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tv   Mad Money  CNBC  May 10, 2022 6:00pm-7:00pm EDT

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guy. >> i'm mad because the rangers didn't show up last night, mel. >> i know. >> as you know, we talked about it earlier it's crazy a 34% sell-off is enough. >> see you bac my in addition mission is simple, to make you money i'm here to level the playing field for all investors. there will is always a bull market somewhere and i promise to help you find it. mad "mad money" starts now. >> welcome to "mad money." i'm trying to make you some money. my job is not to entertain you but teach you. call me. or you can tweet me. look, if you want to die by the sword, you have to live by the
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sword too. if you were selling stocks that look like the yield on the ten year treasury was headed to 3.5%, then it suddenly switches directions and looks like it is headed to 2.75%, you can't pretend like nothing is happening. it could change the entire cap they put you 2.5%. and the nasdaq jumped .98% these are big reversals. in the 40 plus years i spent buying and selling stocks, long term investments can, like it or not, become short term trades even when you don't want them to be you can panic and sell all your stocks because interest rates are in turbo charge like a formula one race car but if the car starts going to the opposite direction, you have to adjust. to date guns ran out of ammunition i have owned travel trust. and my capacity as a portfolio manager is my job to recognize that sometimes rates can go up too far too fast
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they can come down a bit again if we were selling stocks based on fears everer higher bopd yields which you know we've been doing for weeks and you get a reversal of that trend as we saw today, we can't just throw our mo out the window and pretend it didn't happen. it did to borrow my favorite line from the late great john minor canes, when the facts change, i change my mind. what do you do, sir? when you're a public figure, that kind of theme can get you mocked endlessly people hate when it you love a stock one day and unload it the next critics will roast you for being inconsistent even if it turns out you made the right call. easy to stitch together incredibly misleading youtube clips that make someone in my line of work like a moron. easy when the facts change, you have to change with them. there are a ton of similarities between this moment and the end of the dot-com era much i was wildly bullish on internet stocks.
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the market was all over. practically every week a huge percentage of gains. and it was the biggest gains we ever had in the history of the market i was telling everyone, this is an amazing time and you had to buy. good then the facts changed they started running out of money. there were endless stock offers from insiders and the enterprises themselves i realize after enough of this for three months in -- 3 1/2 months in 2000 time to get out of dodge back then i didn't have a tv show i wrote a trading diary for the street i told people i had enough of the dot-coms by the third week in march that is an exact nailing at the top. because i put my money where my mouth is, i did 100% cash in the hedge fund, first time being right before the crash in 1987 2 for 2. for days back in 2000 i told people i was cashing out even shorting tech stocks that had gone up too far. given the vast book of people listen to me and made a ton of money on the stocks, i was shocked by the widespread feelings when i changed
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directions we thought they were long term stories but it turned out they were fabulous short term trades you wish you didn't but did you. that's why i turned on the whole group right before it peaked i stayed negative on the things for years afterwards good call. like november of last year, i warned of the investment club about the age of silliness being over i told you the circle the wagon around companies that make real things and provide real services at a profs and ideally return some of the profits to shareholders at reasonable prices anything else would get torn to pieces now the whole growth cord is obliterated thanks to the relentless long term interest rates. then yesterday we started to et a reprieve not big. but it continues at that moment, i had to change my attitude once again and start searching for bargains i think this is one of the times where the bond market is saying can you buy stocks not sell even
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if you had been a seller i know switching directions opens me up to ridicule. but i'm not trying to give ridicule i'm trying to give my best asensement of the stock market m tech companies that make real things and return capital to shareholders sell at reasonable prices no, i'm not talking about unity or coin base or upstart which is on tonight or peloton or palantier. i'm talking about software companies that are doing so well, including internet names that make so much money that they become cheaper than the rest of the entire market as measured by the growth rate and profits and club members know, we are buying them back often below where sold them. honestly, i felt terrified putting that cash to work. the tech stocks have been total dogs but if long term cares and yields are no longer soaring, that can make a huge difference. i don't like to be a trader for the travel trust this is a trader's market. i can't stick with my guns when the facts change
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i can't stick to the old views when the data no longer supports them just because the gallery values consistency if you want true consistency in this market, you have to take your cue from bonds and bonds changed direction. look, i'm no the a kathy wood type who pronounces all trades as classic lifetime disruptive investments and then sells them out if it they go down i won't tell that you all calls are right. i like to do buying and home work if i get something wrong, i shout from the roof tops so everyone can learn from my mistake. watch my morning meetings with jeff marks you'll see most of them is about things i did wrong. i don't know if treasury yields keep getting lower tomorrow's cpi could be red hot and reverse. the stock market got oversold even and a couple days of calmness, the bond market can create nice action in stocks one thing i don't fear anymore,
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critics that say this clown cramer is telling you to sell microsoft. now you wants you to buy it? that whole line of thinking is idiotic. if you sold microsoft in the $300 and you bought it back in 260s, you side stepped a huge decline. when the facts change, i do change my mind the facts are a lot less hostile to the beaten down high fleyers for the moment there are lots of tech companies that now return capital to you and reasonable prices and are going to have very good growth they exist again i'm looking at them. don in alabama don? >> boo-yah, jim. >> boo-yah, don. >> big boo-yah from bama i want to ask you, lyft. is it a buy right now or should we just hold off and wait? >> no need to buy lyft it's not the kind of company that i recommending. i want companies that are making a lot of money that have come down a great deal.
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and lyft is not one of them. that is into the going to qualify. let's go to emily in arkansas. emily? >> caller: thanks for showing myself and other investment club members how to transition our portfolios to better navigate the times we're in my thought, air b & b. doesn't fit the guidelines for the stock to buy but you showed excitement about this company when you listened to the ceo talk about the business now going forward >> yes >> caller: is there a place for the stock of airbnb in one holding? >> first of all, thank you for being a memberst club. it's hard to figure out what you should pay for airbnb. they have a huge amount of cash flow i mean huge. so i felt like that i could get better, tea feel more comfortable even though it sells at 50 times earnings no one wants to buy a stock at 50 times earnings. this is one, by the way, people are traveling, i would be a buyer of some and let it come down that's how i would approach it den nis connecticut. dennis >> caller: hey, jim.
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a big connecticut boo-yah. >> thank you what's up? >> caller: with the airline industry's picking up and spare parts markets got to be soaring, you also got the war in ukraine with the javelin and stinger missiles with raytheon, would every nato country ordering plus us back filling our supplies would you say rage john a buy? >> i like raytheon very much and lockheed martin. i think raytheon is excellent. you're right about the spares and engines. it's a really good story i think you're right tlon and should be a buyer of it. when the facts change, i do change my mind the facts are now a lot less hostile to the beaten down text that's were very expensive and have come down and if the treasuries stay calm, it could be good for a couple days on "mad money," a big guest lineup upstart plummeted 5% today i got to get to the bottom of
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that story for all of you that own it maybe we figure out what's going on and then down from the highs, should investors try cross on for size i'm talking to the company's top brass. then pfizer announced they would acquire a pharmaceutical in the biggest deal since 2016. i'm learning more about the details of the deal with a company i know very well stay with cramer
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all right. this market is merciless with us today's horrific 56% decline of the artificial intelligence lending platform. last year this was a beloved stock. it has fallen deeply out of favor. it is now at $33 and change today. upstart is a it turbo growth stock. it's been obliterated. there is also more serious questions about the business model. some of the loans they sold today because they underperformed in the absence of government stimulus programs throw-in the interest rate environment and can you see where wall street is skeptical and why i'm skeptical. so when they reported last night, they beat the expectations for the quarter and crowed about it. investors care about management issued disappointing guidance for the current quarter. they've been using the balance sheet and credit markets adjust to higher interest rates and the
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loanbalance more than doubles during the first quarter business model here. they sell the loans to other investors. so there is inventory about dub dubious vintage. i have to wonder if they've been punished enough. on the other hand, there is no telling how much worse things can get if the fed finishes tightening or if it the two year goes high. let's talk to the co-founder of upstart. he is willing to come on the show in good times and bad welcome back to "mad money." >> thanks for having me. >> so chief investment officer had to say about you upstart is a disaster. down 60% today still trading at six times next year's sales estimates which are going to get marked down this stock is the poster child for what can happen during regime change. that playbook is over. why is cliff hodge wrong >> well, jim, i don't know what cliff is talking about we're a company that delivered seven straight profitable quarters
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four straight quarterers with triple will digit growth rate. if can you find another technology company, you know, with that combination of growth and profits, then i think you should buy it. >> if i bought a company $600 million in bad loans on the balance sheet, i wouldn't buy it >> we don't, jim we are a technology provider to lenders. we occasionally take some loans on the balance sheet to test the models and bridge. but we're not fundamentally a lender our self. >> the vintage is 2.19% average. i don't have to test the model that's awful st i've been in banks all my life that's a bad model 2.9 is too high. that's what happened come on, my friend you're better than that. >> jim, we're platform that has dra dramatically overperformed and far out distanced traditional models thats what matters we have 50 banks and credit unions on our platform all of them have seen overperformance or on target
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performance throughout all of covid. >> well, but you said then there is -- in the quarrel, two or three vintages around the time of what we call the reversal of the loss trend you can see this in the deck basically marginally underperformed so why didn't wells take them? why didn't one of the partners take them? why didn't first horizon take them why didn't you abs them to me? >> will well, jim, look, covid period was a period of tremendous overperformance, delinquents were down about 50% below where they were modelled to be. largely because of stimulus provided by the u.s. government. so our model accommodated. that and the return to normalcy, a couple of them are a little bit off performing but not radically. and not dramatically over the history of our, you know, platform, credit investors and banks and lends have seen tremendous overperformance we're very proud of the performance that they delivered. >> that's great.
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>> that's all great. what i want to know is when you see a stock that is down 56%, okay, i don't say, you know what time to buy. i say what went wrong why do you have any loans on your balance sheet? i thought you were a platform, a platform that every bank i know loved. i was shocked to see how many loans you had on your balance sheet. shocked. it said to me that i did not know upstart i thought i d but there are other investors that you and i both know thought we did and we were shocked at the amount of bad loans or potentially bad loans on your balance sheet. shocked. >> yeah. first of all, just to make it really clear, in the first quarter, a single digit percentage of the loans that were originate ond the platform came from the balance sheet. that hasn't changed in our hush history. we test them new products and new models and that is largely what those represented so it's not a new, a change in the model. more than 90% of our loans are
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originate and held by banks or originated by banks and sold forward to institutional markets. that hasn't changed, jim >> but 10% of the size of your doing has changed. and then you move into auto reif i which i think is the moef difficult single business that involved right now, particularly when i watch carvana i say dave, come on, man, just go back to what you were doing don't do the price discovery just be this fantastic platform that every bank needs to be able to access the smaller investors who are really what i really ---y liked your company so much. and, you know, when i see vintage that's are bad, i think about companies in 2007 and 2008 that told me vintages went bad sometimes i'm still criticized because i didn't say they're all going bankrupt and i know you're not. i've got to tell you, it was -- it was certainly not advisable to have that many loans on your balance sheet. a lot of the bankers say it's because you couldn't get rid of them there is no way you could get rid of them. >> through the covid loans targetted a return of 7% were
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returning more like 12%. a few vintages that were targeting 7% in the latter part and stimulus went way will return about 5%. so in the grand scheme of our platform, we're pretty happy with that. banks and investors have made incredible profits, incredibly successful in our platform it's not perfect but it has performed exceedingly well and we're proud of it. >> okay. well then -- all right i'll ask you straight out. a stock down 56% is not a misunderstood stock. it's a stock where people thought there was far more risk than we realized correct? >> well, yeah. look, i mean all of them equal, i prefer the stock is going up the fundamentals have not changed. profits and growth are the combination since we went public in december 2020 and since before that. so again, we're proud of what we're building we think if the market doesn't appreciate it today, it's okay we're all right to be understood because applying artificial
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intelligence to the business of lending is a fundamentally important change it's good for consumers. it's good nor banks. >> but why is the rate of 10 months of 2021 vintage 2.91% i was not born yesterday much that's a really high number >> it's not a high number, jim our goal is to predict how much loans are going to default that is the notion of a risk model. >> i wish you and i saw eye-to-eye on that, sir. i wish you and i saw eye-to-eye on that. but i guess i've done banks too long to know that 2.9% is way too high you know what would have been better i think if you said yeah, we have 2.9 don't worry about it we'll sinned gyndicate do you have a lot of buyers for the stuff that is down 2.9 do you jim, everything clears in our system so our business is really healthy. we generated a lot of cash the
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last quarter there is nothing going wrong with our business. >> well, i'm sorry i have on so tough. obviously a lot of people lost a ton of money if you can clear the loans and that platform that we a wanted, thats a better company, dave that is a better company it is. it's simple. all right. get rid of the bad loans and the stock will go higher get rid of the 2.9 and it will go higher. st all right >> thanks, jim, appreciate it. >> thank you, dave co-founder and ceo of upstart. dave girard. "mad money" is back after the break.
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this is a heinous, sometimes ridiculous market. nearly all of the markets are in lined up against the wall and they have just been shot number one wants to own any of them it is just incredible. but not every stock is destroyed and actually deserves to be. there is a lot of -- a ton of collateral damage. that can create buying opportunities. real companies and real products, real earnings and real cheap stocks that brings me to crocs. i got my own go eagles. you got it can you argue this is -- a covid winner the stock shout up around $10. 183 in change last november. people like crocs. maybe that is what is killing them >> crocs is now down 70% from the highs. wall street wasn't surprised they shelled out the cash to buy an italian shoemaker called hey
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dude late last year. this is skeptical. even if they work out well this company is doing great. monster earnings being fueled by 40% plus revenue growth and the guidance was mixed, the stock is down 25% and they had to do with hey dude being good now look, at these levels, the stock trades at five times earnings this makes no sense to me. it seems cheap i have to figure this thing out. let's take a closer look to see the ceo of crocs learned more about the quarter. >> thank you, jim. pleasure to be here. >> i have to tell you, point blank, i like to read things with -- within the confines of the reports and listen in the confines of reports. not look at the stock price. because the stock price is align all over the place now i know that you put up incredible numbers all right? so i have to dry to figure out what went wrong here there was a paragraph. you said, look, let me turn the
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futures. macro environment. high inflation rising interest rates. supply chains. they have become more complicated with the war in ukraine. shutdowns. now i heard every single company say that why do they crush your company >> i'm not sure i can fully say that we have a great quarter. of we have a great last year i think we're certainly getting lumped in the with the other covid stocks we lost a ton of money we make a ton of money right? we make 600 plus million in the profit last year a great highly profitable in q-1. and we have given very clear guidance to the street that will will make approximately $10 a share this year. in terms of contributions. so we're highly profitable we're growing. i think we're getting lumped in with that rotation out of the
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covid stocks honestly, we don't believe that is true for crocs. we're a 20-year-old company. we have a much longer track record and i think we have a great future in front of us which is going to be a growth future around the crocs brand and as you mentioned in the introduction, we bought another brand that will give us diverse fiction. >> you just talked about you paid 2.5 for a hey dude. the amazing thickng you is have' had hey dude very long but once it came under your umbrella, hey dude is on fire. >> yeah. we bought this brand for two reasons. one, we can see in the marketplace that was doing extraordinarily well you know, the growth rate on the brand for last three years is over 200%. it's been growing quickly. we knew it was only in the sliver of the united states. really mainly penetrated down through the middle of the
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country, texas and florida right? >> right >> and so there is a lot of people living in california and the northeast, right we knew we could expand it around the country so we could see the opportunity. the second reason we bought it and, look, i think in retrospect when people look back on this you know, 12 months or 24 months from now, they will see this is an incredible deal the second reason we bought it is to provide diverse fiction. one thing we heard from our investors as we have grown the crocs brand is really concentrated and iconic clog, they were uncomfortable with the concentration. so now we get two brands that are both going to grow i think it's an, you know, incredible investable story but obviously we're getting swept up in a lot of i think, you know, market dislocation >> yeah. but the people thought you had supply chain snags because hey dude is made in china. listen if, tesla can't make them in china, you won't be able to make them. how is the supply chain over there for you? >> it's not bad.
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so i would say as a company we're diversified. we're in vietnam, china, indonesia and other western markets. hey dude is predominantly in china. we've seen some closures in the first quarter, factories close for a week or so but we're very confident in our kind of on going supply. so we're in a number of different factories. we're diversified. so i think, you know, look, looking pretty good from a supply perspective as we look back over the last two years, one thing our customers were saying, our wholesale customers we sell to, we're one of the better brands in terms of managing supply during the covid. the and we've been able to do that because our product is simple if you make a sneaker, the 30, 40, 50 pieces go into that most of the products are 304 so getting them up and running in endough nearby yachlt. >> last one.
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inventory seems high to me could that be what people don't like about it? >> that is a little high, right? incorporated hey dude. as you know, you got to mark up the inventory. so a little elevated from an inventory perspective. but i think that is also a testament to success it is nice to get inventory on the water, on the way to the united states, on the way to our international markets. i think that will prove to be a valuable asset in the coming months the. >> i've been in this business for 40 years this price makes no sense to me other than they fact that they hate anything that people wore during the pandemic. i don't know you don't get hurt that bad buying five times earnings for real growth stocks thank you for being on the show. "mad money" is back after the break.
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when stocks get too cheap big companies start making takeover bids. we learned tpfizer is buying a pharmaceutical a huge premium from the $83 price where it closed yesterday. pfizer is printing money with the covid vaccine. but losing major patents the next few years they need to bolster the pipeline i've been using the break lou migraine drug. it is a remarkable drug. it changed my life it's one of the reasons why i've been a fan of the stock.
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even though it's been hammered so what does it mean for the company going forward? what does it mean for the patients and shareholders and the chairman and ceo of biomed pharmaceuticals joins us welcome back to "mad money." >> thanks a lot, jim really appreciate it >> so you and i both knew that this market was much bigger than anybody realized were you surprised that pfizer used the billion person number >> i have to say this is a great day for patients and shareholders this continues our mission for patients to deliver the only all in one therapy for patients. pfizer recognizes that the value of the franchise i think you have for many years now been advocating and they are a global drug development power house that is going to bring this drug to even more patients. >> i think it's amazing. you were ininstrumental as the chief spokesman, you were great help to me you explained to people early on, migraine is not head aache
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the people that treat those that have headaches demean them tell people what this drug does for people before and during migraine. >> this is the only all in one therapy that can treat a migraine, acute attack and then prevent the next episode and it's been a game changer in this area. i think you know firsthand and thank you for your advocacy through the american migraine foundation and the number of patient that's have learned about this medicine because you talked about these novel therapies. and i think what we've seen is that this is grown into one of the most important class of therapies for people suffering from migraines and i think pfizer's deal today represents a continuation and putting this drug in their hands to bring it to even more patients >> the particularly women patients i think they've been very discriminated against. theft say they have -- they're afraid to say they have a headache even though it is migraine i got in front of me something i
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took i took tylenol extra strength and advil extra gels i take this drug, i gave myself a shot today there is four days where i'm not covered. those are four days i always, always, always have migraine got up saturday morning, knew i had migraine took nortec, 15 minutes later, no, no migraine. and yet how many days do they study migraines at med school? how many >> migraine in med school is something that we studied for many years didn't have the type of tools and what is exciting is that now we have something better and what is remarkable, jim, as you know, the number of people haven't heard of the therapies yet. >> vlad, almost no one has look, your quarter was stunning. i keep going to people and mention. this i always have to carry it with me. i have to do it. if if i feel like 15 minutes before it comes on, i have to pop one. i always have it in my pocket. this was the first quarter where
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your sales really started reflecting and maybe the word is getting out. >> the word is starting to get out. jim, when you look at the numbers, there are over 300,000 physicians in the u.s. who still write for the older medications and have not written for one oral cgrp. that is not acceptable swrechlt to bring the modern day novel therapies to those patients. pfizer is the best company to build upon our work and unlock the potential of this franchise and bring it to the patients who are still in need. >> well, i want to compliment you. you never once when you came on the show and you announced the deal, you never said that pfizer might not ever buy you you didn't say that did you say you want to help as many patients as possible you can't do it. you're too small pfizer k i think pfizer globally is going to make this into one of the largest -- ten largest drugs in the history of the world. >> i agree, jim. i think this is going to be one of most important primary care drugs and in addition to that,
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is going to change the way that migraine is treated and set a new standard of care there is never been before one drug that can both treat the migraine and prevent the next. i'm really looking forward to seeing the team at pfizer really encourage patients to learn about this and tap into the full potential of cgrp acts >> congratulations, vlad you have been the leader you changed a lot of people's lives. this is an amazing medicine. you deserve you and your shareholders deserve every penny you got today. thank you so much for being on "mad money." >> thank you, jim. appreciate your advocacy >> any time. people, particularly women, must be treated fairly. end the discrimination against women with migraine. stay with cramer
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it is time time for the lightning round >> the lightning round is over are you ready? bill >> chill, man. i don't know about you i can't skip a side of guac at chipotle what do you do about mission produce? >> i want to be careful. up and down nature having known for 12 years in the restaurant
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buzz is too hard to gain be very careful. even as i think they make a good point. its just too darn hard corey in new jersey? >> how are you thank you for taking my call thank you for all of making all of us investors feel calm during this crazy time. >> i want people to be calm. thank you. how i can help there is some stock in -- the stock is anber what do you think? >> terrific, profitable company that i like very much. good call by you william in alabama william? >> go ahead. what is up >> i question is about funko i bought them for $6 in 2020 my question is do you think i should continue to hold or --
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>> that's a big gain maybe take some off the table. but this is a making a lot of good deals many of us were confounded that the stock went down as low as it did. i think it's a good company. go a little off the table and you have more than, you know, you're playing with the house's money. ken in george, please. ken? >> jim, i need two pieces of advice from you. how to grow the best tomatoes and ae kong. >> the best tomatoes, frankly, is requiring tremendous irrigation i have a great irrigation system that really helps me it really is about water and sun. what is the stock? >> oh, my god. this is a tremendous infrastructure play. i think you should own it and buy it i like them very much. how about craig in south carolina craig? >> jim, thank you for taking my
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call >> of course. >> this morning on the air, you said that everyone has one stock in the portfolio that they've been pummelled on. >> absolutely. jim, my screen is bleeding red thet have earning onz thursday whast should i do? >> we have to hear if they have some secret weapon some bullet, something that is going to make it so people are less concerned about that it is buy now and never pay. that is what people are worried about the credit risk. maybe max has answers. let's learn more when they report >> matt? >> hey jim, big boo-yah from chicago, illinois here. we love you. we love you, man >> thank you >> too kind. >> it's hot today. i think we have a hot one for you. >> mckesson. >> sells at a low multiple fractionally better. really well run company. i mention people work at the
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company. i said why am i not at mckesson? rochelle in new jersey >> hi, there jim long time follower second time caller >> thank you i'm very confused. black knight closed today at $69.54 and it was recently announced that they have agreed to be a acquired by ice for $85 per share. bki is downgraded by several analysts just recently can you explain this >> i can there are a lot of stocks getting hit. i don't want you to fool around. you have a great gain.
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let's take it. >> and that, ladies and gentlemen, is the conclusion of the lightning round! >> coming up, inflation is feasting on the market can this food stock help satisfy your krcravings for profit? cramer takes a bite next trading isn't just a hobby. it's your future. so you don't lose sight of the big picture, even when you're focused on what's happening right now. and thinkorswim® is right there with you. to help you become a smarter investor. with an innovative trading platform full of customizable tools. dedicated trade desk pros and a passionate trader community sharing strategies right on the platform. because we take trading as seriously as you do.
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after the three days of horrific selling, sometimes it's just nice to see companies with strong results and actually get rewarded on the spot for a higher stock price look at cisco. this time i mean sysco they supply restaurants and schools and hotels i've been a huge fan of this it is a reopening plan they directly rauz prices. doesn't hurt the stock is cheap. sure enough, when they reported this morning, they crushed the sales and earnings expectations. they also raised the full year earnings forecast just a textbook raise they're taking share and taking names. that's why the stock jumped 6% it is more on the money.
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still not as high. so let's check in with kevin heard. he is the president and csysco. welcome back to "mad money." everyone geltells me that all t big restaurants are closing. there is real problems all officer the country. people are not eating at the office anymore they're eating at home your sysco numbers tell me you're killing it. taking share from everybody. that whole description is wrong. which is it? >> the honest truth is i think it's a little bit of both, jim the market is resilient from the food way from home perspective the omicron variant exited stage left and middle to end of february the month of march was really robust from a food away from home perspective across the industry but make no mistake, sysco is meaningfully taking market share. the goal is to grow 1.2 times the market and we far exceeded that growth target
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us versus the marketplace in the last quarter >> you got to tell people what your sales were. i mean the sales growth here is incredible when you compare the sales growth, even to the prepandemic, it's monstrous how well you're doing. >> yeah. we had a strong beat from a top line to bottom line perspective as you said in the intro and our volumes, that's what we're measuring more than anything inflation is helping our sales volume and our u.s. business was up versus 19 in the most recent quarter. and, jim, we're excited about is that is well ahead of what the industry experts had predicted for our sector we still have growth tail winds at our back. we have international business as you know. and international hasn't caught up to the u.s. and we have sectors that we serve like travel, hospitality, business and industry which is caterers to large corporate offices that are not yet fully recovered. sales well above 19. volumes above 19 we still have gas in the tank from a recovery perspective. >> i want everyone who runs a business to listen to what kevin is about to tell you
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one of the most innovative things i have ever heard is this shift to a six day delivery model. i don't know who came up with this, kevin. but it is brilliant. tell people how it works >> yeah, we like what we're doing here we're expanding our work week for our physical operations while at the same time shortening the work week for our associates one of the most important things we need to do being a supply chain company is improve the quality of our job so we're converting from a five day scheduled work week for our associates to a scheduled four day work week, four ten hour days if they need to work overtime or want to work overtime, easier. it is a fifth day instead of a sixth day. they have a better work-life balance. by stretching to a full six day, monday through saturday delivery, we're essentially able continue to crease our through put on every dayst week. provide restaurant customers with better service. and we're able to grow our business profitability with fewer physical assets. we can sweat our trucks and
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buildings. we'll invest in new buildings. will we'll invest in new trucks. we increased our through put capacity and ability to ship on time and in full to our customers. and it's better for our associates as well so we're excited about it. we just completed that work this past quarter >> as a customer, it'sideal. we always, you know, you can't have two days off. it's a six day operation everybody knows that now one of the things i love, this is -- sysco trucks parked in our places. look, they keep the engine running. that's fine. i don't blame them they're trying to keep everything fresh this deal you're doing with carrier makes so much sense. an electric pilot. how big can it be? >> we're excited about the work we're doing with our client sustainability goal. we're the first and only food service distributor with a stated science based target that is compliant with the sbti initiative it has multiple factors. we will be electrifying our fleet and the trailer as you said we're shipping products on a tried temperature truck.
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it has a freezer section, refrigerator section and dry we ship millions of miles. the we can make a mooeaningful y electrifying our fleet it's the right thing to do for our climate. it is also good for our business we think kit create a competitive advantage. our drivers will will love driving the electric trucks and you'll see an announcement for us -- us from soon, actually on pretty significant commitment we're going to make in the electric truck business. >> if you do, i know there say comment. i'm not free to say it but if you do it with carrier, i like them. they have got some really great technology and they're very proud of it the we have to show it off we don't want trucks idling, okay we don't want trucks right in front. it has to be made easy enough to deliver the stuff to the restaurants. one last thing yesterday i was on a tyson call. while certainly food is not soaring anymore, did it roll over a little bit. chicken rolled over a little bit. pork rolled over beef rolled over a bit are you seeing any relief at all? this country needs it.
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>> we're seeing significant, you know, inflation across the food sector as you well know. and i've kind of gotten out of the business of predicting when enflags will begin to normalize. i've been wrong three times. we three times said it's the next quarter where it's coming we're working very hard at sysco to lower prices for customers. that's what i can say. being very aggressive on negotiating with suppliers finding alternative sources, introducing sysco brand to help save them money and helping with them -- many menu design we can help them zrs alternatives to help forward prices and portion size on the menu and just generally speaking, helping that restaurant be more profitable through advice and council that we can give them. we expect inflation will begin to normalize as you said we're about to roll over >> right >> meaningful increases from a year ago >> look, i like the story you know that i liked you since the day i met you. i thought it was a very underperforming company.
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you said you just watch. and you did everything you said. so i want to congratulate you. that is kevin hurt, the ceo of sysco. all of it, what can i say? there is always a bull market somewhere. i promise you i'll find it just for you right here on "mad money. i'm jim cramer see you tomorrow the news starts now.


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