 Hey everybody, it's Wednesday and we are on the floor of the New York Stock Exchange with Jim Cramer following earnings this morning. Jim FedEx expecting this windfall from tax reform. Yeah, well they're looking at their tax rate and they're saying here's what we were getting and it's absolutely true. They also talked about the expense provision, how they'll be able to buy a lot more equipment. They did not necessarily talk about how many more people are going to put to work because that's not clear. They did think the economy is going to grow substantially from the tax law changes, but they also would not quantify that. Suffice it to say that with the new earnings that they're going to get and they can do a buyback, they're not crazy, they don't spend a lot of money on buybacks because remember they have spent a huge amount of money on the supply chain. But the stock should be up more than it is because it is, it didn't factor in the additional money, the additional $5, $4.50 to $5.50 and if they get it $5.50 which I think they can, the stock deserves to go higher. So I think the big question now is, is tax reform priced into the markets? Right and I think that it's case by case. I think that there are a lot of companies that are 30 to 36% say taxpayers where a lot of analysts are going to have to raise numbers. I also think there's a lot of price targets that are being overrun. There was a, just as a curiosity there was a, someone who has a hold on Karnab, which is a great company and had to take his price target from $60 to $69. Now of course the stock is well above where his price target was. That's become a common theme. I think there are many people that take the price targets up Caterpillar and take the price targets up Emerson, take the price targets up Deer. And all of these are going to foment more bullishness, but there's also a selling news crowd that came out in full force at 940. I respect that, but and I also respect, as I said last night, that there will be many people say Fang is dead. Why? Because those companies are going to do well either way. They're not giant beneficiaries. They do have a lot of capital overseas. Like Google, they can go buy back stock, but they never had any problem financing. They're just, look, it's not their day. But remember, if any growth hits a speed bump, you will pay substantially more for Fang. But right now it's Emerson's time, and Caterpillar's time, and new course time. All right, meanwhile, you mentioned Fang. Let's talk about the broader tech sector, Micron with a big earnings beat. Right, now Micron, that's going to just, I think Micron, if I had to say what it will do today, I think it could be down, then up, then down, and then up. And the reason I put it like that is because what you're buying with Micron is a belief that even though the prices of DRAMs and Flash have peaked, or at least peaked in October, they can always come back, the company's now able to make a lot more money off of what it sells. You're also betting that the Korean green field factories that are being built will meet the demand but not exceed demand. So you're really kind of spreading the needle buying Micron here, and that's going to be tough, that's going to be tough to do. But then again, it sells at five times earnings. Why? Because people felt that when we got to 2018 that earnings were going to come down dramatically, and nothing in the guidance indicates that that's going to be the case. So right now if you're, there's something for bulls and bears in Micron, and the bearer's case would be that the company cannot outrun average selling prices going down. You understand, they make DRAMs, okay, and they make Flash. So let me explain this to you, this is important. They have a product, and the product price is coming down, but they're saying they're going to sell far more of that product, and they're saying that the average selling price for their particular kind of chip is not going to go down as much as the chips that you see when you go into the marketplace and you look at the commodity pricing. So that is a very difficult thing to believe, and a lot of people won't believe it. And the stock is up over 100% so far this year. Right, there's a belief that frankly, that business was going to stay good, and it has, but remember, five times earnings. Jim, you have an article in Real Money talking about Micron Red Hat FedEx, and you do a nice job of summing them all together. Right, and like Red Hat is a classic example of what happens when you have expectations that are high, and the company beats the expectations. This is the fang problem at large. Red Hat had an amazing quarter. Amazing. Stocks up 80%. The orders were fabulous. Stocks up 80%. The deferred revenue, fantastic. Stocks up 80%. People keep coming back to that, and then finally, the whole mosaic of Red Hat says, all right, they don't do much better in this new regime. Find me this tax regime. Find me something that does better. I'm going to sell Red Hat and I'm going to take my profits. So where do you come in as a viewer? Well, you wait until Red Hat has been sufficiently annihilated that you start buying it. Why? Because there's always room for the growth stocks. Now, remember, my rap is Newcore, Caterpillar, Emerson. We own a lot of like a waste management fractional works. We have a lot of stocks that benefit entirely because of the tax code. And we put out a good list of what does. But we also have a lot of stocks that are these great secular growth companies that I'm talking about. And those are not going to do well for a little bit because money has to flow out of them and into the Emerson's. I'm thinking of Emerson because they had 15% order growth last night that came out. And people want to own that stock because there's not a lot of guys recommending it right now. Jim, meanwhile, we're waiting earnings from the finish line in Nike tomorrow. Anything you're watching? Well, you know, finish line I think is going to be better than expected, which will therefore drive Nike. OK, and Nike reports after the close. So we'll see how that plays out. All right, Jim, we're going to continue the conversation behind ActionAlertsPlus.com. Many more stocks to talk about. Join us there.