>> we'll see you back here at 5:30 p.m. eastern time don't go anywhere. "mad money" starts right now >> my mission is simple. to make you money. i'm here to level the playing field for all investors. i promise to help you find it. "mad money" starts now >> hey, i'm cramer welcome to "mad money. do you want to make friends? i'm just trying to make money. call me at 1-800, 737. i'm talking about the gigantic short fall from one of the largest semiconductor companies

on earth the trade war with china could cost a lot of money. dow dipping 17 points. we focus on the rode hot ipo of chewy. yes! the digital pet supply store more on that one later what you need to know now is that we're in a weird moment waiting, waiting, waiting, waiting for the fed to speak, wednesday's business then whether they believe we need a rate cut. we're waiting for the g-20 meeting where maybe trump and shooe c sho xi on monday united technologies gives you a briefing from the paris air show

and you have to wonder, tell us a little more about this merger makes sense. as shareholders, fleeing from the stock since the news broke i think the deal is dewsing. i believe there's real work to the stock into a carrier company, elevator company. it looks fantastic raytheon i get they tell a darn good story. tuesday, another one that gets knocked around all the time. it's his turn to talk. you should be suspicious of g.e. hyping its own gross strategy here i think the ceo has been staying away from hype ever since they brought him in to run the company. ge's been stuck around $10 for over a month

i think they'll have a lot of orders it will go higher. it will be because the numbers are better we hear from one of my absolute kms, adobe you know i love this company i expect the visionary of the ceo will deliver election reports. we've seen many lay eggs, the kinds that don't hatch if adobe gets hit of a good number, i want you to buy it the press conference, meeting, open market, i suspect they'll talk about the need to monitor the economy. i think they want to have more info than he currently has before taking action that's ok. i get that expressing vigilance should be enough to keep the bulls happy this tech stock, even as there always seem to be critics who

are out say that the business isn't as strong and they're losing shares. i'm not enamored of the stuck but 15 times earnings next week, it is hard to dislike oar equal. kroger, darden and can it be growth kroger's been struggling against walmart which has gotten aggressive with food, with amazon and costco. they've done really well with food target is revitalized. they're all gun r fog kroger tough to be in the grocery business these days. i'm glad i'm not in it this is a new world. maybe this time will be different. i've got my eyes open. how about two, the parent company. the value of the restaurant

chain. i think he'll be able to tell a good story about cheddar's scratch kitchen. they purchased that a little over two years ago this has wall street scratching its collective head. if we can explain why it made sense, darden will get his mojo back then there's canopy. you've seen them numerous of them cannabis kingpin ceo bruce litton has a terrific thing. he's talked about did beneficial properties of marijuana. the outgoing fda chairman was openly critical of the benefits of medical marijuana i pressed the dish pressed the guy from chewy today about

whether cbd dog food they're not there either people got to get on their case. merkel, i examine to be dazzled by the success of keytruda i bet they do a good enough job that their chief rival bristol meyers buy the stock. then you take the trade-off. you ring the register on merck and then buy bristol-myers if they go down, which i think it will they'll raise money. bristol-myers is the one to buy. blended naets, lots of short sellers getting they can knock

down the price there's room for both of them in a faux meat space. we all know the auto industry is struggling we can't say the same about the used car business because used cars are on fire i think car max will deliver another strong quarter on friday interest rates have come down, making it cheaper for people to get financing. cut short from interest rates, a good stock to buy. also watching a whole bunch of ipos next week no adrugs for i.p.o. i can't get excited about it but so many of these stocks have been working that i want you to keep slack on your radar screen. next week, watch for twitter

i think the sacramentock market. buy merck, sell merck, buy bristol-myers, that's my plan for the week i'm starting with jack in ohio jack. >> caller: thanks for taking my call >> good to talk to you what's up. >> caller: i'm thinking of adding a new secretator. >> a ton of it right down here judgest trying to break the stock up get that over with and we're going to be up until then, i think it's going to mark time kenny in my home city of new jersey kenny! >> caller: i love your show. love your adrenaline >> thank you >> i bought foot loerk at $41 a

share. the nike's most profitable sneakers >> you bought that one on your own, sir, because i got to tell you, that was a miserable conference call and not great last quarter i found myself confused. i do prefer nike to foot locker. i don't like anything, nothing more i don't like fossil fuel these are my bread lexes i expect tomb to present itself next week. you got to pick one. i'm going to help you. on "mad money," it's a different kind of software but this has been in the lap of lurksry did you furnish your portfolio i'm pulling up a chair with the ceo. then it's raining kalgts and dogs on wall street today as

chewy made its public debut. i'm chattanooga over the action. and investor day i suggest you stay with kr5i78er

some companies are such great operators that they deserve the benefit of the doubt even if in the face of incredibly challenging circumstances. that's the high end home furnishing chain formerly known as restoration hardware. rh sources so much merchandise from china and they seem to be resiej to be caught in the tariff crossfire that's what people thought then this week they took

aggressive action. they're not letting it happen. try to get new deals with suppliers and moving sourcing outside of china that, including coming to the u.s. that's why the stock exploded higher yesterday especially with this most incredible buyback i've seen let's check in with the ceo to find out more. welcome back to "mad money." good to see you again. >> hi. >> what a tour de force conference call. you just put to rest a lot of people's worries as you said you would. you have put back 60% of the stock for this period. i think you think the stock's undervalued, don't you >> we think it's massively undervalued. if you look at t our earnings and think about the multiple this company should have, you know, today we believe the stock should be worth $200 a share but i think people continue to misunderstand us

we're building stores that are unlike anything that are being built in retail today. we've taken on some debt we kind of almost did a vertically integrated buyback of our company. >> what? >> and people are confused about the model. they think retail is under attack >> right >> by amazon and others. we're really playing at a different level and disrupting a different part of the markets. >> for instance, the unbelievable story of the meat facting district i got to tell you, it's a breath taking experience, as you know i went there with my daughter. you said you were comfortably in excess of a hundred million dollars in one store that's incredible! >> yeah. we think it's going to at least be a hundred million dollars in its first year with the we get approval and if anybody's watching that's our customers in new york that want to come help us at the next city

council meeting get approval to serve food outdoors, i thitd will be in excess of 20 million. >> you talked about something i was concerned about, i said so at the time, is the china tariffs. you can't be at the mercy of anybody. >> no, you can't but you can't be offender reactive to kind of short-term noise. >> right >> and you have to stay with your long term narrative it's about having the right goods, manufactured at the right quality-level and presented in the right way at the right value. and beg overly reactive and moving sourcing around and kind of categories like ours can present more risk. >> that's back to america. >> we've had -- we buy products in america we manufacture some of our own

trucks in america. we have a manufacturing facility in north carolina. and we're just always improvi improvising and looking for opportunity. so, look, if the china tariff situation would be settled next week and everybody coo spent a lot of time and distraction, the fact is the chinese government, the chinese factors are motivated for a good outcome the u.s. is motivate for a good outcome. balancing trade is a goodgood thing. i don't mind some of this short-term chaos because i think the long-term outcome for the u.s. is going to be good >> you talked about how linked you were to the stock market it made me feel like, one, obviously, things came roaring back, it might be more good to link around the world, so you're less u.s. stock market

controlled that's in the cards, right >> almost any business today is going to be linked to the stock market because of the massive amount of wealth tied in at both levels when you look at our four corner, the market fell -- fourth quarter, the markets fell 2 dow is back to 26,000. people are like, your business is back. right. no kidding >> kind of like a naivete about some of the people trying to understand your business i understand your business i'm like, hey, the market's back up this is going to be great. >> yeah. that's maybe our -- >> this is not new >> look. why do you think the president's feeting about interest rates and the fed and so on and so forth a lot of times the fed waits until a recession start to lower interest rates the market's going to do better.

we'll do better. the goebel view of our business is just beginning. we've said we comfortably think we can be four to five million in north america and that's just completing our real estate transformation onds our marketing strategies toefld. if you look at the luxury end and think about the global marketplace, we're like dumb americans. we only see what we see and it's like -- a quote, we don't see things as they are, we see things as we are only 25% of their business is in the u.s. manchts three-quarters of it is outside the u.s. market we think this could be a 10 to $20 billion.

>> san francisco, hichk bethlehem steel building, the whole water front is being rebuilt. the meat packing district, san francisco. a beautiful historic building that will be amazing with the rooftop and integrated h hospitali hospitality. i'm with my team and we're flying to europe, ten different cities we think we'll be global pretty soon >> this is not an insult listen -- >> i'm used to insults don't worry. >> no. there are a lot of very wealthy people who go to costco. they do. my wife swears by the fact that being a pleb of rh, she thinks the stuff is very inexpensive as a member sometimes you have a reputation of everything being too suspensionive. if you're -- look at the beach collection my wife gets. >> i think clearly your wife

ought to be on the show with us, too. >> i said that >> i did, thank you very much. thank you. yeah it's -- at the end of the day it comes down to value. right? >> yeah. >> it's not about price. >> yeah. >> it's about 1r5u8. if you look at what tesla's doing and you'll look at the a you will-in value of the vehicles they're creating. the vehicles are more expensive but when you look at the all-in value, they're not >> there's no -- >> no. we're building a timeless product that we think will last generations. jihadi you anaheim the big believer i knew you would figure it out impgs astonished people didn't see the connection between that and december >> yeah. >> just wiping out what happened in the market but the market came back. >> in december our earnings were up 78% net income, right so 76% in the first quarter, 48%.

in the fourth quarter it was 48% income growth. so you can't get distracted by the short-term noise you have to stay focused >> $5 million. >> maybe 10 or 20 billion. >> all right that's the ceo of rh i got to tell you. this is a magnificent quarter and by the way, a fantastic conference call. -driverless cars... -all ground personnel...

...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. this ipo market doesn't know when to quit that uber deal went public with a whimper. they keep buying these things. makes them into not small

companies once they get it going. look at crewy, chwy, spun off by petsmart, hind of the range, $22. then opened at 36 and climbed to 41 and change before pulling back still, if you got in on the ipo chewy's giving a magnificent 59% gain how the heck does that happen? could the stock potentially have more room to run >> i want chase the stock at these levels necessarily you might as well put it in your shopping basket. we've had the second and third -- the reason's pretty simple let me break it county first there are -- as we know anybody who watches this show, the humanization of pets theory. something we've been talking about for years. americans increasingly treat

their companion animals like members of the family, which means we spend more and more money on surprise and health care the dog starts in the basement, then they're in your room, next thing you know, they're in your spot this is a highly fragmented industry maybe 15 years behind the rest of retail. as of 2017 e-commerce only accounted for 14% of the pet food these numbers have been growing like crazy chewy expects to reach 25% by 2022 i think that maybe be a conservative estimate. for some reason, the internet didn't take this business by storm, at least not until now. chewy has it figured out fitting, the ceo comes from amazon, he was a big executive

more importantly, chewy makes the whole process convenient two-thirds of their customers are signed up for auto subscribe. there are seven fulfillment centers. two-day shipping for nearly the entire country the ceo told us sometime they price through amazon when it comes to delivery. the real thing is customer service. they keep shopping at brick and minority ar pet stores because they want to give their pets the right food under a need to talk to someone chewy is well trained, friendly and give you the advice you could only get from a high-quality pet store i know they're the real deal when i tweet about chewy yesterday they sent me these

paintings. first of inindividual ya a bad day because of broadcom, you know then marley, dumbest animal alive. he ate our bannisters. people responded with their own incredible stories they sent 40,000 of these out. sounds like every time a customer's dog dies, the they don't make you pay for the food that month i don't know what to say to that chewy guys, i just got the report back that lump on his leg is not cancerous made the day this morning, i had the chance to ask some, the ceo of chewy about his vision take a look. >> two-thirds of our revenue come from ownership or subscription program our customers love engaging with us >> he's right. you see these over and over and over again if you look at my

twitter feed forget about that and focus on this ok that formula's clearly working chewy didn't even exist ten years ago. they created it to raise money for animal shelters. these are both from kill shelters, all right? then chewy's sales took off. 3.5 billion last year. 90% of the people do renew when someone starts shopping on chewy, they the end to stick with them. fabulous retention we know it beats brick and mortar again, the ceo from amazon that's how the company can deliver such good numbers. which is why wall street went crazy for the stock.

while that represents a deceleration, the company is up against numbers. they've been investing too much of growing the business like amazon for now, but other than that, the financials, i really like them if chewy weren't an independent entity, i think i'd still be recommending them. in 2017 chewy was acquired by pet smart and they have a controlling interest in the company. luckily chewy isn't on the hook for petsmart's i never like it when there's a private equity firm lurking by ringing the register on its

gigantic position. i understand why investors are losing their minds over chewy. who wouldn't inindividual yus 12 right now. jenson won't -- he has an i.t. card to get into inindividual ya anytime he wanhe wants the stoct 3.9 times last year's sales. let's be conservative and assume it slows down to 25% in that case, the stock's 2 poinl 9 tiemtsz. you know what? that strikes me as pretty reasonab reasonable it's got a substantially slower growth rate.

i think chewy deserves to trade at a premium, just not this much of a premium the stock would come down like 31, 30, it would be trading at about 2.5 times. those are the levels i think you buy the stock. until then, maybe keep your head on your shoulders. be patient i wouldn't listen to anybody who tried to term it the second coming of pet smart. that is just unfair. the bottom line, even after today's magnificent run, chewy isn't all that spenszive still, i hate the chase, which is why i think you 1450 wait for chewy to be $30 to full trigger. i can. >> why you might want to put some away right here right now, because they love the km that next i'm channel my own phil griffith here and this, by the way, oh man, is

that heavy have we named this pet yet >> yes we name that put -- we're thinking chewy, maybe. >> this is chewy may chewy have a long life in that fish bowl let's speak to mary-beth in michigan >> caller: hello >> hello >> caller: thank you for taking my call. >> of course >> caller: my husband and i have watched you for years. >> thank you >> caller: also want to give a shout-out to your suburb staff they are so great. >> i know, i know. incredible, incredible >> my stock is pet x, it was an ipo dmp 2017 the it was featured in august or early september of 2018. i bait for my 2k3wr57bdson so he

could have the stock there are some security claims by many different law firmts i'm wondering if it's still a hold or sell >> i'm going to suggested -- and this is -- i've looked at this company. that's not the reason to get rid of it. i think you swap out with that and stwoich chewy. i told my wife we have to switch to chewy it isn't like somebody giving us pictures of marley and invidia i think juliette ya's the real deal even if you're today's runner, if ipo isn't that spinszive. when you get a couple, go buy something. what does the ceo of seine tina have to say about it

and then depressing! i'mbreaking down the numbers next is the lightning round. so stay with cramer.

look, it's a tough time to earn managed share stocks. wall street is terrified about what might happen to the health insurance industry if one of the democratic candidates wins the white house. from medicare, medicare to the baker exchanges, stoke has been pummeled it's ridiculous. doesn't help that they're buying well care in march it's a great idea. some people ro leery of the whole managed care space somebody has been trying to shoot down the deal. doesn't look like he's going to get his way. can this stock turn around let's look at the president, chairman and ceo of centene. welcome back to "mad money."

>> thank you >> congratulations are in order. one of the more exciting years for certainly your first, your first. >> that's right. we had it 49 years ago in the finals it was our turn. >> welcome back. fantastic. and congratulations. give us the gist about the analyst data you have a lot to cover. this industry is more controversial than it's been in a long time. >> we spend a lot of our time talking about the systems, how we're modernizing what managed care does. we were clearly a tech company that has moved to hotel care >> right >> we show the ecosystem we have, have really managed the care, improves outcomes. at the same time, better quality, lower cost. we took them through all those details. >> now, you would -- the company you're trying to buy while a

good company, i think does not have the same let's say art official intelligence you have about what outcomes are. that could be positive >> positive. whether we move into our systems, it's going to be very helpful for the total company. >> now, the there are -- dan lobe is in there everybody has a right to an opinion about what should happen i personally thought -- trying to figure out why anyone -- rational, i asked and didn't get a response, rational for you to be able to put yourself up for sale given the fact that you've been one of the better performers >> he should be smarter than that he knows that we have an agreement, he probably read it, can't talk to anyone if i wanted to it makes no sense. these are individuals, i understand they could be good investors at times.

>> they go in and do it. they hope if you can get that transaction going when somebody else buys it, they get a quick hit of 10 or 20% and move on that's not the case now. it's long past that. >> i've tried to figure out -- we hear about skyrocketing health costs >> yes >> are they not looking at your model? your model says health costs are under control and maybe even lower. >> two 3%. 80% of the people we knew were in 32 states it's like -- i told the investors today. you have a portfolio, sometimes one has trouble but that's ok. we have 38 others. >> did you say anything about what you've done with fidelis but it lacked your skill set

>> we showed how the integration of these companies go well fidel is has been great. >> on thursday president trump has been -- he's been doing a lot of stuff behind the scenes about health care. he's got these health care reimbursement arrangements that you're talking about you're talk about a hra, like an ira. make sense to you? >> no. it does but not for our population mplgts. >> why >> why should they take a less good benefit we're using the marketplace to teach people how to use insurance we're teaching them to fish rather than giving them fish you give them an hra, some people it's great for but you have to know what you're doing

>> when i hear the hra, employers get a co-pay >> right >> is this just another thing that's going to be used against the republicans by some of the more medicare for all democrats, saying look, these guys are just -- once again, it's a limited number of people being hemmed net care for all answers the questions, where they don't seem to question how much of a ost. >> i was going to say have you seen the lowest numbers over 25 years is trillions the shiends 38 drill ondollars >> in this new world, there's an alternative world we have in politics you can just say by the time we get there we'll have sthovld and it will have cost five trillion. >> it's a nice concept government really is much more

efficient than private enterprise it's not going to work >> so true >> i've not met anybody that has any hope of being done -- the only way a single payer works is a with holds services and americans are not going to to that >> let's leave it at that. i think that's absolutely true that's been my view forever. it won't work. we'd love to have great health care for all but i prefer to have hotel care insurance for as many as we can your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.

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it is time [buzzer] >> the lightning round is over are you ready! krista, krista >> boo-yah >> caller: hi, jim i bought stock a long time ago

and i forget about it. >> i love this i know the stock had a hiccup. it was a buying opportunity. this is a good situation let's go to dan in nevada. dan! >> caller: boo-yah from las vegas. my ticker is gtor golf course. >> no. let's go to alex >> caller: hey, boo-yah, cramer, how are you? j i'm good, how are you? >> i'm good. my thoughts are on big d i'm from jacksonville, florida i want to know what your thaws on jd are. >> i'm glad you're from friday i like it. i'm -- even that's not working that well. what about manuelle? >> caller: thank you for everything you do like the

homies like myself is this company every going to get out of its own way >> it's the one to own, nucor. i've got to tell you, it's at nine times value but value is not working. let's go to shante >> caller: nice to be on your show thank you. >> hymn to have you. >> i'm a fan of your show and the tweets >> it wasn't my -- i was not the guy in the picture i just threw his -- you know, whatever he's a good dog. >> caller: my question is on wells fargo. yesterday a different ceo and quest churs, what have you -- >> i continues count and start all over again i think it's a mistake thank you. and that, ladies and gentlemen

is the conclusion of the lightning round. >> the lightning round is sponsored by - >> caller: live there, cramer, you're my guru >> it's important to get this caught in your tooth when you're doing tv i want a bear trap right here, one of those that goes -- oh, god, jim please dongtd open the sausage. sorry. saw sang gets oemds. [ crashing >> they couldn't take the pain exactly. look at this look at this really starting to come together here it's like play dough except it tastes a little more like play dough. let's see if i can hit the dog [ crash

[ barking >> there you go! wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade

did broad com misjudge the resolve of the president of the united states yet again? last time they reported distinctly suboptimal quarter where they lost $2 billion

it was a slowdown in chip sales caused by the trade war. and because of the president's decision to black list wlauway with a hundred billion dollars in sales i don't think broad com saw this coming the president doesn't care about the trade deficit. he cares about containing clienz technological military might if you want to understand the trade war stop thinking about trade and think of the much more milder version, so far, of the cold bar this is the second time broad com has misjudges the white house. it w506 given them an enormous amounts of cell phones on effort they were in a battle with apple over fees. the deal was tim would buy qualcomm qualcomm would have been a fortune. we know that president trump

shortly before he launched his take over bid. he said he'd move the headquarters from singapore back to the united states he thought he was in trump's great graces but not until trump came out against it. brought up by the committee on foreign investment i think the company home run kf plate a mistake. it's a brutal defeat the qualcomm broke apart president wants to crack down on china. i don't know what else broad com could have done goat out of harm's way huawei's a huge customer i get the sense that the company wasn't prepared for the president to keep escalating the trade war or maybe believe that the president's misguided and will come to his senses when he hears from big business. i think it's a silly position to take

i got to wonder how many times these executives can keep making the same mistake at this point, you're a ceo and you don't think the president will follow through on the crack down in china, you're fooling yourself president trump thinks huawei has been stealing technology from all over the world and there's no compromise for that kind of behavior companies like broad com can't afford to do business with them anymore. the president is not going to bend over backwards anywhere to help them make money at the expense of american interests. hate him or like him, the president's been consistent on china. if you aid china or put a lot of people to work there, don't look to him for any favors. (henry) i thought it was unfair. when-- when you hear those words that you get diagnosed with cancer.

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you should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. but you're not mad, because you have e*trade which isn't complicated. their tools make trading quicker and simpler. so you can take on the markets with confidence. don't get mad. get e*trade and start trading today. one thing i didn't cover today that was the lead story in

the journal was something about facebook and something you have to watch for of course, itself wasn't negative yes. see, facebook is working on a currency, a crypto currency that can be used around the globe all right. they talk about some very powerful partners. the one that caught my attention was paypal pay balance is run by dan shulman. he's been on our show talking about the need for privacy, talking about the value of the customer talking about not violating any rules. the exact on of the ethose of facebook maybe there's a sea change coming, people maybe facebook is going to go back to the light side and today's big rally, it was a lot of negativity in tech, including a 10% drop in nasdaq could be the nal that facebook has bottomed i'm jim cramer and i will see you monday - with every roar of an engine

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