tv Mad Money CNBC December 11, 2020 6:00pm-7:00pm EST
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>> i like electronic arts buying a call vertical. >> my mission is simple to make you money. i am here to level the plain field for allinvestors. there is always a bull market some where, i promise to help you find it. "mad money" starts now hey, i am cramer welcome to "mad money. i am trying to make you some money. my job is entertain but to educate and teach you call me at 1-800-743-cnbc or tweet me @jim cramer the nasdaq declining .23%.
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this was a session filled with chaotic moves. we were driven back and forth over exuberant of fear of covid-19 vaccines and spike of coronavirus cases. it is almost like there is no rule anymore, right? it is all about short term holdings as he told me this morning on "squawk on the street," there are stocks to own and rent some are short term rentals and more like a by the hour hotel. you can have a lot of fun for short term, short time he says but don't over stay. i think that's safest advise and the smartest thing i have heard
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this week, okay, month last friday i said if we can be in a world of hurt if we didn't get another stimulus unless you got it in on the ground of door dash or air bnb if we do get a stimulus next week, stocks can come roaring back most of us starting to give up with the government. another unemployment to match the latest of the outbreak and instead we have a new hook though the fda approving the first vaccine from pfizer. get ready because this thing is almost certain to be approved whether it happens tonight or over the weekend then the chaos will begin as each day tries to figure out who
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should get vaccinated first? we have another bit of drug news on monday. one of my favorite companies abbvie is holding a meeting tact talking about their franchise. if abbvie can present good numbers for newer drugs, that would take the pressure off that drug and the company i think the stock can soar and it got a lot of growth i told you to buy that chewy with both hands. we spoke to the ceo this week and the stock hit a new al time high today up to $7.85 on tuesday, we have an analyst meeting for the stock and that's elanco the stock can play catch-up. wednesday we got two good ones,
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lennar and herman miller i bet they'll both have good numbers. will people assume lennar is doing well because the pandemic caused people to flee from the city to the suburbs. was it a trade all along herman miller is the same issue. and people don't need to set up so many home offices so unless lennar and herman miller selling off hard going into the results, i suggest you take a pass. i think that's wrong the home builders will do just fine after we beat covid-19 because interest rates are incredibly low if there is one law is the federal reserve can potentially
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raise interest rates i think it is very unlikely. we'll get a reality check when jerome powell speaks of the economy next wednesday herman miller did have an upside last time so the stock is jacked up thursday is big. we start with accenture. when you hit up acn, the symbol, spell check makes it c-a-n you got to fix it. then there is general mills. remember their vaccine losers in a world where we got a lot of vaccines, hey, including disney. what a day we can get good news about
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moderna. their vaccine candidate, it is ready the ship 20 million doses by the end of the month and another 80 million the first quarter of next year we learned the government is optioning to buy another 100 million doses to for the second quarter. i am telling you we'll have a vaccine glut by the end of the first quarter. speaking of vaccine, we know that rad will be one of the main distributors along with cvs and fedex will be shipping their thing all over the place that's bad news for rite aid because they're being beaten by amazon and cvs is on the way then there is jabil. listen to this one a big chunk of apple business,
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people trying to extrapolate success -- the animal lialysts e going to figure it out and they're going to upgrade their forecast on friday finally we got two biggies on friday, darden and nike. a lot of the country is going to follow that. that could be terrible for darden restaurants including olive garden gets this, darden gets to survive until it reopens you can raise the number in the back i expect them to say good thing but it may not matter at this point. all right, best for last nike i expect nike should report a fabulous number. all is coming back hard. it it is striking consumer business
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on fire. they don't do that unless they have a good read on the quarter. i really like the company. would you mind calling me on the day report, it sorts of bums me out. the bottom line, if you want to speculate, this is the time to do do it. just speculate widely. take questions, bruce in new jersey, bruce. >> booyah, jim, from l.a. city, i love your show >> all right, are you on the boardwalk or park place? >> park place right now. >> good, you areagreeing that's a lot of money. >> my question is about marriot international they partnered with southeast asia and started air bnb type service with 25 points no you the vaccine is in reach, do you see it going up to three
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covid levels or higher >> i think it is a well-run company. this is a great question a lot of hotels had the best balance sheet. you know what it means it is good because he's one of the good guys. teresa in north carolina >> hello, jim, thanks so much for taking my question >> no problem. >> since november 1st, the stock have more than doubled with the earnings report coming out next week and with ceo miss donovan being at the home, do you believe it is being transformed, rite aid? >> i think there is a short squeeze. trust in cvs i am a huge believer in cvs.
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r rite aid has been a better stock. as my friend david says do it wisely rentals even by the hour "mad money" tonight with the in coming administration could shift to cannabis. it is a stock that's right for this moment and it is not getting its due. i am changing that today and it is a stock up 50% in the past month alone can expansion of 5g continue to push insico higher don't miss a second of "mad money," follow @jim cramer have a question? tweet cramer, #madtweets send jim an e-mail to madmoney.cnbc.com or give us a call at 1-800-743-cnbc miss something head to madmoney.cnbc.com, let's get checked for a full range of conditions.
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this is a powerful long-term theme but it is tough to play directly the best u.s. operator traded from canada. some of the best businesses in the cannabis history take trulieve, it is dominated in florida they grow their own merchandise and sell it at their stores. the company just opened its 73rd dispensary on monday truelieve has been turning a profit in 2015
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we want a clear picture on how to do it right let's take a look with kim rivers she's the chairman and ceo of r trulieve >> thank you for having me >> it is a celebration, our patients are thrilled to have us open in their community. we have request for dispensary locations in communities where folks submit locations online. it is a big celebration. folks are very excited and happy when we open a store and our stores actually launch with full houses and we start off on a profitable foot. >> that does make sense. any time cannabis is on the ballot, it tends to win, correct? >> every single state had a cannabis initiative pazzed overwhelmingly and we are talking about states like
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mississippi which is red and conservative and all the way to other states as well and north dakota and so forth. it is certainly becoming more and more normalized. >> you have a great hub strategy and it helps delivering incredible store sales numbers you are big in pennsylvania. can i expect the same thing to happen in the great state of new jersey we are right now? >> new jersey is certainly hot right now as the governor and others are poisoning that state for recreational cannabis measures to come and really in the northeast as a whole we see that region turning on and for us really the hub strategy is about you know market opportunity and making sure that we have scale and different hubs as -- which is changing around us it is important to have an economy of scale and efficiently. it is all about bringing the best quality of products to the
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customers. the u.s. is a very different market to our friends to the north. there is incredible opportunities here as we look at the numbers for the u.s. and the years ahead. >> 19% sales for the stores that are entirety for the quarter, 29 stores it makes me think to myself what do you do with all that cash given how our country is about cannabis companies putting cash in the bank? >> yes, that's a great point we are reinvesting dollars earned into the business it is important for us to have strong roi for every dollar that's spent it is effective 50% tax rate and we don't have assets -- we have to be cognizant and focus on fundamentals for our gross strategy and of course we also know the capital market can be
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fickle truly has been fundamental focus from the beginning and that cash will go to fund additional expansions like stores in florida and our other markets in the northeast i long with our organic growth we are applying for licenses as well we are making sure where we'll be investing innovation and product development which you have to be on the cutting edge of this industry because it does change quickly >> you have a sales strategy, what does it mean in terms of where you grow and how you bring its market >> control the supply chain and we are required to do the sale in florida, and other markets we'll see the sales in some places it really is a regulation by regulation environment right now in the u.s. and it is checker board. what it means for us in florida, we have 2 million square feet to grow that we produce 550 skews and we direct to florida
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locations and home deliveries which is the next day across the state. what allows us to control the quality and customer experience and it gives us margin production >> why is it that a state can pass legalization but it takes for to open a dispensary massachusetts. >> because it is state and local regulations that one has to navigate you have vertical in massachusetts as well. you have to have the product ip to stores and grow that product which takes time but also at the local level, you have to get a local level approval there is local politics involved in some markets. >> i understand. i want to thank so much kim rivers chairman and ceo of trulieve, great to see you >> they just happen to retail
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gold bond champion your skin at a time after this week when investors are falling over themselves to pay sky high prices for some of the 2020 hot euless, tex est ipos i can't shake the feeling that the little companies is big overlooked we recently spoke to the ceo jesse sigh, i think the stock what not gotten enough love, azek the company put a fabulous quarter. the stock were sold off anyway impounding the table on this
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one. azek got a great business and getting a boost from covid as millions of people are trapped in doors and remodelling their homes. it is one of the biggest secular trends azek has already expired i think that's creating a terrific buying opportunity. and i think the stock will be able to turn around once it die just the selling we are not there yet there is one more reason why i am calling it, it is a lock up aspiration on wednesday and i think you can use the volatility as an entry point. i see people chasing stocks all over the place and it is driving me crazy we don't chase we have patience what has made me bullish about this it makes building products replacing materials especially lumber
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i deck my place with it. he'l hell, they have it you can build yourself a new deck out of wood you have to sand and seal it and paint it all things that i am not good at you can build with azek's alternatives that looks just like wood but don't need much in the way of wood. i like this composite business because before the pandemic, i think it is the answer to every homeown homeowner's prayers. things fall apart and the center can't hold mere anarchy is loosen upon the world. i feel there is some leakers and some mold. with azek you can build a whole
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composite deck that gives your house something and you never have to think about it again now throw in the pandemic with covid with the cities to the suburbs to the country, we are still stuck at home but at least you will have a little more room we see a boom in new home building and renovations now the housing bull market has been fabulous for azek business. up 30% we know azek is doing well because we spoke to the ceo a week ago they have encouraging thesis about the next quarter when you drill down, you got a company with a massively growing addressable market, as people using composites for more and more stuff maybe the most impressive part
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is the market expansion. their manufacturing productivity includes 350 basis point from 2018 to 2019 from last year through 2022, that means more and more profit to the bottom line for you the company is cleaning up for balance sheet. azek ratio is down the interest can pay down the remaining debt more than a year. lower interest payment makes again the company. then there is a market share 79% for azek, more importantly the total adjustable market for
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azek's material types keep on expanding. you know half are old enough that they should be replaced the results? azek got more business they can hands handle right now the company bringing on additional capacity. they already boost the capacity by 20% in the last quarter they're looking at 20% for peak decking season next year they don't think it is won and done they're preparing for the long haul given the composite so good that you can't tell a difference between wood he explains about awareness. between azek -- lummer prices
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are on the rise again. covid boosted demand for decking. you see people a safe way to do it is to go outside. azek has a sustainable kicker. all this stuff is plastic which is made from fossil fuels. azek is all about recycling. they sort scrap materials from shops and construction sites and remodelling projects these are both great each year these guys azek diverts probably 400 million of scrap from landfills not only it is great for the environment but also great for azek margins the stock sells just over five times forecast, making it cheaper and tracking it at nine
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times sales. azek is a little more extensipe over earning spaces. all these insiders have been o frozen and cancel their share. their stock is coming under pressure of course we don't know who's really selling it or not that means it is good. it means you can buy azek in a week that's a good way to buy it. this is a simple story azek got great management and financial. i bet they can keep beating earnings estimates not everything can be a door dot this or air dot that i think azek will be better. let's go to brandon in new jersey >> booyah, jim mmy, how was your
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weekend? >> doing good. >> how about you >> i know yeti is at $18 >> you bet, everybody hated it because they're idiots >> well, they were ill advised oh, i cut-off brandon? i like yeti. i like brandon i ruined brandon's weekend justin in new york >> is this jimmy >> i am the man, how about you >> i am so excited to be on the show >> you and me both what's going on? >> not too much. i am calling to talk about ammunition they can't keep it on the shelf. this company has been making moves, they actually bought the ammo arm of remington.
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tell me about this >> this is a very well-run company and good company whether you are a hunter or not, you should take into account that it is very strong and balance sheet. i like to go hundredit. they're the ones that you use. azek is being overlooked i am making it a top idea for 2021 much more "mad money." t-mobile just introduced its 5g hot spot can the mobile hot spot maker continue to sore after today's 12% higher i am going to talk to the ceo. history will repeat itself if you don't fix the bull market. i know the solution, do you think they'll listen to me they better and don't miss our tonight's edition of "the lightning round. so stay with cramer.
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another life-changing technology from abbott, so you don't wait for life. you live it. time to go back to the best company and you never heard of unless you watch "mad money. i am talking about inseego after covid-19 turns the world upside down forcing millions of people working from home, we realize it is a huge stay-at-home kicker of inseego families are desperate for bandwidth. you can set up a hot spot to hook your device into the mobile network. as a result, the stock just
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soared from the beginning of the year what happened? inseego partnered up with t-mobile for their 5g hot spot it is huge let's check in with the chairman and the ceo of inseego, where is this company's headed and the great deal welcome back to "mad money." >> thanks for having me on, jim. >> i long admire t-mobile, they're the fastest and grea aggressive and the best to partner with you got them how is it doing, dan >> it is great we are seeing great demand and working with mobile operators around the world, we see incredible potential and t-mobile deal is a testament to how we are doing with our products and performance
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we are super excited >> i think people don't realize and i remember 2-g came out and 3-g. i think this cycle is going to be longer than all the others because it is a little complicated. >> there is more to 5g than one more after 4-g it has to do with the potential on the bandwidth and rapid speed oflatency. the big deal is about benterprie and the number of used cases across all kind of verticals. that's what 5g is going to be mainly about and it is going to be for long cycles >> how would inseego play in all
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those? >> well, we are involved in enterprise activities everywhere >> we see through our int enterprise we are launching a new enterprise, it is an exciting market for us. we think it is fwoigoing to be incredible run it is not just hardware. talk to us about your software component. >> we started off three years ago to say we'll build new products and capture new kpae customers and importantly new geograp geography. 5g is massive in the u.s it is all about bringing those
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products to market our mobile hot spot and now we are building what we call a software staff in other words, it is a set of software service applications that'll power our products ceo connect is management and we can manage subscriptions and we have inseego secure which is security updates and all cloud based and all software servers that's super exciting. happy that t-mobile loves it as much as we do. >> it is a game changer that you got that contract but you also have with other deals. >> yes, we just announced with a deal with at&t and verizon
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we are on all the big trees so all americans can get the benefits inseego 5g and hot spots. it is perfect to have all three. as you saw this morning we announced the deal in japan asset part of oass part of our strategy there is a lot of momentum across our portfolio >> i am glad you mention the verizon dheeal. i have not had the chance to visit in orlando, what's going on there >> what's going on there is a 5g ecosystem and an incubator and accelerator that has all kind of early stage companies and i call it the 5g disrupter. as far as our technology and innovation is all about staying out in front we are involved there and working with these companies but
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importantly they also have major businesses and benterprises. healthcare and education and government, you name it. what we are doing with them is using our product to test out real world application, huge cases with those customers verses your kind of off in the lab doing stuff all on your own. super important incubator for 5 innovation >> i am trying to figure out what i can get out of 5g when it comes to video a terrific guy, the business person of the year, he created this amazing thing zoom. i have been on three or four zoom calls a day and it keeps freezing and dropping and i am like what is this? it is like two fortin catin cans
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would zoom be the cause of the future or something? >> 5g is testing out gigabites and speed. it is doing it wirelessly and it is ultrahigh performance and super reliable it is the wireless equivalent of fiberoptic cable and super important. when you look at the launches and the data plans, it is all about video streaming. >> it is inseego that's the pure play well played dan mondor good to see you, sir >> thank you, jim. great to be on >> great technology and now software reoccurring revenue and everybody has to come in, i like
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this stuff but you know that, don't you? "mad money" is back. i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t. some things are good to know. like where to find the cheapest gas in town and which supermarket gives you the most bang for your buck. something else that's good to know? if you have medicare and medicaid you
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infrastructure five years ago was doing real well but then this year for some reason it did a reverse split. >> we have to unpackage to know what it really is. it has been horrendous they start bottoming at the same time i would hold onto it i don't know exactly what's in it let's go to matt in washington >> jim, you are amazing. thank you for what you do. >> a quick shout-out to my parents >> definitely, what's up >> nano dimension. >> 3-d print, if i want 3-d print, i would go to hp. there is another 3-d company that's a spac. we got to check on them, too crowded field. how about that
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>> let's go to juan in texas juan >> good evening mr. cramer what is your perspective on united >> we have larry williams doing work, he's the best technician he says trade in american air is over on the other hand is a corral spring you have to deal with a couple of real bad quarters i say put it on hold let's go to sheila in tennessee. >> booyah, jim >> what is your take on nvidia and where i should hold onto it? >> yes, absolutely hold on toit. jensen wong is the most brilliant man. it is trying to buy another company, if it gets it it is going to be the can he think ki world. i say hold onto nvidia, incredibly well-run.
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i need to go to alex in new jersey >> jimmy, thanks for all you do. thanks for not being hard on younger investors. >> what am i i am a kind man, good man, tell me what's up >> i got an interesting one for you. i picked this up in the high 60s when you are investors started buying into it seems like we have something going on with slack. people are talking about a possible merger of acquisition, what do you think of fastly. >> fastly had a decent quarter too much of it was tik-tok s the -- it is good technology but the tik-tok did surprise me. i need to fwo go to linda in illinois >> hi, how are you, jim? >> how about you >> awesome i would like to know your
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thoughts on jd.com >> you know i like alibaba, i always said that it is good to buy. i may have to capitulate our relations with china is going to be a little more smooth, let's capricious, perhaps? i am starting to warm up to jd right here and right now i am warming up to jd i need to go to jonathan in new york jonathan >> big fan, second time caller saying hello from the whole state of new york. i meant that you were from wall street but my bad. >> subsidiary of pfizer and if you bless it, i may invest long. >> no, i am not blessing it. >> mr. mars. that ladies and gentlemen,
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that's the conclusion of "the lightning round. ♪ the lightning round is sponsored by t.d. ameritrade i have an idea for a trade. oh yeah, you going to place it? not until i'm sure. why don't you call td ameritrade for a strategy gut check? what's that? you run it by an expert, you talk about the risk and potential profit and loss. could've used that before i hired my interior decorator. voila! maybe a couple throw pillows would help. get a strategy gut check from our trade desk. ♪
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i i'have lived for the doc come generation once i don't want to do that. i am doing my best to educate everyone so we can avoid repeating that horrible experience let me tell you what happened then and how it relates to what's happening now you can capture the whole doc.com period in one single word that word is mania we have a little shock for wall stre street after a prolong attempt to open,
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just like air bnb the eother da, the stock soared it was up 470% it was absurd development except for wall street. the government did not seem to care we have seen something similar in 1988. once you make it clear that it was not a aberration now we have a pattern. at the time i was running a competiti competitive market match just like door dash or air bnb, a bunch of investors came in and sent the stock mark stratus at the open we saw something similar over the summer with snowflakes door dash and air bnb, they're
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the ones that confirms it. the head of the big brokeage we have a problem in our hands when the public comes out in full force they are coming out with waves of market orders please let us go to the shareholders and companies so we can have a plan and create more bull market. that was not a mark with air bnb and with door dash they never did it then, they need to do it now. if we are going to see these crazy teadeals, there are too m buyers people are going to get hurt, come on. high who you wou why should we care? public companies will be able to
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sell their shares and the poor fools wanting in on the ipos are going to get crushed i want more stock to be elease to hold the share price down because i was terrified of disappointing people the bankers said their hands are tied i screamed at them how can they be unprepared and what happened with market watch. their answer in the end was who cares, everybody made money, right? this is what they did for a living and they didn't think anything is wrong that was rational >> we got more and more deals like this over the course and after six months, the lock up inside selling started
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the streets stayed on business but they did go 66-1 will this happen again not exactly. >> the investment banks, they don't seem to care or nor is this they're setting people up for failure and the stock market for failu failure. if we don't fit the ipo markets now, we'll see dubious quality that'll blow up in our faces who does not want free money that's why the sec got to unlock these chairs we can handle it if we get a whole wave of them, that's dangerous for the market. remember the sec, draft the rule for rearranged plan and releasing the stock if the market gets too high
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that way we won't repeat the mistake. i promise to find it just for you right here on "mad money." i am jim cramer and i will see you monday, the news with shepard smith starts right now i'm shepard smith on cnbc, and this is the news >> we could see vaccinations as early as monday or tuesday >> vaccines imminent then the race for shipping and storage and giving the shots tonight an advanced look at how hospitals are preparing to give doses. >> we start the final phase in the battle against the coronavirus. >> the trust factor. vaccine safety a big concern for millions of americans. steve kornacki breaks down who
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