the great josh lipton. now we have debow. way to go. dollar gen is just a monster here >> tnkfohas r watching my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money. welcome to cramerica other people want to make friends, i'm trying to keep you from losing a lot of money my job is to educate, teach, call me or tweet me at jim cramer sometimes a few negatives here, a couple there throw in history and you start to get a little proverbed.

take something off the table makes sense which is how you got to today's selloff with the dow dumb bli t tumbling and nasdaq tumbling the bear camp can't exist at the sametime there cannot be co-existence with the huge covid outbreak in the sun belt spiraling out of control, bear is in charge so why don't we do this? let suspend judgment and not use terms about good or bad and take the approach of the fact spin. awaken america trade has taken a turn for the worse some people expected that. i didn't it's a disturbing spike in covid cases across alabama, north carolina, south carolina and texas. the infection level so high the governors of new jersey, new

york and connecticut have taken an unusual action and slapped a 14-day quarantine on travelers from these hot spots that's amazing they have more than 35,000 new cases today which is about where these numbers peaked in april. not good it's plain bad news for everything that depends on the economy reopening which is a lot of things. the america trade is winning and stay at home trade is winning. the stay at home stocks reached nose bleed territory the nasdaq had the biggest rally since the fourth quarter of 1999, the last full quarter since the.com bubble burst as someone that traded through that, i don't want to hear anything about 1994 where high flyers exploded and woos crashed a few months later my partner for squawk on the street reminded me prices we saw in '99 were absurd given sales in some companies. today, the tech, which is the leader is very different look at the big five which by the way, my travel

trust owns every single one of these. alphabet, amazon, microsoft, they have great growth rather than plummeting, i expect the stocks to right themselves soon and i wouldn't count out the zoom or toyotas and etsys. they will bounce back. they have too much growth not to coming to the session the stocks have eight straight days of rally. when you get the move it brings in sellers and that's because people start thinking that they're parabolic. now on the past, every one of these big sell offs brought in a new buyer and i think it will happen again last night we highlighted work from larry williams that demonstrated buying stocks in the two days before the july 4th holiday was remarkable terrific trade okay but when we get sellers today, the buyers did not feel emboldened and of course, i

worry about what happens right here after this. why? it's because i'm going on vacation for the first time this year and every vacation is ruined by a sell off take that. that's like saying when i see certain signs in my head, no cramer goes on vacation. market crashes happens. second fact, joe biden's campaign is looking really stronger right now than it was even though he's not doing that much campaigning that i've seen. there was a story on the front page of the "new york times", biden's war chest swells along with the polls joe biden isn't bernie sanders but wants to rollback trump's corporate tax. he's said that if we raise corporate taxes that knocks a sizable chunk of profits off. if you drop the profits, stock prices should go down. it's not bad policy, that's the facts but bad for the stock. biden may rise on the rich, make them say equal to ordinary income rates you expect that to cause a rush

selling before the election, not saying it's going to but got to be in your head. the election is far away with covid flaring up, how can sports come back if southern teams aren't awill yllowed to pw york city? we hear they might do that for the nba in florida but florida is a covid hot spot and some of us believe none of this will happen if you eyeball the stocks many of us can't get enough of, won't see airlines and cruise lines. these are the two worst second tor d -- tesectors. i saw stocks that trade on a site most are garbage there are more boards and chart gurus than i've seen in ages not good many of these stocks are pump and dump schemes at least the airlines and cruise lines are being kept alive by the treasury and federal reserve.

their bond holders should be okay but i'm not sure about people on the common stock come on. buy quality. i'm begging you to buy quality if quality goes down, buy more i got a couple more pet peeves gold is soaring historically not good for stocks. meanwhile, for weeks oil is headed back down thanks to high inventory and stocks like high oil. finally, as i've told you lots of momentum based stocks buy every time an analyst raises the price target if the reasoning is repetiti repetitive you know the move isn't early. it needs a reboot. now i want to be clear about this negative. they can be potentially handled. the virus can be beaten by social distancing and masks, okay biden is not a sure thing even if he wins he won't necessarily have the votes to raise corporate taxes and high stocks are more attractive as they go lower. oil prices can rise and demand can go down in supply. the provoiers of froth can

those stocks are the only game in town. it's hard to stay in cash when it yields next to nothing. bonds represent very little value. meanwhile, the yields for great american companies with little economic sensitivity are enticing the biggest companies are the ones that led this rally aren't that expensive there are too many momentum players but big gun stocks, i bet they quickly will create gos and the market gez down aoes dod brings me to the biggest curse word now the word sell. last night i recommended trimming some positions and raising some cash as we are doing with my charitable trust, which you can go see what we're doing if you go to actions alert -- go to actions alert plus.com and you can see all -- you'll find out.

go there you will see what i mean by trim my comments were met with contempt on twitter like i'm selling everything and telling you to go short. some people treated me like a moron because when you sell, you have to pay taxes. others acted like i told you to abandon the other asset class to run. i never said that. i never said leave the table i said take something off the table. i want you to raise a little cash so you can put it to work buying stocks at lower levels. when i hear the sirens of buy and hold, the homework on some stocks being brought crazy by retail investors show some optimal fundamentals for the tax man, okay. the only time you don't need to pay tax is when you have no proof fifti profits. the bottom line, when i'm telling you to ring the register on small parts of your holdings as i'm doing with actionalertsplus.com, that's when i know it really is time to

worry. james in florida, james? >> caller: hi, jim thanks for taking my call. >> of course. >> caller: my stock is public storage, psa i've been in it a long time and playing be house's money but with people not paying rent on storage units, it's been falling lately should i sell it all and buy something else >> you know what that was one of the first stocks that bottomed in 2007 crash? i remember the late justin was telling me that was the one to buy. it is really well run. you know what? those people have to pay rent. they are i don't want you to sell that stock. i think there is people not paying rent right now but they will pay rent. let's keep psa i want to go to steve in maryland, steve? >> caller: jim, thanks for having me. i'm a 24 new investor in march this company i'm calling about has been hit a bit hard because of the pandemic. the stock has already started to climb back up from the low i want to know your thoughts on ross ticker rost is it a buy?

>> it is a buy and i'll give you another one, burlington is also a buy. ross is terrific it's been slower of late but you're doing 24-year-old buying ross that will take the merchandise from failed department stores and sell it. that's what i want people to do. he's not talking about buying ross cruise and airline company, he's talking about buying a real company. ships and tops and all these things, because they have four letters doesn't mean it can be bought today we saw what happens when you got negatives. do some homework it's okay to trim. trimming is not a curse word if you think it's a curse word, there is a lot of other stations you can watch them we can bleep out the word trim maybe we can do like -- all right. on "mad money" tonight retail investors are trading with stars on their eyes i'm getting the real and rankings where the most popular get real and popular retail

traders stay it's an issue. one of the nation's top grocery chains is trying to become public. everything you need to know about the ipo and the business of reopening, i'm going one on one with someone real smart. find out about a plan, yes, a plan that spans the small state and beyond so stay with cramer >> announcer: don't miss a second of "mad money." follow @jim cramer on twittecra. send jim an email. miss something head to madmoney.cnbc.com.

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over like this, some of the hottest momentum stocks get crushed. last night i mentioned a list of popular retail trading stocks put together until the recent goldman sachs strategy report. tonight, i want to give you a little analysis of these momentum names because somebody should be doing homework on them even if their buyers won't the most popular gaming, regional casino operator owns a controlling stake in bar stool sports the call for personality who founded bar stool is heading up his own bike shop, davey day trade global where he does admit what he loses as opposed to other people actually losing not their money but yours. long term penn national has a lot going for it they have very little competition because it's a regional operator and pro sports will come back and gambling. when that happens, jay snowden

who i like much, there are renewed covid fears as outbreaks make it less likely sports will come back and fewer gamblingeblo the casinos. it's a long-term investment. second is the highest risk of the covid vaccine. in terms of the race for a vaccine, johnson & johnson all tightly clustered with moderna if moderna fails, they lose a fortune. if the others fail, no big deal. i hate how they talk positively about the vaccine and dump the stock. one star rallied today as covid cases spike and so did other vaccine plays. third is tesla, the stock i loved for almost 700 plus points i like more after today's 4% pull back based on negative quality. four star, five if it keeps

coming down. fourth, there is royal caribbean. this is a well-run company in a terrible industry. there are lots of trips being booked but the companies can't cruise and the day they can reopen keeps getting pushed back nor regieg norwegian is a better operator royal caribbean, today after the beating it took, i can only give it one and a half stars with the new covid outbreak making it unlikely they will set sail. parent snapchat, there aren't too many comebacks snap beat the numbers in the latest quarter, it's losing a fortune. i give it two stars aggressive facebook and alphabet are better buys pick up a fractional share of one of them rather than a full share of snap. six, mgm resorts a good chain but a pandemic going and they got a lot of exposure to china, which i don't like too complicated. how about two stars. spirit airlines loser. they have been a loser for ages. if you insist owning airlines,

southwest the best run but i do not like the airline stocks, not at all spirit gets half a star. american is not much better. norwegian cruise lines, best house in a bad neighborhood. two stars. the clock is ticking against this group nine, go pro they make those wearable cameras. go prois is a dog for years. enough already i said you want a device, go buy an alexa one star for the stock past the sell by date marathon oil would you want to own marathon if it were $60 would the stock entice you if they did a one for ten reverse split? no it seems cheap because of the low dollar price marathon is a one-store company with crude i like the whole industry but i can't think of a three-star name called parsley unnear genergy

great balance sheet and an understanding of the fossil fuel if you own marathon, make the switch i know these are not high marks because most of the companies are not in great shape and new retail investors buy low quality single digit stocks. before you buy something, learn what the company does and figure if they are own good and be able to explain it to anybody else. without that, you have no idea how to handle days like today and sadly, you'll end up selling them much lower than they are now. i want you to stick with cramer and of course, stick with scott, there is a peek into what he has tonight. >> tonight at 7:00 p.m., a florida official on its s skyrocketing case count and tri-state quarantine plus, as houston's hospitals approach a tipping point, how one of the city's top doctors is dealing with the crisis. and one las vegas hotel taking it a step further when it comes

to protecting your health. all tonight at 7:00 p.m. with scott wap near. we're going through a really tough time right now,

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to donate plasma go to thefightisinus.org we always start to get a fresh wave of ipos a couple months ago and it feels like we're returning out of high quality merchandise. last week when i introduced you to royalty farm ma,pharma, once first typically bargain levels to win royalty was a great deal over time the quality begins to decline. we went through the whole process last year, the best or most hyped deals came to the spring and by the time fall rolled around, we were getting so many garbage offerings, wall street lost its app tietite and there was a six-month pause. i think they were looking at the beginning of a new ipo cycle but

wondering if the banks burned through the best merchandise, only so many quality startups you can find and moving on to the less attractive inventory. some deals are buyable but they have to start coming at the right price. what makes me say that, simple the stock -- well, the newly soon to be sook tock of albertss is trying to come public and not the first time the third time the last couple times it didn't come off well. to be fair, albertsons of today is a much better company than the one that tried to come public allow me to explain. albertsons is a massive supermarket chain with 2,252 stores across 34 states. you may know them as safe way or shaws. they are number one and number two and 68% of 121 metro areas where they operate but albertsons does not have a story history. they had a debt balance sheet taking private by servers

capitol in 2006. albertsons is a frankenstein monster of a super market chain. 2014 they took another mountain of debt to acquire the struggling safe way. they tried to take albertson's public a huge wave of ipos in 2015 but they waited too long and had to pull the deal in part because the chinese stock market crashed, in part because the investors were sick and tired of the companies. nobody wanted this big supermarket chain with the horrific balance sheet fast forward to 2018 they go public again via traditional ipo. they might have pulled it off that time but the company immediately changed course and tried to acquire writing that merger fell apart because right aid shareholders were worried about albertsons now since they made real impr e improvemen improvements, though, there is good changes here. they brought in a new ceo from pepsi. smart. they spent thousands renovating the stores and building the

business and offered delivery at the vast majority of the locations. it paid down a lot of their debt when albertsons tried to come public, the debt was close to $12 billion and brought it down to 8.7 billion as of the end of last year, which is a much more reasonable number who had 2.8 billion for earnings, taxes, appreciation and you know what these moves are working. after years of stagnant, the sales grew and 2% same store sales growth not bad. big improvement over where they were even better, by paying down the debt they gave the earnings a boost. they made 466 million. most of that increase has to do with smaller interest mapayments i like that. they are getting a major boost from covid-19. albertsons experienced significant increases in customer traffic, product demand and overall size in stores and commerce business end quote. since the company's fiscal year

started in march, that's good. sales increased by 47% year over year in march and april and may and 30% same stores sale growth for the first quarter of the 2020 fiscal year other supermarkets had similar company's margins are picking up, too, because of better execution. the company was sold and management said they got their debt load down to 6.7 billion by late may manageable cleaning up the balance sheet will produce tremendous earnings. in short, the albertsons of today is better than 2018 or 2015 and look, with this latest big covid outbreak in the south and west, the supermarkets could get more of a boost than you might expect obviously, it's temporary. it's pantry stocking there is a big difference of three months of insanely high sales. thanks to this, when albertsons plans to play 2.5%, i love when a company comes public with a

dividend there is still negatives servers will remain in control even if the ipo -- either they sell putting pressure on the stock or don't get a say how the business runs. the grocery business is competitive. this is what i worry about lots of players with deep pockets like costco and walmart and the industry could be in a tough spot with a covid vaccine. i think albertsons could be worth owning but, this is the but now it has to come at the right price. nothing more than 24, $25. it's not garbage, so albertsons alone would not be the kiss of death of the ipo the problem is we got a bunch of other not so much deals inclu including three chinese ipos when i see a ross like that it makes me think we moved on from the great stuff, zoom, music and we're headed for good stuff or you need to price merchandise to make the deal more valuable and i don't know

they can do it listen, last night they priced the giant t-mobile secondary at an amazing level and off loaded recently and all those were amazing we're not at the end of the ipo cycle by any means but kind of in the middle. there can still be good deals. there is a company called snow flake that i am totally enamored on that i want you to get some we know frank the server is down they will probably be under priced, red hod. we're seeing more and more low quality merchandise starting next week. bottom line, this albertson's deal may be better than you expect but the best part of the ipo may have come and gone along with maybe a lot of this market so i'm telling you, exercise some caution luke in california, luke >> caller: hey, jim. thanks for taking my call. >> of course. >> caller: i'm 19 and have

$50,000 saved but i have extra cash i want to take a risk with since i'm young. my question is the merger announced five days ago, it has gone up 60%. it is similar to nikola motors but an add onto the existing truck rather than purchasing a new vehicle. it's half the price of the competitors tesla and nikola and coming to the market in 2021 compared to nikola in 2023 your thoughts? >> we were doing work and we think that i totally understand. a 19-year-old, yes you can speculate on that but you're really buy something you don't even know much about i'm not picking on you i'm saying that that's something we don't know much about good solid growth is coming down and it might be better to be in good solid growth stocks than another spat because you think the last two have been good. they have. they worked. chris in new york.

>> caller: good evening, mr. cramer. >> good evening. >> caller: for the past months, my coronavirus walk abouts in manhattan i notice blue scooters called rebel after speaking to rierde riders scooters are politically and environmentally friendly they are produced by a recent ipo. i took a leap of faith and bought some shares last month. >> the demand is great that's a chinese one all i can say is there a many, many other of these. you're right about the story i am not going to recommend it here because i happen to know of considerable competition in that space. all right. look, we saw some really great ipos and now we're starting to get into a little more dicey area and this has to be priced correctly. we like it at 24, 25 if we think you're going to be able to do well be careful out there much more "mad money" ahead with new jersey, new york are

quarantining visitors from coronavirus hot spots, we'll talk with somebody that figured it out the governor of rhode island are spats whack in this market i just answered that question. i'll talk about nikola and draft kings and issue -- let's say red flags. some red flags or maybe at least yellow flags on this spat concept and all your calls rapid fire in tonight's edition of the lightning round so stay with cramer where will you go first? wherever you may go,

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experience amazing this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need. and until this fight is over, we...will...never...quit. because they never quit. with the market rolling over as covid-19 cases sore in the south and the west, what needs

to happen to solve this crisis we know we need testing where we made some progress we know we need contact tracing, still a long way to go there if hospitalizations keep spiking, sop sme cities may havt go back into lockdown to keep the hospitals from being overwhelmed. we need a plan maybe we should take a queue of the states like rhode island that had a plan. when the northeastern experienced the worst outbreak, rhode island kept things contained. how did they do it we'll check in with the governor of rhode island to get a better sense of what the country needs to do to get back. welcome to "mad money". >> thank you, jim. great to be here. >> governor, you did a remarkable job of taking care of the situation. give us a couple things how you were able to do it including your involvement with the private sector. >> it was a quick reaction to a

crisis but i think that the core of what we did was invasion, speed and focus on the facts and practical concrete solutions like you said, a plan. i have relied heavily on public privat extensively. one of the partnerships i had was with sales force to do contract tracing quickly their software is fantastic to do that and partnered with cvs health to do testing, which is a huge success partnered with survey a monkey that does surveys to give us data to stay ahead of it partner with infosist for every rhode islander to download we've been all about ininvasion. i would say innovation is the reason rhode island is in such a great position. >> you're in such a great position, are you willing to say right now that you would not welcome people say from florida

and texas or other hot spots the way governors in the tri-state area said today? >> you know, i think it's a reasonable thing what we're doing. let me give you a picture here, jim. rhode island was nestled between new york and boston, two hot spots. we're the second most densely populated state in the country we were among the hardest hit in america and so we had to get into action. today, we are the only state in america that has tested more than 20% of our population and our test positive rate is less than 2%. i've opened this economy two months ago and we're still seeing a decline in cases. so are you asking me am i nervous about people coming from places that have a test positive rate of ten or 15% to our state? of course, i am. and so i'm thinking about either limiting travel or having mandatory testing for people who

come from a hot spot or possibly quarantining i haven't decided yet exactly how to do this because i want it to be practical and enforceable but you better believe i'm worried about it because we've worked incredibly hard and i don't want to go backwards. >> "the new york times" showed you had zero new cases on the 20th, 2 1st, 22nd 132 and 23rd, 24 i wonder if that's people fleeing from states that are afraid going to the state that's the best. >> it's interesting, very early on in this crisis what some would say a heavy-handed approach i used the national guard to monitor cars coming in from other states including new york to ask them to go into quarantine if they were coming from a place like new york city that was a hot spot. and i did take a little flak at that time for that approach, but the truth of it is like i've

said, rhode island is the only state in america where we've tested 20% of the population hospitalizations are going down. businesses has been open for months and i have to do everything that i need to in order to keep commerce flowing in my state without hospitalizations going through the roof. >> all right let's speak about everything you need to. we all wear masks here i get my temperature checked every day and put my band on proudly when i've got a 98.6 can i walk around in your stores without a mask >> no. you cannot you're welcome to come but you -- yes, you know, you have to wear a mask we have mandatory mask wearing and by in large, people are compiling. i give a huge shoutout and big thank you to the people of rhode island we do inspections every weekend of restaurants, gyms, retail shops, we're seeing 90 plus

percent compliance with mask wearing. it's a hassle and change but it works. >> talk about how do you get 95% of the people contact traced >> you work at it. like i said, some of it is embracing innovation my partnership with mark and his team at sales force is a game changer for us we have all of our labs entering their information immediately into the sales force powered system we have a huge team of well over 100 people full-time doing nothing but contact tracing. and we have very serious protocols around outbreaks we define an outbreak at any facility, any workplace as two or more people who have tested positive that are linked we have rapid testing of everyone and get everyone into isolation and contact tracing. it's what you said this isn't magic

this is good execution of a plan because i never again want to shut this economy down i vowed to the people of rhode island, we would reopen once. >> how about you or i? how about brown? >> i hope they all come back to school i think they can do it i was talking with college presidents we're holding their hand, helping them, providing support with testing and contact tracing so they can go back to school responsibly. they have to figure out, obviously, they have a challenge with international students but i've said we're sending our kids back to public k through 12 schools. we said august 31 1st. it's all possible if people wear masks and do testing and we're responsible and stay socially distanced. >> so you've really. i imagine if i live there, it's kind of like normal because you had a plan because you're a venture

capitalist and business person you work with mark i'm not kidding. i feel like our planless in this country. completely planless whether dr. fauci or the president or cdc or surgeon general. we're planless you got a plan. >> yeah, it's true also, you left something out i'm a mother any working mom knows you need a plan to get through the day. it's a checklist you don't mess around. you have people to take care of. be practical innovate partnerships, get it done for the people you serve. >> all i can say is congratulations and it is a great pleasure to have you on. >> you're kind to have me. >> thank you. >> the governor of roothode isl. a plan is what we need "mad money" is back after the break. some companies still have hr stuck between employees and their data.

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it is time, it's time for the lightening round for those who don't understand, buy, buy, buy, sell, sell, sell. and then the lightening round is over are you ready ski daddy? start with ken in delaware, ken? >> caller: hey, jim. boo-yah from delaware. how are you? >> liking that a lot good pizza what's up? >> caller: hey, big fan of yours for years. i watched this morning, noon and night, practically up today when you almost faked falling off your chair. >> i did fall off my chair and hurt my back i can't work out in the gym

tomorrow as well as i'd like what's up? >> caller: i'm calling about marriott vacation corp. >> we had them on last week. i think they told a good story the timeshare business is a good one. look, am i jumping up and down about anything involving hospitality and leisure? no when they come down, get out of covid runs out it will be good let's go to mike in new york, mike >> caller: hi, boo-yah mr. cramer >> boo-yah. >> caller: mike from upstate new york. >> all right >> caller: technology company. >> i like anyone that makes sells easier and that's one of them victor >> caller: this is victor, columbus, ohio, action alerts plus member. >> go get them >> caller: hey, jimmy, want to give a big shoutout and big buckeye boo-yah and appreciate your help with your covid-19 index, make some money. >> thank you.

>> caller: off great advice. >> thank you we have the big five going with the action alerts since whenever the little five. what's going on? >> caller: so jimmy, you've been talking about it for a couple days time to pull back. i want to realize gains. i need you to back me off the ledge. i want to back up the truck and i want to buy h and r block and there is three reasons why. >> three i got a million reasons why not. that may be better that may trump yours. come on. action alerts guy. i'm going to have to -- well, move to the next one i guess that's what happened okay let's go to john in texas, john? >> caller: hey, boo-yah jimmy. >> yo. >> caller: listen, glad to hear you got your restaurant open. >> we have tables in the street. very exciting. what's up? >> caller: listen. thanks for the hours you put in helping us guys make extra minute. >> my pleasure unnerving. what is going on

>> caller: question, what's your take onaulta >> i was thinking about ulta, because of zoom everyoneis worried how you look because you look awful in zoom and because of masks people have a pimple outbreak i have one here. you have ulta, so you have zoom and pimples, that equals ulta for cleansing and making your face look better i'm all in yes, buy ulta. my thesis. what let's go to adam in north carolina, adam >> caller: jimmy jim how is it going, buddy >> having a real good day. what's going on with you >> caller: i'm having a great day. my question is workhorse. >> you know what i'm a show horse compared to workhor workhorse. it's a battery electric vehicle powered hydrogen this.

it's not really hydrogen i have to do more. i have to come back and that ladies and gentlemen is the conclusion of the lightning round. >> announcer: the lightning round is sponsored by td ameritrade ♪ ♪ can i find an investment firm with a truly long-term view that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information.

talk to your financial professional or consultant this virus is testing all of us. and it's testing the people on the front lines of this fight most of all. so abbott is getting new tests into their hands, delivering the critical results they need. and until this fight is over, we...will...never...quit. because they never quit.

what we took today, wouldn't

be a big deal on its own there is a lot of developing irritation you can ignore. a bunch of minor irritation, maybe you can see the doctor we have the fed on our side and ultra low interest rates but we got a lot of speculative money sloshing around from europeans, mutual fund managers that are growth guys, that's right, care about momentum and am ma format traders. i highlighted not so hot ipos. what else is happening else bothers me? the special acquisition vehicles we talked about this a few weeks ago but a lot changed since then worth revisiting the companies are public companies that are formed by other businesses they start out as a big pile of cash for the trusted manager and either make a series of small acquisitions or a huge one lately there has been a lot of money flowing into these and we keep seeing one off deals. this merged with draft kings,

the fantasy sporting bet side and this month another one combined with in this canikola, high-powdered stuctrucks loved y twitter followers. that kind of action, well, it's terrific for the people able to ring the register does get me worried the market is getting too frotfrothy it pulled back from the highs but the spaks haven't cooled off. nikola and draft kings held up well at this point they have jumped the shark in a meat market that feels increasingly p lly precar, one of the most risky around so i'm urging you to ring the register on some because these are two of the most speculative stocks why? let's take them one by one with draft kings. a huge fan of draft kings

business that came public via the merger called diamond eagle back in april after the deal was announced it ran from ten to 17 and took the name juggernaut and we had them on the show and told the story heavily. three weeks ago the stock got hot to bring the register at 40 and now 37 it is pretty simple. as long as i like draft kings. these do a big deal tend to see the spikes out of the gate and that spike doesn't always last they will take advantage by selling stock. draft kings do an offering of $40 a share down more than 6% from those levels. at the end of the day, this is a quality company with a stock too expensive and come back soon seeing all the new covid hot spots, the state is quarantining other states, maybe it could be

a tough stock to own nikola is another story no products, no sales working on an electric truck for next year with a goal of getting a hydrogen fuel cell that would be fabulous people get excited about hydrogen fuel cell stories and don't pan out. the last time i brought this up a spat called vecto iq ran from ten to 31 but would jump big again after the deal because there was so much hype around the thing. i warn you nikola would give up gains because it has no sales or earnings and you're just betting on hopes and dreams. again, twitter followers, i love beautiful hopes and dreams and i want you to make a ton of money but sure enough, they exploded higher ocho up of the gate at 94 that was the money then the market sold off and they pulled back to the low 60s before rebounding to 74 as of today. again, i think it's headed lower ultimately because i can't

justify a $27 billion market gap here unless they start doing something. what makes me really nervous is that both draft kings and nikola announced sizable secondary offerings. draft kings sold stock, that's good and existing shareholders sold stock not good they wanted to sell 33 million shares but so much demand they up sized to 30 million with more than half from existing shareholders that's 1.6 billion that they could change how about nikola this is weird. they announced 77 million shares on june 15th more than 53 million shares from the existing shareholders now nine days later and the deal still isn't done we know it's still coming but have no idea how much demand there might be we know draft kings jumped after the secondary before coming back down so that could happen again. nikola with the 10 billion-dollar order book of sales is amazing the concept is fabulous in theory but a very speculative stock but the people that own it don't think that

a lot of people think it's like a blue chip. it's not here is the issue. the insiders who know these best are ringing the register already. these people know much more about the situation than we do and they decided it's time to leave. in fact, most of the selling shareholders are selling their position that's not a good sign draft kings and nikola were basically purchased by special companies in the very recent past the original shareholders worked out what their piece of the combined enterprise would be worth when they went out a few months or in the case of nikola two weeks after the merger, i don't know, i think they are telling you something, right they are saying something with the sales. it's not just these two companies. in the last few weeks we seen an explosion of interest in special purpose acquisition companies. according to the insider, there are 33 deals in 2020 that collected $10.5 billion. that's 77% of what these vehicles raise the in the whole of 2019. according to the research, another site that attracts these, there are 111 active

spaks out there. everybody should have one. some are making moves. on june 5th, yeah, that's utz the privately held chip and pretzel company and now coming public via a merger called collier greek. that could be interesting. four mergers two combining with the company behind the love tattoo chef plant based food brand, a deal my twitter followers fall in love with. last friday tortoise acquisition tickered shell asked about shell asked about by the 19-year-old caller working on hiybrid and electric solutions for trucks, similar to nikola. these are everywhere the hedge fund manager revealed his plans for a $3 billion acquisition company which would be the largest ever. let's be clear there is nothing wrong with it in theory.

they work great when the rollups like restaurant pans, burger king martin made money for shareholders:it's not a bad thing. the bottom line, all this money flowing into the previously obscure spac universe has got me thinking there is froth here, which is why i keep dell ever te -- telling you to get defensive. i'm not saying sell everything there are signs of liquidity and yield and bonds and secular growth gives you plenty to own if the market rolls over all i'm saying these are warning signs. they are not sell everything stick with cramer. t in the car. does this sentra feel like a compromise to you? wait, what...? the handling is good, right? no compromise there. nope! watch this... umm... b-brie...brie brie! rear automatic braking.

so if this nissan sentra isn't gonna compromise, why should you? you're right! atta girl. the all-new nissan sentra. with more standard safety features than any other car in its class. can i find an investment firm with a truly long-term view

that's been through multiple market cycles for over 85 years? with capital group, i can. talk to your financial professional or consultant for investment risks and information. selling is not a dirty word. it's okay. we're trying to trim back some for actionalertsplus.com, my travel trust it's hard. we have a lot of good stocks feel like we need cash don't like a lot of things that we see it's okay. sometimes that happens it's not always perfect and we just had a very, very big run. not like i'm coming at you from all the way down there when a lot of big time hedge fund managers did i'm coming after you like we had the best quarter since '99 that's not so bad. get with the program like i said, there is always a bull market somewhere and i promise to find it here on "mad money. i'm jim cramer and i'll see you tomorrow

good evening i'm scott wapner on day 178 of the coronavirus crisis, and tonight a border battle as virus outbreaks intensify. >> political considerations and pressures guide their lack or delay of taking action, and also premature reopening. we see this in florida >> con's treasurer goes after the sunshine state tonight his counterpart in florida reacts even as cases spike in his state. plus, new information on workers at disney, sin