Transcripts For WCNC Mad Money 20160310 : vimarsana.com

WCNC Mad Money March 10, 2016

Fund. I realize tick picking stocks as very highrisk proposition. Which is why i only recommend doing it with your discretionary nonretirement portfolio. Your mad money, so to speak. Hence mad money. I can talk about index funds every night. However i know many of you like to buy stocks and ive seen how lucrative owning highquality individual stocks can be for regular people. Ive been in it more than 30 years. Ive seen it over and over again. The professors of finance and doyens of mutual funds may disadry. The simple fact is you could have spotted with your own eyes and habits some of the top 15 gainers since the haines bottom. Those to say otherwise dont want you to feel empowered about making your own investments. Stupid. I dont. I have the utmost respect for you and your abilities, which is why i come out here every night and try and teach you how did put those same abilities to use. So what are the best performers since the bottom seven years ago . Unfortunately, the best of the bunch, general growth properties, up 9,975 that might have been hard to spot. It went into and out of bankruptcy, got back on its feet faster than anyone thought possible. The secondbest performer was easily gettable, regeneron. The ceo was our first guest on mad money. And he told us regeneron had developed a medicine that could stabilize macular degeneration, a disease that causes blindness. The catch . He said you had to inject it into your eyes 12 times a year. Thats hardly an inviting when i pressed him on why anyone would do that, he said the current regimen is once a week. So i told you regereron as buy buy buy i like the third best performer under armour since my daughters Field Hockey Team adopted the clothing line. My eyes didnt lie. 2,482 gain. Gettable. Because i saw what my daughter was wearing and did the homework. Weve had ceo kevin plank on for years and weve recommended you buy every tip. This recent pullback no different. Under armours a Technology Company that happens to sell clothes. Wyndham worldwide, up 2,288 . I think that was within the realm of opportunity. If you had listened when ceo steve holmes came on the show repeatedly wyndham went from terrific asset light manager of hotels and time shares with that new Business Model allowing its profits to soar. The fifth best performer, united reynolds, that was a tougher one to spot. Leverage buyout that didnt get done because of financing issues caused by the great recession. The Equipment Rental business has been a good one. We recommended it for a long time. Theres a little too much oil exposure for my tastes so i cant say you would have spotted that 1,822 gain all that easily by watching the show. Six, i wear haines brands tshirts oh god. No tmi. Hey, i could show you the other haines no, no hey, you know, i mean i could no never mind. I wear them to work, take my word for it. That might not have translated into you buying the stock. 1,733 gain since the bottom in its a surprising all right. Nice tie. Kind of makes it is so you cant see the tshirt. It was a surprisingly good gain by haines. I didnt see it. I put the tshirt on every morning. And Something Else too. How can we say the same about number seven, netflix . Thats a company weve worshipped since its creation. A worldwide Internet Tv Network that has always been too big for its market cap and weve pushed it endlessly, even baking apple to buy the company when it was cheaper. Listen, you would have gotten that 1,682 gain if you watched the show. While its tough to come in on top its probably done riskier thingth. Want to see that tshirt again . Cbs coming in eighth, 1,586 from the haines bottom but this is another hide in plain sight call. As cbs tells you endlessly, its americas most watched network. Bought the stock for certain. Number nine, extra space. One of those classic baby boomer storage space, a company for downsizers. 1,556 . Ive been behind number ten, price line, since my late sisterinlaw told me it was the cheapest way to ply. How did she know . William shatner, he was everletter. 1,549 gain. Still good. For everyone who saw captain kirk talk it up. Did you know every kiss begins with Capital Gains . Signet jewelers, a monster 1,438 return. Qorvo which we sell a lot of, thats number 12. And this chipmakers claim to success, apple. 1,406 run. Next it may be the subject of a underperformance right now. But if youve flown in one of its airplanes you might have failed a 1,396 gain, United Continental holdings. Should i buy the stock in the answer has been yes. 14th, l. Brands, leslie wexler, a genius, had the brilliance to get out of the pure pile game, go into the unamazonable victorias secret, bath and body works. My staff was excited because they run the runway broken leg, brole, regardless. All these are companies that jeff basso cant wreck no matter how hard he tries. 1,333 . Finally if you watch mad money for more than ten days you would know how much i like the stock recognizing its your own personal ritual is often shared by others can be one of the keys to successful investing. The stocks 1,279 gain, may have been the easiest of all 15 to come by. Sure starbucks has ups and downs but the dips have been buying opportunities, this time no different. Many if not all these stocks could have been part of your mad money investment portfolio. It wasnt that hard in retrospect. You can put almost all of your money in index funds and i love you and i fully endorse it. But based on how obvious some of these winners seem since the haines bottom, seven years ago, i think it makes sense to sock away something extra to invest in a mad money portfolio of individual stocks. They have the potential to give you the kind of Performance Index funds can only dream of. You know what, were going to illini. Caller hey, dave from chicago. Big blackhawk buy yaw to you. The blackhawks are good, anything from philadelphia always is bad. Caller how about it. I have a question. Internet securities software. I got fideri. Watching it tank, watching it come back. Fireeye or Something Like tech fire . I saw this morning, i thought he had a good story to tell, stock has come down a lot. Im partial to palo alto networks, marc mclaughlin. I like cyber art. Uti told a pretty good story. Its been seven years since the market hit bottom but look how far weve come. Some of these winners, they could have been had. Mad money tonight. 3d printing was one of the hottest things on the market. Can it still add another dimension to your portfolio . Im eyeing one of the biggest players in space. Then the stock of rango resources is shining brighter than the precious metal it pulls can it keep striking golden gains . The ceo of tech data. If i were you what i would do is stick with cramer dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer madtweets. Email madmoney cnbc. Com. Or give us a call. Head to madmoney. Cnbc. Com. Working on my feet all day gave me pain here. In my lower back but now, i step on this machine and get my number which matches my dr. Scholls custom fit orthotic inserts. Now i get immediate relief from my foot pain. My lower back pain. Find a machine at drscholls. Com thats a lot of dishes no problem. Ill use a lot of detergent. Dish issues . Get cascade platinum. One pac cleans tough food better than 6 pacs of the bargain brand combined. After spending the last two years in the wilderness, the ones red hot 3d printing stock have caught fire again. 3d systems the poster child for the industry now up 37 since the beginning of 2016. Rebounding from 8. 69 up to 11. 89 as of today. Hallelujah in the wake of such an epic move should we entertain the idea these 3d precipitating back . Or this is a dead cat bounce and its fill a troubled industry . If you want to get your head around what the stocks have been doing you need to know how the heck they got there in the first place. Thats why tonight im going to tell you the story of the rise and fall of 3d systems. The market darling. The one that turned pariah thats been rebounding so dramatically of late. For those who dont remember, you have to understand that for years this whole 3d Printing Group was totally enfuego. Perhaps the hottest speculative part of the market in 2012 and again if 2013. April 2012 the economist, pretty smart and respectable publication, said 3d printing represented the third industrial revolution, edging out the Assembly Line to become the best way to manufacture virtually everything. While there were other smoking about this amazing trend the first thing that came to your head was always 3d systems. From the beginning of 2012 through the first days of 2014, the stock soared into the stratosphere. Rallying more than 910 to peak at 97. But as the business actually began to decelerate in 2014 the stock went into free fall. By the end of 2015 it had more than round tripped that earlier run, 8 and change. Just look at this chart. It went down even as fast as it went up. So what the heck happened here . Okay. 3d system had been a publicly traded company in one form or another since 1988. But the stock didnt do much for the first 20 years because 3d Printing Technology wasnt cost effective. But after trading sideways for decades, 3d systems finally started to roar higher in 2012. Some of this has to do with 3d printers at long last becoming cheap enough for companies and consider buying them. However a lot of the strength in 3d systems came down to a massive acquisition binge. Since early 2001 the companys done more than 50 deals. In 2011 and 2012 they bought 16 separate businesses. And that, ladies and gentlemen, should be a red flag. Suddenly thanks to all these acquisitions, 3d systems started to generate some magnificent revenue new growth. Sales 44 up in 2011, 45 in 2013. Wow. However, this takeover binge wasnt just about putting up bigger and bigger numbers. 3d systems wanted to be a consolidator, taking out competitors left and right. And a lot of these deals were about establishing a beginning to end solution for 3d printing. Which is why they snapped up hard war maker, software makers, suppliers in an attempt to bring as much of their ecosystem, the term they use, inhouse. Their own. 3d systems figured they were acquiring some serious intellectual capital from these companies. Both in the form of patents and contracts with the smartest employees. Basically back in the heyday the thesis was that 3d systems was buying up an unmatched brain trust in the hottest industry on earth. But then 2014 rolled around and suddenly things went wrong very, very fast. At the beginning of the year 3d systems finally made an acquisition that wall street didnt like. With the purchase of gentle giant studios. A maker of 3d modeling for the entertainment and toy industry. Rather than trying to become profitable or even buying another technology play, they literally bought toys. No wonder the Stock Plunged nearly 25 in the month following the gentle giant deal announcement. Gentle giant. Then in early february 2014, 3d bombshell. The company preannouncing earnings that were well below wall streets expectations. And their own guidance, whoo. Even worse at a time when investors were hoping the company would start focusing on maybe profitability, thenceo avi said, were willing to tolerate substantial earnings reduction during this period to substantially accelerate our growth rate and market share. This was a tad disturbing. Because even though 3d systems had been spending for years, at least the companys margins had been steadily improving. Then this ceo comes out and says he doesnt care too much about profits . Hes okay with lower margins . Hence why 3d systems fell 15 the day of that preannouncement, taking the rest of the industry with it. Turned out this preannouncement was only the first of many disappointing numbers from 3d systems. It was finished. To make matters worse even as the company spent to boost its growth the Revenue Growth was slowing dramatically. Quarters of 2015. This was growth stock. Nobody wants to pay up for a company with declining profitability and decelerating sales growth. Hence the relentless decline in the stock. However, 3d systems kept making more and more acquisitions until october of last year when the Company Finally gave up on what was clearly a losing strategy after its stock had been pounded into the dust. At the same time 3d systems supported its firstever quarter over quarter year of revenue declines. And after that lackluster performance, ceo avi submitted his resignation. Since then the companys former chief Legal Officers been serving as ceo. Thats the rise and fall of 3d systems. What about this incredible rebound, the stock weve seen in recent months . Does that indicate all the problems are fixed and this whole group is about to become red hot again . Lets understand the reasons for this rally. First of all, 3d systems preannounced Fourth Quarter revenue numbers, actually much better than wall street expected. Even though they represented a last week the companys main competitor stratisus reported a better than expected quarter, sending the 3d printing cohort roaring higher including 3d systems. Whats the verdict . Despite the stocks strength of late i think there are way too many question marks surrounding this to endorse it. 3d systems only has that interim ceo. Theyve experienced two straight quarters of shrinking sales. Couple of weeks ago the Company Announced it would delay the filing of its annual report for 2015 and thus its Fourth Quarter results. This isnt necessarily a negative. Its a head scratcher. Well learn the real numbers soon. However, given the stock trades at 45 times its 2016 assessments and considering a long history of disappointment, call me not intrigue the. Heres the bottom line. I think the entire 3d printing sector is a wild card. This was a bubble that popped. While some of the players seem to be finding their footing like stratisus, its hard to feel industry. 3d systems in particular, i think it could be one of the riskiest of the bunch. If you even any, its giving you great opportunity to ring the register and move on. Remember, just because a companys got an exciting product doesnt necessarily make it stock investable. Rangold resources faced its fifth downgrade earlier this week. Has the stock lost its luster . If youre looking to get a real pulse of the Overall Health tech market, forget this. There are a too Companies Like tech data. A money manager youve been hearing about who says the rebound is over. I dont know about you but i would stick with cramer. I asked my dentist if an electric toothbrush was going to clean better than a manual. He said sure. But dont get just any one. Get one inspired by dentists, with a round brush head. Go pro with oralb. Break up plaque and rotates to sweep it away. And oralb delivers a clinically proven superior clean versus sonicare diamondclean. My mouth feels super clean oralb. Know youre getting a superior clean. Im never going back to a manual brush. Jill and kate use the same dishwasher. Same detergent. But only jill ends up with wet, spotty glasses. Kate adds finish jetdry with five power actions that dry dishes and prevent spots and film, so all thats left is the shine. For better results, use finish jetdry. Seems like weve hit a road block. That reminds me. Anyone have occasional constipation, diarrhea. Gas, bloating . Yes one Phillips Colon Health probiotic cap each day helps defend against occasional digestive issues. Live the regular life. Phillips. Dry spray . Thats fun. Its already dry no wait time. This is great. Its very soft. Can i keep it . laughs all the care of dove. This morning you might have noticed a story on the front page of the wall street journal headlined, china fighting money exodus squeezes business. About how so many Chinese People are trying to move money abroad that the government is getting nervous and cracking down on capital outflows. You might read this as a story about china. No interest. To me theres a takeaway. Its a bigger takeaway. How to make money with this piece and the piece says to me, why . Because i think a lot of the money thats fleeing chinas going into gold. If youre a Chinese Investor worried about a slowing economy, coupled with a currency that keeps getting key valued, you want to hide your assets in cash that retains value in the face of chaos. Hence the run on the precious metal in the last three months. You should always have some gold exposure, basically as insurance for the rest of your portfolio against inflation or Global Economic weakness or just pure chaos. And with the shiny stuff currently roaring higher, i think its word stressing if you want to own gold, i tend to favor putting your money directly into bullion. If you dont want to pay to keep an actual physical commodity i like the gld, the etf that tracks prices. However, if youre willing to take more risk in order to chase one, one particular gold miner with a stock thats been behaving so fabulously of late that i absolutely believe it does deserve to be bought. As long as youre willing to take a little pain the house of pain if things go wrong. Im talking about tada rand gold resources, the best gold miner in existence with some of the lowest finding cost in the industry. Rand gold has terrific costs across western and subsaharan africa. Its the action in the stock as much as the fundamentals of the Underlying Company thats making me pound the table in this one. Rand gold just wont quit. In just the past few months this stock has paid not one, not two, not three, not four, but five straight down grades. Yet it continues to march higher. Normally when a company gets hit stock to get bruised. Five downgrades that stock should be in the hospital suffering temporary paralysis that prevents it from walking let alone running. You expect a sign on the door that says do not resuscitate. Rand gold refuses to roll over and play dead or be dead for that matter. The first downgrade, it came october 26th. Rand gold was trading a 71. Hsbc took the stock from buy to hold. Initially dinged 3. 3 the following day, since that downgrade rand gold has run up 30 . February 8th it was trading at 78. Deutsche bank downgraded buy to hold. Then it roared 8. 7 higher that day despite the negative

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