SAP co-CEO Bill McDermott appeared on the top rated CNBC show, “Mad Money” with Jim Cramer (US).
On previous broadcasts, Cramer has not been bullish on SAP stock and viewed SAP as part of a group of “old tech” companies. Cramer generously provided McDermott the chance to challenge these assumptions on national television
Cramer’s perception changed dramatically as McDermott explained the big changes in today’s information technology industry. Jim Cramer is a major voice in the financial markets. People listen to Cramer as he ran an extremely successful hedge fund and has a strong track record of stock picks through the years.
McDermott focused intensely on SAP’s commitment to mobility, cloud and real-time analytics. McDermott also provided a live demonstration of SAP software via iPad. McDermott showed Cramer how he runs a multi-billion dollar entreprise on his tablet — major customer information in real-time, at his fingertips. Data analytics practically at the speed of thought.
McDermott shared his insights into the resignation of Apple’s Steve Jobs offering a personal story of how Jobs helped McDermott in a tough time.
McDermott emphasized SAP’s strong growth, 35% last quarter on 18 Billion USD revenues. Cramer admitted that most tech companies would find this deeply “enviable.”
McDermott drilled down on SAP’s commitment to leverage mobile technology, big data and the cloud to make the world’s companies run better.
Cramer was brimming with enthusiasm as he praised the company he formerly dismissed. In his introduction, Cramer said, “Roughly 60 percent of the world’s transactions touch an SAP system in one form or another with entire industries running on top of SAP.” He continued, “Whenever you hear SAP comes into a company, I always think you’re going to be able to raise estimates that next year because of it.”
Cramer was baffled by SAP’s low price to earnings ratio noting the stock is undervalued with “a string of 6 quarters of enviable growth that almost every tech company I know would love to have.”
McDermott spoke of the transformative power of SAP, “If you want to innovate and change your business and run it better… we are the bet for anyone to put their money on, because we’re a winner.” Cramer responded, “From the CEO’s I talk to, that is absolutely right.”
Cramer previously encouraged his viewers to sell SAP stock. Today, he wrapped the interview by saying, “I think your stock is too cheap… it’s just completely ridiculous. SAP, I like it right here.”
On at least one broadcast, with one tough critic, McDermott made the case for SAP and turned a powerful anchor from naysayer to fan in the course of ten minutes.
Watch the clip here: http://www.cnbc.com/id/44273499