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tv   Mad Money  CNBC  May 12, 2022 6:00pm-7:00pm EDT

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whatever else you say about it i agree with you today long qqqs would be my final trade. guy, i'll still love you tomorrow >> i know that reference dan. >> yeah, gobt, 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 call me at 1-800-743-cnbc, tweet me @jim cramer the market should have bounced hard today because interest rates were down and there's no real bad news. instead we got our usual crazy swoon before a decent recovery,
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the dow sinking 104 points and the nasdaq which has really been horrendous inching up 0.06%. maybe what we've been doing the travel trust, which you know if you're a member of the investing club is high grading, swapping it with lower risk stocks that better fit the current environment. we're still selling the high risk names that don't work, and it is painful. we want to be careful to buy stocks with storage that can handle a slowdown, we ended up selling getting -- a good portfolio manager never sells his winner to fund his losers, even if it's embarrassing. we're not complacent either way. we are very worried about the wealth discretion in crypto. by hang our heads on the ones great for stocks, but we can never stop looking for opportunity because that is what "mad money" is about and it is what it will always be about that's why tonight i am going to
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break form from the incredible negativity and introduce gavin hattersly. here's the ceo of molson coors who in just a few short years has turned his sleepy enterprise into a profitable growth machine with aggressive long-term growth targets. you know my mantra it's fine to buy stocks of companies that make real things and generate real profits as long as you can get those stocks at a reasonable price. as for molson coors, we're doubly blessed here because people tend to drink more beer in a recession, and this may be one of the most exciting of the industry, including a new product he is introducing on the show tonight that i think could be the drink of the summer earlier today, i got a chance to chat outside with gavin hattersly, president and ceo of molson coors take a look. gavin, for years i thought your beer and your drinks were sleepy drinks it's anything but, how have you made that happen >> jim, thanks for having me on.
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look, we started our revitalization plan two and a half years ago, and we're seeing the benefits of it now the objective of the revitalization plan was for us to drive top line and bottom line growth at the same time, and we did that in the first quarter. >> but how is that possible? you're up -- these are old beers so to speak, now they're my generation how did they get to become the new generation >> the marketing team have done such a good job differentiating, they're still a staple lots and lots of people drink light beers, and they drink miller lite and coors lite these two brands are as healthy as they've been in a long time, jim. they both grew mid-sales revenue last year for the first time in a very long time, and they grew in the first quarter as well. >> you're too humble i know you're a beer guy, but now let's break news this is the drink that i am drinking this summer because it tells me that i am a trend setter i missed the white claw, it's better, right? >> this is a great brand this is the number two brand in the coca-cola portfolio in the
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united states, and they've trusted us with launching the spiked version of it we are launching in june, next month, this is the very first time i've seen it in the outside world, jim, and the orders for this brand are off the charts good. >> on the rocks, how do i do it? how do i drink it? >> you drink it ice cold straight out of the can. >> ice cold. when i'm doing that, this has been my favorite, and you know that i told you at my bar anything you can't keep on the shelf. can that actually challenge this >> they operate in different places, so that's a hard seltzer, and this is a fuller flavored malt beverage different consumers. this one's squarely in the seltzer space. this is in the flavored malt beverage space. >> i guess i should be drinking this vizzy, it's got a lot of competition. >> viz si and topo chico are the fastest growing in the hard seltzer marketplace.
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both are growing, both are taking shape. >> let's talk numbers for a second these are winning brands what i want in the liquor business, i know, i want to put money behind the winning brands, but at the same time, people say it's going to hurt the quarter how do you compromise? next quarter i want you to spend, spend, spend, but you got to deliver. >> we are going to deliver we reaffirmed our guidance we said we're going to grow our top line mid-single-digits our bottom line high single-digi single-digits. we want to make it a success, we're going to be putting marketing money behind it. at the same time, coors lite and miller lite, we want to fuel the momentum they're both gaining share in their space. they've gained share for any number of quarters over the past few years, and we want to keep fueling that momentum. >> all right, gavin, the skeptic in me says wait a second, you got too much debt. how can you grow >> we've taken our debt down by $5 billion over the last five years. we've taken it down from 12 billion down to 6.5. our leverage ratio was pushing up against five times.
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it's now just a notch above 3. we think it will be below 3 by the end of the year. >> oh, then, you'll have the money. a lot of people don't understand the broad breadth of brands you guys have. if i were to go to europe, if i go into london, what would i be drinking that's yours? >> i think we've got the best premium innovation we've launched it's called madri, it's a spanish brand. we launched it last year, the affected on premise was open and closed and we've just launched it in the off premise. that brand is going to be big, jim. it is doing so well. >> well, i also know i'm a big believer in premiumization i know you are too i got a bottle of this five trails now, i am a single malt guy if i have to be what are you doing in that br brand? >> you know, when we launched the revitalization plan, jim, we wanted to go beyond beer, and five trail is a wonderful -- it actually won double gold in the whiskey festival in san
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francisco. it is very hard to get there we think we've got a winner there. >> now, zoa, record month of sales -- i've never had zoa, emerging growth. what is that >> it's an energy drink. >> energy? >> it is >> i don't need any of that. >> probably not. i do, though. >> we've launched -- it's the fastest growing energy drink cincinnati space right now we've launched it with dwayne "the rock" johnson. >> he's money, that guy. >> it's very good. it's very good, and he's not just a celebrity endorsement he actually has got a stake in the business, a big stake in the business so he's a partner with us, and it's -- we're the fastest growing energy drinks out there. >> that's very good. now i look at this, i say, oh, my god, this cardboard it costs so much money. these beer companies, cans, they all got together the stuff inside is starting to cost a lot of money. the raw costs are going crazy. what are you going to do >> well, jim, we've had a really
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good program for a number of years now. we're not obviously immune to inflation. we're i think in a much better place than some of our competitors, and we're certainly in a better place than we could have been if we'd been unhinged. it's a robust program. >> unhinged, very smart. >> it's well hedged. >> let's talk about the economy. i'm starting my show with you, i never do that, but one of the reasons i do is because i hate the market it's an awful market because people think there's going to be a recession. i tell people, they don't believe me, but i've been through enough recessions to know, people do not stop drinking beer in recessions. >> they do not >> sometimes they drink more >> we've actually got the perfect portfolio for it, jim. we're not seeing it trade down, but if people do trade down, we've got economy beers, premium lite beers and above premium beers. it's all there for the consumer. >> one last question, it's a personal preference. most of these beers taste like cheerios why does yours not taste like cheerios.
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>> this beer has been around for 20 years belgian, invented in golden, colorado, and in the off premise doing very well, in the on premise off the charts now that it's open. this brand is growing for the first time in a couple of years. >> and you're still off premise, on premise means if we have a slowdown in the economy you're going to make money anyway >> exactly. >> that's what i like. that's gavin hattersly, president and ceo of molson coors beverage company, remember the symbol tap stay with cramer >> don't miss a second of "mad money. follow @jimcramer on twitter have a question, tweet cramer, #madtweets send jim an email to madmoney@cnbc.com, or give us a call at 1-800-743-cnbc miss setngomhi head to madmoney.cnbc.com.
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whoa. despeet everything that's going wrong with this market, even a disliked stock can still rally. that's good news look what happened with affirm, the buy now, pay later power house that's gone from a market darling last year to the market's redheaded stepchild in 2022 this was $176 stock last november and it had pulled back to $18 and change in today's close. one wild day after setting a new all-time low this morning, this very morning, the stock ended up soaring 23% in anticipation of earnings. when affirm reported after close, the buyers were proven right with the company beating expectations across every major line item. they posted a small adjusted operating profit firm gave solid guidance for the current quarter, and that's why
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the stock's surging in after hours trading. so can this rebound continue even in the face of a market that's been hostile with financial technology let's take a closer look at the founder and chairman of affirm holdings max is from ukraine and has worked hard to deal with refugees in this terrible and entirely unnecessary tragedy mr. leftgen, welcome back to "mad money." >> how are you >> max, i'm looking at these numbers, and it tells me that not only is buy now, pay later the way that people want to buy things, but the actual worries that people have about people buying now and not paying seem to be completely misplaced judging by some of the deals you're signing and the numbers you showed me this evening tell us about it i think the news from affirm is that the u.s. consumer is alive and well they're shopping they're buying, they're paying their loans at least to affirm
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quite well, and generally speaking things are going according to plan. the upheaval of the stock markets does not seem to have an actual impact on our underlying business, which is performing really very well. >> well, i think that you're being too modest i'm seeing numbers of new customers that are, frankly, very difficult to fathom talking about going to six figures to seven figures. is a lot this this amazing shopify deal that's renewable that i know happens to be working very well for my friends at shopify >> you know, we are fortunate and very, very, very committed to all wonderful partnerships. it's not just shopify, although that is a fantastic deal, and we've literally just announced that we've extended by several years and brought several new products they've done fantastic work. nothing but amazing things coming out of that we also have a long-standing relationship with walmart, which
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has done fe nominal for the company and of course the new one amazon we've been a partner to all these really great companies that fuel the american economy, and we've done well there. that's where all that growth comes from we also have a fantastically growing program, we have a merchant sell service. any small merchant on the internet can join the affirm network and help their buyers buy now pay later. >> a small business person should be listening to you and figure out how to do this. can go to your website to find out more >> yes, please do, it's right there. >> one of the things people have been worried about is loss ratio and late charges first of all, i read an article that said your late charges, i said are they out of their mind, that's what max said he doesn't do, late charges second, your artificial intelligence is proving that you don't have a lot of people who don't pay. >> you know, if there's one thing i could teach the market is that we are, in fact, as good
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as we say we are we have never charged a penny of late fees. we have never done anything tricky or evil like deferred interest or all the nasty things the industry is famous for we heard the exact opposite. we stand for transparency, honesty, for helping people be responsible adults to buy things and not feel like they're trapped in that circle and all the awful things we are fixing that product for the u.s. that's why we're successful, that's why consumers come back that's why 81% of our transactions are repeats people actually like an honest way of doing credit. that is the alpha and omega of this business. it has been ten years and we've got many more to come of that impact mow dus of op ran dee. >> some of competitors some people in your area are stuck with loans i don't think they want to be stuck with, but they say they're fine with it. how do you feel about loans on the balance sheet and cost of finance? >> so if you look at cost of
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capital for us, it's still lower than it was in 2019, and so the rates that are changing as the fed tries to battle inflation have not been a real impact on cost if you look at our delinquencie and all that information is in our supplement we just published. it's basically around the 2019 level. we feel great, there was lots of noise in the market a while ago, about asset backed securities market having feelings about affirm that is also inaccurate we just earned our first aaa rating our cost of capital is just fine we've added a billion dollars of new capacity just in the last fiscal year. >> aaa rating -- aaa rating on your finances. now, all right, so my wife has -- fair weather, and there was some people -- i was looking at my car, there were some bills that i didn't pay, frankly, and alpha called crown collection caught one me two years later and i managed to be able to schedule a payment plan over three years to be able to get it
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done i don't know if that were affirm and you had a collection agency, does the collection agency give you any of the money that they would get from someone like a deadbeat like me >> it depends a little bit on the product that we're talking about. unlike our competitors, incidentally, we have many different products that we offer to merchants and consumers depending on the product, in some cases if you are late basically nothing happens to you because it's just not worth destroying your life and chasing you down, and we won't do business with you again as a consumer because that's- you know, if you really want to call it deadbeat. in many cases we're able to help folks work their schedule out where you're still not going to pay any incremental interest or late fees. we will just help you nach vigaa different schedule it seems like it's too good to be true, but it does work. >> that's exactly how you should do it. i would have been happy to deal with any of my creditors i could have done it really well instead of harassed. i just needed to be treated
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decently amazon, lately people feel amazon's business has got a little light do you think that everything that amazon -- it's temporary. i'd like to think that, there isn't anything that can really change the long-term status of amazon as being one of the great bargain houses of the world. >> i think they're an amazing company. we just had our first quarterly business review meeting, got to see a hockey game, which was exciting because i haven't been inside of a hockey arena since the pandemic, that was quite something, and you know, they are an unbelievable company. i have a lot of admiration for them they have just an absolute obsession with the customer, something that we certainly have as well. we are treating the customer right is the first principle of companies who run a business, and they're really good at optimizing, over time they just find ways to deliver more value. it's just really fun to learn from them. >> last question, we've got now obviously we've got paypal we've got block, which owns
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after pay. i mean, are there too many players or you can stand your own ground, let the other guys do what they want. you know what the customer wants and you win. >> exactly so just for context, there probably is another couple of orders of magnitude to go before this market starting feeling like it's saturated. the u.s. penetration is under 10%, well under 10% across all the players that call themselves buy now pay later. it so happens that some of our competitors have posted their 15% annual growth rates. some of them are not public. you can see from my numbers that we're growing just fine and doing so with really, really high quality revenue, really good economics everyone should be switching to buy now pay later. nothing would please me more if more banks, particularly folks doing revolving credit could walk away, go to simple interest, close ended loans that just help people buy things and not put them into debt
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lots of growth. >> as someone who unfortunately has had a previous career of mine the need of someone like you, i'm glad that affirm is around if it had been my wife would have been very different max levchin, founder and chairman and ceo max, it's always great to have you on the show. thank you. >> thank you >> back after the break. coming up, fuels fears and focus, is this energy concern a diamond in the rough get another angle on energy next
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i always say there's always a bull market somewhere, and right now it is definitively in the oil and gas market, one of the few safe havens in an otherwise hideous market i like the oils with general
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favorable dividend policies. we spend a lot of time talking about devon, pioneer, coe tara, but there's another great company, diamondback energy. a company focused in the permian basin in texas diamondback announced a plan to return 50% of free cash flow to shareholders they also said they preferred to return capital through a buyback instead of a dividend. at the time they announced a $2 billion repurchase program, major commitment given to diamondback, so far it's been a good strategy. stocks jumped to $80 in part because of that rally, diamondback wants to change its approach they're adopting a variable dividend strategy, and that's what we love specifically diamondback boosted its base dividend by 17% to $0.70 a quarter and told us the first variable dividend would be $2.35. guys, that's 9.6% yield. that is big assume k they can maintain the same level of payouts, and we'll find out.
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the stock's now down suddenly from where it was trading before this very bullish announcement i think that could be the steal. let's talk to travis stice, the chairman and ceo of diamondback energy welcome to maryland. >> jim, thank you, it's great to be on your show today. >> all right, so travis, everybody kind of knew diamondback as this very quiztive company that all they ever wanted to do is get bigger and bigger and bigger. there are some thinking this is not the diamondback i know i think it's the diamondback i want to love tell about the conversion you had to making as much money for shareholders and why it's a great one. >> from a high level, i'm really proud of what our industry has done, as we pivoted from an industry that consumed capital, that's a three-pronged effort for diamondback. it's growing a sustainable base dividend it's opportunistic share repurchases, and it's as you just announced a variable
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dividend, which was announced in the first quarter. and you know, particularly for growth, you know, as it pertains to diamondback, yes, we've been a very inquisitive company and done so quite successfully in my experience, when you see commodity prices at the levels they are today, most sellers want to underwrite their valuation premise at these high prices and most buyers are not willing to do that so for diamondback today, that means large scale m&a is auoff h table. we'll still always look for small, smart, efficient small scale acquisitions like we announced last quarter. >> if i went to work for diamo diamondback today and i found some good oil, had some good pro prospects but i brought you some ideas about how to cut back on emissions, methane, greenhouse gases, would i do better or worse if i came up with the latter >> listen, i think our industry has made great strides in emissions, and you know, if
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you'd have asked me that question a couple of years ago, jim, i probably would have responded by saying, well, how much is it going to cost, and what's that going to do to my expense structure, and how much additional capital am i going to have to divert away from the drill bit. if you brought me that idea today, what you would say is now the emissions and emissions intensity specifically is part of an operating philosophy that's not just unique to diamondback. we may be further ahead, but it's really the industry has adopted an operating philosophy now as part of our full-cycle costs, emissions reduction is part of what we do on a day in and day out basis. you know, in fact, one of the most demonstrative things we've done is we now have almost 75% of our existing production with some form of continuous emissions monitoring associated with it. and that's a big change from just a few years ago >> now, that does not add to your bottom line you're doing it because you're -- why? >> that's a good question. one, jim, honestly it's a way that we continue to earn our
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environmental license to operate. we've also found that it's increasing our operational up time as well too, so there is a tangible benefit to our shareholders as we allocate capital towards this. >> all right, now, one of the things that i'm concerned about a mutual friend from rbm was telling me, we are really depleting the strategic -- we're taking down a million. some people say it's a dangerous m move is that the long-term way to be able to handle our situation >> look, i think we're going to ultimately have to replenish the strategic petroleum reserve. i hope we don't replenish it when the commodity prices are high we've got the capability here domestically to certainly lean into production growth the problem is today, though, jim, is that the same supply chain issues that we're seeing across the -- our industry and across other industries are really making capital allocation decisions very difficult because it's going to translate to degrading capital returns, and
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that's what our shareholders have been asking for for a long time, and you highlighted in your opening remarks t, this is return period. any capital we allocate that degrades capital efficiency is not looked upon fairly. >> a lot of people say they can't ever have that discipline, they're oil people in the end, they're going to just drill, drill, drill they don't know how to do anything else. i think you, your company is now exactly the opposite you're trying to make as much money and be good stewards, and that's not going to change, is it >> no, it's really not, jim. and look, every quarter public companies continue this discipline, actually improves the trust that we have in the industry, aside from our investors, and you know, if you look at what percent the s&p is represented by energy today, it's 4, 4.5, 5%. at the low a couple of years ago, 2%. you go back two years, and it's 10%. i don't think we're going to get these shareholders back until we continue to walk the talk, we
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continue to deliver on what our promises are, we continue to be very smart capital al calocaalls we're going to continue to allocate capital which we believe generates the greatest return for our shareholoulders. >> i'm so glad you're doing that for my travel trust, i'm trying to get up to 12% why? because your companies are good citizens of the world with a terrific return. symbol fang and a great honor to have you on, sir thank you so much. >> been my pleasure, jim, thank you. >> "mad money's" back after the break. >> announcer: coming up, it's a good time to fortify your portfolio with high grade names. does micron make the cut cramer sits down with the ceo next
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. there's nothing more frustrating than watching a very good company report terrific results only to see it dragged down by the gravitational pull of a horrible market like we have now take micron, the chip maker focused on memory and storage which has seen its stock tumble from the low 80s in late march down to 67 and change today. despite the fact that their last quarter was remarkably strong. in fact, the only thing better than last quarter's results was micron's guidance for the current quarter. since then, the stock is down more than 17%. goi i got to figure this out all things tech are still hated right now. it's frustrating to see this quality company beaten down to the point where it sells for roughly five times next year's earnings estimates today they tried to turn things around with an investor meeting. at least they had a little success because the stock
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rallied more than a percent. can micron go to where it should go let's check in with sanjay mehrotra the president and ceo of micron techn techn technologys. welcome back to "mad money." >> thank you, jim, great to be back on this show. >> sanjay, i heard a story today that you told, which is basically one of the highest intellectual property in the semiconductor companies, not just in low end pcs, which is actually not even that big of a business for you, but in everything i need you to tell people why this isn't the micron where if pc sales goes down, you got to sell it. >> jim, markets are very diversified today. in fact, data center is largest market for our industry. smartphones, mobile phones, pcs, automobiles, especially autonomous making data centers, automobiles, data centers on
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wheels, so these end markets are diversified. they're growing and the demand trends are secular in these end markets. memory and storage is bringing greater value to these end market applications, and we have seen, of course, strengthening of profitability across the industry, but more importantly micron is entering a new era of leadership built on technology, product, manufacturing, leadership, and delivering financial leadership as well we announced today that we are increasing our dividend by 15%, and we present it for the first time in the history of the company across cycle financial, and this is built on the confidence that we have in the demand rivals as well as micron's execution. >> now, when you came on our morning show, somehow we got a little derailed. i hope it wasn't my fault. we talked a little bit too much about low end pcs. what i want to talk about now is the explosion of industrial, internet of things devices, and how you are number one in iot.
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>> we are number one in the automotive sector as well as industrial markets, and in industrial, it's a wide spectrum of end market applications where more memory and storage is being used automotive, you have a strong history of number one market share because we provide high quality products that are critical for automotive, but also leading these markets with industry leading products that really make a difference, transform the experiences in these iot devices. so micron is very much at the heart of the trends that are shaping the world today, industrial iot, autonomous, of course data center so from data center to the intelligent edge, to smart user devices, micron is really delivering experiences that transform the world, unleash businesses to do more through cloud computing that neetdds mo and more memory as ai becomes
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bigger and cloud computing applications autonomous needs more memory to make those split-second decisions around auto pilot as well as increasingly autonomous features in the cars. so this is where a lot of excitement is, diversity of the end markets and micron, yes, is a leader in industrial applications, industrial iot, automotive as well as the technology leader. we announced today that micron will be several quarters ahead of others in the industry without alpha d ram and 176 layer nan and announce that by the end of this year we'll be starting production ramp of our next generation technology i think we will, again, be several quarters ahead both in nand and d ram of our competitors. >> for people who want to own the stock, turn to page 28 of the deck where you can see how much they've gained in automotive and industrial and data center and graphics and how
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pc and mobile has been cut back, which is why i like it now, sanjay, there are some people who claim that they are the deans of american industry in building things here. they're very nice people, and i like that. i want people to put up factories here, but is micron not america's semiconductor company? >> you know, of course, micron was founded in boise, idaho, 43 years ago, and as you were referencing earlier, jim, micron is an innovation power house we announcedd yesterday that we have 50,000 patents now. that is monumental, and that shows how much innovation, technology leadership, manufacturing excellence, product innovation that we have delivered here of course as an american company, we are very proud of our roots here we are manufacturing for automotive and industry markets. a small part of our overall production out of manassas, virginia, and of course best in class are in defacilitating
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boise, idaho, and tremendous -- for future expansion, leading semiconductor memory here in the u.s. because after all, we are the only u.s.-based memory and storage company. >> incredible. now, i have to get to this because i want to bury it. do you think that cell phones hand sets are falling off a cliff. >> do you think that lower end pcs are done because last time, somehow that became the narrative, and that narrative was wrong. >> well, what i would say is it's not like anything is falling off the cliff, therefore lower end pcs, consumer pcs where memory usage is actually at lower end of it is not the big part of the market for us. enterprise pcs are big because they use more content in those enterprise pcs so yes, while consumer pcs
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lately are not experiencing the same kind of growth that they experienced in last two years, enterprise pcs and desktop pcs continue to be a healthy market. >> and hand sets are fine, right, sir i mean, china's on lockdown but hand sets are fine. >> with respect to hand sets in china, with certain smartphone manufacturers they're in demand due to covid lockdowns so adjustments by certain hand set manufacturers in china, but what is important is that overall handsets and micron is engaged with all leading players. our footprint is diversified with handset providers in terms of our supply, and handset continues to be a large market, while its growth rate because the total number of units being sold has stabilized now by 5g and the applications continue to drive increased d ram and flash content. mobile continues to be a large market for the industry, but no
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question that data center, automotive, industrial, networking, these are the big growth drivers in the years ahead. >> excellent, and that's how the narrative must be known so people understand to buy your stocks sanjay sanjay mehrotra, ceo of micron thank you for everything you do for the country, sir, you've done a remarkable thing. you've kept us in the game great to see you, sir. >> thank you, jim. >> "mad money" is back after the break. i hope you heard what he had to say, okay? it was very, very positive stay with us ♪ >> announcer: stick around. >> may i make a suggestion i would stay with cramer. >> announcer: the lightning round is coming up next.
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it is time are you ready? lightning round. let's start with michael. >> caller: good evening, jim >> good evening. >> caller: booyah. >> booyah to you >> caller: all right long-time listener and reader and my time before i left my money, but the stock i have tonight has a real low pe, none other than harley-davidson. >> i would normally like harley-davidson, but i think there's too much competition we're going to take a pass on it, even though it's cheap, it's not what we want gordon in louisiana, gordon. gordon, speak to me. >> caller: booyah, jimbo from louisiana, go tigers >> i like that. >> caller: i like the e and p
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space, jimmy, i want to get your thoughts on palos energy >> it's a little small for me, but it will do the job i do like the devons, but i think you can find good in that one. let's go to marvin in new jersey. >> caller: hey, gym, i'm in your state, what do you know? listen, i bought at&t in the mid-30s a while back, and i'm wondering if i should double down. >> i don't need you to double down i think that at&t is making a comeback, though, because they got rid of some things, a little more focused 120, i think you're fine, you can ride them for a couple of points not more than that. sarah in illinois. >> caller: hi, thank you for taking my call >> hi, sarah, how are you? >> caller: wonderful >> good. >> i'd like to ask about jmia? >> it's too dangerous. we are in a market that is fraught, and the blue chips are
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getting crushed. we got to stick together and high grade our portfolios, not take them lower. jerry in missouri, jerry >> caller: jim, i'm a founding member of the club and want to say thank you for taking my call. >> yes, yes, met a bunch of them on the street today. people are so excited about what we do. i've got much more up my sleeve. how can i help you now >> caller: well, i want to say this is a high grade stock, but it doesn't make stuff. it a's cloud-based data platfo platform, and i like the ceo and talk about him a lot in the past, but i haven't heard the company name in quite a while. is there a price on startup position in snowflake. >> i think if you take a view for a snowflake, if you take a view for a doordash, for an air and b if you're not going to look at it for the next few years, you can start buying snowflake tomorrow morning >> caller: glad to be back on the show again, it's been a while. >> good to have you, join the
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club, what's up? >> caller: i'm befuddled on a stock that's just been killing me so we all know that anybody tied to oil as far as the raw materials is getting crushed, but i got a trade less than six times earnings, just had a great quarter. had the best first-quarter revenue in ten years, the cash flow plus. they're passing on the raw costs. they've had great international growth, so they're not tied -- i'm trying to hold the name of the company until the end. go ahead, so they've got great international growth >> okay. okay i'm with you hit me, hit me, hit me. >> caller: i'm going auto, they're not dependent on the u.s. to sign a new car sales, up 10%, but they made a smart acquisition last year of cooper tires, they're a replacement tire business was up 40% i'm talking about a company that's stock price is lower. >> let's hear the stock, we can make a judgment. the stock is >> caller: goodyear tire from my
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hometown. >> really bad previous quarter, better quarter this quarter, that's why it sells the way it is people do not have faith in mr. cramer, that's why he's got tom come back and rich cramer must explain why it's okay now after it wasn't last time. jonathan in pennsylvania, jonathan >> caller: hey, jim, i'm calling from the heart of bucks county, p.a., a founding member of the investing club >> i'll be there this weekend, oh, my god, we should commiserate about boeing, darn it we're making a lot of money together how can i help >> i want to thank you for all you do for us. >> thank you, the club means so much to me i want everyone to join the club go ahead >> caller: you improved so many people's lives with your passionate -- you're a gift to all of us. i own lockheed martin and raytheon i want to know what you think of huntington ingle. >> i've always liked them. when they spun off, i recommended them in 1981 when it was a different version, and
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that, ladies and gentlemen, is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade coming up, stocks these days can feel like a hot potato cramer helps you stay vigilant with a road map through perilous times, next.
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doing a lot of soul searching like you i'm sure. i want to give us a little sense of history we're going through a brutal selloff, had a little letup this afternoon. you and i have seen brutal selloffs before, correct so we have a general idea of how these things tend to play out. the s&p 500 was down roughly 18% from its highs coming in today's session. we flirted with the bear intraday, that's near a 20% decline. historically we've had nice snapbacks after the level of decline that we've seen. remember we saw a fantastic snapback after the initial covid crash. that was partially fueled by easy money from the fed, something we are not going to get this time because the current meltdown is caused by the fed's commitment to tightening we also saw a spontaneous rally after the big decline in late 23018. although that was a fed mandated decline as well, and it stopped because the fed changed course, the pressure raised interest rates went back into full bear mode it was just a brief bear market, albeit a painful one i don't think 2018 or 2020 are
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the right models here, unlike either of those times, we're teali dealing with one of the hottest inflation rates in decades in order to cool down the economy. reiterated that opinion later today. it's very tough to cool without the crash. what else? we had a brutal couple of moments when former fed chief janet yellen tried to raise interest rate in lock step, but then eventually backed off because of a global growth scare in the collapse in oil prices. that showed yellen was being too aggressive again, i don't see that happening. we have much worse inflation than we did in 2015 or '16 then there was the 2011 debt ceiling crisis where u.s. treasuries were downgraded by the s&p because congress couldn't agree on whether we should pay our bills at the same time, europe was experiencing a much more serious debt crisis. it took a while, but people eventually realized that the u.s. was nothing like europes at which point our stock market rallied and rallied hard not the best analogy because our
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biggest problems are home grown. could we be in for a total systemic risk situation? i think it's still doubtful. that's only possible if it turns out that crypto is a true financial black hole i know plenty of people are in crypto, but i don't think it is like home ownership. one big stable coin has now broken down, supposedly like the money market fund benchmark, but i don't think it's going to be that big to the matter however, there are people out there who tell me i'm wrong. there's another group of people who say it could be a much bigger deal. b by the way i've been warning about these bogus stablecoins since last years and people just forgot that i do this could happen again. but looking back unfortunately the best analogy is the dot com collapse that i lived through and you may not have that's part of the thing, i've been through cycles. you may not have we had the former blue chip tech stocks that did just fine. we had large cap tech which
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consistently shrunk a bit every day like we're seeing right now with faang and then we had 600 odd stocks that were just doing nothing, including 330 that became public and all of them were dead. in 2000 we periodically had short recovery moments that would suck people in, maybe like the one we saw in tech this morning and afternoon except for the big dogs even with treasury yields down big today, i think most of the reality except for the high grade better stocks like in 2000 was shortcoming. the main thing you need to do here is high grade your portfolio like we've been doing for the travel trust if you're a member of the investing club you know this in other words you need to swallow your pride and sell some of your losers to fund your winners. it was very painful for me and jeff marks as we sprained to club members, but we wanted more money to buy better stocks you must never sell your winners to fund your losers. you got to be a realist right
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now. in 2000 there was a lot more pain than we're experiencing so far this year. don't get too comfortable with anything you own because i think the selloff can continue as long as inflation runs hot and crypto runs cold. i like to say there's always a bull market somewhere. i promised you i'd find it just for you right here on "mad money. i' the news with shepard smith starts now. putin creates exactly what he was trying to prevent. i am shepard smith. this is the news on cnbc. finland wants to join nato without delay. the huge blow to vladimir putin and finland's president says it is installed. >> you forced this. look in the mirror. >> russia responds vowing to retaliate. what it means for the war in ukraine. and for stability in europe. markets in turmoil.

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