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tv   Mad Money  CNBC  May 18, 2022 6:00pm-7:00pm EDT

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test 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 other people want to make friends, i'm just trying to make you some money my job isn't just to entertain you but to educate and teach you. call me at 1-800-743-cnbc or tweet me @jimcramer. i know what you're thinking, why even consider owning anything,
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let alone buying anything. come back when it's over dow plunging 1,165 points. s&p 4.04%, and nasdaq the site of the blast zone nosediving 4.73%. shuddering numbers we don't know when it will stop and opportunity begins i got in the market when the dow jones was below 100. it's now 30,000 points you think i've never seen this selloff before i've seen dozens, all a little different, etfs push good stocks down with the bad. this has extreme quality to it what's the matter with this or
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that stock it's hard to time the bottom not many people can get out on the way down and back in at better price it's not cricket or kosher or whatever to say -- i should say -- look, i was able to accumulate great wealth, not bragging, but key was simple, never stopped investing. even when i lived in high car. never stopped investing no matter what the action tells me. says you shouldn't, but i'm urging you to think like me. because it worked for me and what was i doing reinvesting dividends, giving money to mutual fund every single year, buy when it's down, worked for me. i don't like to talk about how well i've done, not way life should be, but days like today, know why i haven't quit. how tough it is to do.
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great recession, i told people devastatingly on the "today" show to get out at 14,000, 13,000, 11,000 dow jones market was plunging. best calls of my life. recommended getting in at 7,000, close to the bottom. 50% below first big sell call. and it was big out at top, in near bottom but hundreds are angry at me for scaring them from stocks then. but i was despised for best call to sell, so always had a thing about that what makes it so difficult to get out and get back in? think about the proximate cause of the decline, it's inflation yesterday, market experience similar. iconic large companies, well
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run, household names and scares people when the stocks collapse like this. so important to etfs pin action is horrible, can knock down entire sectors or market inflation is the culprit, if fed wipes it out, will do better jay pal, our fed chief is not going to stop until it's killed. aisle of every store, car lot, factory. he needs to get more aggressive. taiwan behind his back with the 60 basis points, rather get the rate hikes over quickly. 75, 100, several of them inflation is pervasive if he would crush it quickly, we can go back and start investing more easily. powell does have a daunting
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task he has wins, not all losses. declines in the stock market, means people hesitant to spend money. almost any company could be vulnerable to shortfall, aware of stocks we've owned for ages for the trust, apple, amazon cisco got clubbed, couldn't get parts out of china, lockdown asking chuck adams about that tomorrow but they think the company is awful, they're panicking. working on club member bulletin, check your inbox for cnbc investing club only. more spending accelerates inflation. hideous market makes anyone
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cautious, it you're jay powell, it's good. consumers were flushed with cash but needs consumption to slow. and clearly starting to win at retail level retailers been able to command full price starting with target and walmart will be a ton of promotions for glut of inventory. we had shortages everywhere, and more would be victory to break the spiral of ever higher prices for consumer usualsuspects, they're going g up for days. that's where you dump your inventory. after that, here we go, powell's losing all over the place. first housing way too strong, it's inflationary, even the product of natural causes. can't build homes fast enough for people who leave the cities
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for suburbs in the country prices for existing homes are escalating mortgage rates north of 5%, it's not enough to keep people from holding off. i think 7% or 8%, then will come down and will happen he must do so. inflation in housing is not acceptable 8% i think 8% second, cars after all the talk about semiconductor short ands, don't have enough chips to make all the cars we need to come into the office a couple of times a week best is make it more costly to get financing. need a glut of cars to solve this problem, then the semiconductor makers can catch their breath 5% to 7%, where you have to go
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but going to end up nobody will have collateral. third, powell needs -- we have a labor shortage higher labor costs it's perverse but reality. more companies decide they can't afford to hire people, less we need to worry about wage-price spiral needs something he can't do, war to end in ukraine. huge premium on oil and natural gas because of russia's invasion of ukraine if russia pulls out, could go down pretty big but you know what, would help. also causing price of grains to jump because ukraine is bread basket of europe unfortunately a lot riding on something jay has no control over famine has been number one cause of revolution since it ruled
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fifth, needs cost of freight to go low, can happen with slowdown in commerce, rates go higher or teaching more people to drive trucks and that takes long time. unions that control the west coast ports need to control more but could be fighting biden on that needs people to finish spending savings from the stay at home period bottom line, a huge schedule of things he must do. obvious seven. slay the seven dragons, making money in the stock market will come easy again. until then, more horrific days like today no gain without pain this time there's a lot of it. remember, if you leave and save some dollars because you don't
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want to get hit by the next couple of days or weeks, you may regret not getting back in had so many of my friends regret when i invested 43 years ago and stayed the course when they told me that was foolish. laura in texas >> caller: hi cramer, been blind 12 years now can't see your face. hear your voice and you make me smile. >> thank you thank you very much. >> caller: february of 2020, laboratories ticker symbol crl came on the show and told a compelling story about how they could take all the mouse and rat work of trials and do that for pharmacy companies they were only company in that niche, and stock price increased
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until september of 2021. >> right >> caller: started going downhill news of merger with a.i. company in april and now sold 3% loss because seems to be going down >> first, you're cadre and i appreciate it. we're together in this here's what's going on with charles river. not been any ipos, so not a lot of biotech money coming in people feel norm foster will not get the numbers he would have gotten had the ipo market stayed strong not saying it's wrong but causing pressure love that you called you're a trooper, and one day that company will come back because it's great right now doesn't have enough
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clients coming public. if powell can slay these seven d dragons, making money in stock market will come easy. day it happens, why didn't i listen to cramer don't sell everything. but telling you could be more terrible days. on "mad money" tonight, company that used to be great high flier, new ceo at helm guess what, chicken wings are down huge. is it too late to invest in emerging lithium stocks? we know elon musk said they're great place to be. my take. and is there place for up profitable tech company in your portfolio? i'm not sure but check with the top brass anyway stay with cramer >> announcer: don't miss a second of "mad money," follow @jimcramer on twitter
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have a question? tweet cramer, hashtag #madtweets send an e-mail to or give us a call at 1-800-743-cnbc miss something? head to [music - cover of blondie's “dreaming”] [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪
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when will the pain stop in the stock of wingstop? once beloved, people still going to it, but stock plunged more than 60% wingstop with fantastic delivery business annualized numbers, up against tough comparisons, legitimate way to look at things. ceo left for what i guess are
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greener pastures, running a drive-through salad chain. like every other restaurant, plagued by inflation but chicken wing prices peaked months ago, headed down for a while, making thisa rarity in the industry if that continues, could be surprises on the menu. the company held investor today and we have to figure out more about this not able to in this period, closer look at michael skipworth, hear the story directly welcome to "mad money. good to see you. >> good to see you, jim. >> first just catch up covid stock thing to me is not real what matters is how's business >> business is good, jim as you mentioned, we're in really unique position this year, other brands are navigating inflation and going to be going against a tough
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consumer backdrop if you will. going to have to look at pricing to manage and wingstop in a different position seen deflation in business price of wings, $3.22 and now $1.62. >> ukraine, 60% of the world's calories taken off, famine in a lot of places. tyson said a lot of food stuffs going up how is it possible one part of the food chain has fallen in price? >> lot of businesses jump into wings, drives the demand that you, but businesses weren't built to manage that volatility in the commodity we've been able to weather it. they've taken wings off their menus and there's a lot of demand for breast meat, where
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the poultry companies make profit growing as many birds as they can. lot of supply out there. >> thigh thing is over, we're wings? >> we're continuing to advance the supply chain strategy. we have thighs still, but also just launched yesterday a market test around a chicken sandwich for wingstop not just one but 11 chicken sandwiches in 11 bold and distinct flavors we think will be a big hit >> what is the franchise doing i talk to charlie because in the food and restaurant business, franchises make awful lot of money. are they still per unit? >> strongest they've ever been sells last three years exploded, up 30% average unit volume is $1.6 million today.
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in the initial investment, still around $400,000. at today's margins, brand partners are enjoying less than two-year payback on the initial investment. >> people tell me can't find labor? >> it was challenging in 2021 but gotten better recently conversations with brand partners is they're about upper 90s, 90% of targeted roster size but i think roster size for wingstop differentiates us. >> how many people >> can run a wingstop at $1.6 million with few as three to four team members. we're able to navigate differently than other brands with larger roster. >> what is going on with advertising? su subtle switch where you're getti getting people. >> 1% spent locally by brand
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partners is consolidated into national fund to spend dollars more efficiently showing up in live sports. watching the nba finals? >> that's where i've seen you guys. >> driving awareness, just under 1,800 units today, ton of runway in front of us in the u.s. see the opportunity to grow to over 4,000 and outside, another 3,000. 7,000-plus opportunity for wingstop >> always fond of charlie morrison, made our viewers a fortune. hope he's doing well at salad operation and hope things are good between you two. >> they're great had the privilege of working side by side with charlie 8 of 10 years at wingstop we shaped the strategy of the business and still great friends and him
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still a mentor of mine. >> glad to hear that quite a guy. came home stock at 25 and saw the rocket ship. but company like many right now, stock has very little to do with the company. >> that's right. >> there's a diversion going on right now likes of which i've not seen probably since -- before 2007, maybe 1999-2000 wing prices down, advertising is good, volume per place is great, all i can say, this is another stock you have to remember when the great bear is done ruining your portfolio michael skipworth of wingstop, thanks >> thanks, jim >> announcer: cramer mining for investable painting and might have struck it big find out what it is. next
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after another totally horrific day, made you feel like moron if you took consolation from yesterday's positive action i didn't always a bull market somewhere but it's just far fewer of them. and i don't want to mince words, they're harder and harder to find doesn't mean they don't exist. last few weeks, tremendous run in lithium stocks. used to talk about it all the time, key ingredient in batteries, especially electric vehicle batteries. cohort rocketed higher last year but anything else connected to electric vehicles, peaked before plummeting back to earth even as lithium stocks were obliterated, actual price of lithium going higher up 130% through first 4 1/2 months of 2022
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all told up almost 800% since the end of 2020. think world gone insane, looking for mood stabilizers -- it's not that kind of lithium sky high price is reflected in stock. want to take a closer look at this little part of lithium i think is okay as i acknowledge we're late to the party. not that there's any parties going on in this market. basic story is simple, economy is slowing down but demand for these batteries continues to soar powerful sector of growth, i don't think anything can stop it at the same time, more interest in industrial scale battery storage to protect against blackouts or there's excess renewable power that will go to waste without storage capacity unlike rare earth metals, there's not a shortage of
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lithium, the element you can find it all over, including in the united states it's process of extraction yes. you extract lithium and refine lithium, capital intensive not like oil, add rigs to increase supply, can take years for production to come on line there's a steady rise in the demand but because of structural issues, taking long time for companies to add supply. didn't stop wall street from giving up last november. seen as too connected to red hot electric vehicle space and considering the devastation in those stocks, lithium got off easy 97 at peak in november down to 61 last month. losing third of its value. bad but not as bad got a new lease on life with
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insanely positive quarters from two major suppliers. first wake-up call two weeks ago, food machinery corp., fmc did at end of the boom dud for first couple of years. now new boom and they're on 5. management raised the four-year forecast boosting by inv78%. always a bull market somewhere given up some gains last couple of weeks, stocks have been resilient. $27, conscious for rest of the market heard from a more diversified chemical place with lithium exposure
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42% of the net sales another roller coaster and falling out of favor, then delivered magnificent numbers, must higher than expected sales. amazing. and management ratcheted up the four-year forecast before looking to earn $5.65 to $6.65, now talking $9.25 to $12.25 up in response to liven, then another tacked on. then flat, impressive considering how ugly it's been don't overthink it easier to buy one of these companies. they're doing great and stocks not that expensive tougher, sqms.
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a big chilean company with lithium exposure worried about chile's socialist president, some hesitant to buy latin america stock. government took over the lithium mines, owned by government, not good if you wanted to invest but it's been favorable to capitalism numbers came out too late on the show, 6:00 p.m it's worth watching. people want to play catch-up and can do that. lithium america begins this month, piedmont lithium has mine in north carolina, and standard lithium is part of german company in arkansas. a few years from commercial
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operations of the three, stay away from standard lithium bombarded with short seller attacks. here's real issue. all the lithium stocks have run at this point. you have to ask if you missed the move move in 2017 and 2018, but imploded lithium is everywhere, takes 18 months to get production going how long it's been since the prices started soaring smaller players are ready to come online later this year. if the price stays this high, end users might get into the business, too. last tesla conference call, musk was jokingly asking can more people get into lithium business do you like minting money? of course, once more get into the business, will get worse only endorsing albemarle and
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livent for trade rick in arizona. >> caller: simple questions from simple investor. shw, stick with it >> i was on the home depot call. ppg by the way but they are -- they were very, very positive. what they're saying is that when a house gains value, as houses have, people continue to want to invest in cleanup. i think the answer is yes. like you to stay with a paint company, the best paint company, sherwin-williams long term now. greg in rhode island >> caller: good evening, thanks for taking my call i'm still relatively new to investing in stocks, hoping you can help >> sure. hope i can. >> caller: talked about barrett
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gold, i started buying some thinking this kind of market would go up to balance out the portfolio. doesn't seem to be doing that. >> gold has been counterintuitive looking how it's trading, it's badly frankly. all i can offer is mark was on the other day, he's doing a terrific job issue is the 4% yield, best assets and operator but gold is insurance play, not unlike the fact i still have some recommend 5% in gold and 5% in crypto one of the few people willing to say that allocation, it remains my allocation. maurice in illinois. >> caller: boo-yah from normal, illinois you say there's a bull market
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somewhere. but the metal urgical coal market amr. >> this is a trade goal is going to go away eventually but in ascendance for moment got carried away in 2011 and lost everything. we have energy shortage, they're doing well if they did not, you would be really, really in trouble with that stock that's one you're putting hand on oven, don't know whether it's hot or not, but it is going to get singed at some point in the future you know i say that, always a bull market somewhere, even when there are fewer and fewer. like lithium but only endorsing albemare and livent. that's only for trade. like it better than coal ring that register, just a
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trade. much more "mad money." and unprofitable companies trying to make it in market where digitization is still king, latest from the ceo. and ceos from walmart to target, what i think has to change in relationship between the v investors and stockholders and lightning round. stick with cramer.
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another terrifying session and aftersession, cisco gets crushed. how much lower can these stocks go former market darlings and now hated.
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even when they report the quarter wall street used to love, nobody cares alterx, data analytics company used to be hottest out there would be been adored last year raised four-year forecast. stocks rallied 9% next day and then a nightmare 70 to 53 like many others, last two weeks. alteryx held investor day, tried to change the narrative. plunged lower today. hesitant to recommend anything not making much, it's great way to take the temperature of the sector of the market mark anderson is the ceo mr. anderson, welcome back to "mad money." >> jim, thanks so much for having me again. >> had this meeting with your
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clients and perspective clients. are people concerned business is falling off cliff or slow patch you have to slog through it? >> thanks for the question, jim. what we're hearing, customer conference going on right now in denver had investor day yesterday, and investors and analysts walking around talking to customers as we speak i think our customers are realizing the world needs to change days of allowing data to swirl around your business without understanding the context and what you can do with that data to make better decisions are over pandemic just accelerated that my customers are telling me that digital functional transformation is number one or number two priority for spending i hate to be a nice to have technology solution right now, being a have to have is really
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important in this environment. >> for you there is a tremendous growth, huge number of contracts you keep winning do you feel the need to prioritize profitability like you wouldn't have a career ago >> fair question, really is. always been laser focused on managing how we spend our money, not spraying aon investments, bu deploying human capital to take advantage of the massive market opportunity we have. $65 billion addressable market today and will grow to over 110 in next years. want to quickly make investments, go to market, bring in right people with right experiences to sell high and deliver important business outcomes for customers
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but also being thoughtful about it as we reported last quarter, bottom line as well, operating margin beat, flowed through for the full quarter other thing we said, this year, 2022, would have been break even had we not made acquisition of tr trifecta it was important one, replatform in clouds, get fingertips on keyboards more easily. >> what we want to do, i like to give examples. lot of people interested in formula one, you have a fascinating relationship with mclaren. all my guys, i don't know why, but they do. and way mclaren is using you will explain to people how much better and faster your product is giving you the floor
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formula one is hot as a pistol >> sure is, and mclaren is great partner. zach brown and i have aligned few on several different areas that mclaren uses alteryx, realtime race analytics, 1.5 terabytes of data realtime, allow them to make, when to pit, what tires, degradation needs to be done. six other areas they're using it, fan engagement, factory optimization it's a very sophisticated business, and all businesses, especially ones like mclaren need to really be able to make sense of the data that swirls around their business. >> other sports teams using you for sports science as opposed to intuition? >> i'm a sports junkie myself, i know your beloved eagles are important to you, but ayear ag
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we talked about on earnings call, i think q2, dozens of the professional sports teams using alteryx in money ball applications decide the draft picks, batting orders in major league baseball to nfl and my beloved national hockey league. so i think sports, again, is one of these perfect use cases, there's just a ton of data what alteryx allows users to do is pull the data from hundreds of sources, put into format to apply advanced analytics against it, and give you hundreds of tools to make better decisions. >> one last question, never want to talk about people being laid off. but friend of mine uses your product. came into company that did not lot of people were -- use a mean word, don't get mad -- redundant
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once they brought you in people were taking weeks to do what my friend was doing in hours. it is also a labor saving technology you've got. >> yeah, for sure. but what business leaders and government leaders i talk to are saying every day, jim. they want to take manual level analysts, using manual software like microsoft excel and automate them to be more citizen data scientists. once you have those skills you're very marketable in this world. had investor yesterday, should have heard the comments they were talking about stanley, black & decker, j.p. morgan/chase if alteryx was taken away from
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them they would quit and find another job. that's zealotry here we have thousands of customers online and sign-up for trainings is at record level we're excited about that world needs to upscale, we want to help. what's graeat working on alteryx impact on thousands using us every day, impact on the lives >> it's a big tech plunge, everybody knows it, but keep eye on the prize when things get better mark anderson, thanks for coming on. >> really appreciate it. >> it is a very tough market, and very tough for tech. when it gets better, companies like this bounce back faster "mad money" is back after this
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>> announcer: stick around >> stay with cramer. >> announcer: the lightning round is coming up next.
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the markets, come on, what it all means for the economy going forward. i'm shepard smith, this is the news on cnbc the dow down more than 1100. the nasdaq with the biggest hit, off 4.75%. >> a no-where-to-hide kind of day in the market. >> big change people are buying as prices rise. midterm elections deliver winners in both parties but the race for the battleground pennsylvania is too close to call. >> everything has been


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