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tv   Mad Money  CNBC  May 7, 2019 6:00pm-7:00pm EDT

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the put spread that he might talk about >> by the way, in case you're wondering about pete's fast pitch. pete lost. 74% of you said no to mohawk >> don't chase momentum, guys. don't! it's the my mission is simple to make you money. i'm here to level the playing field for all investors. there is always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica people want to make friends, i'm trying to save you money my job is not just to entertain you but to educate and teach you and put this day in context so call me at 800-743-cnbc or tweet me at jim cramer some journalists invented the
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what keeps you up at night storyline. for me it is migraine and the s&p 500 losing 1.65% and nasdaq down 1.96% but those numbers i have to tell you were well off the lows but that is not what the press wants to hear. they want to spin a disastrous scenario to say this is what is really worrying jim cramer and i'm willing to play that you wonder what is keeping me up at night if i wasn't already in unbelieve sabl agony at 3:00 a.m. i'm afraid of a one-two punch that the market might not be able to handle punch one was over the weekend when trump said he wants to raise tariffs on $200 billion of chinese imports from 10% to 25% effective at 12:0 is a.m. on friday if he goes through with that, it is like an upper cut to the face of the market which is why
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stocks are flinching away from it punch two, if the uber ipo breaks the system, meaning it opens too high courtesy of excessive demand of home gamers and plummets later as people who got in start selling, that is the dreaded ipo pirouette, bull markets, not just that day it's a gauntlet and there must be a firm footing or at least before the tweets that rock stocks worldwide i don't want to get into the politics of the trade war of china. let the politics do that but whether it is a good or bad idea, the stock market hates it. i could tell you why wall street might be wrong but i'm not going to change any minds. at the end of the day you have economists and consulting firms coming out of the wood work to say how this would wreck the economy. i heard 937,000 jobs to be los and they could cost the average
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family -- a year those numbers seem high. hard times are negative for the economy. everybody knows that but business in this country is so strong. i think the pain will be easy to digest but what matters is that wall street is terror fied. most portfolio managers want this to end. but it is accelerating and a disappointing uber something i've been warning you about for months it depends i think we could potentially handle these body blows. but only if we're braced for them if we expect them. and that means everyone needs to be ready for a noisy breakdown in the trade talks with china with companies saying wow, earnings will be hurt and uber fiasco, something along the facebook ipo in 2025 -- so today's hit presents us with with a very compelling opportunity that we have to talk
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about. see, it means today what it felt like and maybe that is what happened at 3:00, is maybe we're forming a consensus that friday will be awful. with the tariffs going into effect at 12:01 and the uber stock after trading and people who got shares flipped them into the initial pop. uber is not some fresh faced start-up, it is an aging unicorn kicking around with savvy seasoned investors will hedge their holdings and could get hit harder than lyft we have more on how the company is doing and that is ignored and all we hear is hot, hot, hot and you have to expect that a number of people who had positive experiences with uber might use market orders to cause it to shoot up high because no broker will find enough shares for sale instantly and that is a big worry. it has profit-taking for the professionals so hope that morgan stanley and the
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underwriter has enough extra stock lying around to save the orders and with 15% more stock on the green shoe option and that should give them enough fire power to keep stock down. morgan stanley needs to get that one right to avoid that one-two punch because i think it is unavoidable at this point. speaking of the trade war. there are three camps. people that believe the people's republic of china is powerful and they have the 200-year-old time frame and they don't need to worry about pesky things like election and the trade war has to be a mistake because they have the 200-year thing going then the permanently pro-trump kamp that think everything does he is magic. the president could say i'm jammed so i'll take the next six months off to play golf courses around the world and including mini golf. and they would be on board they would be happy. they are not sweating chinese imports. i fall in the middle china does have advantages but
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they are overstated by the media and the disadvantages are ignored. no one denies the chinese government has a predatory trade practices. open your eyes they don't play by the rules they were supposed to abide by in the world trade organization and if there is a time to confront, this is it even schumer said -- reading schumer is like reading what the president says have you seen that he's senate guy -- democrat. we have a 3.2% gdp growth and ridiculous 6.3% unemployment rate and inflation in 1969 we had inflation roaring, 4% back then and even after today's terrific liner, the stock market isn't too far from the all-time highs, if we don't stand up to china now, when do we stand up to them they need our economy more than we need theirs but this is a war of attrition and both sides get hurt and while everybody is worried about what it will do to the stock market, it might be less vulnerable than you think.
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when it comes to china, the white house monitors unbelievably and when they say, well look apple get hit and boeing caterpillar, the three most stocks and all three got hit hard today but boeing has the terrific defense. and cat per pillar is hard but with apple turn toward a service sales, chinese markets are more important than they used to be bottom line. even after the losses i'm concerned about what could happen on friday so if you haven't taken any profits lately, at the positive close today makes me think it may be too late to do that i'm not sure yet though on the buy side because let's just say even though we had a bunch of great earnings after the close, i would like to be constructive but i'm not yet. because i want to sleep well on thursday night assuming my back pain will let me and i won't be able to sleep unless i'm confident you have some cash on the sidelines
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so that you're prepared for the aftermath of the china-uber one-two punch and be ready to buy and not sell and i've waited for and preached about for what seems like forever and a day. let's take questions to craig in california >> caller: hey, how are you doing today? >> well, i don't know. i had an epidureal that is a little out of nowhere but i wasn't supposed to go to work >> caller: look, i appreciate your daily rundowns for th club and i have to say, i hate the action in this market too. but i do have a question as to whether action like today might present some opportunities and i'm calling about a stock called mccardo libra -- >> i love that one melli. it is a great company. and it is nothing to do with all of this craziness that we got going here if melli gets hit, i like that one.
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i think you gotta good one there. that is the e-bay of latin america and i was an initial investor when we were allowed to invest we should go to nick in new york >> caller: how is it going boo-yah. >> boo-yah what is going on. >> caller: so i'm a senior at merit college here in kipsy new york and recently on your show you talk about managed care stock and what do you think of anthem and their ability to capture the medicare advantage market share from baby boomers going forward. >> i like it you went to marist >> caller: yes, sir. >> shout out to sharon who is a distinguished graduate of marist and to michael haley's boy i love that school yes, to robert so here is the deal. we are -- i don't know i want to be more bullish. i want to be constructive and be construct, but anthem is not my fave i like united health and then cvs second because it is merging
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with aetna anthem is my fourth favorite after humana that is not the one i want there, i put it ut even though i like them. to michael in florida. michael? >> caller: jim, thank you for taking my call. >> of course. >> caller: you do so much good for so many people we really appreciate you for it. >> thank you. >> caller: hey, my stock is fmc corporation, the maker of agricultural chemicals like pesticides and herbicides. it reported yesterday and beat the earnings and revenue estimates and raised the full year guidance on both. today it closed up over $2 and so what do you think of fmc going forward. >> when you get a stock that goes up $2 today, you have a winner the old food machinery corp, fmc and who remembers that other than me is a winner and hold onto it. the ag story is one for the ages and it won't go away this may about the best way to
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play really good call look at these callers. a great kid from college and a guy not from california miking melli and then the fmc i haven't looked at them in ages if you haven't done any trimming, you know what, call it late and flate and it would help me and you sleeping easier knowing you have some cash through the one-two punch of uber and the 12:01 tariffs which are probably going to happen. on "mad money," normally i tell you today is just a huge buying opportunity but it is more complex than that. then everything expected to come to a head on friday, should you pump the brakes on uber and i'll give you a take about the offering about the fund. ales and the doctor will see you online is the company trying to change the way you visit. don't miss my sitdown with an interesting company called teladoc. and stay with cramer
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>> announcer: don't miss a second of "mad money." follow at jim cramer on twitter. have a question, tweet cramer. #madtweets send jim an email to madmoney@cnbc.com or give us a ssll at 800-743-cnbc mi something head to "mad money" @ cnbc.com
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access netflix, prime video, youtube and more, all with the sound of your voice. click, call or visit a store today. you know me, on a day like today, it is time to pick. searching for cheap stocks and do it slowly but this time, you know what, why don't we just wait a little. why? because there aren't enough safety zone areas yet. let me explain what i mean order -- ordinarily in a selloff, i like to build stocks to -- and if the market tumbles, that means you could buy the recession-proof stocks like a pepsico or colgate i look for some down and hout health care names. maybe bristol-myers and maybe hca after that spectacular earnings report. then i tell you to buy the
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bargain on domestic retail like burlington or [ inaudible ] and all trading downtown and they could thrive in a slower economy. but i can't do this this time. because this time i'm not worried about a slowdown my fear is that everybody else will panic and i don't think they're done panicking not with the president's new plan to raise tariffs at 2:01 a.m. friday morning and as mentioned earlier, this could be exacerbated if uber stock is spiking and then rolling over not long after it becomes public on friday. and many of the stocks i tell you to buy into the teeth of the selloff, they've been bit off. they haven't come in and the names trading at absurdly elevated levels and they have run so much the dividends no longer offer much in the way of protection no tam polines and you may have to buy more this is quick sand underneath. and as retailer guess who is in the cross-hairs of the tariff hikes. china makes stuff you find at
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dollar tree or dollar general and with the duty -- more likely to say dollar tree and a quarter. get me the off price retailers like tg and burlington get the inventory off the hand that could be hit by china but even wait because you might get better prices. how about maybe you go with the cloud kings at the moment getting killed i think the strategy makes sense. but you never buy these turbo charged secular growth stocks after day one of a selloff never. normally you need to wait for them to get shelled some more and we're talking late on day two at the earliest. that is tomorrow people. this time you might want to even wait longer because the cloud kings are natural sources of funds for any money manager who needs to raise cash to participate in the uber deal source of funds. how about that facebook and amazon and netflix and alphabet, these companies have little to no exposure because in china there is not a lot in but facebook and amazon are coming off incredible runs
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netflix has too much new competition think disney and alphabet was disappointment and they have the same uber problem as the cloud kings people will sell them and buy uber that is how big the uber deal is now as i told you at the top, it is possible to run this gauntlet we need morgan stanley to miss theipo perfectly perfectly. and then we only have one big worry. china and that could go away the moment president trump tweets something encouraging about the trade talks or said we'll put that 25% hike and i'll give them another three months and that gives the stay of execution and the average will go back up and that is why it is so hard to turn against the market after the decline i've been preparing you for. take something off the table if we rally big but not everything. because trump cares about the stock market he said it is the truest benchmark on whether or not he is doing a good job and if we have another terrible day like today he might go easier and that is why i think it is too
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late to sell down here and i'm itchy to tell you to pull the trigger but i want to wait the silver lining allowing trump to play with the chinese and 2% gdp growth and negative inflation will make the stock market buyable against once the weak hands are shaken out and the panic is done. just wait for the averages to go a little bit lowerment -- lowe a panic mode before you pull the trigger. stick with cramer. >> announcer: coming up, could 800-flowers pedal your portfolio. smell the roses and sit down with the ceo. >> for connection and celebration. >> announcer: when "mad money" returns.
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i keep telling you how worried i am about the uber ipo
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expected this friday everybody else is terrified by the trade war with china and here i am fretting about a deal that people are excited about. a deal that will probably price at the top of the range because they are there is such strong demand at least that is what we heard all day. this is looking like it is the third lrjest tech ipo in u.s. history behind alibaba and facebook it should only raise about -- raise $9 billion or $10. for months you know i've been concerned that investors will sell all sort of tech stocks to raise capital to participate in the exciting uber deal i fear what might happen if you are rationally exuberant investors swoop in and bid using market orders and not limit orders and say oops i miss it -- missed it and people ring the register in droves even if they are not able to. will they try to get around the rules?
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i don't know i've seen the ipo cycles and the big one is where things start going south. remember pretty good so far. what about uber itself i may not like what the ipo could do to the broader market and worried how uber stock will behave right out of the gate that doesn't necessarily tell us anything about, well, the actual company. in other words, if we put all of the big picture concerns to the side, is there any price where uber the stock might be worth owning are people right to be excited about this one will this be another beyond meat the best performing ipo of the year or another lyft a real loser the lack of earnings number this very evening after the debacle there are still plenty of reasons to be skeptical but uber is not lyft you're familiar with the ride sharing business and you have the app and i use
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it all of the time operating in 700 metropolitan areas across six continents and handled 14 million trips per day for the active users everyone has to like that. but the thing that distinguishes uber is that it is more than just a ride sharing service. the pitch here is that uber is a platform that is expanding into all sorts of new areas they have food delivery with uber eats and logistics with uber freight and look for new opportunities in the platform. they are a very big synergy share. in the fourth quarter of last year people who use both uber and eats tend to use the ride sharing app more than twice as often. i think the fate business where they coordinate with truckers so they don't have to drive somewhere with an empty truck and that is revolutionary and great for the environment. and the uber on the show told a very compelling story. i love that guy. uber spent years taking over the ride-sharing business. either the acquisitions through
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expansion, they're the undisputed king of the business and i think uber is the future of transportation. i'm not denying that but that doesn't mean it is necessarily a good stock investment 20 years ago the internet was future of commerce but if you invested in the dotcom you got burned with few exceptions there were only three companies that made it threw the chute there were 300 that blew up. why is this better well there is a huge difference between changing the world and turning a profit uber is the ultimate unicorn disruptor. wherever they go, they wreck the taxi business and become so successful that they push the auto industry into secular decline. that the really positive but can they make money? remember that? let's look at the numbers. last year the uber gross book increased by 45% to $49.8 billion and the revenue rose by 42% to $11 billion and
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the company still have $3 billion in operating losses now that is more than $4 billion like 2017 but not great. a billion here and a billion there and presentee soon you talk about real money. and the uber growth is slowing really slowing they are experiencing major de-sell -- deceleration and the adjusted net revenue grew from 39% down from 125% the year before and if you look at the first quarter guidance it is down right disturbing. managers talking about an 18% to 20% revenue growth and onlyp% adjusted net revenue numbers which is the most important metric that is a hideous slowdown do you hear anybody talk about that today i'm all over it. like white on rice how about profitability? also getting worse a year ago uber margins were headed in the right direction and now they're headed in the wrong direction, if the first quarter they talk about ebitda
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margin of neg 27 to negative 31 percent. down from 10.8% the year before. what they make after you deduct the costs from sales was actually positive a year ago at 18%. but for the first quarter they are talking about negative 4 to 7. negative 4 to 7% how bad is that in this number hasn't been negative since 2016 and i'm worried that uber has a competitive environment and promotional environment which led to discounts the last thing you want to hear about with any ipo let alone any stock. sure uber has a big brand name and massive scale for an ipo and we know and respect the management team led by the ceo who is so brilliant. i love the guy we love him. he is so great we interviewed him when we had starbucks roaster and he was the star of the show and looking at numbers -- i like the nestle but look at numbers. what if the ride sharing business simply isn't that good? wouldn't that be something anyone talking about that?
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consider thanks to the law of large numbers uber sales growth has decelerated. they're a long way from real profitability and this is a situation where uber is only one major competitor lyft and the bulls say once they cemented the dominance they could raise prices and pay drivers less and i thought that way for a while and if that happens i worry someone new will come in and undercut them or some government regulation some government regulation that will hurt everybody. plus the ride sharing business is a regulatory nightmare. state and city level politicians hate them. they hate them in fact new york state just slapped a $2.75 fee on all uber and lyft rides in manhattan. more than the $2.50 fee on taxi rides. so a couple of angry mayors could do a lot of damage and of course there is the bad publicity, including the fact that many drivers are planning a multi-city strike tomorrow that is well-timed sometimes it seems like uber isn't that thrilled about the ride sharing business.
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on the road show they are building it as a amazon style of companies it is not a bet on ride share but uber eats and whatever else they uber. and they are from ride share and the vast result is from food delivery a business already crowded with competition if you look at some of the dog fights in that business look at that grub hub. that thing can't lift its head from adam. so say i'm not super they'lled about uber the company and without taking the lyft debacle into account they have going for it is the valuation is reasonable versus the other things come public this year. if it comes public at the height of the range, $50 per share which is what we're hearing, then it would trade at this time this years sales or not pinterest or zoom and that is cheap, but not for a company with 20% revenue growth but a heck of a lot less pricey than what we've seen. and it is cheap. down right cheap versus ipo darling beyond meat
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but beyond meat, come on enough already that is beyond the pale. how could we stop a stock from going higher think of the mockery beyond meat the vegans are bidding it up for heaven sake. they are and the vegetarians. i'm looking at my -- this executive producer who is a vegetarian but she's not at fault for the beyond meat. it is not you. it is not my kids either but enough it is a travesty we both know that. here is the bottom line, as much as i hate to be a negative nancy which is my sister's name, i would pass on uber unless you could get it on the xy and ring the register at the opening but other than that when you look at fundaments which no one is doing, no one, there is just not much here worth getting excite about. i would rather take an uber, which you never say take a taxi, that is from jerry seinfeld, take an uber than a share of uber stock once it opens. let's go to goalie -- goldy in
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new york goldy? >> caller: hi. >> i'm all fired up. >> caller: i'm a new fan of yours. i nicknamed you brain candy. >> wow brain candy. >> caller: i want to know your thoughts on jeremiah ama -- is it time to buy. >> no, goldy, first, thank you so much for calling but i have to tell you about this stock jmia, the analysts tay came out with neutrals or sells they like to say buy buy but they were saying sell, sell. and so agree keep on driving. i'll ask to you pass an uber unless you could get a piece of the actual ipo andine then i would cha ching, cha ching, cha ching much more "mad money" up one in five adults in america experience medically diagnosed meantle illness at some point in their lives. this is mental illness month and so i'll talk to the ceo of
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teladoc to see how they could help an investment in 800-flowers how about that making you feel fresh as a daisy and i have the ceo and all of your calls and rapid fire in "the lightning round," so stay with cramer.
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the stock market was remarkable terror this year. >> and there is one group left behind health care. now that market is being pulverized from china, could the safe cohert be ready for a come back take teladoc tdoc, one of the world's leading
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health care providers and i love the idea of tele-medicine and we've been behind this particular company since it was a tiny little start-up at a time when the democratic candidates are campaigning on a single payer health care system to rein in out of control costs and a company that could deliver savings regardless of washington the point of telemedicine is you don't need to physically go to the doctor's office for every single different -- it is enough to do a video conference and that costs you and the system less money now teledock just reported a great report and until today's pullback this one had a good year up 24% but still down from the all-time high last september including a real down draft over the course of march and april. so was teladoc recent rebound sustainable. let's check in with jason, the ceo of teledock health to get a better sense of how it is doing. welcome back to "mad money." >> how are you >> i'm very proud of what you've
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accomplished in the time since we started talking to each other, how many lives have you now covered versus then. >> we have 26 million covered lives paid in the u.s. plus another 10 million who are on a visit fee only. but now we're a global company with a quarter of the business outside of the u.s. >> and you could handle twice even three times that. you're set up for that >> we test our systems to ten x our current peak volumes. >> so people will say that is not possible not enough doctors this is ridiculous you're hyping this company what do we say to that >> i think you have to look at our growth trajectory. we launched in 2002 and it took until 2015 to do our first million visits two years later in '17 we did a million visits in a single year. last quarter we did a million visits in just a quarter on that growth trajectory i feel good about our prospects. >> you should. you heard about my introduction. we think the capital system cures more things than people realize. how come when i hear about the
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so-called runaway health, i don't hear someone saying in washington, wait a second. there are capitalists ways to fix the problem. take a look at teladoc why don't they talk about you. >> for the first time the federal government is getting behind virtual care so cmc is making virtual care part of the medicare advantage program which cover 20 million americans. >> also i think what is most -- well exciting because it is tough, but this is national mental health month and i'm passionate about this. we support niemi and i'm trying to understand how is that even possible that you have done such a great job with psych -- psychiatry and mental health. >> more than half of the people who need mental health care don't get the help they need because stigmas and quite frankly cost of care virtual care is the great equalizer when it comes to mental health.
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and that is why we've doubled our visit volume year-over-year and this past quarter and our mental health revenues are growing more than 50% a year virtual care is the best alternative for mental health. >> i've been trying to blow up this stigma. it is important. one of the things that i think -- it is one of the most important causes i have. how is this made it so that the stigma is overcome. >> well, you know, in a lost places in america, i hear from therapists all of the time, people won't park their car in front of my office because of this stigma. we talk to ptsd patients the first time they interact with a therapist, they are in the closet, on the phone with a closet door closed because they can't face the world outside much less bring themselves to go into a therapist and then they graduate toward a video conference with a therapist and then making their way into support groups so this is a way that we can bring care to the patients who
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need it most and that helps to overcome -- >> i'm so glad you said it, even just for the people watching maybe i could do teladoc and not be embarrassed shuntd be embarrassed. and i look at what your company has done, i'm not a millennial but i'm worth something. we're not all in the dumpster but would you pay to have a service for tella dock which would be bhon -- monitoring my health because the doctors my age, it is every four or six months i don't want to go unless there is something wrong teladoc could be the answer. >> that is true and now we have a global network of over 50,000 medical experts of all different specialties and we've seen chronic care management and remote monitoring are the next frontier. >> do you think you could provide it >> there is no question. there are devices out there becoming more ubiquitous, whether it is a watch or monitor that you wear or a blood glucose monitor or just a bluetooth
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enabled scale to give us the data to interact when you need it and leava loan when you don't. >> so let's say someone doesn't have a health care plan. could they still go to teladoc. >> absolutely. we provide care through cvs on a retail basis -- >> will you still do that after the merger. >> yes we have relationship with cvs and aetna and before and after the merger we have our behavioral health resources orn a direct to consumer basis and people reach out and don't need to be part of a plan that offers it and if their plan does it makes it that much easier. >> and i want to spend more time on that because it is national mental health month. the numbers are there but i want people to hear what you are offering because i think it is really important for america. really important for the people. and know international, but so i care about passionately. that is jason gorevic and a great company and a stock and you just heard all of the great things they do for people who are worried about stigma or make it so they wouldn't get the care and that is a shame.
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they could change it "mad money" is back after the break.
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it is time it's time for "the lightning round. and then "the lightning round" is over. are you ready? i want to start with george in new york george >> caller: hey >> george, you're up. >> caller: oh, i -- hey, how are you doing? >> i'm doing well. >> caller: i'm looking to buy a position on starbucks, sdus but with some threatening to raise the tariffs and 10% to 25% and being it is at the 52-week high should i buy or wait -- >> no, hold off. the stock was up but that is a sign of great strength but i won't tell to you chase anything but i do think the company is doing well we interviewed kevin johnson the ceo and he's doing a remarkable job and i think they're in fine shape. going to chris in pennsylvania chris? >> caller: calling from philly
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>> a man, what is going on big game tonight. >> caller: oh, yeah. hey, got a quick question. what is your take on pen um bra. >> another medical device that i'm not familiar with. we'll have to come back. but i do like dex com and they are doing terrific even though people are shorting it towilliam in ohio. >> caller: i'm calling about ticker symbol hqy. health equity -- >> it is a very interesting company about health care and about your savings in health care and i like them to come on. because i've been watching the business model and i think they could be much bigger than they really are let's go to jesse in pennsylvania >> caller: boo-yah, jim, how are you. >> i'm good. thank you. how about you? >> caller: awesome i love the fact that you've been helping me so much. >> thank you >> caller: with the stock market. >> very little pressure. >> that makes me feel good
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>> caller: you are the best. >> thank you >> caller: turning point brand, tpb, the thing i don't understand is they don't let the general public know that they also sell zigzag. >> i know. but it is tobacco. come on. i can't recommend tobacco stocks i can't do it. i feel the same way but juul i can't. life is too short. too many people in my life died from this stuff. to bill in pennsylvania. >> caller: hi, jim >> what is going on, bill. >> caller: watching and listening to you since it should have been cramer and kudlow. >> oh, no. i lost the coin flip that is why it was kudlow and cramer but go ahead. >> caller: recently i bought some till ray. and it is an investment not as a trade. >> i don't care, man that is ownership structure is all messed up. do canopy and bill nuance with
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consolation brands that is what you should be in. no ifs and ands or butts and to bart in texas what is up >> caller: jim, cvs drugs -- >> i think cvs is stood the test of time. i thought that last quarter and i like what they do with aetna i know right now single payers and people think that larry merlot bit off more than he could chew but it is a bargain to paul in texas paul >> caller: boo yeah, jim is my stock the timkin company. >> it represents the best of american manufactures and that is why we went after that and make better than anybody else in the world and that is the conclusion of "the lightning round." >> reporter: "the lightning round" is sponsored by td ameritrade ilt my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis.
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who is doing a great job of hanging in there 800-flowers. with the stock that has been a phenomenal performer over the past decade and gone into overdrive with the stock up nearly 70%, about 67%. last week 800-flowers reported
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terrific top and bottom line and raising guidance and another leg higher so can they keep climbing let's check in with chris mccann, the ceo of 800-flowers and how they are doing omni channel powerhouse welcome to "mad money. good to see you. we had your brother on the show when it first started and it was -- by the way, it was mother's day and what we're talking about were flowers i'm wondering whether or not i'm misrepresenting the company because now people do every day giving even though it is on the eve of mother's day. >> every day gifting drives the engine of our -- of our business and birthday and anniversary and sympathy and also on our gourmet food side of the business as well. >> so people would do -- send baskets to people. >> yeah. for expressing condolences our position is to inspire more human connection and celebration for all of life occasions and
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sympathy is important one. >> i think it is important to point out you started out as a flower shop and that is a long range from different holidays and bereavement. >> it is a long way. but we started with one store and getting to know the customers and how we can serve our customers differently and that is what shaped down our strategy of expanding the product line into the whole gourmet food sector. >> and it is as personalized as when you first started. >> it is we find new ways of using technology to make the experience personal just like it was when we were in the one store on the upper east side of manhattan. so the specially in latelywe'v innovated with conversational commerce to use ai capability and big data to make the experience more and more personalized. >> tell me how that would work because i buy flowers for my wife for mother's day but there are days i would like to send my daughter who lives far away and harry and david in medford or send her something because i miss her what would i do that with
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artificial intelligence to do this. >> you could go on and interact with gwen the artificial gift concierge and we keep reitier atdi atding -- reiterating -- >> is that a live person. >> no. we have a acronym called engage early and learn adapt and commercialize. so we're doing that in the field of ai. still early, but in conversational commerce using voice computing or chat bots on the facebook and messenger and the only company with chat or voice applications on facebook and amazon and apple and samsung and google the five major platforms out there. we're trying to keep on the leading edge. >> so now i have to ask about the president put a tariff on tomatoes the next -- in mexico i had to live in the house next to where there is miles of costco tomatoes. they are great what would happen if he did flowers? don't you have some of your source -- some of your flowers
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in south and central america. >> most of the product comes from south america or colombia or ecuador and most is grown in the california region and that is increased so we're glad to see that over the last ten years but the tariff discussions with the tariffs with china, fortunately they've impacted our company very little. if they go from 10% to 25% it will impact more but that is our job to mitigate that and figure out ways to mitigate that and we will. my bigger concern though is what that does to the consumer and consumer confidence as all of this trade war talks go on and on. >> now do you have a seasonal period of where there is picking -- migrant workers and that is a bump to your expenses but your expense control is amazing. >> especially in our gourmet food business and our fiscal q 2 and is calendar q 4 but hoe we manage the transportation costs. this caught everybody by surprise but we were able to actually
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lower our per unit shipping costs this past holiday season we were thrilled with that and we see that continuing. >> we're huge believers in small to medium size businesses and companies that could do that we're not anti-amazon but there is tension between the two how do you help. >> if you look at floral side of the business, we work with blue net. a network of about 5,000 to 6,000 florists who give us creativity and artistry and same day delivery capability and then our job is to develop products and services that we sell to them to make them more competitive in their local markets. >> and let's just finish with mother's day it is a big day. what should people do? they have to get orders in early or able to get them in late for the thoughtless people out there. >> for the thoughtless people we could take care of them. but i don't encourage that we could take orders up until sunday morning if needed but it is mother's day, don't wait you know what mother's guilt can do to you.
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we could take care of it easily. >> should my kids look for something for father's day. >> from harry and david, stock yard steaks, perfect, jim. >> you are just a remarkable job and i know you bought harry and david out of bankruptcy and it was a brilliant purchase many good moves. that is chris mccann 800-flowers ceo flws, one of the best performers in the market. "mad money" is back after the break. ♪ to fill your world with fun. ♪ to share my culture with my community. ♪ to make each journey more elegant. ♪ i'm working for all the adventure two wheels can bring. ♪ at adp we're designing a better way to work, so you can achieve what you're working for.
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maybe it is a gauntlet to get there. a one-two punch of hoping the uber deal does well and getting used to the idea we'll have new tariffs. so if the president walks back the new tariffs, we get an explosion up which is why i think that we're pretty much done the point of selling. but i cannot bless lots of buying here yet. too difficult. too complex. there is always a bull market somewhere and i promise to find it for you here on "mad money" and i'm jim cramer and i'll see you tomorrow
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