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tv   Mad Money  CNBC  December 17, 2020 6:00pm-7:00pm EST

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tomorrow you are the stranger to my abide. >> nice pitch. we haven't talked about this in a while. walmart, i think it's good >> guy >> geritol forreasons. >> mad money starts right now. my submission 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. i am just trying to make you some money my job is to educate you and teach you at home. the market started percolating again today. enough i'm done with it i'm done i need to take a stand
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i need to take it head-on and trash it the dow gained 149 points. s&p, nasdaq climbing 4.84% it just felt like too much once again, too much too much happiness didn't deserve to go up any more endless exuberance i decided to target the top five stocks in the s&p and slam them, right here you know what, the ones that were the winners, i never got past the first two accenture, up 7% today quarters and comps are primers for what is happening. so tough to are bearish and negative right now the amazing worldwide consulting
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company just crushed the estimates and raised their forecast dramatically. the book is up 25% we are in the midst of a horrifying pandemic. accenture made so much money they can afford to buy back 3.6 million shares at what turns out to be terrific prices. walmart wasn't givings it stock enough respect accenture employs a half million people and had $12.9 billion in new bookings they are sitting on $8.6 billion in cash. more than many of these companies will ever make, ever margins were superb. they run a tight ship and the company is benefitting from lower travel spending. on the face of it those are the numbers you should pay up for. if anything it is a hidden gem
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now to how sweet made all of her money. we are in a moment most businesses are desperate to digitize and need to get on the cloud. then they need cloud oriented cyber security this stuff is hard do you know how to choose among amazon web services or google cloud or azure for infrastructure most executives know their own business and that is it. they might like their information technology people but maybe they are wedged into a hodgepodge of inefficient legacy systems. it is generally not smart to spend a fortune on technology when you have no idea what the hell you are doing they say let's bring in the experts. let's bring in accenture halliburton, you call accenture.
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julie sweet helped them to digitize everything. halliburton has no choice. every business is now a technology business and technology changes continue. she is as that companies need to accelerate their digital transformation across the enterprise, move to the cloud. build resilience and security, address operations and customer engagement and changing expectations and find new sources of growth and grow in other words if you are halliburton, a well-run company, you need to do all these things to keep your head above water. in short you have to hire accenture. i came away from the accenture conference call saying wait a second, the stock if anything is under valued i think it is a buy it number two, giant homebuilder. this business rises and falls
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with the economy any other time the stock would be a sell. 900,000 new jobless claims in any recession. but covid changed the playing field. the same pandemic putting people out of work makes us want to buy homes in the suburbs or the country. if you are stuck at home, you might as well have space that is why it is a cash machine, generating $2 billion they have so much money they doubled the dividend you don't do that when you are apprehensive about the future. order volume is up $6.3 billion, the book value that is up from $50 and change last year. a big part of their stock valuation and they paid down $1.2 billion in debt for good measure. usually they have to borrow in this type of environment the rising cost of raw materials, they were 25%
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they were up 350 basis points. what is driving the trend? stuart miller, chairman of the board lays it all out. the housing market is simply very strong and demand for homes new and existing is greater than the limited supply it simply never has been this easy to sell as many homes as we would like in every market and in every price range across the country. holy cow sure, we have high single digit unemployment low mortgage rates and all of the money people are saving from being stuck indoor no vacations, restaurants. they have money to throw around. they want nice homes now so many bears would look at the two moves, and others like this just bear with me. big companies. markets peak when companies are overbuilding to meet demand,
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right as interest rates are rising and wages start to collapse rates, under 3%. insanely low. they will stay like that until at least 2023. where is the crusade canary of the coal mine all day? i struggled. remember, we spent a decade in the wake of the financial crisis they are finally starting families and buying homes. this is not nearly a short-term reaction to covid. but a hard-wired way of life in other words, he thinks it is a secular trend and it is gaining ground i am with him. even after the move, lemar is trading at 90, 100 times sales, earnings how about nine times what can you call it other than a buy? here is the bottom line.
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as much as i wanted to come out here and tamp down the euphoria, smash it and crush it like a bug on the windshield. i see the horrifying covid numbers like you do. i look at the stocks that are roaring here, i would buy them hand over fist it is a difficult time for the country. richard in california, richard >> yeah. merry christmas. you and your family. >> same. what's up? >> okay. the giants, the monster is going to the s&p 500 are they go to love it or leave it >> pretty good piece out by gold man sa man sachs. i am a believer in tesla
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13 months ago i said enough is enough and we made people a lot of money jeff in illinois >> good evening, jim >> what's up >> i am a first time caller and has been watching your show forever. i want to thank you for your enthusiasm and excitement. i feel good. what is up, jeff >> what is your opinion of lumen technology they are going to be in a joint venture. would you buy it in this place >> oh, boy no i have not liked them. i just haven't it has been right not to i am not changing my view. i do not want you to get sucked in
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i appreciate all of the nice things >> let's go to bill in wisconsin. bill >> hey, jim. >> packers to play chiefs in the super bowl and i haven't decided who will win but that is a lot of a prediction how can i help >> question is i want to know whether i should bet the house on the new electric bikes and motorcycles. >> you are terrific. you know, they have a couple of good quarters ahead. they have actually -- i like the guy that is running it i listened to the guy on the conference call. wow. geez he is determined to make a lot of money not just make a lot of motorcycle they have way too many styles. he is a money maker. i like it. >> i want to smash this euphoria i hate it. i am sick of it. listen, i couldn't do it i picked the two highest stocks
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in the market. they both deserved to go higher. on mad money tonight, lemar, what could it mean for a company like at home and how is bank of america work to solve inequities in the financial sector i am finding out about the latest initiatives when i sit down with the ceo. a company that is at the intersection of the hottest section of the market. health care and cloud computing. i have got the exclusive stay with cramer >> don't miss a second of mad money. follow jim cramer on twitter have a question, tweet cramer. herb miss something, head to madmoney.cnbc.com.
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♪ >> as we head into the new year, where we will hopefully spend much less time inside, what do we do with the home related retailers that made 2020 so much more bearable. the stock has run from $1.20 to $16 today. it has been making a fortune thanks to the stay at home economy. in the last few months stock is struggling some of that is management and it won't really give you guidance but who can, right? on the one hand when i see numbers like the blowout numbers we got in morning it makes me want to buy at home. the stock is trading over ten times of next year's earnings.
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i mean what are we going to do here that is why we have to have lee bird back on welcome back to mad money. >> thanks, jim thanks for having me >> we have a problem here. we have a company, wayfair brick and mortar they can print any number they want they can sell whatever number they won't there is no price they won't pay. on the other hand we have a solid company that lowereds it debt and incredible sales and ten times the numbers in the biggest state in the country, california can you explain the difference to me, because i can't >> we are having a record year and record sales and record profitability. we paid down our debt. we have great momentum we feel like it will continue
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until next year. >> is it right to say we are going to keep plugging and the market will figure it out. why do we have to do anything. or do you have to make a statement and do a big dividend or a buy back. the cash is spewing. i said if it doesn't make the stock go to 30, i don't know what will. >> we will keep doing what we are doing. we are growing 3 to 4 times the industry average for sure. we have 219 stores the stores are the center of the universe and the hub of all operations we can go to 600 stores. we believe that over time the market takes care of itself in terms of stock prices. >> 803 people rose pretty raddic -- radically. >> we grew 42% over last year.
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>> those are primarily new customers. our customer growth has been the majority of the growth overall they are spending more and have a higher customer satisfaction >> you are seeing people put money into their homes because they can't go anywhere >> correct >> we have become a great place to shop. we have great stores, one-way aisles curb side pick up or next local day delivery >> she is as okay, let me see what they have out of stock
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the roundbrick out of stock. this is where the money is being made how do you change that >> business is on fire obviously we have everything you are looking for. 44% same store sales in q3 and inventory continues to be brought back in and this past few weeks we brought in more than we sold and are getting back in position there is an opportunity to try to get as much sales as possible in as you can. business never has been this strong before. >> a year ago i would have said tariffs would go up. unless you get from malaysia or singapore you are going to be in trouble. we have a new president coming in i don't know how many furniture jobs were created by the tariffs. thomasville, high point? did that happen?
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>> i continue to see opportunities across the world in terms of global sourcing. the u.s. is a tough place to do business we find better pricing unfortunately in other countries and about 60% of our product is imported we are looking at a lot of other countries too, vietnam, india, cambodia are great sources, as well as china obviously. >> one last question, do you ever go to one of the board meetings and say you know what you ought to do, sell our stores and furnitureand get a $28 billion evaluatiovaluation. >> no. people like to stop in stores and use it as a place to buy and curb side pick up. brick and mortar we believe will continue to be a part of the equation and it is for us the most efficient operating model out there.
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>> look, you came on when the stock was a fraction of what it is now you said you were going to do things and did every single one of them. i am with you, lee bird. great to see you again, sir. >> thank you >> this stock has had a miraculous run not that it sold off on the last numbers. buy the way, brick and mortar is not such a bad thing is it >> coming up, in times of crisis community banking is more important than ever. find out what bank of america is doing to help get capital to those that need it most. >> it all comes back to basically delivering for our shareholders and delivering for society. >> mad money will be right back.
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>> over the summer after the
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tragic killing of george floyd lots of companies started to talk about the importance of racial justice, but not many did anything tangible. bank of america put money to work on june 2nd they announced a $1 billion commitment to help under privileged communities and in the last six months they started to put the cash to work. we are talking job initiatives in black and hispanic communities, outreach programs and direct investments for minority investments they knew there was nor heavy lift to be done. bank of america took equity stakes in cbfi, outlets providing financial services to people and businesses that mainstream banks rarely do business with. i think it is important to give companies credit when they do something good let's take a closer look with the chairman of bank of america and the ceo of southern bank
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brian, thank you for helping out in a time a lot of people realize there are so many people that are unfortunate why don't you tell us a little bit about what the bank is committed to doing and why >> jim, thank you for having me. it is a snow day up here i am dressed a little casually we took a look at the economic mobility we have been looking at that in the 90 markets we serve in the u.s. for over a year and the killings of george floyd and the aftermath of that and the social and the racial unrest. it brought to the surface a lot of issues. we decided to put our money where our mouth is we said let's get the money to work to help health, jobs, up scaling, rescaling, working with schools and colleges
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one part of that is to increase the investment and we said they need equity. cdfis and mdis minority deposit institutions we started to put equity in the mdis also, completed 12 and we will work on all 140 to see if they need equity to grow it is all about creating wealth in the communities and providing direct equity in the institutions that do the work and to go into other companies helping schools, 21 college grants in hbcu and community college grants and housing 15 million masks given to help stay safe in the pandemic. >> this is a unique passion. other people say i have to be
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more like brian. how did you get passionate when we expect so much dollars and cents from bankers >> we have to make money for our shareholders and society stakeholder capitalism we think of our company in four dimensions have to drive growth, be there for our customers and be there for our shareholders and be there for our employees. and we have to be there for society. that is what we have been running the company at for a long time. there are unique issues around the issues that come up with racial and social justice in the united states. economic mobility. wealth creation and wealth gaps. those are specific issues. the program is above and beyond all of the other work we do. low and moderate income lending, small business loans out there this is a special program to focus on creating wealth in the communities and providing
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greater economic activity. it all comes back to basically delivering for our shareholders and society. >> i am going to bring in one of the institutions bank of america has helped darren williams. i think a lot of the people say things are for show. but from what i hear about what brian and bank of america are doing, this is real jobs and real dinner on the table >> jim, you are exactly right. thanks for having us and highlighting what bank of america is doing he is the real deal. the equity is allowing us to grow under served communities where we use a unique brand of banking. helping build wealth and increase our economic mobility >> why don't you give me a couple of examples of companies that were really good. if they were in another neighborhood everybody would be
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fighting because now you have the money and the deposit base, you can make them grow and be big companies. >> exactly, jim. i will give you a couple of examples one is located in arkansas, one of the most poor counties in america. they make one of the largest and powerful above ground pool manufacturers in the country when the owner of the company died, the company was about to be sold overseas and the jobs that would left the market phillips county has about 12,000 people in the count and he that is 110 jobs. we worked to do a management-led buyout so the managers of the organization could buy the organization and keep the job there in phillips county, definitely important for the economic well-being of that community. that is an example of businesses and individuals. miss jackson, she lives in the
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same town, a 60-year-old grandmother, the first time home buyer after spending several years going through financial education and home buyer counseling, she was able to buy her first home and now has an asset that can help build the family wealth. >> how did you connect with brian? >> well, brian connected with us what bank of america is doing is catalytic for us we are so excited to have the partnership. we hope that it will allow us to partner up with other folks. bank of america reached out to us we want to help. we want to invest in your bank we want to take an equity stake. become a true partner with us. that is catalytic and will allow us to grow >> what you have done with darrin's institution is something i wish the government would do
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the government wants to give money to everybody we will be better to give a lot of money to the people that need it some of darrin's customers and not my kids? >> well, i think frankly that darrin has done a great job. we have been in the white house on a ppp program and stuff his institution has done a great job. that caught my eye frankly when we started the program i said to find the company and figure out what they do. we had a long relationship a fella that worked with them for years, because he is a cdfi. so, the relationship goes back this w -- i am not sure the government taking equity stakes is the right answer i think there is a lot of capital out there and there are a lot of other institutions looking to do this and my point to them, get going. get the money out there.
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call darrin. see what he needs. does he need preferred or common stock. help him grow so they can provide services in places that may not be as easy for other companies. i think a business roundtable put together principles and their membership is moving on it and i think there will be a lot of private capital the government needs to solve the problems of the pandemic and that keeps propelling us forward. right now there is a lot of private capital that wants to solve this problem in america and i think darrin is a classic case of a person who will use the investment to do good things >> i want to wish you and your family good holidays and to be able to make the good loans that people need in the country brian, i have to ask you one question about business. december, apparently spending is good i think that is a terrific --
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>> the consumer spending for the month of december to date is up 10% over last year's december through the first 13 to 15 days. that means some of the november shift that saw retail sales because of the dynamics around thanksgiving we need to get the stimulus passed so we can build the bridge for the part of the economy that can't be open until it gets there. now we have the vaccine, we just have to provide a bridge for companies and individuals to get there. meanwhile the people that are employed and have the money are spending we think next year will be 4%. >> well, that would make it so that more people can enjoy the good fruits of the country that is what we need brian, you taught a lot of
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people exactly that is what we need i want to thank darrin and brian for doing everything they can. millions of people in the country that need help it is good business to help people that need help. thank you both, gentlemen. >> thank you jim >> okay. this year, we learned anything's possible. even fast delivery on the perfect last minute gift from your walmart store. really fast. really perfect. let's end the year nailing it. ♪ but before we sign i gotta ask... sure, anything. we searched you online and maybe you can explain this?
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i can't believe that garbage is still coming in. that is so false! frustrated with your online search results? call reputation defender today to join tens of thousands who've improved their online reputation. get your free reputation report card at reputationdefender.com or call 1-877-866-8555.
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but with walmart's low prices, you still know how to do it up. and keep costs down. let's end the year enjoying more. ♪ you are all i need baby baby to get by ♪
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♪ >> right now walstreet l street worried about what happens to the high-flying cloud stocks
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take the software company that describes itself as the industry cloud for the sciences they follow regulations and make sales. 90% since we last saw the ceo in march. veeva 4% and since then drifted to a nice gain today i think digitization is the future what happens when wall street loses interest let's dig deeper with the founder and ceo of veeva systems. welcome back to mad money. >> thanks jim for having me back >> i can't resist. we know that you talk about how veeva is accelerating the industry shift to digital and is leading critical life sciences moderna and pfizer tell me what you are doing
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>> we make cloud software to develop the medicine and bring them to patients that need them. we have over 30 applications to help them manufacture the drugs and get them through the clinical development and send them to the regulators and get them out to the patients that need them. >> before veeva, how much was done by hand and paper vs. now with veeva >> i would say that we digitized a lot of things. but actually running the clinical trials, we are still early in that. a lot of it was done on that is
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not what i believe and not what you believe. >> no. this is a big industry too a $2 trillion industry this is a big industry and it is critical for human health and happiness it is really important stuff, right. >> right >> we are extending life we are making life better for people >> i have seen more worry about state-sponsored -- i have to believe the russians or the chinese are trying to get into every one of the medications to call them their own.
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>> we have to be vigilant we have to assume that everybody is trying to get in all of the time >> when i look at some of the companies, i know they are shrinking their sales force. does that impact your bottom line >> going forward we believe there will be some shrinkages because they are becoming more digital and more efficient that is actually a really good thing for veeva. we will be providing them a lot of the tools when they use more of our technology, yes, their sales force might go down in size a little bit, but overall it is a very good thing.
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>> and how does veeva work and how does it work in the era where we don't want to go outside our ecosystem let alone go to the doctor >> you can see it in the doctors and the patients first, a really strong rise in tele medicine the same thing is going on with our customers. life science companies are doing remote meetings with the doctors and we will have specialized software to do that. science for a drug sample over the internet without having to be there >> we have a new president coming in and legislative change i have to believe the new president will be more regulatory oriented than the one that is going out. how does that impact veeva >> we look to partner with all of the administrations around the world. everybody wants better and more efficient health care and we are providing the technology to do that >> can you make it where it is less expensive for the people
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that are hurting in this country? >> absolutely. by digitizing and by making things more efficient, that is the best thing we can do to make the overall value better and then you have to trust the administration and others to divide things appropriately. >> terrific. congratulations. big move since we saw you last the ceo of veeva 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 may be able to get more healthcare benefits through a humana medicare advantage plan.
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it is time
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and then the lightning round is over are you ready for the lightning round. we start with scott in rhode island scott. >> hey, booya, jim >> when we recommend the stock at nine many did not know what we were talking about. a very, very good defense contractor 25 sticking with it brian in maryland. brian. >> booya, jim. how are you doing? >> excellent day i did my show from home. what is not to like? how are you? >> i want to tell you i am a 20-year army veteran and i want to thank you for what you do for service members and their family >> we thank you again for everything, again and again and again. >> you talked about it in the
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past -- >> they are the linchpin of getting us the vaccine i like the stock i think that stock's time has come michael in my home state of pennsylvania michael. >> hey i tripled my investment on 30,000 shares. is it time to pull out >> is it time to pull out of the airlines no no i think when you get the vaccine people will travel again i do like some more than others. my favorite is southwest and then united when we start to go overseas. jason in texas jason. >> hey, jim. i am looking at office furniture company that is kbal it has been fairly flat since the march lows ranging between $10 to $12 it was trading at 20 before the
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epidemic >> i have to tell you, herman miller was a big disappointment today. that was a big surprise. i am going to have to say that i think you are barking up the wrong tree there i don't want to be in that group. i don't mind at home let's go to sandy in maryland. sandy. >> booya, jim. i am calling about cisco systems, hold or sell? >> it is fine. the last quarter was very good the dividend is very good. they have a lot of cash. they are re-inventing the company. i'm fine with it tim in new york. >> hey, jim. tim from brooklyn. can i get a booya. >> we are big brooklyn fans. we want our restaurants open soon what is going on >> i have a stake in this small company back in march, it has been on fire i want to get your thoughts on
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sight 1 landscape supply by the way, can i reiterate lowes and home depot are really inexpensive. jared in ohio. jared. >> hello >> hi, jared >> the pandemic has serious consequences and mental health is on the rise otr ks the largest ai-powered mental health company addressing the issue. they are growing their rapid 150% year over year and have signed big contracts buy, sell, hold? >> well, i don't know. boy, talk about it it is incredible psychiatric health the teledoc gets i am not familiar though with the company that you mentioned
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i'm it in new jersey i'm it amit how are you? >> i am good what is your take on docusign? >> i liked it for so line. i think it is having -- it is revolutionizing the way that we buy everything no paper or nothing. check, check, check. the greatest thing in the world. i bought a house by mistake. not really but i love it. let's go to mark in florida. mark >> hi jim, i hope you are doing well >> same to you >> i am just peachy. i noticed a number of the companies involved in the delivery of the covid vaccine have not been doing well lately. my question is about cvs which is trading at 56% of the industry average, and has received positive reviews from a number of analysts >> yeah. it is driving me crazy it is driving me crazy i am with you.
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it went up to $73. the quarter was okay enough is enough just go buy it 3% yield go to generate a lot of cash next year. that ladies and gentlemen is the conclusion of the lightning round. >> the lightning round is sponsored by td ameritrade ♪ ♪ ♪
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what will people do when it is okay to travel again? will they go on vacation or is that wishful thinking on the part of a struggling industry to have the americans going back to spending money on travel and leesure. it is been driving a huge number of moves i am not talking about the ev moves, losing marriott or disney the most important piece of the puzzle is air travel the companies and the companies that make what they need if the world goes back to normal. think volume in the end it comes back to optimism versus pessimism. will we be too scared and traumatized to travel or will we be vaccinated and ready to roll? right now the stock market is screaming it will be the latter and we heard the same from the ceo of boeing. i thought he was very convincing or am a simply drinking the kool-aid on this one i want to interpret the action
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of the markets to verify my more radically optimistic view. i expect a travel boom after a year of being cooped up, the pandemic is making us stir crazy. once it is safe to fly again, you might see a record-level of enthusiasm for travel. people might say i am missing out on what? now i have a second chance to actually go somewhere. the spanish flu pandemic a century ago, i bet it happens again but with a better day. whether we are taking the cruises, flights to exotic places or just a change of scenery. it is going to happen. remember, the recall government is about to send everyone another check. maybe $600 for a lot of people it is extra disposable income. a once in a lifetime travel voucher. once enough of us are vaccinated that will give a lifeline to the airlines
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when the airlines have strong demand they buy more planes. if they are going to go back to normal, they need a lot of orders wide bodies too. covid created a weird dynamic. for people with decent jobs and are not living paycheck to paycheck this has been the greatest money-saving opportunity that we have ever had. for nearly a year you haven't been able to spend much on services if you budget for vacation, you still have that budget of money. consumers have tons of discretionary cash because they have not gone anywhere some of it has been on repair and renovation and some spent on gadgets but it could switch back to travel. that is why carnival's stock has tripled. american can sell 38 million shares at 13 and the secondary has been gobbled up and the stock is now nearly $17.
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you can bet on disney or comcast, the parent company of the network because they own universal studios. any of the airlines should work. i am partial to southwest because it is so well run. but boeing, if the company took the offer of the giant equity offer of the table, you have to believe the stock could go higher still it even had a major move off of the bottom if there is a boom in travel, you are looking at a major upside this is the guy that won the media. some of the airlines might not make it to the promised land i just described it. i am with him. i am with him, okay. you know, i think you should buy the stock of boeing. nothing instant. nobody on twitter saying i am down big on boeing give me a break. chill out! after 9/11 people gave up on the industry, and it was wrong that is what this is like. we still need to get through the last leg of the pandemic
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once we are vaccinated in a few months, air travel will make a huge comeback and you need to own this thing before it happens. wait too long and you will miss the whole move i would like to say there is always a market somewhere and i promise to find it for you somewhere. i am jim cramer. see you tomorrow i'm shepard smith on cnbc, and this is the news this vote was 20 in favor. none against. >> emergency use eminent moderna, now the second vaccine to be fda panel approved the final green light expected tomorrow sounding the alarm hackers target federal agencies. now a former homeland security adviser says it's hard to overstate the scale of this massive cyber attack. >> fellow members of their fraternity -- >>

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