed like the relic of a bygone age. When i brought up the possibility of tax cuts quickly we immediately started talking about the craziness that seemed to kill the opportunity. Yesterday, i got snip mitts of what ruth of alphabet was talking about. I like it so much my charity has shares. And i think its undervalued and perhaps all companies will have to turn to alphabet for autonomous dri

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