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tv   Mad Money  CNBC  May 20, 2019 6:00pm-7:01pm EDT

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i think it holds here. i like it. >> i will tell you what you do for the kid first off, stop playing this song. it might be the worse song of all time. >> probably crying. >> who is playing this song? >> i have no idea. >> it's awful. but say this, khol's reports in the morning. buy it against $60 that'skohls reports in the g buy it >> beiber huh? >>. my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a consumer and i ploms to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. my job is not just to entertain but to educate and teach call me 1,800,743 cbc. what made today stuff? dow sinking.
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the nasdaq plunging a whopping 1.46%. it's simple. there are fewer and fewer stocks that can be safely because because we're trying to figure out who's estimates will now need to be cut and how deep those cuts will be that's new normal until the trade war with china reaches some kind of resolution. unpa unfortunately we have no idea when that will happen. people are realizing president trump has had it with the chinese. the chinese have been saying that and is it really that shocking in the meantime lots of money is being lost by investors. they keep being surprised by the government's willingness to take the pain from the trade war. nobody's surprised when the peoples republic of china is willing to take pain they're fine putting hardship on
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their people when you consider they've been able to lift hundreds of millions of people out of poverty, that might be a thing however, that's not the american way. even when the government is fine inflicting hardship on individuals, it's been solicitous of big business not to be too cynical here, but there was a time when it would be unthinkable for the president to damage our companies to wreck a company like huawei. consider losses since the president banned intelligence. micron's falling from 43 to 44 that's a popular stock 318 to 272 that was red hot from 119 to 101. texas instruments, 117 to 104. qualcomm, 176. analog devices 116 to 97 and sky works solutions, a great company, from 91 to 68
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that is an astonishing amount of pain to inflict on u.s. companies in order to make a statement that we're not going to let huawei get ahead of us in the race for 5g. some of these chip makers get 5 to 15% of their sales from huawei this is a big deal to shut them down from this account hard to believe huawei can continue to be the fastest growing cell phone maker in the world without android. not a good news for alpha either speaking of 5g, the fcc is going to bless t-mobile's merger with split even though a merger is inherently anticompetitive because it's the only way the wireless competitors can compete the in 5g. the deal needs approval from justice department it's possible it will be blocked because even with both companies promising not to raise mergers for three years, it's a tough sale
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if justice disdoes it, it's because the president wants to dominate in 5g it is so important to him, stranger things have happened. and when you think about it, it's amazing we have a policy on 5g wireless technology, not unlike china we have one. it's incredible. you rarely see this kind of coordination on a single issue across multiple agencies unless we're at war with another country. we know the chinese are going to retaliate for what trump did to huawei, and i don't mean blocking out the last episode of "game of tloens" which they did last night imagine if we did that here. although apparently the finale was awful so maybe they did their people a favor the real retaliation will be a strike against apple even though their technology ecosystem employees over 2 million people
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the stock got hit today, down 6 bucks. it's been hammered relentlessly since the latest escalation even as china hasn't said anything about the company. apple could be in the cross hairs. and they might get it from both ends my understanding is that the white house wants apple to move production out of china. they don't care about apple's earnings beyond trump doesn't want to see the average get hit. it's not just apple. many companies are getting anxious about the tariffs. 25% is much bigger deal than 10%. nike wrote the president today calling the tariffs catastrophic for our consumers and companies and american economy as a whole. the group begs him saying on behalf of our hundred of millions of footwear consumers and hundred of thousands employees, we ask you stop the action to increase the tax burden all imports from china is a sales tax on the american
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consumer they want the trade war to end under any other administration -- this is the kind of letter that might have a real impact on policy making it's what china was counting on. but they didn't count on alternative facts. we have a president who believes that china's the one paying the tariffs, china and he's convinced millions of americans this is just free money. he's arguing the best way to close the budget deficit is more tariffs. and companies like nike and under armor are cry babies the tariffs are a sales tax on you, the consumer. but this is a post-truth presidency get used to it that letter from the apparel industry continues there are suggests to shift to countries other than chooi nat in the wake of the tariff threats while the industry has been moving away from china some time now footwear is a capital industry with years of premium required to make sourcing decisions and companies cannot move the
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factories. you can't move your factories overnight. this is going to hurt many players in the apparel space although you need to keep in mind the executives are talking in their own book. finally the ceos warn of long-term lasting effects with american individuals and families as well as threats to, quote, the very economic viability of industries in our country. i can see the president reading this and laughing at it. he has no sympathy for these companies. see, to them, they're the ones that took the jobs out of the united states in the first place. why didn't they think about this worse case they move their manufacturing somewhere else and the earnings take a hit. it's not the end of the world. he doesn't care about earnings per share. he's different from the previous presidents he lives in the universe where the chinese pay the tariffs. i took e con 101 as long as president trump believes the chinese are the ones who pay the price, he's going to keep taking a hard line
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approach that means your portfolio has to have as little exposure to china as possible until this mess gets resolved i'm going to andrew in connecticut. >> caller: hey, jim. i'm an architect buying and selling stocks isn't my forte, and i could use your help in 2017, i bought my first stock, tesla for 357 today it's 205 i believe in the company should i stick with it or should i go somewhere else? >> if you believe in the company, i'm not going to talk you about it if you like the company, like the car, and can look at the balance sheet and follow our coverage and still like it, then, you know what, you should own it but it's important you do all those things before you decide to own it. jonathan in texas. jonathan >> caller: hello, jim. booya from san antonio >> there you go. what's up? >> caller: regarding 3m there's been chatter about a possible
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cut in the dividends do you think the dividend is in jeopardy and do you think a cut has been priced into the stock >> i do not think they're going to have to cut their dividend. they have one of the best dividend records of all time that would not be their style. the stock got overvalued it does have a 3.4% yield. i've been trying to figure out where i can say we're at the bottom it's still too expensive let's go to -- that's minnesota mining, the old one at least let's go to thomas in minnesota. thomas >> caller: thank you for your help, mr. cramer >> of course >> caller: when leaving for school this morning, my boys called it "mad money monday. calling about yetty. 36.60 and closed today with no catalyst is there any reason for the sell off? >> this is a great company maybe you buy here some for your kids and if it goes down to 22 or 23, look at it as an
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opportunity to buy more. we study this company and truly believe in it. zack in indiana. zack >> caller: hey, jim, how are you doing today? >> not bad how are you? >> caller: not bad i wanted to get your opinion on microsoft. we saw the company's stock price rise i know the first quarter produced year over year. do you think they can produce the revenue. >> i actually had the discussion this morning with the club i was saying this stock has moved up so much we agreed it's such a good company that if you just own it for a while it's okay it moved thank you very much. in other words, i believe in microsoft. it is tough out there but one thing is certain stay away from stocks that direct exposure to china tonight, starbucks have
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arrived on wall street after a week in saln francisco covering all things tech, i learned about the social media sector i'm offering power ranks and the next grand theft auto is on the horizon what does it mean for take two i'm talking to the ceo stay with cramer . >> don't miss a second of "mad money. follow @jimcramer on twitter have a question, tweet #madtweets send jim an email or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com. ♪
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because they got fooled again. i'm talking about coffee that trades under the symbol lk this is a rapidly growing chinese chain -- rapidly is too soft a word for what they're doing. chinese companies that become public in the u.s. tend to be bad investments right out of the gate especially. the stock spiked to 25, got to buy some, got to buy some, ooh but closing just above $20 >> boo >> if you bought this thing, you got crushed. the stock keeps getting hammered, down another 8.7% to $18 today. in case you're tempted, i want to persuade you why you should avoid the stock of the coffee and others like it it's the second largest coffee network in china they have a technology driven business model
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do everything via mobility app, no cashiers. the pitch, lucken gives you affordable coffee. this company is growing like a weed, like cudzu within 18 months, lucken has expanded from a single trial store in beijing, one, to 2,370 stores at the end of march they store grew by 17% increase year over year the average items jumped 324%. this is steroidal growth clearly there's a demand for a chain that isn't starbucks coffee penetration in the peoples' republic is very low. they drink 1.6% of the coffee we do some say they only drink three cup ace year or something. the numbers are really staggering i like this chart. so, it sure seems like lucken has been let's say an incredible
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opportunity. when you drill that into the numbers, they're spectacular these figures are so amazing they're kind of hard to process. how do you account this thing had revenue growth in the first quarter? that's deceleration from 336,178 growth they had last year. this kind of growth isn't unsustainable. it's really spectacular. they've grown to more than 2,000 stores in less than two years. you've got jaw dropping growth numbers. for a while they were opening a new store every three and a half hours. why doesn't every company do this you've got a concept, why not take it from regional to national overnight because history is littered with the remains of restaurants and retailers that tried to expand too rapidly and end up destroying themselves.
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they're like icherus you can end up sacrificing probability. they lucked into 78 pl had in the first quarter and while that's an improvement from last year, it's not great using the chinese currency figures, they're operating market is going 198% last year to 110% in the last quarter. these guys are a long way from turning a profit the real red flag is the cash flow statement they're operating cash flow, regular business operations came in negative 93.5 million they will go through the money they raised in last week's ipo in less than two years that's why the stock is going down going from nothing to over 2,000 stores in a couple years, i'm calling that a risky proposition. you're wagering that you've got the business model nailed and you don't need to adapt anything to new locations you're betting that most of
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these new stores will be successful and money losers. in order to make an educated guess about what will work, you need data, the kind of data you can only get by running your store oefrs a longer period of time that's why companies that expand too rapidly get into a lot of trouble. i want you to contrast luckin with starbucks starbucks is number one in china. unlike luckin they are usually profitable while they're growing quickly, they're still taking their expansion at a reasonable and responsible pace that's nowhere near the growth we saw from luckin when i communicate with howard schultz, the former chairman and ceo of starbucks last week, he told me luckin coffee reminded him of the cardinal sin of all restaurants, reminded him of boston chicken what ai flame out. obviously he's not a disinterested third party. but i had the same thought boston chicken came public with
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a bang in 1993 the stock exploded hard. brought up new stores in a truly insane pace. they were opening them next to each other by 1998 people became sour on the concept and they declared bankruptcy starbucks has been succeeded china for years. they haven't been hurt or ginned up by the trade war. if beijing zuds to hit them to punish the united states, for now starbucks is doing incredibly well. the most recent quarter told us they opened 553 new stores in china over the previous months they continue to achieve best in class profitability and returns on the investments in the unlikely event that starbucks gets hit with a boycott, i would be hesitant to recommend luckin because of the chinese ipos that hit the market last year, 23 of them have lost you money from where their deals
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priced 23 24 have lost money from their first trade. the average return down 22% from its first day close. those are terrible odds, people. and the chinese ipos from the class of 2019 have faired even worse. when are they going to stop pumping this darn stuff out? luckin coffee seems to be full of -- really -- just following the exact same pattern, big initial spike followed by rapid sell off down here i wouldn't be a buyer. too risky. bottom line, unless we're talking about a company with tried and true track record, you need to be careful about chinese ipos if i saw this kind of business model anywhere else, it would be the red flag i threw earlier it just screams overexpansion. in a chinese coffee chain, hard pass stick with cramer. >> coming up, it takes two baby. cramer says game on to the chief
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of take-two interactive when mad money returns. what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov.
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last week pinterest got obliterated. then we got to know the company a little bit better, talking to ceo ben silverman, he paint aid bullish picture. ever since that interview i've been wondering how does pinterest stack up against facebook, twitter, snap when it comes to future stock performance. tonight we're rolling out "mad money" power rankings for social media. you know you like the power ranks. we've seen it in tweets and email. number one is facebook this is the company that got hit by a scandal last year
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are they selling off your data to bad actors? do they need to be reigned in. last july they told us they were going to spend a fortune to fix their system the stock plummeted the in a single awful session before going still lower. it bottomed on christmas eve 2019 is much much better, back up to 183. companies reported two quarters in a row facebook delivered nice top and bottom line beat daily actors up. even better total, pressures were up staggered 32%. after two straight upside surprises, we got a sense that facebook would be just fine. it still gets rocked by negative ed hadlines from time to time including a scathing op-ed piece from cofounder chris hughes who called for the company to be broken up and regulated much more aggressively.
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he had good points but as someone who wants to see stocks go high e i don't want to hear him. learn how to compartmentalize, please while facebook has pulled back, it's just 25 times next year tarnished reputation in the media. if people flea from facebook, they switch to instagram that's also owned by facebook it's the best platform around if you want to engage in targeted advertising. this is the most important company on earth because its scale is unparalleled. throw in whatsapp, the power house messaging service and nobody comes close to these guys as long as facebook can maintain user and engagement numbers, this stock will remain the undisputed king of social media. it represents the best value in the cohort, the best of breed social media kingpin, also the cheapest of the big social media stocks that rarely happens
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it's a great opportunity i am sure people are freaking out. looks like this, this. it'll be a gift, okay? that's a gift. not a gif which is g-i-f, i know that happens who holds the number two spot in the power rankings that happens to be twitter i'm not talking about the game while this stock had a epic run with stock rising from $15 to mid 40s, it's become more of a battleground, one that's been stuck in the 30s for months. it's called marking time, people i've been a huge fan of this stock and it's not really a shock, right for this whole move because management has worked very hard to turn the business around. i've seen the efforts to remove or bury some of the ugliest material on the platform using artificial intelligence and as a result twitter has become a much more pleasant place to spend your time. as a result daily average users
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have been improving along with engagement numbers twitter increasingly focused on live events like sports. i want you to listen to a guy who i found very impressive in san francisco last week. his name is ned siegel he's the cfo listen to what he told us. >> for the women's world cup we're going to show every goal as a highlight right after it happens. for major league baseball you can vote what player you want to see their at bats live on twitter that evening so, you get to vote and watch it >> that guy doesn't have nearly the number of followers as his previous ceo he blasted me on twitter this guy is money. this is a big one. efforts are paying off when twitter reported latest numbers in late april, they were incredible 37 cents wall street was only looking for 15 on top of that sold revenue beat cost per engagement was down 4%.
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average monetize able daily active users grew from 120 to 134 million over the same period even as monthly average users were down slightly twitter insists monthly numbers are not important. their whole platform is geared towards numbers every day. figures look good. people worry head and shoulders. i say would you think a little bit bigger please because this stock could be big in the second half of 2019 on top of that, twitter benefits from being president trump's preferred mode of communication. other than facebook, it's the only social media place that's profitable 33 times next year's earnings, it's not cheap it might be a bargain in retrospect 3 is controversial it's pinterest the stock became public last month. pinterest did have a huge pop right out of the gate. but it rapidly worked its way higher over the following weeks. i told you i like the story even
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though the stock needed to come down before i could recommend buying it. then pinterest reported last thursday night wall street was not amused as you can see when the company became public it looked like pinterest might be on the verge of turning a public. they're a long way from profitability. monthly users are up 22% pinterest had a 54% sales growth that's outstanding why is pinterest money they're investing in their business that's what you should do. as ceo ben silverman told us friday they're focused on the long term. while the stock isn't what we call cheap, 9.7 times 2020 sales, sales, you have my blessing to be a small buyer here and get bigger as the stock goes down. this is going to be a long-term
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keeper finally in fourth place that's snap, parent of snapchat when these guys became public they initially roared higher i warned you to stay away. i was adamant. peaked the day after the ipo disappointing numbers. so far in 2019 we've seen signs of life as the stocks more than doubled from $5.51 to $11.19 as of today how did i get back came down too far too fast for the fourth quarter bear market so it got slugged here and in early february the company reported better than expected quarter you can see what happened. that was a better expected quarter. management had positive things to say about user engagement it was stabilizing montization snap stock caught fire, got ahead of itself, results were good, guidance not perfect, not bad, just had hair on it and when your stock is more than double going into the earnings, anything less than perfection
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and perfect results, that's going to cause a sell off. it's not so bad. it's not i know i got two negative on it down here. seems like these guys have gotten their act together. i'm welcoming them to the show by the way it would be great. they don't have the best track record, but they can come back like i said this whole social media end is working bottom line if you want social media exposure, get facebook, number one. twitter is distant second. pinterest, close third then the inconsistent snap, welcome to the show, to tell us why they deserve to be higher in our newfound power rankings. now i'm going to sam in connecticut. sam! >> caller: jim, big fan. thanks so much for taking my call and thanks for everything you do >> my pleasure, thank you. >> caller: my stock is ftnt. i know the cyber security is hot topic. i just want to get your thoughts >> look, i like fort net
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i am not in love with fortnet. we had proof point on last week. i thought proof point was really special with gary steel. i think that thats a better buy. let's go to proof point. let me catch you up on the social media situation number one is facebook number two is twitter. number three is pinterest. but remember this is a very good situation. we saw ben silverman, he liked it snap loved pleading their case take-two interactive has produced great games i'm going to talk with the ceo how joe biden's view on health care could help certain stocks shine. i'll reveal the names. the lightning round. so, stay with cramer -driverless cars... -all ground personnel...
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how can take-two interactive software the stock get its mojo back because the company sure hasn't new competition from free to play battle royal games have up ended the model. take two had the successfully redemption game. stock finally found footing in late february and has been on the rise feels like wall street doesn't know what to do with this one. when take two reported a solid recording a month ago, the numbers were good enough to send
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the stock roaring over the next two days it's pulling back. while take-two is long time cramer faith, let's take a look with strauss zelnick to get a better read on the quarter welcome back to "mad money." good to see you strauss. >> nice to see you, jim. >> there's a couple ways to look at the quarter one is someone says your guidance was conserved another guy says you didn't raise enough another way is you bought a ton of stock back and realize the stock has been marking time. shouldn't we by thinking about that >> we reserve our capital for three uses, returning capital to shareholders, supporting organic growth and inorganic opportunities. when do we buy back stock? when we perceive deep value in the marketplace? usually we're right about that but companies always think their stock is undervalued >> the stock stayed the same, so
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that means you're looking at a company that is substantially better than it was a year ago and yet the stock is not moving. you have no choice but to buy back stock it makes too much sense not to >> we spent $360 million doing that in the past fiscal year >> that was terrific i think what people are hung up on is battle royale. i get that it's very exciting but we were at nvidia last week. we saw what you told us. we saw life like video you couldn't tell if this was a movie with actual people or if it was math. if it's math, which it is, isn't 2022, 2025 the greatest years ever >> i think it's incredibly exciting and not just because you can make incredible entertainment that looks like live action. i think the story about free to play is also exciting because it brings more gamers into the market >> and you talk about nba. you've got free to play.
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>> it's $130 billion market, most rapidly growing business in the entertainment business this is all good news. >> let's talk about the most rapidly growing business within entertainment. there's a lot of entertainment companies consolidated there's a lot of companies that just want one thing, your growth how is possible you can have some parts of the industry trading wildly up when your growth far exceeds them or is that up to us who don't realize what we have on our hands? >> look, it's very hard to understand the market movements on a basis as you know much better than i. our job is to deliver hits, excite consumer, captivate and engage them and good things happen >> when you do red dead online or nba with online, these are things that haven't been factored in yet in terms of the numbers. that's next year's business. >> it's a big part of this year's business this year already. recurring spending is up year over year.
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it's near 40% of the business which used to be 0% of the business that will continue to grow because consumers are engaged over the course of the year, not just at the time you have one big release. >> a buddy of mine owns a chain of gaming places and they're for people who are in their young -- let's say high single digit kids, okay and they're training because they think that there's going to be an nca scholarship. i'm talking about reality. they know that what's going to happen is there's going to be title ix, ncaa scholarships. is this a vision you share >> yes >> you do? >> e sports are already watched by 250 million people and 125 million people consider it primary entertainment vehicle. the nba 2k league is in its second season. we have 21 teams participating we're off to the races >> the visionary rtx says that 1
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billion people will be gaming when they see that the games are the same as a movie. true >> i think the business will continue to expand i think that's one reason it will expand. >> okay. >> another reason you want to look at of course is streaming technology that's going to bring your titles to consumers who don't have vokss and have any kind of device all over the world. >> now, the -- there was a question that i have to admit -- someone says there's this soccer game and they're making $100 per. what's with you, strauss normally i would not be like that i would be like soccer is interesting and how are we doing? but how we doing >> fifa is great, nba 2k is great. we don't talk about specific dollars. our primary concern is making the best basketball game anyone could make and does make then when we do that, consumers show up. >> i agree but people are starting to nail you they want your monthly average users like print rest.
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are you pinterest? >> we are definitely not pinterest. and we do -- look, we did talk about users being up on nba 2k year over year we give out those statistics when we think they'll be informative. >> your spoeshl point, we're happy so far, you like what's happening? >> yeah. >> there's one you pointed out being great. >> they just launched tasty town, ward life. we are very optimistic >> they could be big >> i hope so >> there was a man who gave scholarships to everyone who graduated morehouse. can take two give some scholarships to kids to go to college who are winners? >> that's a great question we've vastly increased charitable giving. we haven't done that yet >> that would be an interesting
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idea >> it is >> that's strauss zelnick. this is by far the best of the games. i understand the stock has sat there, but many stocks are down 20 or 30%. we're back after the break through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from finding out what's selling best... to managing your fleet... to collaborating remotely with your teams. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence.
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>> lightning round is sponsored by td ameritrade >> it is time! it's time for the lightning round! then the lightning round is over are you ready? william in new york. >> caller: hi jim. booya! >> booya >> caller: week the ceo of my company bought 1.5 million shares with all the insider buying, can i buy off? my company is tex con. >> bill miller has got so many good stocks, i wish he wasn't saddled with this. this is a loser. it's a loser and i don't want to hear about it. i feel bad if you're in it it's a loser, all right? fair enough? we said it
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loser. rick in north carolina rick >> caller: hey jimmy, great to talk to you man, you're the best >> same. >> caller: ceo was on your show about a month and a half ago called iridium >> matt dash, i thought he did a great job. i like the stock it has a niche business i didn't know about how about we go to zo in virginia >> caller: love your show. my wife and i look forward every night. >> that's so nice. thank you. >> caller: thank you for your guidance i also like to give shout out to a friend of mine in florida. about 20 years ago bob started mentoring me on buying stock that was the best investment advice anyone could ask for. >> that's nice >> caller: now i share my investment guidance i get from "mad money" with bob
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recently bob asked me to ask you what do you think about way fair >> this is a rough market right now and way fair is the kind of stock that's not necessarily the best thing to buy at this moment i do think the company has tremendous growth, but i would rather tell bob that it's amazon let amazon come down, buy a little bit at a time that's a better bet. let's go to david in california. >> caller: i need your help. >> sure. >> caller: i'm thinking of buying -- huh? >> huh >>. >> caller: all right i'm thinking about buying pay paul or z scale. what's your recommendation >> i prefer paypal the stock can come down a little it's a hard time coming down z scaler, how about zin desk i think zin desk is good i like octa. octa interesting company. all right. let's go to mark in new york mark >> caller: jim, booya.
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>> booya >> caller: i have a question about zy nerba pharmaceuticals >> this is a huge speculative stock. it's moved up gigantically it's up 388% if you want a speck, i'm okay with it. but please understand it is totally speculative. i don't want you to lose any money. a lot of people losing money here, i don't want to be a part of it. let's go to john in massachusetts. john >> caller: booya jim go patriots. >> right in my face. okay yeah, patriots, yeah get your job done, do your assignment, win. okay i just did it. what's the stock what lou! i'm a buyer. i'll buy more. end that end of the lightning round
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>> the lightning round is sponsored by td ameritrade ♪♪ ♪♪ ♪♪ get it. get it. get it! get it! crowd chanting: get it! get it! get it! (crowd groaning) (crowd cheering) narrator: give your town a reason to celebrate because every goodwill item you bring home, brings job training and more to your community. goodwill.
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how can withstand the trade war with china and the slowdown of the u.s. economy if you're worried that the expansion might be winding down, what is worth buying all right. this is going to sound a little crazy, but how about the manage
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care stocks? this hated group -- >> boo >> -- has gotten pep in its step lately i'm going to tell you why. given the wholesale carnage in the stock last month, it seemed odd. everybody was worried about the democratic candidates pushing for medicare for all, something that would put many of these companies out of business. when united health group reported mid-april, it reported phenomenal numbers but the stock crashed because of these fears such a policy would destroy the quality health care this system provides, he says. wholesale disruption of the american health care being discussed in some of the proposals would surely jeopardize the relationship people have with their doctors, destabilize the nation's health care system and limit the abilities to practice medicine their best this is saying anyone who sells insurance has every reason to
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oppose single payer health care. but this wasn't the best way to handle it. single payer might be a real possibility. put it on the -- make it front and center and the stock plummeted in response because people said if david is worried about it, maybe we should be too this previously defensive group of stocks went into free fall. looking back, here's what happens and it turned out to be obvious. joe biden announced he was running and suddenly the front runner was an insurance friendly runner biden's against medicare for all. overnight it became safe to own the manage care stocks again it's not too late. the political risk was most reduced. i think it was always reduced. nancy pelosi is also against single payer they don't want to talk about this stuff, but with biden leading the polls, the insurance
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will be fine thank you as president trump ratchets up tension with china, retailers which are often safe haven getting hit by tariffs and expect a series of bad retail number, the manage care stocks have nothing to fear what's the best one to own david wick man, my favorite. it's the biggest and in many ways the best. it keeps beating and raising quarters second michael murdock has been a huge winner for obamacare. finally, you know, i like cvs which has been hammered endlessly as investors worry amazon is poaching the front of the store while it looks smart with aetna wait a second. maybe aetna is back in style cvs reports a bountiful yield
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and seven times next year's earnings this thing needs to sell at a premium. that's the cheapest stock in the group. that's why we own uah and cvs. you can follow along in the club biden's front runner status is good news for the pharmaceutical stocks and the hospital chains it's not too late to invest in these stocks because trump keeps giving us more reason to bail on companies with exposure to china and circle the wagons. i think you should use any weakness to do some because this is now the thing to do
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i'm jim cramer and i'll see you tomorrow >> narrator: in this episode of "american greed"... making movies and making money. >> it was good money. and i didn't think it was ever gonna end. >> narrator: mac parker lives and works in vermont. but his moneymaking mojo is straight out of hollywood. >> i would sometimes raise as much as $150,000 a week. >> narrator: there's just one problem -- if his movie costs less than $1 million to make, why is parker raising $28 million? >> it was discovered that less than a nickel of every dollar that was being invested was actually spent towards the creation of the movie. >> i put everything i had, every
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penny i had into the film, which really put me in a

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