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tv   Mad Money  CNBC  April 21, 2022 6:00pm-7:00pm EDT

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>> guy. >> mets are on fire, it's crazy. you know what sells on fire, dgs quest dyingistics big earnings today. >> thanks for watching "fast money" don't go anywhere. "mad money" with jim cramer starts right now my mission is simple to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere, and i promise to help you find it. "mad money" starts now ♪ hey, i'm cramer. welcome to "mad money. welcome to cramerica i'm trying to save you money my job is not just to entertain but put it in context. call me at 1-800-737-cnbc. welcome to the american industrial renaissance
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another bad a day for the dow. the nasdaq doing what it has goi been doing, down more than 2%. on the usually fed worries i want to focus on the greatest untold story of the present moment i like these down days to think about some things that are a little more positive everybody else is negative you see, not that long ago america lost its leadership in manufacturing. sure, we had hollywood, we knew how to make soda, processed food but in manufacturing we were eclipsed by germany, then japan and then ultimately china. we lost our industrial leadership in pretty much every category save perhaps aerospace. but those days, those days are over oh, you sure don't notice it when you have an ugly day like today, but the united states has been reclaiming its trial preeminence in sector after sector after sector. it just was obscured by wall street's now defunct love affair with high-growth tech stocks now that we've fallen out of
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love with tech, the industrial renaissance has become key with picking winners. let's start with tesla it has been years since the america company could make a car rivals what the germans and japanese have put together now tesla has designed the best electric vehicles. not only that, elon musk has made his company into the best electric vehicle maker in china and germany, too he is running rings around those guys no one disputes tesla is the best automaker in the world anymore, and if you listened to musk's conference call last night you will see how he is accelerating now better cars, the best prospects for self-driving technology out there. thanks to elon musk the u.s. has auto bragging rights again that's why it was $31 for an amazing quarter. next up, america used to lead in steel. then the japanese steel industry was rebuilt after world war ii, using all of our beck tech
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knowl technology our government allowed anyone to dump steel on our markets, but once former president trump cracked down on steel dumping they made a miraculous come back in the old days chinese steelmakers could undercut because these companies didn't care about turning a profit. they were basically government-sponsored jobs programs now that the government has levelled the playing field, new corps' manufacturing paralysis reclaimed the biggest and best hence the stock could rally $6 a day, after an amazing quarter with a statement that the best is yet to come how about chemicals? after world war ii we were king of the chemical industry worldwide, but germany rebuilt theirs meanwhile our chemical giants fell on hard times now everything is reversed buyers swallowed mon santo for $63 billion and fell prey to a
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huge number of monsanto's lawsuit. bsf is hostage to russian natural gas. that is playing with fire if you are a chemical company dow has asserted itself as the world's leader in commodity chemicals thanks in part that the united states is blessed with virtual endless supplies of natural gas. even as the ceo has been doubted at every turn by everybody except me, it hit 52 today yield is still one and 4%. i have it all. there was a time when america ruled the world with the best modernization. rockefeller built everything when it was broken up, its former components were on the sale block then opec emerged in the '70s. the united states became an also-ran hostage to the demand of opec. opec plus which includes russia. we went to a giant importer with
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the loss of almost all energy security that changed when we embraced the fracking revolution. in less than ten years ours country's oil put doubled and our natural gas industry is second to none we are the leading exporter of liquified natural gas thanks to a frequent guest of the show who spent years building on transporting over says we are the savior. if we just keep building out liquified natural gas terminals we will be able to wean them off putin's petroleum products meanwhile our oil and gas technology is best in the world. nobody comes close majors like chevron are major to colleagues in europe chevron almost hit today what is happening is long term, not surety weakness should be used to buy, not sell you should be hoping chevron comes to the 150s. next, i know our aerospace industry is struggling over -- well, since those terrible bowing 373 max fell out of the
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sky. that was because of manufacturing problems but the rest of our aerospace companies are very strong from ge to ray theon. those two companies make the best jet engines in the world. no one questions them. i want boeing to make a comeback my trust ownsit but it is stil in the penalty box so i think it is on the cusp of an faa approval for a wider body jet that will be in tremendous demand now that the suddenly robust airlines are desperate for more capacity. listen to those calls. that will tell you about it. how about machinery? in the old days caterpillar would sink or swim with the economy. i believe a new, more disciplined caterpillar could take on asian governments if our government would level the playing field and not let them dump all of that stuff so cat can shine. then there's deere i think deere and capital discipline and the manufacturing prowess can hold their heads up as the leaders in farm and construction equipment the ag business because of
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ukraine may be the best it has been in my whole life. now, there are some industries that american companies never stopped on we still own soft drinks, we have many companies like j&j, proctor & gamble,although proctor fell behind unilever with the rest abandoning proctor. that's over, too you know the days of being a market share donor are over. it is bringing emerging markets back to the cincinnati fold. what a quarter that was. now, i don't want to slight software, but tech companies don't really manufacture -- they don't make it here with the exception of some semiconductor capital like lam research. otherwise best to go to taiwan semi where the actual chips are made that has to change or we could have a real security risk on our hands. fortunately, the government is plowing a lot of money into domestic security manufacturing. can't do it fast enough. i wish i could explain to you taiwan semi might be the single
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most important entity in the world when it comes to economic security only a handful of people believe me the american manufacturing renaissance has arrived. you don't see it on a day like today, but if you want companies that make things and sell them at a profit while returning capital to shareholders look no further than great american manufacturers. their stocks are fantastic places to be when the world has turned against high, barely or totally unprofitable growth. let's go to dave in florida. dave >> hey, jim. great to talk to you thanks for taking my call. >> thanks for calling in, dave what's up? >> listen, in the beginning of february i bought this stock and i'm down 18% with it buy, sell or hold adobe? >> now, adobe is one of the stocks that's completely caught up in the fed raising rates because it is not like during an inflationary period. you are going to have to stay the course because it is a great company. let's go to joe in my home state of new jersey.
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joe. >> hello, mr. cramer home all is well >> oh, going well. how about you? >> very good >> good. >> i'm talking to you, i'm talking to you >> all right. >> it is great >> all right >> okay. i've owned visa for years and i noticed a lot of the restaurants are adding a 4% scurcharge to al of the credit card charges how is it going to affect visa's top and bottom line? should i continue to hold? >> i can tell you as someone that's been in that business, there is resistance to what visa and mastercard are doing, and the best way to deal with that is to be in apple pay, which means being in the stock of apple. how about doug in ohio, please doug >> how you doing, jim? >> doing well, doug. how are you? >> pretty good i have no complaints my question is about danaher i purchased it at 239, today it was 278, high is touching 334. do you feel, you know, there's more upside to this? >> absolutely. 12% organic growth, which is
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best of any of the manufacturers i deal with. i have to tell you we bought a little bit for the channel trust. there's a big piece, if you watched our 10:24 meeting, the danaher, if the market hadn't collapsed they were screaming higher they did a great job 12% organic growth for that kind of biological machinery they have is fantastic. all right. guys, the american manufacturing renaissance, it is here. you want leadership in companies that make things and sell them at a profit while returning capital to shareholders, look no further than these on "mad money" to night, the tech apocalypse continues. how should you evaluate some of the names now that they've fallen from the clouds a new rule that might help you figure out where you can start buying then carvana collapsed after earnings today has the stock officially been put in park? i will give you my tack. then, hey, you want something sweet and bite size to own right now? huntington bank shares reported
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top and bottom line beef in the first quarter. i think this regional bank may have what it takes stay with cramer ♪ don't miss a second of "mad money. follow @jimcramer on twitter have a question? tweet cramer, #madtweets send jim an e-mail at or give us a call hissed something head to " for insights on when to buy and sell. and proactive alerts arket events. that's decision tech. only from fidelity.
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alright, so...cordless headphones, you can watch movies through your phone? and y'all got electric cars? yeah. the future is crunk! (laughs) anything else you wanna know? is the hype too much? am i ready? i can't tell you everything. but if you want to make history, you gotta call your own shots. we going to the league!
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♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.
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early to buy some of these stocks high growth tech simply doesn't work at this stage of the business cycle, when inflation is worrying and the federal reserve is tightening aggressively better to buy the kind of stock i talked about at the top of the show this kind of moment does not work, okay never has, never will. wall street simply won't pay as much for their future earnings in an environment with high inflation and rising interest rates, and these stocks are all about the prospect of future earnings but eventually even these hated stocks, formerly high-flying tech stocks, will get so cheap they will find a bottom. i don't see it happening until the fed is further along in the tightening cycle and it just star started. these things tend to sneak up on you. that's why i want you to be prepared for the moment when fast-growing soft wear stocks actually become viable again, and you do that by preparing a shopping list. so how do we evaluate the cloud-based software plays, the hardest ones to try to
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understand in the old days of tech we used what was known as the rule of 40 you take the growth rate, then add the operating margin, and if the sum of the two was greater than 40, just addition, you knew you had a quality business on your hand. the idea here is that a software stock either needs incredibly fast revenue growth or genuine profitability. they could get away with negative margins as long as they're expanding rapidly enough so the rule of 40 captures both ways to win in software or at least what used to be both ways to win there's one huge flaw with the rule of 40 in this new environment. the market, as i say over every single night, has zero patience for companies that aren't making money. doesn't matter how fast you are growing, unprofitable businesses have been untouchable. i say it in the lightning round every night. we just spoke to twilio, a fine company, last week they have 54% revenue growth, operating margin came in at negative 3.2%. in the old days twilio would
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pass the rule of 40 test and be a good stock to own. in this new market it doesn't matter one bit because it is unprofitable and that's the end of it. it went to just under $125 today and i can tell you the business is substantially better. that's why tonight i want to roll out cramer's alternative rule of 40 that will help us prepare to find bottoms we are looking for software stocks with more than 20% revenue growth, okay, and more than 20% operating margins that's our filter to identify the cloud names that might be worth buying once the dust settles on what is a catastrophic decline for a lot of tech stocks who pastes the test? i identify eight cloud names, there's about 200, that belong on your shopping list. not now but for the future when it is safe to buy any of these stocks again first we have service now and two of our cloud kings with extremely good businesses, the safest bets in the cloud it is worth noting both made their lows wells before the rest
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of the nasdaq. both companies reported solid top and bottom line beats for the fourth quarter, although salesforce's guidance was a little soft. you know how much i like the company. to that i would say these guys are engaging in their long-held practice of you buy. the co-ceo underpromises and overdelivers m as much as i like them, there's no rush to buy them at the movement we want to buy it for the long position for the charitable trust but we want to be careful about these kind of stocks i want the position to be bigger but i'm waiting. i think you will get better prices before wall street realizes it is peaking and it become viable again. second, there's a company i don't talk about much at all called zoominfo, not to be consumed with zoom video zoominfo is a cloud-based platform providing people with information about potential customers. it is a good way to get
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business though one came out as the top scorer in the new rule of 40 exercise 30 percent sales growth, 40% profitability. zoominfo was the company that effectively reopened the ipo market after the covid crash when it came public in june of 2020 i never recommend it it because i thought it was too expensive out of the chute now the stock has come down 30% from its highs again, i think you can get a better price if you are patient, but i have to tell you i'm watching this zoominfo because it is the best on our list third, we have two people just seem to confuse all the time and they shouldn't pay com software and pay loss citi holdings, a mayor of human capital management software companies. although they both pass our new rule of 40 test. honestly though, you want to play on payroll and human capital management, i will talk about one i talked about last time pay checks which has clslower
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growth than these two and pays a nice dividend yield. unlike these cloud plays i'm confident recommending it right now. you can think of pub mac as another company i'm not talking about right now, trade desk. they pass at 25% operating margins, add them up, more than 40, boom most importantly, the stock has come down huge it came public a little over a year ago at 20 and quickly spread to 77 now it has fallen back to 23 and change. at these levels of valuations it is getting enticing. trades less than 27 times extra earnings assessment. if publ mating c were to fall aw more bucks it would pass the test, the garb test used to find buys now finally two names on our list that i wasn't familiar about
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i learned about definitive health care and the other is called clearwater analytics. it became public last september. clearwater analytics makes analytics software for professional investors, helping them with accounting, reporting, compliance and risk management both stocks have been crushed since they came public right before the nasdaq started rolling over unlike the other names i mentioned these two are only profitable on adjusted basis when you use the gap numbers, clearwater is only breaker even and definitive health care is losing money i want to take a closer look before i pound the table on either one but i think we have to do homework on it now i love definitive or clearwater analytics on this show so we know more. often the best way for me to get comfortable. it doesn't mean i'm going to get it right but i try to get comfortable. here is the bottom line. i think it is too soon to buy the faster growing software space, it is horrible out there.
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with our modified rule of 40, you can identify the profitable ones that could be worth picking at when we get closer to washing out all of that we can tech sellers. believe it or not, it does happen "mad money" is back after the break. coming up, there's pain at the pump how about down at the old local car vending machine? cramer checks under the hood of a stock that may be stuck in neutral, next.
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♪ ♪ nice suits, you guys blend right in. the world needs you back. i'm retired greg, you know this. people are taking financial advice from memes. [baby spits out milk] i'll get my onesies®. ♪ “baby one more time” by britney spears ♪ e*trade now from morgan stanley.
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inner voice (furniture maker): i'm rubbing the arms of my chair... ...admiring the craft and detail i've put into it. that way i try to convince myself that i'm in control of the business side of my business. intuit quickbooks makes it easy for you to get a complete view of your business. so you can sit back and... ...relax. ♪ this market is totally hostage to inflation we're just waiting for relentless price increases to peak, which is why we need to focus on potential leading indicators that might be able to predict where inflation is headed give us a head start lately on this show we've been using used car prices because skyrocketing used car prices are what predicted the current
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inflation explosion to begin with last week we talked about carmax which is interesting because it is a struggling chain of used car dealers seeing major demand destruction, in part because its high prices are driving away possible drivers who say, i'm not paying that. last night we got another update on the industry when we got results from carvana they come on the show a lot. it is a digital used car retailer that lets you buy vehicles online and pick them up from a giant automated garage or they have them delivered to your home i wandered away from carvana last week because it is exactly the kind of unprofitable company that does not work in the current environment. throw in a troubled used car business, oh, man, serious problems sure enough, carvana stock has been hammered. dropped 9% yesterday going into the quarter, a sure sign somebody realized something was very wrong then carvana reported last night and it was a real doozy, which is why the stock plunged another 10% today. this one is just a total house
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of pain. >> house of pain >> all right what was wrong in the quarter? a lot. fortunately i have some time here carvana's sales came in better, i like that, 56% up. that was all about higher average selling prices just like we saw with carmax, sky high prices are driving away potential buyers that's why carvana's sales came in weaker than expected, 105,000. the street was looking for 109,000. ouch at the same time the gross profit came in weaker than expected this is really key, down 12% per year the key metric though, the most important one, the gross profit per unit you might think that would be doing very well given the huge year over year price increases in used cars, correct? but carvana's gross profit billy ray unit was down 22% 5 percent year over year, down 38% versus
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the previous quart earp. that's disastrous. that's not just weaker than anticipated. that's terrible. let me put this in perspective when carmax show the gross profit per unit shrink by 2% over the previous quarter it was seen as a huge negative. carvana, down 38%. stunning lie bad why? because the cost of acquiring used car has gone through the roof naturally it missed through the rest of the income statement carvana experiencing larger than test pit losses. analysts were looking to lose about 44 per share, instead an astonishing $2.89 a share. making it worse carvana pulled the full-year forecast in late february it hasn't been two months and they're throwing away the guidance there was positive commentary on the conference call, they don't pull the forecast unless they feel nervous about the future. they pointed to current trends impacting customer
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affordability, high used car prices, rapid movements in fuel prices and other macro economic uncertainty, end quote to explain why they're no longer providing specific numeric guidance for 2022. i was looking for a total eclipse of the sun in there too. going into more specifics, if february carvana said they get their gross profit per unite back above 4,000 in the last two quarters of 2022 sounds good. now they're saying that will be pushed back a few quarters that's not good. in response, this is really fascinating. i need you to understand this stuff. carvana's stock initially collapsed in after hours trading. after closing at $92 yesterday, it plummeted, i was watching it plummeted down to $70, low is at 4:45 p.m. however, the stock quickly reversed and rallied violently higher just after 5:00 p.m. carvana was back in the high 80s at one point it went to the triple digits. by the time after hours trading came to an end at 8:00 p.m., it
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was back at 96 bucks what was really -- take a look at this, trading for the quarter. went down here because people didn't do their homework, they didn't wait for the whole car. then you hear the call, then it went like this, then like this, then, you know, these are where idiots bought. maybe they held. this is where smart people bought and maybe they flipped. so what the heck was the rebound about? simple at 4:45 carvana announced they would be raising $4.275 billion across three separate transactions, selling 1 billion in common stock, 1 billion in preferred stock and ov 2.75 of senior unsecured not through 2030 normally it would not be taken as a positive catalyst, right. a bunch of stock, that's bad news for existing shareholders, you are diluted. however, carvana has been dogged by liquidity worries because
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they offer financing to the customers and then package those loans into asset-backed securities which then sell to investors. unfortunately, used car backed bonds having been selling too well, people are worried about collapse of the car price. when carvana removes this it removes a major overhang what happens is people are petrified it has gone bad, but right here we know it will have money even if it is money out of your hide, at least it is money. more importantly the ceo did something crazy, or at least sounded crazy. he announced he and his family will be buying 432 million of the billion dollars in common stock carvana plans to sell. talk about putting your money where your mouth is. a sign of confidence i commend garcia for believing in his own vision. in the end carvana's stock came back down, sinking 10% why? because after all the quarter wasn't really bad. the response to last night's
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events the stock has been showered with estimate cuts, lowered price targets, although some analysts were more sanguine than others. some of the bulls hanging out with buy recommendations finally threw in the towel and downgraded evercore isi took it from out perform to inline. i like what morgan stanley's adam jonas had to say. he is a free thinker sometimes he is a little too out there for me, but anyway, for example, he still got amazingly, he still got an overweight rating on carvana with $360 price target i wish i were tall because i would show you where it is i think it is lunacy i thought what lenny bruce did was lunacy but in the end i kind of liked it. jonas called this capital raise a test,freud in there,
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too. it is not great they're so desperate for cash to me what happens is in this market there's zero tolerance for unprofitable companies and carvana made it clear it will take them a heck of a lot longer to reach profitability and they thought. though i like management is putting their money where their mouth is, it gets worse before it gets better i have been warning you away from carvana for the better part of the year and so far it has allowed you to sidestep an enormous decline given what we heard last night i think there's more downside here, even as i think the long-term story is cool. this is a what-have-you-done-for-me-lately market jacob in north carolina. >> jim cramer, thanks for talking to me again. >> absolutely. what is up >> yes, sir. my question was about general motors
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i had a question, just like is their biggest headwind the high commodity prices of steel and other input or is it the semiconductor shortage and do you see them -- that easing as out performance in later half of the year >> this is one of those, if you thought the fed would be done tightening you would say, i'm in this one for double. i'm not kidding. mary barstow at trippie jobs has great new cars and trucks. she has a really good position when it comes to, you know, assisted -- let's just say full, full driven-by-not-you cars and she has a hummer that's unbelievable my wife test drove it and thought it was amazing she is not getting credit for any of this. none i think that's crazy i say give her a chance. but, remember, the fed has to --
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m matt in oregon matt oh, darn, i'm sorry, matt. anyway, carvana after hours trading, what a tale gm, wait until the fed is done but it is really good and mary barstow has been doing a great job. i have been warning you away from the stock and i think there's still more downside, even though i like the vending story. here is one you can buy. the financials have kicked off the season, i'm joining the quarter with a regional bank ceo and i got to tell you it is a cheap stock. then retail has been a real dog, but one fitness retailer has bucked the trend guess what it is i'm revealing it and i have to tell you that i think it could have a strong showing. stay with cramer for tonight's edition of "the lightning round.
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♪ coming into the year wall street was incredibly bullish about the banks because they can make fortunes when the fed raises interest rates. then the enthusiasm for the largest banks vanished because they all have investment banking business which has been awful. however, the regional banks don't have that problem so we've been searching for potential winners in the new environment take huntington bank shares. that's the columbus, ohio-based regional bank. this morning they reported a slightly better than expected quarter though the stocks didn't get credit could it be the opportunity to get into a well-run juicy bank with a 4.4% dividend yield reminds me of first horizon. let's check in with the ceo of huntington bank shares to get a better read. welcome back to "mad money". >> good to be with you, jim. >> i'm glad you are on because
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we have a negative day, people are saying terrible things fed chairman jay powell says looks, 50 basis points looks like it is on the table. when i look at the way your balance sheet is set up that to me says you could be making more money than you currently are >> right, yes. and we can and we will if the fed dot map is pursued >> well, i mean do you think it is surprising when you see something like this, knowing how good your book of business is, knowing how you are really not making a lot of bad loans, how you just got tcf, tc financial, that people don't understand that this is the moment when huntington shines? >> well, i believe so, and we get a 4.5% dividend yield on top of it. we have had a great quarter. good loan growth, deposit growth, great credit quality, ppnr up 4% in the quarter. it is a really good quarter for us we talked about momentum and we can see our way through this year with confidence >> yeah, you should be i mean one of the things, i mean today we had a lot of talk about
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how used cars could be going down we have been talking about carvana. you are probably the most experienced used car lender in the country. >> well, we are certainly one of them we do a lot. we are a super prime car lender, so we really don't get impacted by what happens with used car valuations we have a very low default rate, and so that -- we're a super prime lender and it keeps us safe throughout cycles we have seen this. we publish our underwriting statistics and portfolio every quarter, so there's no mystery there's 12 years of consistency. it is a 2 i-team it will perform well for us going forward irrespective of what happens to used car prices. >> that's what i thought now, you are in two of the markets i most want to be in, minnesota and colorado very big growth markets where the national guys are there, but i want a local bank feel that is now you guys >> it is, and that's -- local is an essential part of our strategy that's how we go to market in
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these markets. so we will be a very large sba lender i think we are number 4 already in minnesota we just started. we closed last june the tcf acquisition. it was our entry into the market we will be number one in terms of sba lending in both of those markets and we will do a lot of other business with small and medium-sized businesses, larger commercial companies, commercial real estate. just a host of companies it is our bread and butter we try to do it very, very well. we are very focused on the customer and providing great service and that's why we've been award winning now for more than a decade in most of our business lines >> at the same time there's something going on in your state of ohio that i find very interesting. it is not just the fact that there have been surveys now showing you have got a great place to locate. florida, california and then cleveland, but there is an initiative that is actually taking -- really actually starting to get some -- i would say some nationwide approval, which is what i will call the
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intel initiative, you can call it the commerce department issue. to be able to put greenfield semiconductor fabs this is something i would not expect in ohio what do you offer that people feel is the right place to put 'em? >> well, is that with some of our economic development people and an intel team last night and they confessed ohio didn't make the cutting list, we were an afterthought from may of '21 to the announcement, in record time they became impressed with our willingness to do business, capacity to execute, and just the raw material available, land, water, tremendous quality of universities and colleges here in central ohio i liken this to ford in detroit many, many years ago this is going to be an earthquake, seismic opportunity of economic development and expansion in central ohio, and i think for the midwest generally. >> look, i'm from pennsylvania, but i never understand why people think that our -- but, you know, call 'em rust belt the biggest employees in
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philadelphia are all health care that's not rust belt when i look at the book of business you guys have in ohio, i see skilled workforce, i see great universities, i see people who want to go to work go out west, i see people who where work is beneath them to me when you are making it, when you are in a fab and you are building a fab, i don't want a stanford ph.d. that's going to cost me too much this is why it made sense to me because they have people like you that can make it happen. >> they do, and the governor and the assembly here, the local economic development authorities and jobs ohio, there's a combination of collaboration that's just extraordinary. and so $20 billion investment, start to finish, seven months, you rarely can see something like that. to begin as an afterthought and end up as the finisher, kudos to the team here. there's a lot of other economic development activity going on. intel is the largest by far, $20
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billion, and that's just the first two plants there are another six plants in thedrawings if the chip act gets approved. i think for national defense and for security that's an important element for our congress to deal with in the near future. >> and you have been able to sell 'em -- sell them on the idea the kinds of chips you want are the kinds of chips that industrial america needs yes, okay, so high-performance computing, whatever, but when you are with the utility companies where you are, they are low-cost providers they can use solar, they can do wind, they can do what is necessary, and these other places are high-cost providers so to me it is a very inexpensive way to get a very good labor force in i think a very liveable area i don't know, call me so positive on it >> well, in this location is serviced by very high -- two sets of very high kb lines american electric is headquartered in columbus and their transmission system is
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biggest in the u.s it happens to be located in new albany where the high-voltage kb lines converge that's why you're seeing facebook do a second day center expansion in just two years in new albany there's a lot of activity in central ohio it is going to be a boom for the next decade and we're the hometown bank. >> look, i'm so thrilled for you. it makes so much sense people have forgotten, a little too crazy in some parts of the country where it is just too expensive to live anymore. i want to thank stephen steinhour. this is what you buy in this market, guys good yield, solid growth you don't need to be down 25% on the day and still think it is a great thing, like so many people feel with tech thank you so much. great to see you on the show again. >> you too, jim. >> "mad money" is back after the break. just chill out >> chill master j. >> the chill man is in the
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house. he's happy >> "the lightning round" is coming up when "mad money" returns. this tiny payment thing- is a giant pain! hi ladies! alex from u.s. bank! can she help? how about a comprehensive point of sale system... that can track inventory, manage schedules- and customize orders? that's what u.s. bank business essentials is for. (oven explosion)
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"lightning round" is sponsored by -- ♪ it is time! the "lightning round." and then the "lightning round" is over. are you ready? jeff, pennsylvania jeff >> hey, how you doing? >> what is going on? >> optimize rx corporation go sixers! >> hey, i love that final shot with one second left there's not enough there at that company and i will tell you why. many, many competitors in that
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advice to consumers about doctor stuff. can't go there allen in new jersey. allen. >> mhey, mr. cramer. booyah >> booyah back >> what do you think of american airlines >> i thought it was a good quarter, i vo have to tell you i thought united was way better. wade in florida. wade >> hey, jim. how you doing today? >> i'm doing well, wade. how about you? >> good, good. i just wanted to get your thoughts on zim. >> i know zim. these stocks are one way stocks. when they go up, you got to ban 'em. when they go down look out we're in the look out phase. how about steven in new york steven >> hey, jim. i had a question about a stock, sofi now, i've been trying to get into this but with the fact it has been at all-time lows and with the interest rate hikes coming up, is it a good time to buy? >> here is the problem
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was billed as a way to be able to help on student loans when you get rid of your major problem it is hard to recommend the stock and that's what has been happening let's go to rick in oklahoma rick >> hi, jim if you don't count the university of oklahoma show you did a long time ago i'm a first-time, long-time. >> 2009, yankees had just beaten the phillies even though chase had just had such an unbelievable season. what's up? >> well, i'm calling, unfortunately, with a boo-hoo-hoo-ya because we bought the stock at 77 and you had the ceo on a long time ago things sounded great and now we hear it is the death of tech what do you do with marvell. >> it is levered to high performance computing and 5g technology those are the two remaining. the technology, not the cellphone itself but the actual technology those are the two remaining areas of strength. so that one has gone down along with others and it is the one that shouldn't, and we think as
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we said at the morning meeting today weare looking to buy bac the stock we sold. please do not sell marvell technology yvonne in michigan yvonne >> hi, jim bear with me i'm very nervous talking to my lo long-time mentor >> i'm glad you are talking to my long-time viewer. what's up? >> my first-time caller, been listening to you since 2008. i get your newsletter and truly appreciate all of the good information you provide for us novices. >> thank you. >> i'm looking at solid power, sldp >> energy storage situations are very hard. all you have to do is listen to what musk said last night and you will say, you know what? i can't own that stock and it is worth listening to >> and that was the conclusion of "the lightning round. >> "the lightning round" is sponsored by td ameritrade
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♪ this has been a tough period for retailers, but there's one apparel play that's been able to buck the trend lululemon. i got a terrific chance to interview the ceo this morning, and he told an incredible story that gave me a tremendous amount of confidence even in this terrible market. you hate to get touchy-feely about anything in this business but mcdonald is in the unique sweat community that is lulu he recognizes it is easier to branch out in sports and running than to go the other way
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that's why lulu is going all in on adjacent areas that will make the retailer more of a standout thanks to the new hybrid work clothes ethos most would fail going up against nike, adidas, under armour but they've been able to leverage to predict what their customers want they have good relationships with the customer base i believe in mcdonald when he says can go up against the titans i wouldn't say it easily about others that's how he can be confident lulu will double the total revenue in five years. it doesn't hurt the company has ago accel ago accelerated into men's wear. he talked about how the brand is still in the early innings of the growth something that lead jpmorgan's matt boston to joke that early
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innings was theme of the day while it sounds crazy lulu is in the early innings. they're brand of wear is in the u.s., their core market, it is only 25% versus 88% for nike so much for saturation but the thing i was kblimpresse with we saw yesterday investors turn their backs on anything subscription created anything that pulled lots of new customers during the pandemic, it started with netflix but spread to spotify, peloton, even disney was hit because of the streaming business what was not hit was investor's enthusiasm for lululemon's $5 million bet on where you work out in the cool-looking mirror that doubles as a screen where you can watch an instructor. the mirror with a price point of north of $1,000 got off to a slow start and was subject to derision initially a lot of people thought it was a stunt like peloton as people are eager to go back
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to the gym as covid is more or less under control turns out a ton of people don't want to go back and they don't mind paying $39 a month for instruction via mirror versus about a $25 for an in-person class of someone, by the way, a teacher who may not be as good as the one in the mirror of all of the presentations made at lulu's five-hour presentation, i was most impressed with the mirror which i was biggest skeptic which i think dovetails with expanding into fitness beyond yoga this is a subscription model born of the pandemic that may accelerate i can count on one hand these days what matters here is that management knows their business is much more than being a retailer i say it is something like a giant community with a small-town feel. i think it is a huge winner with new hybrid workout that has become the mainstay for men and women. plus because lulu has so much going for it including the
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mirror, i find it very easy to believe this worldwide growth story is still in its early innings. could be early innings for the stock, too i like to say there's always a bull market somewhere and i promise to try to find it just for you right here on "mad money. i'm jim cramer see yo new allegations of russian war crimes in ukraine as the white house commits to sending a new shipment of weapons. i'm tyler mathisen in for shepard smith, and this is the news on cnbc >> sometimes we will speak softly and carry a large javelin. >> new weapons for ukraine the massive military deal announced as putin claims a major victory. the handyman under arrest in the heinous stabbing of a new york mom >> he made incriminating


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