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tv   Mad Money  CNBC  May 9, 2022 6:00pm-7:00pm EDT

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if you have to be long, this is a good stock in this market. >> guy adami >> amgen would have been significantly higher but for the tape valuations compelling amgen. >> all right thank you for watching "fast." see you back here tomorrow at 5:00 "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 is 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 other people make friends i'm just trying you to save you some money. so call me at 800-743-cnbc tweet me @jimcramer. when all else fails, all else fails. we're seeing a wholesale
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revaluation of which stocks are still worth opening and the list gets shorter every day the dow plunges 654 points s&p plummets 3.2% and the nasdaq, what can i say nosedive, 4.29%. let's get into this and figure out what's going on. i'm tired of everybody losing money. even the beloved oils today. you have to understand this. even the beloved oils today say, you know what, anything is vulnerable here. this was the last bastion of safety this is going to sound very counterintuitive, but i'm going to tell you why you might want to be a contrarian when they take out the last of the leaders and shoot them, in this case the oil and gas stocks, that means we're much closer to a bottom than a top. this sell-off started in november i said that in the morning meeting at 10:20 today it started in november when i
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warned you to dump the conceptual stocks and circle the wagons around companies with real products, real earnings, real dividends and real valu valuations that is what's happening right now. but what counts as growth as a reasonable price it's hard. look at long-time cramer fav nvidia while nvidia is cheap relative to its peers, how about this how about if its peers keep falling? i love this company. we sold stock a lot higher how much do i want to buy it back but i hear too many underperforming money managers making the argument i just gave you. reminds you of the dark days of 2000 people who made fortunes in the late '90s got crushed. i'm very proud that i did a piece the third week of march where i used to work and said
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you have to start selling these. i feel that way if you haven't sold them yet. we'll go over some names you can't sell right now we're seeing a lot of what i'm calling forced selling by hedge funds, mutual funds and individuals. that is often a great buying opportunity. not instantly, but it works. for example, we bought two very resilient s&p names. they had just gotten too cheap to ignore. let me put this in the right context. at the moment we've got several different groups of sellers. the first, these are the remaining people who went to hide in certificates of deposits or three-year treasuries the 3-year is almost 3.3%. that's risk-free that's a bargain you get your money back soon and make it much safer than a stock that can go lower. those sellers have lost so much money, who can blame them. these people are not coming
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back they're licking those wounds and their wounds are too fresh good-bye the second group of sellers is different. they're being forced to sell by margin clerks, by their investors. i'm talking about hedge funds that got redemption letters from their investors. they're desperately selling stocks in order to return the money. this also includes money managers who borrowed money using richly valued growth stocks as collateral the ones i told you about. as those stocks go down, they need more and more capital and just don't have it and they have to sell anything that's not nailed down. nobodywants to put their money in a poorly performing fund. you can come back but you've got to do it shrinking we've seen these forced sales also in the financial crisis and again in 2011. these are brutal analogies i think this is starting to look like 2011 when our stock market got crushed and went down 19.9%.
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the hedge funds became road kill you could have cleaned them up if you bought what they were selling but we don't know what they're selling. they're a group of sellers that can't find a reason to buy a lot of stocks because they lost so much money i went over the top ten losers from the russell 2000 and i wouldn't touch any of them 43% of the components are down 20% or more. you should look at this stuff. there's 147 components, 136 of them are down. that's extraordinary then just today we saw horrendous losses in the nasdaq 100. mccarter libre down 15%. splung down 12%. crowdspace 12% how about the pound here, down 21% or after the close, goodrx and upstart, goodrx is down 36% and upstart 42%.
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and they made the numbers with a soft forecast. draftkings down another 16% and they have a good outlook very reminiscent of the dotcom collapse when stocks would fall from high levels you can't speculate in these companies. many became public selling more stock down the road to raise capital. with the market so low, we'll never get the chance one of the former high flyers able to raise money, carvana, is a disaster they're at 38. the ceo and his father bought a third of the deal and they're being crushed. when you add up all the money they raised, the company should survive even in the face of a newly difficult used car market. used cars are plummeting this was a $300 stock in november that 300 goes t 38 bonds getting crushed, credit worries are back this week insiders sold shares
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in rivian. it dropped to 30 the insiders just sold a block of 22 million shares at $26.90 special weekend closing, they got on sunday morning. that includes ford who dumped 8 million dollars. today rivian lost 20% of its value, went down to 22 and change this is one of the premiere electric vehicle stocks with tentative orders from amazon but now nobody cares about theoretical orders they delivered 1,227 vehicles the first quarter. forced selling by companies or their shareholders doesn't come through to an easy end these forced sellers put pressure on the whole market so get some terrific bargains david tepper always talks to me about how you can get to your preferred levels must faster thanks to these sellers because they are creating great values he reminded me of that to me just today the last group is individuals who bought highly speculative
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assets that have plummetted beyond all recognition so they had no choice but sell they spent the money the government gave them and when their stocks got crushed, they threw in the towel these people are your real enemy. without buybacks or mergers and i don't see any, these beaten-down stocks are continual road kill. by the way, these same speculators are vicious sellers of all things crypto, so that's right in there with the rest of them crypto has become kryptonite and the companies that bought it on margin are being destroyed i'm not advocating staying in the market so much as i want you to take some losses and swap into better stocks good balance sheets, all the ones i tell you that can make things, send you back money. i think that you're going to get a chance to buy them right now if you sell some bad to fund the good bottom line, put some cash to work on tangible growth and reasonable priced stocks as for the former high flyers, i
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recommend selling them on a snapback and upgrading your portfolio into something that works. i am sure that is how you and i will come out okay so we can live to play again in better times. that's all we can ask for. all is well that ends. eric in tennessee, eric. >> caller: hi, jim thanks for taking my call. >> what's going on >> caller: eric calling from clinton, tennessee, just outside beautiful knoxville. >> beautiful is right. i've been there, i love it. >> reporter: >> caller: my question for you is regarding the stock united recommendations. i currently own a position was considering adding to it with a pe a little over 13, a price of sales at 2 and price to book at 3.4 it looks fairly attractive the stock is getting closer to hitting its 52-week low. should i buy, hold or sell >> i think it's too high i spent a lot of time analyzing xpo logistics and i can tell you
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that's a much cheaper stock. and the ceo knows both companies well i prefer to see you in that than this one jim in new york. >> caller: i'd like to talk about costco the stock peaked at $612 per share. two questions, what needs to happen for the board of directors to split the stock today costco is down to $498.83 per share with an annual dividend rate of $3.60 per share. on the other hand, home depot closed today at $297.03 with an annual dividend rate of $7.60 per share. >> right. >> caller: should i move my money out of costco and buy home depot? >> i happen to like home depot and lowe's too costco has been one of the biggest winners we've had. i'm not backing away from it they have the power to do a special dividend and they're not as much interested in a split as
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they are just making a lot of money for you. that's a great company i'd be a buyer of it but in stages, because these very high dollar stocks are being very hit hard by people who are panicked. we don't want to take the panicers out of thafr eir prices we want to wait until they're done and then buy. so i'm going to say it again like i said in december, january, february, march, april and now may. put cash in work on reasonable priced stocks. we emphasized this over and over again. for the high flyers, sell them and swap into something more appropriate for you and for this market you want appropriate how about aep. i know, a boring utility but what a year. can investors start nibbling on papa john's? and i'm learning more from the company's top brass. of course xpo logistics has a new focus. i'm hearing about their plans from a proven money-making ceo
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i'm urging you to stay with cramer >> announcer: don't miss a second of "mad money " follow jim cramer on twitter sending jim an email to or call us at 800-743-cnbc miss something head to (vo) every business, big or small, coast to coast, needs internet that can keep up with its demands. verizon has fast, reliable internet solutions nationwide. so you can power your business to do more. find the perfect solution for your business. your doctor gives you a prescription.
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in a brutal market, and i'm being nice by calling it brutal, where everyone is bracing for a fed mandated recession, you know what works consistent businesses with good dividends like the utilities take electric power, this is the
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columbus-based company that is the number one electricity transmission system and it's a big power generation assets including lots of wind and solar. ap jumped nearly 1% and is up 12% for the year plus they reported a nice earnings beat. while the stock initially bounced on the news, it's pulled back i think they're getting a fantastic quarter for free where they raised guidance i think you're getting a pretty nice buying opportunity here please don't take it from me the ceo has a better sense where his company is headed. welcome to "mad money. >> it's great to be here, jim. >> you've done everything you'vedyou've said you'd do and more here is a company building the largest windmill facility in the country. a lot of people are saying i don't want to deal with those
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guys, they have coal if anything, you're the leader of wind in the country. >> yeah, a huge part of it is the transition that's occurring towards a clean energy economy in this nation and we're moving from fossil generation to renewables certainly when you add that kind of renewables, it's the largest single site facility in north america and it completes our north central project, that's what we call it. and it's providing over $3 billion of savings to customers in that area for the next 30 years. so it's a great opportunity. when you put these resources together in that fashion, it works out great for customers. >> i think people need to know, nick, sundance, maverick and traverse, they can be amazing for a lot of homes. >> it will supply 440,000 homes. it's a huge project. so for that to occur -- as a matter of fact, that's about 1500 megawatts of generation
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we still have another -- we're doing over 16 thousand megawatts by 2030 so it's just a small part of what's yet to come. >> it's definitely needed. there was an article this weekend i read that there are a lot of different power companies that will be short power, including texas. you're in texas but that's not the case for you you built a reliable network that no one is ever questioning will be overpowered by demand. >> yeah, i think the issue is we need to think about the capacity that's needed to provide demand for customers when they need it. that's one of the things we have to balance out is bringing in the renewables but also ensuring that we have that 24/7 supply to make sure that we're addressing customers' needs in the heat of the summer or cold of winter so that process will continue for us certainly with the ukraine situation and what's happened with energy policy as it relate to that, we need to be mindful of that transition. >> i'm glad you said that because there's an element that seemed thoughtful at the time what germany was doing to try to
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become far more organic in their noncarbon but it ended up being more dependent on carbon than anyone in the world and they could be in a depression if gasprom shuts down for them. we can never allow ourselves to be in that situation. >> that's right. that's why we have a balanced portfolio that includes everything when you have these kind of situations, it's important for us to continue that movement to a clean energy economy, but at the same time address that transition in a way that mitigates the impacts to our customers. actually nations are seeing that as they have to deal with the geopolitical issues related to russia there's no question that the whole world will have to respond. >> at the same time, rather amazingly, you built a network that can handle incredible remote from work demand. this idea that you don't go to the central office turned out to need a lot of power. >> absolutely. we're seeing considerable
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growth we continue to see it. as a matter of fact, our industrials moved up almost 6% this last quarter and it really is, when you look at the economic development platform that exists, you're seeing onshoring occur, you're seeing more resilient supplies. we actually have the intel facility that's locating in our territory as well from a chip manufacturing standpoint so you see these kind of movements occurring that benefits these parts of the country that provide a lot of manufacturing support through the infrastructure that we provide. >> i was talking to the executive producer before and he said we've got to talk about how somehow ohio became sexy the companies -- a lot of these companies from the silicon valley area definitely want to get their footprint lowered. the way to lower the footprint is to go into aep's territory. that's actually happening, isn't it >> we see that consistent, in our territories primarily in ohio and texas but other parts of our territory as well because
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it is energy intensive and also has the infrastructure to support those kinds of facilities so it's really boding well for our territory. >> you're still not back there's some levels you're still below. chemical is doing very well but primary metals are still below pandemic level is that going to change? >> yeah, that will change. actually primary metals continued to pick up this last quarter considerably along with chemical manufacturing and others data centers and the commercial side, data centers moved up considerably so you're seeing that kind of development across the board. so that will continue to occur. >> that's very important obviously because what we need is more capacity in order to defeat the inflationary aspects of having everything be overrun. again, i thought one of the more cheering things i read on the aep call is that america is starting to build a little more capacity, so maybe we won't get stuck with inflation forever. >> oh, that's right. commercial activity is actually ahead of pre-pandemic levels
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industrial is only like 1% less than pre-pandemic levels but you look at the economic development pipeline, it's continuing to come back. and then residential is still above like 0.8%. but you think about that kind of level, people continue to work from home. >> you're doing a terrific job the reason your stock goes up is because you just keep delivering and delivering i'm really proud we've told so many people this is the one to be in. you've been the best that's the president and ceo of american electric power. thanks for coming on the show as always. >> thank you, jim. >> there are ways to invest in things that don't require you to invest in evs or things that don't work >> announcer: coming up, is this stock ready to make your dough rise papa john's joins cramer to talk
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some of the best stocks in the market these days are over now that people feel safe going out to eat again, they're less likely to order delivery at the same time, they're dealing with skyrocketing food costs and labor shortage with pizza stocks down dramatically from their highs last year, i'm so glad to have papa john's on last thursday morning these guys reported asolid quarter. not a blowout by any means but much better than i thought it was going to be. they raised their growth forecast planning to haadd sit to 8% more
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stores so could this be a buying opportunity? let's dig deeper with rob lynch, the president and ceo of papa john's international to get a better read on the situation welcome back to "mad money." >> great to be here. >> i'm glad you're on, rob you by your own admission in your conference call said this is the toughest, most difficult operating environment you've ever seen and honestly you didn't miss a beat, rob. how is that possible >> our business is hitting on all cylinders. we've got great comp sales over our biggest quarter in q1 last year we're up 26% this year we delivered positive returns. ten straight quarters of industry outperformance and it's really all testament to the great work our teams are doing as i mentioned, this operating environment is a challenge from a staffing standpoint, from a cost standpoint, from a supply chain standpoint but our teams have persevered and we've
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delivered some great results. >> you said on the call that april was a challenging month, that things are not getting necessarily better. >> april was a challenging month but our staffing situation has gotten progressively better. we're starting to get drivers to come in and take the orders. regardless of what the comps are, our demand is still huge. it's been a challenge servicing those orders you know, we've partnered with thing agate -- the aggregators we've got great relationships and that's helped mitigate some of the challenges of being short-staffed. but we're starting to see staffing improve we believe there is light at the end of the tunnel on the commodities front. we do see a cost structure later in the year that can help our margins, so we are bullish on the rest of the year while we guided both for 2022 to have
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positive comps and for the long term we've got a great pipeline of development where we think we can continue to grow domestically and internationally because the unit economics at our restaurants are great right now. >> you want to add all these restaurants in china does china really have that kind of appetite for what you have planned there? >> absolutely. we already have 250 restaurants in china we've been there for quite some time but we're very underdeveloped relative to our peers, who have many more restaurants. fountain vest, our new partner there, is a great franchisee they're well capitalized they have a lot of operating experience in that market. and so we're excited to grow with them. i make note that that 1350-unit deal is just for south china. we believe we can put many more restaurants in north china so it's going to be a bigger opportunity than that. >> i try to tell people they're not going to be locked down
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forever. there was one moment that took my breath away, your cfo, so good, said there's going to be a 12 to 14% rise in the food basket come on, 1.4 to 1.6 would have been a huge rise this is an extraordinary thing to make it so you can feed a family of four with a $7 pizza that is a remarkable achievement. >> we haven't seen this level of food inflation in about 40 years. just to contextualize the rate of change we're seeing that being said, we've really balanced productivity and pricing to be able to mitigate some of that inflation and try to keep our margins relatively where we anticipated they would be but we're taking a long-term view here. we are continuing to bring new customers in and we want to keep those customers that we fought so hard to gain. so we're not taking as much pricing potentially as we need to, to cover the whole costs, because we want to make sure
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when we come through these challenging times and return to a more normalized rate of cost, we'll have those customers there with us. >> let's follow up on that i think there are a lot of people who are selling your stock because somehow they feel like people were locked up, they ordered pizza. now that people are going out again, they're not ordering pizza. your numbers do not show that. they simply do not show that repudiation. you're not a pandemic play. >> jim, what i can tell you is throughout the pandemic, we gained share by bringing in new customers that we took from other segments in the industry. >> yes, you did. >> frequency did not go up this idea that people were i ordering pizza to a much larger extent than they had in the past is not the case. we just brought in customers from other segments. we feel great about our ability to keep those customers.
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two weeks ago we launched epic pepperoni stuffed crust. we added 150,000 new loyalty members in that one week so people are still buying pizza. people are still coming to papa john's that's why we've been bullish and are guiding positive for the rest of the year. >> you have almost 25 million members now in your loyalty group? >> yeah. >> that's historical you're top five loyalty, aren't you? >> absolutely. and we have all of that data, which we are now leveraging to be much more surgical in how we are able to deliver value to our customers. and in an environment of inflation where we're seeing, you know, significant consumer sentiment declines, that ability to target our customers and make sure that we're surgically targeting them with discount versus broad scale discounts really helps us sustain that p & l. >> and i do want to make one last point we were saying innovation
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doesn't happen in pizza. wait a second. i know you don't get the uno deep dish that you get that you loved growing up, but you guys are inventive and you're innovative these pizzas take off, don't they >> it's a testament to the creativity of our culture here at papa john's the last three years our teams have found ways to evolve in an ever-changing dynamic environment. and our innovation on the food side is a representation of that this epic pepperoni stuffed crust is probably the best product we've ever launched. i hope you have some there in the studio when you take a bite into that crust, i don't know if you grew up eating pepperoni rolls, but it's a whole additional thing to experience when you're eating that pizza. >> you're not adding 100 ingredients that we don't know in your pizzas, that's what i love about it. it's still the same ole same ole, right >> your innovation has always been grounded in three core
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principles the customers have to want it. it can't mess up our operations at the restaurant and can't mess up our supply chain. we have stayed true to that and focused on that through really challenging times. epic pepperoni is a testament to our ability to leverage everything that's already in the restaurant and make it even more special. >> it matters. rob lynch, president and ceo of papa john's. to me you are not a pandemic play, you're a growth play you are taking share you've outinnovated the rest of your group i want to congratulate you on all the big turns that you've made great job, sir fantastic work. >> thank you, jim. thank you so much. >> guys, if you think we're going into a recession, don't you want someone who makes a dinner for a family of four for $7 if that's the way you want to go, this works for them. i like growth that has that too. "mad money" is back after the break. >> announcer: coming up, cramer gets logistical with a stock that could take your portfolio through that last mile to profits. keep on truckin', next
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this is what's happened with this market. you're about to hear about a story that is so absurdly cheap and it doesn't matter. how much can great earnings matter when your stock is going out of style in the wall street fashion show i'm talking about a perfect company, xpo logistics the freight transportation company that's in the process of breaking itself up because management feels it's not getting enough credit from the stock market in march we learned xpo plans to sell its intermodal business and break it into two companies.
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we typically love these breakup stocks they're just fantastic right now the market is terrified of a weakening freight market so the stock has been clubbed. tonight they reported better than expected results for every major line item. on top of that management raised their full year guidance it sells for nine times earnings there's a major catalyst in the form of this impending breakup is that enoughto get the marke excited about a freight stock when the fed is hitting the brakes on the economy? let's find out more about the quarter. mr. jacobs, welcome back to "mad money. ". >> great to see you, jim i have to tell you, it is rather shattering to see your company sell for nine times earnings with a breakup coming, a massive discount to the market and of course to your peers can you try to explain -- i know you're taking this action. you don't need to do it, but obviously you think it's time. >> well, first of all, it's
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great to be back on the show always love coming here. you're absolutely right. the first quarter we smashed it. we had beats on revenue, beats on ebitda, eps, free cash flow we had the highest revenue ever in the company we had the highest first quarter ebitda we had the highest first quarter eps. we delevered the balance sheet from 2.7 to 2.0 and raised eps guidance by 26%. so really, really great quarter. and this spin will accomplish two things it will make us make two companies and they'll both be more focused and fit for purpose and investors will be able to value them correctly as you said in the introduction, i don't think we'll be trading at six times ebitda and nine times earnings for a very long period of time. >> brad, when you first put the company together, i loved europe, the logistics best in show obviously the ltl market, you
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dominated, and that turned out to be vital for e-commerce but i guess wall street didn't get this was a great value creator and just had to silo your different businesses? >> i don't know. i'm not complaining. for the last decade, we were the seventh best performing stock of the fortune 500 so i'm not complaining, that's pretty good. however, i do think we're not going to trade at six times ebitda and nine times earnings for a long period of time, certainly after the spin after the spin in my opinion you're going to have a much larger universe of investors who want to invest only in ltl asset-based company or they want to invest in a tech-enabled broker business growing at three times what the market is growing at today you don't have a national universe of investors who want to invest in a ltl company, truck broker company and
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european truck company so we'll solve that. >> when i look at this business that you're spinning, uber has uber freight this seems to be a far superior company in the sense it's being used right now by real companies to figure out how to move freight around it's allen the antidote to higher freight costs, isn't it >> that's what we do we're growing because of an outsourcing trend from shippers who raised the white flag during covid and said you handle it but we're taking share much, much faster than the market. we've been outperforming the market quarter after quarter, year after year. you look at the first quarter we just had, volume up 23%. revenue up 38% this is the sixth consecutive quarter we had volume growth more than 20%. so we have first mover advantage no technology. we started the concept of a digital freight marketplace when
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i hired mario in 2011 and that evolved into xpo connect xpo connect is when we interact with our customers electronically, digitally. in the first quarter, 74%, nearly three-quarters of our loads were either sourced or covered electronically and here in april and in may, that's gone even higher. >> let me ask you, brad, because you figure a lot of this out are we still going to hear about supply chain issues over and over again, or are people going to realize that are outfits that have figured it out, you just have to go with them >> well, it depends where you are in the supply chain. for us, disruptions are actually a good thing because our service is valued more for the economy as a whole, it's going to take a while before these supply chain disruptions are normalized i just saw the ceo of intel last week saying that he thinks the chip shortage will go on until 2024 you've got a labor shortage. it's a little less severe than
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it's been recently we've seen job applications go up but it's still tough to get jobs, to get workers and you've got parts shortages and materials shortages, you've got the chip shortage, so these things will take a while to work out. it's not going to happen overnight. >> but you're expanding your fleet and doubling production at your in-house trailer manufacturing facility you're doing everything you can to try to solve this. >> we are doubling down and growing capacity in the first six years that we owned the ltl business, we really weren't trying to grow the top line we were trying to take market share. we were trying to sweat the assets and run the business for significant cash that we did. we generated over $3 billion of net cash in phase one of ltl now in phase two, we're buying tractors, we're producing more trailers, we're adding more capacity for cross stock facilities we're doubling the capacity of our driver schools
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so we're really going to grow the top line over the next several years. we're investing in long-term growth of that business. at the same time, we're learning to grow margins. >> one last question, do you think the people out there listening saying oh, my god, going into recession and this guy is coming on talking about expanding? but isn't it the truth that you're making so much money doing this, the economy is a little bit stronger than people realize. they need xpo logistics to grow. >> you know, recession is recession. we have a term on capital that's in the 38% range for the whole company and our ltl business we're going to invest more and our returning on capital is even higher so it's fine to invest in that business regardless of what's going on in the economy. >> i remember when you bought it in europe and went during the height of the european debt crisis and it turned out to be a genius move so it's not like your timing can ever be questioned brad jacobs, a continual money maker who's kept every single
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promise since he started coming on the show a decade ago brad, thank you. great to see you in person. >> thank you i like that money maker, jim that's a good sign. >> you deserve it, man you deserve it this is the kind of situation we're looking for. a self-help situation just like the gxo where money will be made "mad money" is back after the break. >> announcer: no need for a meteorologist. today's forecast calls for thunder and lightning. the lightning round is next.
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kentucky derby time for the lightning round when you hear this sound, the lightning round is over. chuck in indiana, chuck. >> caller: first time, long time. >> excellent. >> caller: i'd like your opinion on a stock that is spinning off one of its units into a spac it's called lygin pharmaceutical. >> it's 28 times earnings. we've got a lot of great pharmaceuticals much lower than that how about stewart in -- >> caller: jim, how ya doing how are you holding up these days >> what's up >> caller: the oil patch with this energy crisis, i'm looking at golar. >> i see your golar and raise you one that we reecently profiled that's accelerate energy it's really good one of the few public companies
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that i would recommend let's go to randall in north carolina randall. >> caller: boo-yah, jim. i appreciate and want to thank you for what you do for the retail investors. >> yes, thank you. go in that mentions column with all those other nice people that say nice things. what's up? >> caller: i like your financial analysis contrasting the best of class in numerous genres my -- >> the quarter was not that great and the credit worries over in europe italy's debt is 150% of its gdp. so we've got to be very careful about europe and that's why that's going down because the rest of the businesses are doing well dennis in pennsylvania dennis. >> caller: hey, jim. thanks for taking my call. >> of course. >> caller: love your enthusiasm, even in these darkest of times. >> i come to play, as i have every day since '79. it's what i do let's go to work. >> caller: my question for you
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is about new york community bank corp, symbol nycb. >> it worries me it's just too high you shouldn't be able to get that yield i'm going to have i'm going to pull in my horns on something like that. even though it's an okay bank, that yield is way too big. it gives me the will ees how about that let's go to sue in florida sue. >> caller: boo-yah, jim! >> which one equi trans. >> that's a very good company. they have the funding. they do natural gas transmission, which is a business i absolutely love because you don't have enough natural gas pipes. i'm going to through in sechmper how about andy in kansas. >> caller: hey, jim, thank you long-time listener i've got a stock that's acting a little contrarian to what i think the rest of the sector is and i'm somewhat hesitant to
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talk to you about it, but it's an american taiwanese semiconductor. silicon motion technology. >> well, they got a bid from max linear i have to say -- congratulations, that was very, very good. that was the lightning round >> announcer: the lightning round is sponsor ed by t td ameritrade. coming up, cramer helps you strategize to play away inflation pain, next when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary.
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i've got a bone to pick with a lot of people. we've got to stop blaming the fed for waiting too long to fight inflation. listen, so many things happened. decades-old patterns got thrown out, the whole country was up ended. how was the fed supposed to see this coming? i hate having come out against jay powell when during the press meeting he limited himself to 50 basis point rate hikes wrong. that was wrong to do first, there was no need to tie your own hands the second, he'll most likely
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have to break his pledge if he wants to really truly wants to tamp down inflation. he has to move now to shock the system and by now i mean as soon as humanly possible. when i was looking over the papa john's call, i was struck by the absurdity of what happened in the first quarter this year alone. because of omicron more people were sheltering in place the incredibly contagious variant led to major labor shortage with very few drivers left, it cost a fortune then things look like they're going back to normal and you go full speed ahead in march, china locks down, russia invades ukraine, there's a massive shortage of fossil fuels and grains prices once again get bid up, gasoline goes higher, food source keep in mind, food was already very expensive to begin with because of weather issues. covid labor shortage, i could go on and on. on top of all of this you've got
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a layer of the permanent nature of the work-from-home economy happened like this as hundreds of thousands of companies are willing to let workers decide they only need to show up in person when they want to no wonder every plan made in 20 and 2021 has been proven worthless for 2022 but we're only criticizing the fed's plan. when this much changes at once, it's not going to lead to less inflation. people keep blaming the fed but i think that misjudges the situation. the shortage is a supply side problem. they were inevitable meanwhile you can argue our economy would have collapsed without all the stimulus did money stay too cheap too long sure, even jay knows that. how could he know omicron would be less dangerous than its predecessors when he didn't put the brakes on in november. the chinese government is treating it like it's more dangerous and they are falling into a recession because of their lockdown policy. i don't know why more people don't get it if the fed had been more tight fisted a recession would have
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happened definitely. worst case scenario, we get a bout of inflation. the good news is the american consumer is in the best shape i can remember ever. american companies are in terrific shape their balance sheets are fantastic, at least the real ones that turn a profit. prices can an will be rolled back by the costcos of the world but powell needs to tighten fast, unless more companies need to raise prices like clorox said last week. i just want the blame game to ending it gets no, where it's not constructive inflation will not burn itself out on its own, there must be pain let the pain come from making it too expensive to buy expensive things powell needs to act quickly before all the savings gets eaten up and there will be serious layoffs. i've always admired jay powell's gradual data-driven approach, but there are moments when time is of the essence and this is one of them. it's like having a tooth pulled. you want to get the pain over with as fast as possible i'd much rather they raise
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interest rates by 100 basis points tomorrow rather than two the next couple of months because inflation is never going away by itself it needs to be killed off and killed now i like to say there's always a bull market somewhere. i'm jim cramer, see you tomorrow the news with shepard smith starts now >> the alabama jail escapee and the jail boss turned girlfriend accused of helping him escape captured together. i'm shepard smith. this is the news on cnbc >> abortion laws in the works from state to state. >> abortion is a human right >> some to protect the right to choose others to restrict or even criminalize abortion what individual states are now planning >> victory day parades in russia president putin with little to celebrate in his war in ukraine. >> he talked about thi


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