Transcripts For KWWL Mad Money 20160220 : vimarsana.com

KWWL Mad Money February 20, 2016

Valued highly. If you are inclined to buy palo alto, limit your do you know side as it does cut off your upside. Only 7. U upon speculators love it. Its one that you dont have to own. On the other hand, foot locker also reports on fridaylo. We know footwear is one of the strongest sectors out there. If foot locker gets hit ahead of the quarter on some of the other retail weakness stories its worth buying especially as nike and under armour report sales. Next week we are all about earnings, mostly retail. You have to pick your spot. Earning and management gloriously matter and the good ones prevail while the others get hammered. Ratherer than the endless trading. Robert in north carolina, please. Robert. D atmmmm caller jim, thanks for all you do for the home trader. My pleasure. Caller after the great earn ings from alphabet was there pl anything other than profittaking that caused the 90 drop in price and where do you think the price is headed. Im going to use the price that sounds ridiculous. If it were valued like the typical growth stock it could easily trade to 1,000. My Charitable Trust owns it. Ertr it was pure profit taking. Over the course of the next 18 months it would not surprise me if that went to 1,000. Thats how strong the business is. Ben in iowa, please. Ben. Caller this is ben from iowa. Thanks for all you do for us. I own shares in sam adams and is it time to make a move . 1si fo i actually like Constellation Brands more. Beer. Nd i like stz. Oscar in ohio. Booyah, jim. This is oscar calling out ofofo le do, ohio. My q qstion is about maratatn Oil Corporation with oil being volatile at these levels. I was wondering if this is a good time to buy marathon oil. Ile hi it seems cheap but cheap isnt cutting it in the oil world. We dobts like the stories. Stu in florida, please. Stu. Pl caller jim, its a pleasure to speak with you. Thank you. Caller you remind me of my father without the faciaiahair, sasa stature. Thank you. Caller he taught me the value of dividend stocks when i i didnt know whether to buy more or how its going. Yield is 3. 91 . We have the ceo on recently. He tells a great story. Heres what you do. If that stock were to break back to 45 i want you to pull the trigger. [ shotgun ] the market is heavy for the stocks and when oil goes down this stock goes down with it. They laid out the story about why that shouldnt occur. 45 bucks, next level to buy. Next eek its all about earn ings. Finally. The good ones prevail while the others well, pain. Which is the way it should be. Tonight, rev up the lawn mowers. Spring is in the air. E. I check in with the gas powered equipment maker briggs and stratton. Love the products. Of lionsgate films. What happened to the studio behind mad men and the hunger games. I have been studying and they stump me. Why dont you stick with cramer announcer dont miss a second of mad money. T follow jimcmcmer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com or give us a head to madmoney. Cnbc. Com. Iveveeen on my feel all day. Im bushed yea me too. Excuse me. Coming through ride the gel wave of comfort with dr. Scholls massaging gel insoles. Theyre proven to give you comfort. Which helps you el more energized. All day long. I want what he has. Man sternly where do you think youre going . Mr. Mucus to work, with you. Its taco tuesday. Man youre not coming. I took mucinex to help get rid of my mucusy congestion. Im good all day. Not 4, not 6, but 12 hours. Lets end this they say when mr. Clean saw all the different t ings his new smart phone does. It reminded h h of his magic eraser. Its not just for marks on walls. Its tough on kitchen grease. And bathroom grime too. Hes your. All aroundtoughcleaner, mr. Clean. Theres a more enjoyable way to get your fiber. Try phillips fiber good gummies plus energy support. Its a new fiber supplement that helps support regularity and includes b vitamins to help convert food to energy. Mmmmm, these are g gd nice work, phillips the tasty side of fiber, at a time when so many stocks have been annihilated since 2016 its worth remembering there are winners out there. Take bbg shlgs the maker of gasoline engines for Outdoor Power equipment as well as finished products like generators and presssse washers. The stock is up 25 year to date broader a. J. S. The reason for the performance, there was a Strong Quarter on january 20. The Company Sales came in light but they delivered 16 cents earn ings bead off an 18 cent basis growing at a 30. 8 clip as sales declined year over year. Management also raised the fullyear Earnings Guidance and you know what . Though they have run here the valuation is reasonable. Stock trading at 13 times next years earn ings estimates and supports a n ne 2. 5 yield. Lets take a look with the chairman and ceo of brigs and stratton to get a better sense of where the company is headed. Welcome back to mad money. Great to be back,k,im. Thanan. I have to tell you, one of the reasons i wanted you on is you are the best performing stock i follow. How is that possible . First of all you make snow blowerer we havent had much of a snow season. Second, holy cow. This isnt lawn mowing season. Whats going on at briggs and what you are seeing is s e result of a lot of hard work by our team. When you go back a few years we rationalized product offerings, took capacity out. What you a a seeing is a lot of f cost comininthrough. The cost savings. At the same time, we were working on a lot of innovative products. Over the last two years we have come out with more innovation than we have in a long time. Thats showed up in the margins, too. It is the execution of the strategy and hard work on the we think becacae we are fans of home depot and not apparel. You Big International business, but they want to spend to make the home more valuable. Briggs and stratton fits in there. The Housing Market being down had an impact on us. That are first time home buyers they want to take care of their investment. With the Housing Market being where its been, its been a few tough years. Now we are seeing the rebound in the Housing Market which was obviously showing up then because of theheink we have to housing. Thats helpful, too. When you look at the exposure we have been trying to diversify business. We are 7030 now, u. S. And nu. S. For a few years it didnt feel good being mostly a u. S. Based company withhere the Housing Market was. Now it feels good to be in that ot. We think weve got additional runway out there as housing continues to go. I think well continue to see an uptick in the market for us. I have to tell you. November 10, 2015, industrial conference, you said q3 january through march is the beginning how is high season going . Well, i is too early to tell. L. We are still in this funny period. Stores are stocked for the spring selng season. Its one of those things whehe its tough to tell where things will go. We are optimistic. The placement is better off year over year. We are cautious at the same me. There are a lot of things going on in the market between discussion of negative Interest Rates and other things that we are cautiously optimistic, if you will. We think this could be a good season for us. All right. Im a big user of ur products. We have an in and my best friend, you know, hes a demo guy. We power washed my place, used briggs and stratn and i see you have something that matters. Im thinking about getting it. You have an engine thats quiet power technology. Everybody else, isnt it . It is. Its one of the things we are doing with innovation. Starting, noise and storage are three things customers look for and users look for in equipment. So the technology you refer to is 66 quieter than other things on the market. Its remarkable, jim when you go through it. Starting the other thing. We are using lithium ion batteries for push button starting on a walk behininlawn mower. Thats different. We have a mower you can stand on end. I dont know about you, but i dont have the garage space. I could d ve a tencar garage and not have enough room. Mow and stow allows you to gain back garage space. Those are innovatis in the past couple of years. I have the privilege of being able to see whats in the pipeline and i am excited about what we are coming out with. John deere reported a not why havent you been hurt by that . Its not so much ag. Its lawn and garden. We are tied mo to housing than agriculture. When you look at housing and people mowing lawns, that sort of thing. Thats where we live, if you will. The agriculture in the u. S. Is small. When you look nationally, its a small part of business. Really its the Housing Market and cutting grass here and in europe. Its been a remarkable year already. Its a great company. We love your products. Thank you for coming on mad money. Thank you, jim. Chairman, president and ceo of briggs stratton. Love their products. Amazing to see the stock do well. They have the better mouse trap. Mad money is back afternoon. Announcer coming up, they are hiding everywhere. Be seen by the naked eye. Well, cramer is getting out his magnifying glass to help you spot the hidden trends for your portlio. Just ahead. cell phone rings where are you . Well the squirrels are back in the attic. Mom . Your dad wont call an exterminator. Can i call you back, mom . He says its personal this time. If youre a mom, you call at the worst time. Its w wt you do. If you want to save fifteen percent or more on car insurance, you switch to geico. Its what you do. Where are you . Its very loud there. Are you taking a zumba class . A heart attack doesnt care if you run everyday, or if youre young or old. No matter who you are a heart attack can happen without warning. If youve had a heart attack, a bayer aspirin regimen can help prevent another one. Be sure to talk to your doctor before you begin an aspirin regimen. Bayer aspirin. Theres moving. And theres moving with move free ultra. It has tripleaction support cartilage and bones. And unlike the big osteobi flex x lls, itssll in one tiny pill. Move free ultra. Get your move on. My son and i used to watch the red carpet shows on tv now, im walking them. Life is unpredictable one thing i meed to be predictable is to be flake free. Because i have used head and shoulders for 20 years. Used regularly, it removes up to 100 of flakes keeping you protected every week, every month, ery year you ready ma . Always life is unpredictable, so embrace it ever since 2016 began we its been absolutely brutal. Many of the stocks are still raray earlier this week. I talked to you about how alliance is worth buying because the stock is so cheap. Not every growth stock thats been obliterated is necessarily worth purchasing here. Consider the rise and fall of lionsgate entertainment. The movie and Television Production comomny behind the hunger games, mad men, orange is the new black. The stock kept roaring endlessly higher thanks to wave of hits, the stock climbed 28 in 2011. 93 in 2013. But then it plateaued, inching up a percent in 2014 to 32. In 2015 lions gate shot up to 41 in n nember and gave up a a huge chunk of gains plungigi down t t 32 and change at the end of december to close up the year barely up more than 1 . Story fell apart in 2016. Ever since the rooer new year began the stock habeen plummeting less than twomo. Making it one of the great grow stocks of the moment. The company lost its mojo going from a beloved name to a play thing of the short seller in record time. Lets start with the rise of lions gate. Content is king and for years lions gate had the hottest tv shows and franchises. They made a killinon diver gent and hunger games and are hind some of the besesshows on netflix. What if you plow a bunch of money into a property and its a flop. Lions gate is good at diversifying product offerings. They produced 12 to 15 films, mostly small pictures and one or in at the box office. On the Television Side they are producing sit com, drama, reality, miniseries and excelling g the con tents across multiple platforms. They arent beholden to anyone. Lions gate doesnt care if you watch on cable, netflix, hulu and the shows are on 24 networks. The company is disciplined when it comes to the movie making side. 70 of Lions Gate Films are profitable which is a high success ratete more impmptant they have neverer lost more than 20 million bucks on a movie. They have been a disciplined player. They dont make many mistakes. When they gegea Major Property like the huhuer games they make a fortune. I recommended the stock four years ago, a month before the first the hunger games came out. The stock traded at 11. 34 thanks to my younger daughter i head read the books and knew it would be huge. You have a 75 gain since then. Four months ago when the stock was at 41, you had a 261 gain. How is it lions gate has round trippepe in a way they have taken on the characteristics of a Pharmaceutical Company whose drugs are about to go off patent. Starting in 2014 investors worried about what became known as the earnings cliff of 2017. At the time we werent even halfway through the hunger games saga but people are concerned what h hpens when this franchise came to an end. The movies generated over 200 million a picture. Sure enough the stock peaked before the release of the final the hunger games film mockingjay 2. Then the stock began to slide when the Opening Day Box Office was weaker thaexpected. Two weeks ago they reported a disappointing quarter including a 4 miss. Revenues at 670 million. Street was looking for 770 million. They missed by nearly 100 million. Are tracking below the previous forecast. No wonder the stock plummeted 27 in a day off the news. The culpriri the last the hunger games under performed. The company produced fewer new episodes of orange is the new black than expected but management indicated the tv business would be stronger in the next quarter. Anyone worried about a post the hunger games earn ings drop off had to be worried. Lions gate managed to blow it. Gods of egypt, seems to be bombing. They are changing the film strategy with the idea to release lower cost films. Trying to comemep with new expensive block busters that may not be big hits. They have a new franchise in the Power Rangers that has potential. On the Television Side most agree the weakness in the quarter was a titing issue more than a fundamental problem. The tv division has doubled over the last four years and net flick renewed orange is the new black for three seasons. That could be llucrative. It may be cheap at 14 times earnings but the companys revenue has been declining for the last five quarters. Double digit declines. That trend is worrisome to me. You can get Higher Quality plays like time warner for 11 times earnings. These Companies May have issues but unlike lions gate they are growing. Here is the bottom line. Until they figure out a way to grow consistently you need to stay away from the busted stock. I dont see how it can perform versus other Big Media Companies with more levers going for them. This is a boom and bust story. We have been through the boom. And the bust has begun. To own media stick with disney which has a massive number of tent pole franchises including star wars and the theme parks. Disney may have trouble with losing espn subscribers but we know how to triumph over the issues long term. Lions s te has no idea how they can get the groove back save a takeover which i cant rule out. Until we have a change in fundamentals just stay away from lions gate. Brian in new york. Brian. Caller hey, jim. Thanks for having me on. My question is this im a few thousand long in netflix at an erage of 90. My average price is 90. I wonder what advice might you have on how to play it forward and where do you see netflix going . Down 21 for the year valued at 38 billion. Thats an amazing decline. It is a cold stock. If you like whats on netflix, i tell people, listen, go buy it. Its not an earn ings story. Sells at 313 times earn ings and i am an earn ings guy. I wont get in the way of this or amazon. If you like the oduct i wont say to stay away. Netflixs opportunity is too great to be contained by the market cap. Mustafa. Caller thank you, jim, for taking my call. Sure. Whats up . Caller my question is with viacom at 50 discount from the high and knowing Cable Companies are playininhardball with apple, would it m me sense for apple to buy viacom now . I like the yield of 4. 5 , but not the balance sheet. We have High Quality Companies like disney and time warner selling inexpensively. I would much rather have you go with them. All right. Lions gate is no longer king of the jungle. The rise and fall story could go down. If you want a Media Company consider disney or time warner. Allnighters. Getting tired here. Never. I have answers to the questions that stump me. Some of your favorites make my list for smart speculation. Dont t ss it. Then are you ignoring signs of a stock selloff lurking in the portfolio . I will reveal the clues and rapid fire calls in tonights edition of the lightning round. So stick with cramer i take pictures of sunrises. Its my job and its also m mpassion. But with my back pain i couldnt sleep. So i couldnt get up in time. 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