tv Mad Money CNBC February 1, 2021 6:00pm-7:01pm EST
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move here. >> pete? >> i'm looking at bank of america today downgraded moderna. i think this creates an opportunity. i've been waiting for an opportunity. waiting for a selloff. i think this is it i'm going to be looking at moderna to buy. >> dan >> yeah, exxon reports tomorrow. be a 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 just trying to make you some money my job is not just so entertain, educate, teach, oh, boy put in context, call me or tweet me @jimcramer. let's talk risk.
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everybody wants to talk risk after a day the market rebounded. the dow gaining and s&p jumping and nasdaq pole vaulting 2.55%, nice change from last week if you control your risk, the reward does take care of itself. wall street got desperate for risky games and you need juice meaning margin there were too many people borrowing money to trade and playing with borrowed money can wreck your portfolio the same way wracking up credit card debt with wreck your life i can talk to blue streak about robinhood or reddit or game stop congrats to the big win. the games don't count for anyone unless you take profits. i hear people that should know better and fret about how these red hot theme stocks, i think game stock, amc, blackberry, virgin galactic represent some new risk to the market the action of the stocks is it has to some degree came unglued
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from the fund meamentals but th happens a lot, not necessarily for you if you have margin whenever you deal with risk, you have to ask what kind of risk. is it systemic risk? the market could collapse or is it literally any other type of risk if we stay calm and that's how i feel when it comes to game stop, i don't see scary systemic risk. the short selling frenzy never represented more than $100 billion worth of stocks. the real questions that need to be answered, how did the regulars let money managers short 148% of the stocks that's not possible. why didn't robinhood have a better handle helping clients? come on, guys. that's really about it if you are off margin, you're doing fine now but i recognize people are jittery after a good day like today so a lot of people by the way do it with options, not just margin but you know what i'm talking about.
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i say we revisit themes making adjustments to account for new facts on the ground from this incredible reporting period and by the way, it's been incredible positive i got a new theme going into the earnings season. we had no idea about the severity of the semi conductor shortage between gaming, remote work, telemedicine, there aren't enough chips to go around. the chip shortage, we got results. stocks down a lot. that's the best in show semi conductor. you buy the machines when you want to manufacture more chips that was great and as was taijuan semi pharm i think all of those work if you can get them on a market wide pull back. second theme, the endless rise of e commerce. oh, it's unrelenting and a lot more than the stay at home economy. there is a long list of winners here amazon, did you see the stock today, walmart, wow. it's way too low
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target thanks to schipt and shop f -- shopify, facebook, excellent number, alphabet comes this week best in show and etsy down the block. i'm in brooklyn. third, the reopening trade if we can hit 50% vaccination by may, then we need to own something to be able to be ready. for my travel trust which you can follow along by joining the actionalertsplus.com club. we like disney and boeing. disney's stock has come down since that amazing quarter boeing didn't go down despite a hideous quarter. that is positive, right? by the way, honey well had a tremendous quarter it needs aerospace, does it really can you imagine how well that does once we reopen? fourth, i think you can't talk about enough digitization. this is heavily linked to e commerce i feel good to recommend franks. i ambushing the buy button
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snow flake a couple i mentioned, sales force and adobe. if they are so good, i got to repeat number five is cybersecurity and a wave of digitization because of the bad guys and crowd strike and palo alto and octa theme six is the 5 g hitting us in stride holy kaucow the winner and overlooked because game stock, sky works solution not overlooked this morning. apple had an amazing 5 g quarter. not unexpected qualcomm, crown castle that's finally going up. i can't believe that thing was just starting to really crush me but now it's all about -- marvel tech has been the winner for a long time. t-mobile is the phone company and broad com and semi wow. number seven is stimulus people get way too carried away betting on a stimulus bill keep it simple
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rocks. like martin marietta caterpillar delivered a strong quarter last week and i'm proud of that. eight is china people have been playing with commodities. uh-uh. it is breaking down. you need to swap into new china plays. apple had an amazing quarter hey, congratulations to kevin johnson and his fantastic comeback for starbucks, he's been terrific and stocks down big. doesn't make sense to me self-directed stock picking. after last week, it's clear that people want individual stocks so buy morgan stanley and a risk with james gorman. he's risk averse, i'm risk averse because i don't like you to lose money. i like you to make money financial technology younger people don't like banks. bank of america has a great app and doing well but they like paypal they like square they like the newly public affirm and intuit.
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i don't pick i just tell. we have thermal fisher on the show tonight they are a drug and biotech company. eli lilly is doing breakthrough work i also like abbott lab s but had a big move 12th is electric vehicles. like it or not, this is the future we have to get involved with the spac gm has gotten ahead of the industry with the promise to phase out fossil fuels by 2035 and if it goes down, all i can say is buy, buy, buy, buy. it's an easier thing than saying sorry. for speculation the merger and northern genesis acquisition are attractive and commercial vehicles and b materials is a rare earth mineral play that's essential for the electric vehicles if i were busy, i would say mp all right? pace beneficial finance is about to merge we like that my favorite charge and play.
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on a similar note, if you like technology, just because the reddit people, 13, remote work i know people are turning against the story as more people get vaccinated williams-sonoma got hit with a down grade today the bears were too early i like zoom and way fair and amazon bring up ring central. 14 is housing. we're still seeing exit of people leaving the cities. you can buy dh horton and i like toll and retailers, rh is putting numbers up home depot, lowes. don't forget the deck i used theme 15 not to boar you, trying to give you the full moenu, clen energy it's moving in the right direction. for hydrogen there is less clean and more realistic
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i like lindy we had that one. i liked it the others i can't push. why? because they have to come in i wish i could say game stop is a new theme but that's just the challenge company with the stock that got caught in a really exciting short squeeze i wish i could call amc a reopening trade but that depends how much stock they can get rid of and silver is a big buy but you need a better economy because it's lever to economy, not to precious metals listen, knock yourself out i vetted it like the 1990s i'm not looking for red hot. i want theme stocks that i can buy into weakness. if they sell off i need you to be ready with these 15 themes, pick and choose, i'm confident you can safely buy more the next time the market gets hammered and that matters you have the menu. there are a lot to choose from put some on your shopping list and if we're down tomorrow, all i can say is -- buy, buy, buy. let's go to bill in illinois,
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bill >> caller: hi, jim, part of my diversified playbook is a traditional ira containing products and i've been listening to the network cnbc and your show and for about a couple weeks now, there are comments and discussions over lumber but it's been from a manufactured retail building materials perspective. you know, the lowes, home depot, et cetera. i'd like to hear from you your opinion on the alpha or primary said of the industry from an investment perspective. >> which stock would that be >> caller: warehouser. >> oh, boy you know, warehouser is okay it doesn't have a big yield that i like look, i'm going to have to send you back to home dedepot the guy that ran it is a guy i knew for a long time i have no choice, it not as good as home depot and not value
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added enough but thank you so much for that question remember, if you control your risk, the reward takes care of itself get off margin i'm confident you can buy into the things i mentioned the next time the market goes down which isn't that far from now. on "mad" tonight i sit down with mark casper to talk about the earnings and role in the global response to the pandemic and the first day on the job for dicks sporting goods ceo so special i'm talking with the incoming and out going ceos with the leadership change and going up, i'm talking with the ceo of oti to find out how the company positions itself during the pandemic stay with cramer >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter have a question? tweet cramer #madtweets. send jim an email to madmoney@cnbc.com or give us a call at 1-800-743-cnbc
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miss something head to madmoney.cnbc.com. finally moved in. it's a great old house. good bones, wraparound porch. the pipes are... making strange noises. ♪bagpipes♪ ♪bagpipes♪ ♪bagpipes♪ even the plumbers couldn't help us. nope. at least geico makes bundling our home and car insurance easy. which saves us a ton. for bundling made easy, go to geico.com. sales are down from last quarter which saves us a ton. but we are hoping things will pick up by q3. yeah...uh... doug? sorry about that. umm... what...its...um... you alright? [sigh]
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this morning we got one more incredible quarter from thermo fisher, the leading maker of life science instruments and lab equipment. just $5, a little over 1%. still down slightly versus where it was trading not that long ago after we saw the last set of results in november. opportunity? i think it's nuts. this stock had a rough time in november, december, the reopening play sort of which we reopened, right? they are making a fortune to efforts to fight covid they deserve it and have a topnotch diagnostic business and supply drug companies with the material and equipment they need to develop the drugs and vaccines that are working. but in the new year, the stock came alive again and after today's numbers, it's going to
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start running again. this morning, thermo fisher reported a 51% organic birth better than expected sales, monster earnings and incredible rnd for the future better management gave you a bullish forecast for 2021 and a three pillar strategy. stocks now within spinning distance of the old highs and it should be making new ones. do not take it from me let's check in with mark casper. the chairman, president and ceo of thermo fisher scientific to get a better read. it's been too long welcome back to "mad money." >> jim, thanks for having me i hope you have a speedy re rec recovery i hope to see you back. >> eluding to back surgery i had to kept me at home so did the snow. mark, i regarded you as being the most honest arbitter you can give me a top down view.
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are we lynnwinninning or losing >> we're turning the corner. in record time we have vaccines, that covid testing is being used to not only diagnose the symptomatic patients but also helping universities get back into students in the close room and certain aspects of work using testing to support it. we still have some tough days ahead but i feel like things are on the mend. >> that's good i know that you would say otherwise if you felt they were not there, i felt you would do it one thing you're not getting enough credit for. people said they had a great tail wind with covid but the fact is you put this company in place to handle vaccines and to handle research and it just happened to be the pcr your gold standard, it happens to be you have mrna technology but these are things, mark, that required you to look in the future before we even knew about covid
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how did you know these would be so important to man kind >> you know, we really are the company that is the world leader in serving science and the 2020 results really show that we built the company to help the world respond to the darkest of times, and whether it was our large install base and capabilities of pcr or molecular diagnosing and scale it up to actually support hundreds of millions of tests around the world or the fact that we had the ingredients used for mrna vaccines or other vaccines that you read so much about are part of the strategy we put together over the last number of years to be able to enable our customers to make the world healthy, cleaner and safer. >> mark, there was a crucial moment in the conference call, i think there are a lot of people thinking well,what happens whe the pandemic winds its way down and you made a very good point,
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you said look, let's hope it winds its way down but there are obviously going to be many, many issues in the future thermo fisher you can't predict the same growth because it's stellar. you have become the premiere medical equipment company in the world, which means to me that you are working on things that we've never thought of that thank heavens, i hope we never see to look at your company aspa snapshot that isn't fair, mark. >> from my prospective, it our job to enable our customer's success and we were there for covid and we'll be there for the next challenges, as well science is incredibly well funded around the world and enables so many good things and we'll play a role supporting it. when i think about the covid world we play, i believe vaccines and therapies will be needed well into the future because the pandemic is so wide spread around the world, it's not as if it's going to entirely disappear very rapidly
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there is going to be some aspect of it and at the same point, we built this huge molecular diagnosis business and panels to tell a doctor someone is presenting with a respiratory infection, is it covid or the flu? i'm bullish with what the future will hold and well positioned to capitalize on whichever way the world will play out. >> i've always felt your themes matter you've identified three pillars that are instrumental to long term growth. i want to give you a chance to talk about those too often we focus on the actual quarter and not what is going to drive the company for the next five, ten years. >> after a record year, we're starting out with guidance of 7% growth why that level of confidence for another year of strong growth is because of the successful growth strategy we have, right? which is investments and inno innovation we increased investments by 20% to $1.2 billion.
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the largest budget in the industry at the same point in time, we're well positioned to build infrastructure to support customers there and the value proposition for our customers, where we help them address the biggest needs, those relationships have never been stronger and we've really invested to expand our capabilities and capacity so that we'll have an incredibly strong growth outlook in 21 and many years to come. >> mark, one last question, i know that there has been to some degree, i think you and i agree, unfortunately politicalization on this issue of covid do you think we're over that and that going forward we're going to be trying to do is make it so that science triumphs because you're a scientist and i feel science sometimes have gotten short tripped in the last decade in this country. >> yeah, so i think this era will usher in yet another boom from a science perspective because of the amazing
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discoveries that have happened, and the huge societals needs, not just about a pandemic but clean energy and all the things that will ensure the world has a brighter future and science is going to play a critical role in that and i think about that, there is one enemy and that's the virus. we'll fight that virus and play our role in helping it and we look forward to a post pandemic world and supporting amazing things that science will bring to society. >> i feel a heck of a lot better after having just been in the hospital and being 65. i wanted to hear we're winning i know that it's not going to be easy but mark casper is making itt ieasier mark casper, remarkable job and thank you for coming on "mad money." >> thanks again for having me. >> absolutely. "mad money" will be back after the break.
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when the pandemic rolled in a year ago, it crushed all things retail. the whole industry had to pivot to deal with a lockdown but some of them pif voted better than others take dick sporting goods it became public and when shutdown hit, they were able to rollout curb side pickup within 48 hours they were spending years investing in their infrastructure, the best in show that meant they were well prepared for covid and now the long time ceo of dicks, one of my personal favorites is passing the baton to a new favorite who is lauren, formally the company's president and ceo with
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stacks staying on as executive chairman look, this is a big, big moment because stack has been running the show since the 80s when they had two locations and now they have more than 700 stores and the stock is up 2,200% since 2002 that's worth celebrating as is this change at the top let's take a closer look with the executive chairman and chief merchant officer and the president and ceo to get a better sense how dick sporting goods pulled this off. mr. stack, ms. hobar, welcome to "mad money." >> thanks, jim nice to be here. >> thank you all right. let's go there because i think a lot of people know that i greatly admire what you've done. you've really outperformed everybody and companies have been wiped out is ed done will we see ed again or will ed play a meaningful role >> jim, i'm still going to be involved in the company. this company has been a big part
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of my life i love it, and i'm going to continue in the executive chairman role and will continue to be in the chief merchant role and product is my first love i mean, i love the shoes, the equipment, the apparel, all of this so i'm still going to be involved in helping lauren along the way and i am happy to still be here. i love this place. >> i'm so glad to say that i know as someone that had a daughter in sports, we need to look to dicks for the local stuff and knew you cared about the quality, which meant a great deal lauren, you are doing things technologically that will keep you ahead of everyone else can you talk about technology that you've done you had a strong e commerce always but i see curb side pickup, the other guys don't have it. you do talk about innovation. >> we've been investing in technology for many, many years now and about four years ago, we
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took the whole e commerce platform in house, which really got us ready for the moment when in mid march this year the store started to close and our technology team was able to spin up this curb side pickup in literally two days, 48 hours it was unbelievable. now, the stores have become the hub of this ecosystem in every way. i mean, we are shipping 70% of our e commerce business through the stores through the front door with buy online pick up or the backdoor with shipping so it's really just catapulted our digital business but in tandem with the stores, which is a great, great partnership. >> let me take a step further. people may say what do you need 732 stores for do we need bigger stores a lot of people are shrinking away from brick and what your de
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the stores >> you're going to see us leaning into stores and experiences in the stores and building two ecosystems of the future this year, which is an experiment store and we really believe in the power of omni channel and people want to have product within a few miles of their home they can pick up within minutes or deliver quickly the next day so we are all in and our stores have been incredible, incredible asset for decades but this year proved to the power of stores in every way through the pandemic. >> and prove your execution makes it that way. ed, i've known you for so long i felt dicks was a family business which is why it's superior. >> jim, the thing we've always tried to do is innovate.
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some work, some don't. one that works well is curb side pickup couple of other things we've been able to do is attract great talent, great people who have the same values as our company does we've really focused on partnerships with our vendors and we look at them as important to be a win, win we look at the vendor partners whether nike or callaway or other brands we do business with and what's important to them and what's important to us and how can we come to market together it's really been that partnership with the brands and then first and foremost, we've always put the athletes that we've served in the teammates that we work with as the center of everything we do and it's just been a great formula and we've been fortunate to survive and thrive when some others haven't. >> well, it how we know to go to dicks when we need sporting goods. one thing i'm excited about you doing. you're going to continue with
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ed's very purpose driven company. i believe the business is the force, greatest force of social change ed has done be things on many issues but primary to equalize a system that made it so minorities have been disenfranchised to get out of difficult areas which is through sports i understand and i should tell you i was not aware of what i regard as being the sexist discrimination how you're not going to let that happen in addition to helping out minorities in a time lapse, talk about focussed initiatives that is important for half our viewers out there. >> we have with the foundation created sports matter program. and last week what you may have heard is we keep talking national girls and women's sports day that is happening this week and we donated 100,000 sports bras to kids. we have multiple millions of kids that are, hundreds of thousands of kids who are playing sports for the u.s.
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soccer foundation, girls, usa softball is a partner of yoours but one of the things that is most exciting, ed and i for many years have been working with brand partners to dial up access for girls' sports. there is a huge gap in the marketplace in terms of product that's really meant for girls for form and body. last year we were able to work with under armor and created the first major shoe that was really made, designed for a girl's foot, a female last and we hope that's the start of something good another quick thing, jim, we've created a panel we called the girl's power panel to fight that fight for things that work for them and profemale. >> i love what you're doing. these are reasons i believe in business and why i believe in dicks. i believe in change and change is positive and a lot of times it's done by our great business
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leaders. i want to thank ed stack and lauren, star, dicks sporting goods president and ceo. so great to talk to both of you. i hope i see you many more times. >> thanks, appreciate it. >> thank you "mad money" is back after the break. >> announcer: coming up, it's otis, he loves us. the elevator business has ups and downs but can otis worldwide take investors to new heights? cramer has the top operator when "mad money" returns. your daily dashboard from fidelity -- a visual snapshot of your investments, key portfolio events, all in one place. because when it's decision time, you need decision tech.
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squeezed stocks for one minute, please this is the height of earnings season and if you watch game stop, you're missing on incredible stories look at otis worldwide the pure play company sprung you have last spring. this morning delivered earnings beat off of a 59 cent basis. higher than expected sales while a strong forecast for 2021 overlooked, come on. what happens is the stock barely budges even though the numbers are far from it. the analysts were. wall street is worried about non-residential construction otis gets the bulk of the business from servicing elevators and have a good product plan it's been consistent with judy marks and just adele delight to learn more about the quarter and the broader economy. welcome back to "mad money." >> thanks, jim, great to see you again. thanks for having me back. >> well, judy, i got to tell you
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there are so many ways to approach this but the thing i'm proud of is we talked about the need to breakup and how right it was. i am struck after eight years of no margin improvement know margin improvement means you're taking share after eight years you had a remarkable increase in margins and i think in many ways, that could be a back way to tell the story of how we'll you're doing. >> yeah, jim, it was a great strong quarter for us. margin expansion of 50 basis points in the quarter, 70 basis points for the year, every quarter putting margin expansion on the board and we couldn't have done this without our 69,000 colleagues i'm proud of providing essential services you know, top line for the fourth quarter was the first time we had organic growth this year it was good to see that at 1.3% and put $3.5 billion of revenue on the board and our adjusted
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operating profit was up 36 million, 8% at actual currency it drove eps to 66 cents, again, a really nice growth story it's what we said we were going to do at investor day and it really led us to a strong full year our first year of independence, albeit we had covid but boy, did this team respond. so top line even though organic sales were down 2.1% for the year, were able to expand margins 70 basis points. we were able to grow adjusted operating profit $47 million constant currency and put $2.52 up for the full year for eps, 28 cents ahead of last year what was really fantastic in this resilient business model was our working capital and cash generation for the year $1.3 billion in free cash flow, which 143% cash flow to net income and that let us do discipline cash
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allocation we were able in the last three quarters to drive dividends to $260 million we did some very focused mna and we were able to delever. we paid back $350 million of debt last year and already in january, we paid down our remaining $150 million so now we're getting ready for share buybacks. >> that's incredible not a lot of industrials that we are that are able to do share buybacks i want to go back to one thing you said about investors day you did do a good job but looking for flat china the china numbers are staggering and i think people have to recognize as much as north america may not be what you like, china had to be well in access of what you were looking for. >> we were expecting a flattish market in china. mid egypquipment was up single digits china will be up again this year it more than 50% of the global
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segment market and even as proud as i am of my new equipment business in china, which is strong, our service business grew there and we grew the service portfolio 8% for the year that's where the growth will continue and we put strategies in place it was a foundational investment we made since we spawned and added 850 agents and distributors to expand sales coverage and pursued key accounts that are stickier for us and give us the ability to retain the service business. service is our core and anything we can do to drive our portfolio larger, which globally finished up 2% last year to 2.1 million units, our next closest competitor is 1.6 million units. density and scale matter in this business, jim. >> one last thing i think people will be really kind of shocked to hear. you raised issues about elevator safety and how outdoor dining is
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more dangerous than a short ride i know center cities in america are challenged for more skyscrapers but if that were, do you think people recognize the skyscraper elevator is not the issue? >> it's not the issue. we were happy to have a database expert in purdue university air flow and what we've seen and most people don't know, jim, the elevator is not a closed box by design and more importantly by code. there is an amazing amount of air ventilation in every elevator in the world. think about it you don't want to get trapped in an elevator but in that emergency situation, there has to be air flow so we've designed elevators that way for years, and as long as people follow other guidance, they can bring the risk down we still want people to wear masks just like everywhere else. wear them in your elevators and truly, the analysis and data and
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science show that you are less potential for risk than outdoor dining, much closer to grocery shopping. >> well, there you go. look, i want to thank you judy marks. unbelievable quarter on so many different fronts against the doubts people worry about supply chain. you got owner control and start to think about buybacks, i don't have a lot of companies doing that judy marks, ceo of otis. thank you for coming on "mad money." >> jim, thanks great to see you back, as well, this week. >> thank you we'll be back in a moment. >> announcer: coming up. >> it is time. >> announcer: cramer takes your calls. rapid fire the lightning round is next. i made a business out of my passion.
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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.
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it is time, it is time for the lightning round. rapid fire, buy, buy, buy or sell, sell, sell remember, just to be clear, the callers ahead of time, my staff will play this sound and then the lightning round is o over. >> boo-yah, jim. hey, i'm calling about a stock but i think it's a legitimate company. a little bit of a run and sold blackberry, jim. should i take my profits or
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drive it out >> my viewers are smart. there was a little bit of hype and too much hype. that said it is inexpensive stock but that's not enough to make me want to pull the trigger. i say now i'm going to stanley in north carolina, stanley >> caller: jimmy chill, what's happening? >> i'm a wild and crazy guy. what is going on >> caller: i want to thank you for all you do for the investment community. >> thank you, thank you. >> caller: my question is about sales. i know you were a little upset when jm margin downgraded and i want to get your advice on my position on fuel cell. hold >> it's not as good as plug because andy marsh raised a lot of money and buying below $31 billion company but what matters
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is they have enough money to get it to where hydrogen fuel can be a legitimate fuel and nobody else really does i'm going to abigail in wisconsin. abigail? >> hey, jim, big boo-yah to ya first time -- >> thank you very much >> caller: my husband, my 2-year-old son and i watch you every night. thanks for all you do. >> well, all i care about is trying to make it so people understand okay go ahead >> caller: thanks. this company has been under the radar even though they just went public kathy woods has been adding this consistently to her etf looking at this for long term growth potential in 2021 and beyond taking into consideration low interest rates, the housing market, the company's great management team, their future vision on expanding services offered and adding additional markets. i would love if you could do an exclusive of them on the future.
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what do you think about open door technology? >> impressed i totally agree with you about where we are in terms of interest rates cycle i wish zillow could get more i'm not going against it i'm with you david out in california, dave? >> caller: hey, boo-yah, jim. >> boo-yah >> caller: jim, with all this talk about rebuilding the grid and everything, you've had a guest on frequently that i've been following for a long time i can't think of a better play for this decade than american super conductor, what do you think? >> you know, it's a spec and i have room for specs. sky works is terrific. more 5 g plays american semi conductor will work if this continued movement toward speculation stays strong and that's what you're betting on and that's what you have to remember and that, ladies and gentlemen, is the conclusion of
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unglued from the fundamentals like that never happened before and think of the poor hedge funds you got caught on the wrong side of the train. i'm really worried but i'm not here to run interference with professional money managers they can protect themselves and gave up on trying to make the markets less crazy i want to focus on the crux of the issue. let's say you participate in th wild ride. what the heck do you do now? with the stock pulling back hard today, it's important to know when to take yes for an answer the wall street crew had a simple thesis here and there is other people that didn't share but in general, it was they sold it short sellers sold more shares in game stop than existed and figured that the stock would sore higher if enough people bought it to trigger a short squeeze. sure enough, they were right that was beautiful the trade worked if you bought game stock a week ago you got an enormous gain on paper but if you actually want
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to keep those winnings, you need to declare victory and you need to ring the register, which is the sound that a lot of people don't know that's what it sounds like and you got to do it on part of your position don't worry, you're selling a spiraling down you're just laughing your way to the bank that's rule number one the games don't count until you sell something many of you don't want to hear that there is this idea it's a crusade and against the fact of short sellers. anyone that sells is betraying the cause. the thing is the editors are, well, they are beaten the fact short sellers. what's the point worries me here is a bunch of people bought game stop in the past week and now being told to hold the line. what is this "brave heart" if you hold the line, you'll hold the bag when everyone else does ring the register it's bullish
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you got to ring the register because i can't dream up a scenario where this ends well. a monthago this was $17 stock and the founder and ceo of chew w -- chewy went up 13%. maybe they can turn things around for game stop if the company sells stock to raise much needed capital and it does need the capital game stock is in long term secular decline. it's tough to sell physical video games when people increasingly download them off the internet that's a fact. the new playstation xbox has came out and the last versions in 2013 hard to get. when the last generation launched game stop peaked in the 50s. the business was much stronger back then so is the balance sheet. could game stop do something dramatic, how about a $50 -- how about $70? it's possible to sell stock here and get in a better line of business maybe a game developer and maybe
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an e sports play and hardware maker or try to become a better retailer and fix up the balance sheet and get out of bad leases and turn the stores into fulfillment center or hey, e sports has gotten huge turn the stores into arcades and try to find a new niche selling used electronics that's mostly handled by auction sites like ebay. i'm sure ryan has thought about these but at best, these plans take it back to 50 or 60 i can't get further to 225 i just can't there is a reason this stock has seen so much insider selling i wonder if ryan would be a seller himself if he hadn't just joined the board i'm begging you please don't be greedy the short squeeze trade is over and without another short squeeze, maybe someone will try to manufacture but the short squeeze position is down it's hard to pay more than $60 for game stock after feeling incredibly bullish 6 $60 is more than any of the
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veteran players know is possible because that's where the stock was before the digital downloads wiped out the business game stock is a dramatic story very emotional but it won't be a profitable one until you ring the register i like to say there is always a bull market somewhere and i promise to find it here for you on "mad money. i'm jim cramer and i'll see you tomorrow the news with news with shepard starts now elon musk taking tourists to space. tonight, inside the new mission. i'm shepard smith. this is the news on cnbc >> the risk is not that it's too big. the risk is that it is too small. >> the president and the gop meeting at the white house at stake the future of pandemic relief. how much or how little may be coming why your way. more than 100 million americans are bracing. >> a massive weather system hits the nation roads washed out cities buried. the worst storm in fiv
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