This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer's 'Mad Money' Recap: Unsafe at Any Price

When asked about the part technology plays in the company's growth, Doyle said Domino's is betting big on digital media and some weeks 50% of its orders come in from online and mobile sources. He said the company has over nine million fans on Facebook.

Finally, when asked about the controversy surrounding executive compensation, Doyle said that at Domino's executive pay is aligned with performance. If the shareholders are making money, so, too, is the management team. If they're not, there will be no bonuses.

Cramer said the Domino's story is as good as ever.

Sell Block

In his Thursday "Sell Block" segment, Cramer placed the entire 3-D printing industry, and in particular 3D Systems (DDD - Get Report), under house arrest. These stocks have already been cut in half, he said, but they still have a lot further to go.

Shares of 3D Systems roared from $50 to $97 last year, Cramer said, but have since giving back all those gains. Why? Cramer said the rally was based largely on hype, on the promise that everyone would soon have a 3-D printer on their desks creating magnificent objects. The only problem: The machines that make the really magnificent objects still cost hundreds of thousands of dollars. The affordable ones remain very limited.

Then there's the issue of competition. Not only are dozens of 3-D players ramping up in China, but even Hewlett-Packard (HPQ) has announced it is getting into the 3-D space in June.

Yet, shares of 3D Systems, even after its 50% haircut, still trade at 61 times earnings, or 7.4 times sales, and that's using estimates that are likely still too high. Putting it another way, Cramer said the entire 3-D printing industry is expected to generate $6.5 billion in 2018, yet 3D Systems is currently valued at $5.2 billion.

With inventories rising and insiders selling, Cramer said this industry needs to be avoided at all costs. 3-D printing is proving to be a flash in the pan.

Executive Decision: Dinesh Paliwal

In his second "Executive Decision" segment, Cramer sat down with Dinesh Paliwal, chairman, president and CEO of Harman Industries (HAR - Get Report), makers of high-end speakers and electronics, which today delivered a 12-cents-a-share earnings beat on dramatically higher revenue that rose 32%. Shares of Harman trade at just 22 times earning with a 22% growth rate.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DPZ $113.96 0.00%
DDD $27.23 0.00%
HAR $145.10 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs